Causes of Industrial Backwardness :-Following are the main causes of industrial backwardness or the problems of industrial sector :
1. British Rules Policy :-
British rulers utilized the natural resources of this area for their own economic development, They did not established the industries in this area. This policy affected badly. They used the raw material of this area in their own countries, which caused a huge loss to us.
2. Lack of Mineral Resources :-
There is a lack of mineral resources like oil and coal which are necessary for industrial development. So the rate of industrial development is very slow in India and Pakistan because we are facing the problem of mineral shortage.
3. Lack of Capital :-
In subcontinental rate of saving is low due to low per capita income. Due to low savings rate of investment is very low. It is the main obstacle for industrialization.
4. Lack of Credit Facilities :-
There is a lack of financial institutions which may provide credit to the industries according to the needs. Unluckily finance companies failed and they created new problems.
5. Lack of Foreign Exchange :-
There is a lack of foreign exchange which is the most important factor for the import of modern technology for industrial sector. It is the main problem for industrial development that we have to pay the debts and also to import the technology.
6. Lack of Technical Experts :-
There is a lack of skilled persons in India and Pakistan. It is the major drawback for the industries. A heavy amount is paid to the foreign experts. Our skilled persons are working abroad for higher return.
7. Lack of Transport Facility :-
In subcontinental transport system is under developed. The available facilities are costly and insufficient. Roads and rail transport conditions is miserable.
8. Energy Crises :-
The sources of power. like hydel, thermal and atomic energy are limited in the country. There is shortage of electricity for industries.
9. Increase in Taxes :-
The heavy duties have been imposed on the industrial production. Heavy import and export duties have also discouraged the industrial production. Various types of taxes are imposed like income tax etc.
10. Lack of Industrial Research :-
Due to lack of industrial research, improvement in the production techniques have not been made which has increased the cost of production and reduced the demand of production.
11. Limited Market :-
In subcontinental the purchasing power of the people is very low. While the cost of production is very high. It has limited our domestic market. On other hand quality of our product is very poor and we can not compete the international market. So domestic and international both markets are limited.
12. Attitude of the Labour :-
In subcontinental the quality of labour is poor and the spirit of work is absent. The political parties also use them for their own benefits. It has discouraged the industrial production.
13. Changes in the Annual Budget :-
Our government generally offers the mini budgets time to time which disturbs the industrial production. People fear to start a new project.
14. Defective Planning :-
There is a lack of effective planning in industrial sector. There is no coordination among the different wings of industrial sector. It increases the cost of production.
3 comments:
i stongly oppose your point no. 12 "attitude of labour" you are insulting the labour socity....and its not political parties are misusing but its corporate world is misusing their labour...
Until India produces industrial products,India can not become a developed nation.Of course,huge investment would be needed.,
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