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Indian Economy

Notes Agri-export zones (AEZs) for various products should be set up expeditiously. These will accelerate
provision of all export incentives to enhance exports, value addition centralised modern facilities,
better productivity and higher incomes to the farming sector. The Government of India should
also establish special economic zone (SEZ), for connection with the global market with emphasis
on the export of industrial products.
You must understand that it is vital to establish industries in the large and medium (L & M)
sector in the state for their balanced growth. Suitable facilities and incentives should be offered
to multinational companies (MNCs) to establish manufacturing facilities in the state, particularly
in agro-food processing, light engineering and electronic hardware industries. NRIs should be
motivated to invest in the state.
An appropriate institutional mechanism, including representatives of the Reserve Bank of India,
banks, financial institutions, industry and state government, with sufficient powers and the
resources, should be developed, to offer requisite financial support to small-scale units enduring
from sickness or showing indications of sickness. A system should be evolved for timely detection
of sickness at the initial phases for speedier required action.
The tax structure should be simplified and rationalised, compatible with that of the adjoining
states. Easy and timely credit at interest rate equal to Prime Lending Rate (PLR) should be
available to the SSI sector.

Task Research on the recent trends and technologies of Punjab in small scale industries.

Self Assessment

Fill in the blanks:
9. …………………… of existing research and development centres in the state has been
suggested so as to provide the latest design and testing techniques to the industry.
10. The industrial sector has shown impressive growth during 1980 to 1997, covering the
Sixth, Seventh and Eighth Five Year Plans, but declined in 1997 to ……………………, the
first three years of Ninth Plan.

11. The state must follow a ……………………-policy to promote partnership with industry
for both utilizing existing infrastructure and establishing badly required new facilities.
12. …………………… for different products should be set up expeditiously.

13. It is essential to set up industries in the large and medium (L & M) sector in the state for
their …………………… growth.
14. A system should be evolved for timely detection of …………………… at the initial stages
for speedier necessary action.
15. Regional …………………… in industrialization persist.

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