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Question

How has government followed a preferential treatment to small scale and cottage industries?

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Solution

The following are the measures taken by the government:
  • Excess cess has been levied on large scale industries and it is utilised for the promotion and development of small scale industries.
  • Production of some goods is allocated only to small scale industries.
  • Small scale industries are included in priority sector for the purpose of the supply of power, raw materials, finance etc.

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