Question
Small scale industries are very important for the economy. Explain.

Answer

  • Small scale industries use labour intensive techniques and need less capital as compared to large scale industries. Hence, people having low capital can be self-employed. Also, they then give employment to others.
  • Small scale industries contribute significantly in India’s total production that too using very less capital.
  • These industries also export a very large quantity of goods thus increasing foreign exchange for the country.
  • These industries can be set-up at any part of the nation. The advantage is they do not remain concentrated to large cities. This results in balanced regional development.
  • Owing to several advantages, small scale industries play a very important role for the economy.

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