Q.Suggest remedial measures for the development of Micro, Small Scale and Medium enterprises.

MSMEs need easy and cheap credit, assured raw materials, marketing help, modern technology and training, better infrastructure, simpler procedures and tax relief, prompt payment of dues, and rehabilitation of sick units.

This 5-mark question in AP Intermediate 2nd year Economics deals with the development of MSMEs, treated in line with the NCERT/CBSE curriculum on India's industrial sector.

Remedial measures for the development of MSMEs:

1. Adequate and cheap credit. Easy, timely and low-cost finance through banks, SIDBI and credit-guarantee schemes removes the biggest constraint these units face.

2. Supply of raw materials. Assured supply of raw materials at reasonable prices, if necessary through government agencies, keeps production steady.

3. Marketing support. Help in marketing, exhibitions, and reservation of certain items and government purchases for small units ensures demand.

4. Modern technology and training. Upgradation of technology and skill-training programmes improve quality and productivity.

5. Infrastructure. Developing industrial estates with power, water, roads and common facilities lowers costs.

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