HPAS/Allied Mains 2022 Answer Writing Challenge Day 184: Model Answer

QUESTION: What are the Challenges Associated with the Industrial Sector in India? (8 marks/ 120 words)

Answer:

India’s vision of a USD 5 Trillion Economy will significantly depend on the growth of the Industrial sector. Though there is a vast potential for the growth of Industrial Sector in India but Still it has not been able to translate its growth potential to the desired output, due to various challenges associated with the Industrial Sector in India.

1.  Poor Capital Formation:

Poor rate of capital formation is considered as one of the major constraints which has been responsible for slow rate of industrial growth in India.

2. Lack of Infrastructural Facilities:

India is still backward in respect of its infrastructural facilities and it is an important impediment towards the industrialization of the country. Thus, in the absence of proper transportation (rail and road) and communication facilities in many parts of the country, industrial development could not be attained in those regions in-spite of having huge development potentialities in those areas.

3. Poor Performance of the Agricultural Sector:

Industrial development in India is very dependent on the performance of the agricultural sector. Thus, the poor performance of the agricultural sector resulting from natural factors is also another important factor responsible for industrial stagnation in the country.

Agriculture provides not only raw materials and foodstuffs hut also generates demand for the goods produced by the industrial sector. Thus, this poor performance of the agriculture retards the development of industries in India.

4. Dearth of Skilled and Efficient Personnel:

The country has been facing the problem of dearth of technical and efficient personnel required for the industrial development of the country. In the absence of properly trained and skilled personnel, it has become very difficult to handle such highly sophisticated computerized machineries necessary for industrial development of the country.

Moreover, inefficiency and insincerity of those personnel engaged in industrial sector has been resulting in huge wastage of resources of the industrial sector. Moreover, social factors like immobility of labour and capital and lack of proper initiative and enterprises on the part of people of India are also highly responsible for this slow pace of industrialisation in the country.

5. Concentration of Wealth:

The pattern of industrialisation in the country has been resulting in concentration of economic power in the hands of few large industrial houses and thus flailed to achieve the objective of planning in reducing concentration of wealth and economic power.

6. Poor Performance of the Public Sector:

In-spite of attaining a substantial expansion during the planning period, the performance of public sector enterprises remained all along very poor. A good number of such enterprises are incurring huge losses regularly due to its faulty pricing policy and lack of proper management necessitating huge budgetary provision every year. Thus, the public sector investment failed to generate required surpluses necessary for further investment in industrial sector of the country.

7. Regional Imbalances:

Concentration of industrial development into some few states has raised another problem of imbalances in industrial development of the country. Western region comprising Maharashtra and Gujarat attained maximum industrial development whereas the plight, of the poor states are continuously being neglected in the process of industrialisation of the country in-spite of having a huge development potential of their own.