Sunday, August 19, 2007


Q. What is the contribution of industry to the economy?
---Over the last two decades share of the manufacturing sector has stagnated at 17%of GDP—out of total 27% for the industry which includes 10% of the primary industry.
---The trend of growth rate of manufacturing industries over the last decades has been 7% per annum where as desired rate is 12%.
---Since 2003 rate is 9 to 10 % and with the policy interventions by the govt. and renewed efforts by the industry to improve the productivity, economists predict that we will be able to achieve the target over next decade.
---NMCC—The National Manufacturing Competitiveness Council has been set up with this objective.
Q. What are the important factors for the location of an industry?
A. Industrial locations are complex in nature and are influenced by the availablility of
a) raw material b) labour, c)capital, d)market power, e)govt. policies and specialized labour, f)the key to decision of factory location is the least cost.
Factory is generally located where these factors are either available or can be arranged at lower cost.
Q.’ Industrialization and the urbanization go hand in hand’. Comment.
a) Wherever the industrial activity starts the urbanization follows.
b) Some times industries are located near the cities.
c) Cities provide markets and services such as banking, insurance, transport, labour, consultants and financial advices etc. to the industry.
d) Many industries tend to come together to make use of the advantages offered by the urban centers called AGGLOMERATION ECONOMIES.
Q. What do you understand by the agglomeration economies?
A. When infra-structure is developed in an area and different industries make use of it it is called agglomeration economy. Many industries tend to come together to make use of the advantages offered by the urban centers as roadways, facilities as water/electricity etc.
Gradually a large industrial agglomeration takes place.

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