4.

7 Growth of Rural Industrialisation

 VSI (Village Small Industries) play a significant role in rural
employment, utilization of available resources and human talent

Some of the characteristics of cottage industry are:

 Mainly confined to homes of workers/entrepreneurs.

 Taken care by family members, some part-time and some full-
time.
 The investment is very small and output is also in smaller
quantities.
 The produce is sold in nearly towns.
 VSI and their characteristics are
 VSI are in villages or in semi-urban areas.
 Employees are family members and local people.
 Mostly consists of semi-skilled and unskilled labour.
 Mainly labour oriented and minimum usage of modern
machinery is made.
 Majority of them fall in the category of tiny industries.

o Utilisation of local resources

o Limited Capital

o Less risk

o Short gestation period

o Goods of consumers’ choice

o Earning of foreign exchange

o Employment generation

o Prevention of exodus of rural poor

o Regional development and industrial dispersal

o Entrepreneurial development
1. Coir industry Mats, rugs, carpets

2. Hand looms Sarees, long cloth, khadi cloth

in cotton and silk
3. Power looms Sarees, fabric, dhotis both in
cotton, silk and synthetic
materials
4. Handicrafts Decorative and utility items of
metal, wood, stone and clay
5. Wool development Woolen sweaters, hand gloves,
leg covers and head covers,
mufflers
6. Horticulture based Fruit jams, jellies, juices and
product dry fruits.
7. Food processing Groundnut oil, maize processing,
industry spices, rice mills, pulse processing

8. Dairy industry Milk powder, cheese, butter, ghee,

pedha.
9. Fisheries
Hygienic processing and tin packing
10. Meat and poultry for exports
sector
Hygienic processing of meat, chicken
and packing of these and eggs for local
consumption and exports.
4.8 Problems of Rural Industries
 Technology Problem

 Marketing Problem

 Poor Infrastructure

 Knowledge and Information

 Credit Facilities

 Raw Materials
4.9 Developing Rural Entrepreneurship
 Providing raw materials and facilities at reasonable rates

 Term loans and working capital be made available

 Marketing

 There should EDP activities for those who have stored own
industry out of desperateness
 Rural schools should have vocational training

 Audio-visual films should be screened in villages, once a week on

various rural related enterprises
 Guidance for rural industrialisation
4.10 Scope And Role of NGOs
• NGOs services can be utilised for development of rural
industries
• NGOs to attend social causes like (a) eradication of child labour,
(b) adult education, (c) education to rural women, (d) rag
pickers education, and (e) old age homes
Advantages of NGOs
 They are nearby people and explain in local languages
 NGOs are not charging high fees
 They display friendly attitude and adjust to the rural
environment
 involvement of NGOs in social service and EDP activities
are very beneficial
4.11 Entrepreneurship In Family Owned
Business
 join the family owned business and develop it
 legendary examples of Tata Group, Birla Group, Ambanis,
Munjals, Singhanias, Godrej Group, Nandas Group and Thaper
Group
 Coming from affluent families there youngsters
 better professional experience
 sound foundation in terms of established organisation
 They have better and faster access to knowledge, information
 They can afford to take risks
 Is possible for them to get credit facilities from banks

 Gets good response for public issue of shares

 There will be no need to have own office

4.12 Government as Entrepreneur
 Central Government and various State Governments have been

playing the role of entrepreneur in the field of industries,

services

 Central Government has taken up bigger projects due to (a) no

interest shown by private organisations

 Huge funds required for bigger projects

i) Indian Railways - Originally started in British era but
further developed by Indian
government.
ii) PSUs - Various public sector units like BHEL,
HMT, HAL, BEML,
NALCO, FCI, CCI, etc.
iii) Education - Starting of IIT, IIM and many other
colleges and universities to
import high quality education.
iv) Ports and Airports - Dozens of see ports and
hundreds of air ports are developed
for convenience of business and
people