Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsINDUSTRIAL SECTOR3 Marks
Question
Explain – decentralization as a sure benefit of SSIs.
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Answer
Decentralization:
Large scale industries need very large amount of capital. So, they can be started only by very few people who are extremely rich. This results in centralization of capital and wealth.
In case of small scale industries very less amount of capital is needed and so it can be started by small producers.
Moreover, small scale industries can also make use of such resources and equipment which are otherwise dormant, unutilized and scattered. As a result, resources of every nook and corner are put into use and hence overall production volume increases.
When such resources are used for production, they generate employment and income for people who were otherwise deprived.
In all these senses we can say that small scale truly does the task of decentralization.
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