Small Scale Industries in India

Industrialization has taken place in many parts of the world as a root to overcome poverty and unemployment. In this consideration, the important immediate issue is the effectiveness of industrialization programmes as a means towards accelerating economic development, since the industrial growth had not taken place equally. There is a vast disparity of industrial growth and distribution of industrial output, which is even larger than the income inequality. Equally, there are several dimensions of industrial underdevelopment that effect differently in many developing countries where the structure of production has not been changed in terms of occupational structure of the labour. On the other hand, markets available for the developing countries and structures of the world trade are different in modern times. Therefore, the existing obstacles of industrialization suggest future range of questions: are the industrial resources and the factors of production available to developing countries appropriate for the policies of industrialization, which appear to be desirable? However, present industrial technologies available in developing countries are advanced as compared to the technologies available in the 19th century. An issue that received more attention in industrial development is the question of factor proportions in industry. The production structure and factor mobility is limited in developing countries. Even though alternative means of opportunities and methods of production are large for small-scale industries, but real factor utilization rate is limited and hence it is important to assess the productive structure of such industries.