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. …