Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsINDUSTRIAL SECTOR3 Marks
Question
How do small scale industries result in high rate of development?
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Answer
High rate of development:
Large scale industries are few. Also they invest very huge capital and so they need high profits to run their expenses.
These industries develop the economy at an irregular rate because they cannot change their products and production methods as per the changes of market.
Contrast to this, small scale industries are set up with small amount of capital. So, several producers are producing a given product. This increases the volume of production and income in the economy.
Additionally, small scale industries are more capable to bring change in products and production techniques as per market changes because they do not need very huge capital or long term investment.
Owing to these benefits small scale industries give very high rate of development highly needed to develop nation.
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