Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsIndian Economy 1950-19903 Marks
Question
Give three characteristics of SSIs.
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Answer
The three typical characteristics of SSIs are:
Labour intensive: SSIs are labour intensive in character, i.e. they require more units of labour and are best suited for solving the problem of unemployment.
Less capital intensive: SSIs are less capital intensive, i.e. they require relatively smaller amount of capital to produce a commodity. In a country like India where capital is scarce, SSI is best suited to bring about industrial development.
SSIs show locational flexibility: SSIs can be established in remote areas also, because their need for various resources is limited. Therefore, they contribute to growth across different regions of the country.
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