Industrial Development in Developing Countries
In developed countries, there are several favorable conditions for Industrial Development, but in poor and developing countries there are several problems in its development. Even after some significant developments in the field of Industrialization in India, the country is still an agricultural country and 38% of the national income and 70% of the population depends on the land.
Suppression of Industrial Disputes
It is completely true that satisfied labor is a valuable wealth of an organization. A satisfactory and efficient system of arbitration of Industrial disputes is very necessary. Through the Industrial Disputes Act of, 1947 efforts are made to establish Industrial peace, but it is insufficient. Efforts should be made to popularize the Group Discussion method. The policy of worker participation in management should be strictly followed. The reasons for the disputes should be analyzed impartially and methods should be developed accordingly for their solution.
Development of Research and Technology
In developed countries, continuous research is done on industrial problems and production processes, etc. New avenues of development are explored through research on scientific and technical subjects. Now in India as well, work has been started on this subject.
Increase in Power Resources
India has insufficient power resources. Thus, the expansion of power resources and the establishment of new units should be done. The government should pay attention to this site to encourage industrial development. Power cuts have to be done from time to time which adversely affects production. Thus, the solution to this problem is necessary.
Proper Use of Natural Resources
India has sufficient natural resources but due to their improper use industrial development has not been done. Thus, for industrial development proper use of natural resources is necessary. Those areas should be explored where possibilities of industrial development are more.
Establishment of Specialized Institutions
Much importance has been paid to the establishment of specialized organizations and institutions to provide steadiness to industrial development. Various institutions are established in several states for the development of special Industries, but various other organizations are required in relation to this.
Efficient System of Industrial Management
Educated and skilled managers are required to run the industrial organizations properly, who can understand the complicated problems of industrialization and solve them quickly.
Encourage Capital Formation
For industrial development, funds are very necessary, though India completely lacks it. Thus, savings should be encouraged more for capital formation.
Encouragement to Private Sector
The government should provide more facilities to the private sector so that the entrepreneurs come forward to invest more and new industries can be established, and old industries are modernized.
Earnings in Foreign Exchange
India lacks funds completely. Thus, to establish Industries in India, foreign investors should be attracted. For this, the government should provide them with better facilities. In this way, new industries would be established, unemployment would be eliminated, and foreign exchange is earned.
Rational Taxation Policy
A proper taxation policy also has a key place in industrial development. Inappropriate taxation causes problems for industrial organizations, in their development. It is necessary that the needed areas that have a liberal taxation policy to motivate them.