What are the problems of small scale industries in India?

Solution

Small scale industries in India are facing the following problems:

(i) Shortage of finance : The small scale industries do not have proper sources of finance. These units do not have much dealing with commercial banks. This has affected adversely their production and market activities.

(ii) Problem of the techniques of production : The methods and techniques of production used by small scale industrial units are old. The machinery, tools and implements used by them are traditional and outdated. The workers are poor and illiterate and cannot afford improved techniques of production.

(iii) Inadequate marketing facilities : The small producer also faces the problems at the time of marketing his produce as there are inadequate marketing facilities for the products. It results in low price and wastage of time. They have weak barganing power.

(iv) Competition from large scale industries : The large scale industries are organised on modern lines and use latest technology. The small scale industries cannot stand up against large scale industries.

(v) Difficulties of raw material : These industries have to purchase the raw material at higher price which increases the cost of production.

(vi) Managerial difficulties : These industries are not organised. They do not have any research and training programme.

(vii) Problem of taxation : The small scale industries have to face the problem of local and other taxes. These taxes increase the cost of production.

Some More Questions From Indian Economy 1950-1990 Chapter

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Indian Economy 1950-1990

What are the problems of small scale industries in India?

Some More Questions From Indian Economy 1950-1990 Chapter

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Why is agriculture called the backbone of Indian Economy?

What is meant by agriculture?

What are the main causes of backwardness of Indian agriculture?

What do you mean by land reforms?

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