Industrialization In Developing Countries
In developed countries there are several favorable conditions for industrialization, 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 agricultural country and 38% of the national income and 70% of the population depends on the land.
Causes Of Industrial Backwardness Of India
Scarcity of Labor
Even when the density of population is high in India, still in some areas like- West Bengal, Assam etc. there is scarcity of labor for agricultural activities. Apart from this, due to lack of organised labor markets in the country the supply of labor is completely in the hands of contractors and they intentionally create scarcity of labor in factories. Moreover, due to lack of transportation, long distances and also for other reasons the laborers travel less from one place to another. In this way, even after the abundance of labor their supply in factories is less.
Lack of Infrastructure Facilities
In a developing country like- India there is lack of infrastructure facilities. There is also lack of energy resources for the development and proper running of industries. We are fully aware of the usual situations of closure of industrial units due to shortage of power supply. Also due to lack of transportation means, hurdles arise in the way of industrial development.
Lack of Capital
For the industrial development a country requires huge sources of funds. In poor countries the per ca-pita income is not even sufficient to fulfill the basic requirements of people. For establishment of Multi-national industries, huge quantities of funds are required. To make available such large quantity of capital resources does not become possible for a developing country, like India.
For industrial development, industrial peace is very necessary. But due to lack of proper labor policy and mutual harmony an environment of conflict can be seen. We are very well aware of the conditions of strikes, lock outs, ‘Gherao’, destruction etc. The route to industrial development is blocked by industrial conflicts.
Science and Technology
The pace of scientific and technological development in the developing countries has been slow by which the industrialization could not progress. Without higher level science and technology and resources it becomes difficult to succeed in industrialization. This reason is more responsible for creating hurdles in way to industrialization.
Lack of Efficient Managerial System
Without an efficient managerial system the running of industrial units becomes impossible. The industrial system of today has become very complicated and it can be run only with the help of an efficient managerial system. But, this kind of managerial system seems deficient.
Lack of an Incentive Oriented Long Term Industrial Policy
For rapid development of industries, a suitable long term industrial policy is required. In India deficiency of such a policy is felt through which industrialization could have been made, progressive. In such a situation hurdles in industrialization are natural.
Lack of Specialized Institutions
It is necessary for the development of industries that specialized institutions be established for solving problems and difficulties related to industrialization. In India, there has been a lack of such institutions which provide technical counselling in the preparation of industrial plans, test its efficiency and provide financial and technical resources for their establishment.
Unfavorable Social Environment
One of the reasons of Industrial backwardness in India is adverse social environment. The systems of cast-ism, joint family, religions superstitions etc. have created such a social environment which has always been a hurdle in the industrial development of the country. As per the rule of inheritance the land is divided into small portions which restrict capital formation. Due to lack of capital industrial development becomes impossible.
Policy of Imperial Preference
The imperial preference policy was also a hurdle in the development of Indian industries under which goods were imported without import tax under the British rule and the Indians preferred imported goods instead of the home production, and they were cheaper also.
Policies During the British Rule
During the British rule the cottage and small industries directly and indirectly were affected adversely. The existing small and cottage industries in the country were lost due to the administrative policies. Foreign rule continued in the country for a long time whose main aim was export of raw material and import of finished goods in the country.
Lack of Efficient Technical Experts
India is technically backward and lacks skilled experts for machineries because there are no appropriate training facilities for technicians. To establish new industries, technical experts have to be called from other countries which is very expensive. Thus, this is also a reason for Industrial backwardness of India.