Q.How does the government maintain a regional balance in the country?

The government maintains regional balance — even development of all regions and removal of regional disparities — by:

• Locating new public enterprises in backward areas (e.g., four major steel plants set up in backward regions to spur development, employment and ancillary industries).
• Following the Five Year Plans (after 1951), which gave special attention to lagging regions. …

Regional balance means developing all regions and states evenly and removing regional disparities. This is a major responsibility of the government, and it is one of the key dimensions of the changing role of the public sector.

The problem the government faced

• Before Independence, industrial progress was confined to a few areas — mainly the port towns — leaving other regions industrially backward.

How the government maintains regional balance

• Planning-led attention to lagging regions: 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.
• Placing heavy industry in backward areas: for example, four major steel plants were established in backward areas to accelerate economic development, provide employment, and develop ancillary industries around them.
• Locating new enterprises where they are most needed: the government had to locate new public enterprises in backward areas so that their benefits spread to under-developed regions. …