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“Labour-intensive technique is more applicable for India.” Explain.

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In India, land and capital is scarce whereas labour is abundant.

  • The population grows at a fast rate and hence labour supply keeps on increasing. On the other hand the employment opportunities do not grow at the same rate. This keeps a large number of labour unemployed.
  • In such a condition India should adopt labour intensive production techniques to provide employment at a large scale.
  • When Bhagwati Committee and Venkataraman Committee were formed to study unemployment they also recommended using less of mechanization and using labour intensive techniques.
  • Industries such as consumer goods, small and medium scale industries and business and trade, animal husbandry, dairy development, etc. have huge potential to employ a large of labourers as contrast to large mechanized industries.
  • Hence, labour intensive technique is more applicable for India.

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