Q.Mention the various causes for Industrial backwardness in India.

Indian industry remains backward mainly because of shortage of capital, poor infrastructure, outdated technology, shortage of skilled labour and labour unrest, raw-material scarcity, a narrow market, regional imbalance, industrial sickness, over-regulation and import competition.

This 10-mark question is standard in AP Intermediate 2nd year Economics; the AP syllabus follows the NCERT/CBSE treatment of India's industrial development.

Causes of industrial backwardness in India:

1. Shortage of capital and finance. Low savings and inadequate long-term industrial finance restrict investment in new plants and modernisation.

2. Inadequate infrastructure. Shortage and unreliability of power, poor transport, and weak communication raise costs and interrupt production.

3. Outdated technology. Many industries use old machinery and methods, which keeps productivity and quality low and costs high.

4. Shortage of skilled labour and poor industrial relations. Lack of trained technical manpower, together with strikes and lockouts, lowers efficiency.

5. Scarcity of raw materials. Irregular supply and rising prices of industrial raw materials, sometimes dependence on imports, hamper production.

6. Narrow domestic market. Low per capita income and mass poverty limit demand for industrial goods.

7. Regional imbalances. Industries are concentrated in a few developed regions, leaving large areas industrially backward.

8. Industrial sickness. A large number of units become sick and close down, locking up capital and labour.

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