Question
Enumerate the problems faced by Indian industries in post-independence time.

Answer

The following problems are faced by Indian industries which ultimately affect industrial growth:
  1. Underutilisation of capacity: A large number of our industries suffer from the problem of underutilisation. The extent of underutilisation is between 40 and 50%.
  2. Absence of world class infrastructure: The inadequate transport facilities, frequent power failures and pathetic condition affected the growth of industry.
  3. High cost industrial economy: The prices of manufactured goods and services in India are generally much higher than international prices.
  4. Inadequate employment generation: The process of industrialisation has failed to solve the problem of unemployment in India. Factory employment absorbed only 2% of the workforce in 1980.
  5. Poor performance of public sector: A large number of public sector units are running in losses.
  6. Sectoral imbalances: In India, industrial development suffers due to inadequate support from agricultural sector and poor infrastructural facilities.
  7. Regional imbalances: Industrial development continues to be imbalanced. Tamil Nadu, Maharashtra, Andhra Pradesh and Gujarat account for 50% of total factories and 50% of productive capital. The rest of the country accounts for the balance 50%.

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