Question

Explain any three problems faced by small-scale industries in India. Suggest one measure each to solve these problems.

Answer 1

Following are the problems faced by the Small Scale Industries in India:-

1. Non-availability of raw materials: Small scale industries suffer from the problem of non-availability of raw materials, important components and equipment. These inputs are allocated in a very residual amount in this sector. Government should provide raw materials and other essential components at low cost and in proper amount.
2. Problem of finance: The small scale industries are very weak in matter of finance. They are often depended money lenders who charge very high rates of interest. They should get loan on very liberal terms. The granting of loans is not enough, but that is important.
3. Low technical skill: There is scarcity of technical skill and managerial ability in this sector. The organizers and workers of the small scale industries do not have proper knowledge of the modern technology and the marketing conditions. It is essential that outdated methods of production and equipment should be replaced as early as possible by modern techniques and machinery. Workers should be provided with proper technical training.