Undoubtedly, small scale industries had benefit Punjab but there are some problems associated with small scale industries.
Among the northern states of India namely Haryana, Himachal Pradesh, Jammu Kashmir, Rajasthan etc. Punjab occupied the first place in respect of development of small industries. In this article we will discuss the causes of the growth of small-scale industries and their importance in Punjab .
Causes and Importance of Small Scale Industries
- Lack of large scale industries: These have developed very little in Punjab. It is because Punjab is situated on the Indo-Pakistan border. The central government has not developed any large scale industries.
- Skilled and hardworking labourers: The workers of Punjab are skilled and hardworking. They have set up small industries on their own. These industries get financial assistance from the banks and various incentives from the government. Consequently, small industries have developed rapidly.
- Development of Agriculture: Due to commercialisation of agriculture , prospects for the development of agro based industries have multiplied. The income of the people has increased considerably.
- Policy of government: As a result of the government’s policy small industries have developed rapidly in Punjab and income of the government has also risen substantially.
Problems of Small Scale Industries
Undoubtedly, small scale industries had benefit Punjab but there are some problems associated with small scale industries that are as follows:
- Problems of Raw material: A large number of Punjab’s industries depend on other states for raw materials. Small entrepreneurs do not have the capacity to stock raw material, so they cannot keep their production at a stable level.
- High cost of production: Industries of Punjab are high cost as the raw materials are costly and the method is traditional.
- Lack of standardization: there is no standardization of finished products of these industries. Due to lack of standardisation, good artisans do not get proper prices of their quality products.
