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Indian Economy

Notes Ideally, the automobile sector, after this recommendation, would rather be junked. In the
event Cabinet seconds the proposal, experts believe the best way forward is to go in for
duty gradation where small cars are imposed an additional 8 per cent while other diesels
vehicles 12-16 per cent levy.
Question

In the light of above facts, discuss the future of small diesel cars specifically Nano.
Source: Dr Mittal, Vivek. Business Environment.. Excel Books Publications, New Delhi.

13.4 Summary

Punjab is also on its way to rapid industrialisation through coordinated development of
small, medium and large scale industries.

Punjab is an agricultural state but it has made honest efforts to provide impetus to the
industrial sector especially small scale industrial sector.

The SSI sector, the backbone of the industrial economy in the state, is passing through a
critical phase, mainly on account of such factors as low level of technology resulting in
low industrial productivity and poor quality of products leading to competitive
disadvantage both in domestic and global markets.
The small-scale sector has to acquire the capability to produce quality products, to compete
in the international market. It has to transform itself from a protective to a competitive
environment.

For the survival of industry and to sustain the tempo of growth, the broad measures are
suggested by Punjab government.
The state must follow a pro-active policy to promote partnership with industry for both
utilizing existing infrastructure and establishing badly required new facilities.

13.5 Keywords

Cluster: A group of similar objects growing closely together.
Hosiery: Hosiery, also referred to as legwear, describes garments worn directly on the feet and
legs.
Industrial Economy: It concerns those activities combining factors of production (facilities,
supplies, work, knowledge) to produce material goods intended for the market.
Small Scale Industry: These are businesses that require few people to run, the number of which
will depend on different jurisdictions.

Textile Industry: The textile industry or apparel industry is primarily concerned with the
production of yarn, and cloth and the subsequent design or manufacture of clothing and their
distribution.

13.6 Review Questions

1. Describe the role of small-scale industries in Punjab.
2. What are the problems and constraints faced by small-scale industries of Punjab?
3. Discuss the future prospects of small-scale industries.

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