InterviewSolution
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Measures taken by Government for Industrial Development. |
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Answer» 1. State owned enterprises: Government should own and run such industries which require heavy investment and contains high risk at the same time it is important for development of industries. 2. Encouragement to private sector industries: To start and to run private sector industries, government provides help like land at concessional rate, electricity, water, tax breaks, cheap and enough finance and tries to make them competitive. 3. Import tariff: Import tariff means a policy of government such that foreign products become expensive and costlier than our domestic products. This way domestic products may become competitive to foreign products. 4. Technical skills and training: Government provides technical and professional training to domestic industries to sustain in competition in the period of liberalisation and globalisation. 5. Economic support: Government also provides various economic help to industries to reduce their production cost which enable them to sell their products in international market and having price benefits that maximise its demand. 6. Infrastructural services: By availling infrastructural facilities like road, water, electricity, banks, insurance, etc. industries can save their money, time and efforts to attain least cost levels and become competent and get encouragement to run industries. 7. Setting up various institutes and policies: Government helps industries by setting up various industrial policies like import-export policy, monetary policy, fiscal policy, tax policy, etc. to favour the industries. Government has also created institutes like IDBI, SIDBI, ICICI, IFCI, LIC, GIC, etc. to provide financial help to industries. Thus, government provides help and protection from all aspects to create suitable environment for industrial development. |
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