Q.(a) Explain the role of SSIs in economic development?

(a) SSIs drive development through employment, low capital needs, equitable and balanced growth, use of local resources and exports. (b) Gandhian economics centres on Swadeshi, self-sufficient villages, cottage industries, trusteeship, dignity of labour and Sarvodaya.

(a) Role of Small-Scale Industries (SSIs) in economic development

• Employment generation — SSIs are labour-intensive and provide the second-largest source of employment after agriculture.
• Low capital requirement — they need little capital, suiting a capital-scarce economy like India.
• Equitable distribution of income and wealth — ownership is widely spread, reducing concentration of economic power.
• Balanced regional development — SSIs can be set up in rural and backward areas, checking rural-to-urban migration.
• Mobilisation of local resources and small savings — they use locally available raw materials and idle savings.
• Promotion of entrepreneurship — they nurture new entrepreneurs and skills.
• Support to large industries — they act as ancillary units supplying parts and components.
• Contribution to exports — handicrafts, garments and light goods earn foreign exchange.
• Production of consumer goods and promotion of self-reliance.

(b) Gandhian economic ideas

• Swadeshi — preference for locally produced (indigenous) goods and self-reliance.
• Village self-sufficiency / Gram Swaraj — self-reliant, self-governing village republics meeting their own basic needs.
• Khadi and village/cottage industries — decentralised, small-scale production to provide rural employment.
• Trusteeship — the rich should hold their surplus wealth as trustees for the welfare of society. …