Pic - :: A View Of The Production Floor Of A Large Scale Industry
Large Scale Industries - :: Did Not Rise Up Due
To The Apathies Of The Ruling Government
In a country which should
have been the richest by now in terms of
the foreign resources pooled by the collection of the taxes from the
industries, and where the p[people should have had a kind of an easy paced
life, which we call it or would rightly refer to it as RAM-RAJYA, the
industries and the failure to cope up with the times, with the apathies and the
volatility of the Government which had
ruled from time to times, the industries in almost sector in India have taken a
bed which could be termed as the bed of death.
It is not that the entire
blame lies on the Government. Bad management, wrong decisions taken and the
pooling of the wrong people beside taking the wrong people in confidence to
move ahead had caused the industries and
the factories to go to the bed of death, but the Government’s dictotarial
attitude and the interference of the political entities completely did shatter the
industries from the small scale industry to the higher and the bigger one’s.
In this article we shall
make an effort to read and discuss all about the large scale industry and by
the way, as we move ahead, we ought to discuss and analyse what are the
industry in terms of the large scale. Let us know what is the large scale
industry ?.
Large scale industries are
referred to as those industries that are having huge infrastructure,
raw material, high manpower requirements and large capital requirements.
Those organisations having a fixed asset of more than 10 crore rupees
are considered to be large scale industries. If the present scale of the limit
of the large scale industry as per the
discretion of the Government has changed, then I might not actually know the limit of the
same as I have not followed it scrupulously , but this is what the magnitude of
the scale is ?.
What is the significance of large scale industries?
They provide an impetus to the industrialization of the country. Large scale industries, usually, produce capital and basic
goods (instruments, machines, chemicals, etc.) They are capable of generating
funds for the research and development of new technologies
What are Large Scale Industries?
Industries which requires huge infrastructure and manpower with an influx of capital assets are Large Scale Industries. In India, large-scale industries are the ones with a fixed asset of more than one hundred million rupees or Rs. 10 crores.
The Indian economy relies heavily on such industries for economic growth, generation of foreign currency, and the creation of job opportunities for millions of Indians. It is a truth that the industries in India which falls under the scales from the small to the large, this and these industries always are the supply zones of the employments and that actually serves the greatest importance of these kind of industries, and the small scale industry from 1954-55 to about 1977-78 always stood first to , first, create the maximum number of jobs and secondly to generate the influx of the highest tax that could be paid in India.
Here are some advantages of large scale industries:
Pic - : A View Of The Large Scale Industry
·
They provide an impetus to the industrialization of the
country.
·
Large scale industries, usually, produce capital and
basic goods (instruments, machines, chemicals, etc.)
·
They are capable of generating funds for the research and development of new
technologies.
·
Due to the large scale of operations, they have the
potential to lower the cost of goods.
·
Further, they create opportunities for small-scale and
cottage industries to evolve and flourish.
·
Also, the employment opportunities created by large scale industries
are huge.
Large Scale Industries
in India
The term ‘ large-scale ’ is generic
in nature and includes different types of industries. In India, the following
heavy industries fall under the purview of large scale industries:
·
Iron and Steel Industry
·
Textile Industry
·
Automobile Manufacturing Industry
·
Over the last two decades, Information and Technology
(IT) industry has evolved and has contributed huge revenues while
creating thousands of jobs for Indians. Hence, many economists include it in the
large-scale industry sector.
·
Telecom Industry
It is important to note that these
industries are either manufacturing units or those which use both indigenous
and imported technologies.
Here are some more examples:
Fertilizer , Cement , Natural gas , Coal , Metal
extraction , Metal processing , Petroleum , Mining , Electrical , Petrochemical
, Food processing units , Tourism , Banking , Sugar , Construction , Automobile ,
Communication equipment , Cement , Chemicals , Earth movers , Consumer
durables (like television, refrigerators, etc.) , Engineering products ,
Vehicle assembly , Beverages , Agricultural processing , Insurance and Finance.
In recent years, as the markets
opened up due to globalization, there has been a mixed effect on
large-scale industries. There are some who have managed to attract international
customers, foreign trade and technology, tie-ups. However, there
are also others who were unable to cope with the competitiveness ushered in by
the open market.
What
is large scale industrial production?
It is imperative and it is very essential to
first analyse the difference and the calculations that we engage ourself in the
matter of the industries , which could be construed as the point of differentiation of the
production of the small scale industry and the large scale industry.
A small sacle industry can manufacture and produce very
much as compared to the large scale industry but it cannot become a large scale
industry.It is because of the paid-up capital first that comes into the picture when one talks about the industries,
and then the definition in terms of the scales that the Government of India has
used it to define the industries. It is imperative to define the large scale
production In the matter of differentiation, and characterization, it is imperative to first differentiate the large scale industry
and then to characterize it for the sake of benevolence and mechanized , which
is mechanism while and when we talk about comparism.
The
term, “ Large scale production ”
refers to the production of a commodity on a large scale with a large
sized firm. It requires huge investments in plant and machinery. Large
scale production can be carried out if the market size is large and expanding.
... They cater to a large market
Large
scale firms are characterized by mechanization, division of labor and
production and sale of goods in large quantities. They cater to a large market.
The
industrial revolution laid the foundation of the factory system.
The factory system which extensively used machinery and adopted division of
labor made large scale production possible.
China is today considered
to be the factory of the world because of its focus on large scale
production. It today accounts for 50% of the world’s production of cameras, 30%
of air-conditioners, 25% of washing machines and 20% ofrefrigerators. It has
become the world’s largest producer of toys, mobile phones, DVD players, laptop
computers and colour TV sets.
What are the Motives for large scale production?
1. Desire
for economy.
2. Desire
for increase in sales.
3. Desire
for a large customer base.
4. Desire
for large profits.
5. Desire
to become a global company.
6. Desire
for economic power.
7. Desire
for continuous growth and expansion.
8. Desire
to increase demand.
9. Desire
to overcome competition.
10. Desire
to achieve monopoly status.
11. Desire
for achieving long term profitability.
The
Reasons For The Failure Of The Large Scale Industries Of India- ::
Foregoing analysis shows that India has made sufficient
achievement in industrial development during the last five decades and has
emerged as the tenth largest industrialized country of the world. But
considering the size of the country this development is far from satisfactory.
There are some reasons that could be attributed to the same and as we study them is details, we could as
well as describe them in short and analyse the factors of the same. There could
be many as though but some of the most important one’s are as follow-:
There are many areas where despite requisite facilities
industrial development is either insufficient or completely absent. The pace of
industrial progress has been very slow and the growth has always lagged behind
the target (except in 7th Five Year Plan). Despite industrial progress self-
sufficiency is a distant dream and import substitution a major problem. Under
utilization of existing capacity is another major problem which is due to lack
of power, raw material and demand. These are some that could be linked to the
Governmental apathies that is related to the cause of the underdevelopment and
there could be even more that is self that has destructed the economy of the
large scale industries and finally this sector either as a whole or as an
independent entity.
The Elite Oriented
pattern-:
Industry has developed the elite oriented pattern. Concentration of
economic power in the hands of few, regional imbalances, sickness of
industries, loss in public sector industries, unsatisfactory labour relations,
lack of capital and industrial raw materials, changing policy of the
government, and defective licensing policy are some of the problems which are
hindering the overall industrial development in the country. In following
paragraphs an attempt has been made to highlight some of these problems.
1. Unbalanced Industrial Structure
Despite all efforts India has not been able to attain self
sufficiency in respect of industrial material. India is still dependent on
foreign imports for transport equipments, machineries (electrical and
non-electrical), iron and steel, paper, chemicals and fertilisers, plastic
material etc. In the total industrial production consumer goods contribute 38
per cent. In newly industrialised countries like Singapore, South Korea and
Malaysia this percentage is 52, 29 and 28 respectively. This shows that import substitution is still a distant goal for the
country.
2. Low Demand
There is low demand for industrial products in the country due
to low consumption level, weak purchasing power and poor standard of living.
The domestic market is chronically underdeveloped through lack of enthusiasm
generated by the middle and upper class segment who do not wish to raise their
standard and improve their living conditions.
3. Regional Concentration
In India most of the industries are located in few selected
areas leaving out vast expanse of the country devoid of industrial
establishments. Most of the industries are located in and around metropolitan
cities like Mumbai, Kolkata, Delhi etc. At present there is an uneven concentration of industries.
While the states like Maharashtra, Gujarat, Tamil Nadu etc are well ahead in
industrial development others like Meghalaya, Manipur, Jammu and Kashmir,
Himachal Pradesh, Tripura, Orissa, Assam etc are far behind. This has not only
created regional imbalance and regional disparity but has
encouraged fissiparous tendency including unrest, violence and
terrorism.
4. Loss in Public Sector Industries
Owing to focus on socialistic pattern of development investment
under public sector industries increased phenomenally during early five year
plans. But due to defective policy of the government characterised by redtops
and inefficiency and strained labour-management relations most of these public
sector enterprises are running in loss. Every year the government has to incur
huge expenditure to cover up this loss and meet obligations of paying wages to
the employees.
This hardly leaves surplus money to go for new industrial
ventures and launch schemes for social development. To avoid this burden on
exchequer the government is promoting privatisation and disinvestment of
shares of public sector undertakings. This goes against the Peruvian model of
development initiated during the fifties of the last century.
5. Industrial Sickness
In the private industrial sector a growing number of industrial units are becoming sick. Widespread sickness has, indeed, become a major problem of this sector. The causal factors for this sickness are:
(i) deficient
management, (ii) under-utilisation of capacity due to shortage of raw
materials, coal and power and transport, (iii) obsolete machinery, equipment
and production techniques, (iv) uneconomical scale of production, (v) faulty
choice of products and processes, (vi) difficulties in selling the products,
(vii) diversion of funds to new units under same ownership, and (viii) conflict
between different interest groups among the owners. As at the end of March
1999 there were 3, 09,013 sick/weak units (3, 06,221 in SSI and 2,792 in
non-SSI sectors). A total of Rs. 19,464 crores of bank credit was locked up in
these sick units. Sometimes, the government takes over sick units which further
worsen the problem.
In order to provide a focal point for the revival of sick units,
the Industrial Reconstruction Corporation, and the Board Of Industrial Financial Reconstruction ( B.I.F.R) was reconstituted in 1985 as the
Industrial Reconstruction Bank. It is now the principal agency for
reconstruction and rehabilitation of sick units.
The Central Government set up in 1986 two Funds, the Textile
Modernisation Fund (TMF) and the Jute Modernisation Fund (JMF) to provide
assistance on concessional terms to healthy as well as sick units for
modernisation. These two Funds are being administered by the IDBI and the IFCI
respectively. There is also a need for constant monitoring and deterrent
penalties to the parties responsible for sickness.
6. Lack of Infrastructure
An inadequate infrastructural facility is another major problem
faced by the Indian industries. Energy crisis has a great bearing on the
industrial development and production. Although the installed capacity of
electricity increased from 66.08 million km in 1990-91 to 85.79 million km in
1996-97 but it is much short of the actual demand.
It leads to power cut and rostering which hampers the industrial
production. Most of the State Electricity Boards are running in loss and are
in deplorable condition. Rail transport is overburdened while road transport is
plagued with many problems. Even national highways in many places are in bad
shape. Telecommunication facilities are mainly confined to big cities.
That is it……
That sums up it and that is all .....
Regards and THANKS
Pics
Shyamal Bhattacharjee
Mr Shyamal Bhattacharjee, the author was born at West Chirimiri Colliery at District Surguja, Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in B A thereafter. He joined the HITAVADA, a leading dailies of Central India at Nagpur as a Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management. He has authored THREE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It published by Manas Publications in 2009 and Essential Of Office Management published by NBCA, Kolkatta in 2012. He has a experience of about 35 years in Marketing .
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