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Business Studies · Ch 3 — Private, Public and Global Enterprises

Regional balance

3.4.2

Regional balance

Regional balance means developing all regions and states evenly and removing regional disparities — a major responsibility of the government.

The problem

  • Before Independence, industrial progress was confined to a few areas, such as the port towns, leaving other regions behind.

What the government did

  • After 1951, the Five Year Plans laid down that special attention would be paid to the regions lagging behind, and public sector industries were deliberately set up there.
  • Four major steel plants were established in backward areas to accelerate economic development, provide employment and develop ancillary industries.
  • This was achieved to some extent, but much scope for improvement remains.

The guiding principle

  • Developing backward regions to ensure a regional balance is one of the major objectives of planned development. …