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Why and how should government encourage developing cottage and small scale industries as a means to raise employment

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Development of cottage and small scale industries:

Cottage and small scale sector have capacity to create employment that too with minimal skills and low investment.

Solution:

  • Enough encouragement and support should be given to develop cottage and small scale industries.
  • At a given amount of capital, a small scale industry can create 7.5 times more employment than a big industry.
  • India is a capital scarce and labour intense country. So, development of cottage and small scale industries should be accepted as a best alternative and special initiative should be taken for its development.
  • Hence, while framing the industrial policies, these industries are given good importance and various measures are taken for their development.
  • Steps like reserving production of certain goods for small scale industries, providing monetary, technical and managerial assistance by the state are few of the steps taken to develop and encourage these industries.

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