What Problems faced by the industrial development in India?[In simple language]2020

13 common problem faced by the industrial development in India:

Problem of raw material:

·       Difficult to find good quality raw material at fair price

·       Some industries import raw material, increases dependency in foreign countries

·        Also foreign exchange is required for import

Shortage of power resources:

·       Difficulty of power resources at fair price

·       common power resources: electricity, coal and oil

·       more preference is given to agriculture then industries

·       coal and oil leads to rise in cost of production, then electricity

Insufficient capital:

·       capital play very important role in industrial development

·       volume of capital depends on saving and investment

·       banks not provide required capital at fair interest rate

Insufficient economic infrastructure:

·       means of transport and communication is not far developed

Problem of old plant and machinery:

·       industrial development required modern technology

·       modern technology means low cost of production and high quality

·       old machinery and technology cant helps in compete with foreign competition

Industrial sickness:

·       Industrial sickness means ,situation to repay loans, funds, liability and interest

·       Sometimes they even fails to give wage and salary of labours and employees

• Regional inequality: Some states are industrially developed or some are not, situation of imbalance

Defective industrial productions structure:

·       Production of luxury goods, more than its demand

·       Production of Wages/consumption goods is less

Industrial disputes:

·       Common disputes between trade union and employee/labour and employee

·       Results- falls in profit, production and unemployment

Inefficiency of public sectors industries:

·       Inefficient public sector, running in loss and weak management due to many reasons like interference of politics, irresponsible staff etc

Problem of human capital:

·       Human capital means efficiency,education,health, discipline etc of labour and entrepreneur

·       Less risk taking entrepreneur and low efficiency of labour-low industrial development

Less development of small industries:

·       Country like India-micro, Small and medium industries are more important than large industries

·       Small industries-labour intensive, large industries –capital intensive

Loss of domestic industries from foreign competitions:

·       Cannot compete with MNCs, in term of quality, technology, efficiency etc

Poor quality product:

·       Due to method of production cannot compete with product quality and cost per unit