“Direct and active participation of state was considered essential in Industrial development process in period 1950-1990.”
Justify the given statement with valid explanation.
Ans. Justify:
During the period of 1950-1990, direct and active participation of the state was deemed essential in industrial development due to several reasons:
-
Limited Private Capital: Private sector participation in industrial development was limited, especially in sectors deemed essential for national development such as heavy industries, infrastructure, and strategic sectors like defense.
-
Resource Mobilization: The state played a crucial role in mobilizing resources for industrial development through planning, allocation of funds, and investment in key industries. This was necessary to overcome capital shortages and promote balanced industrial growth across regions.
-
Infrastructure Development: The state’s involvement was essential for building critical infrastructure such as roads, railways, ports, and power plants necessary to support industrial activities. Infrastructure development laid the foundation for industrial growth and facilitated the movement of goods and services.
-
Regulation and Control: State intervention was necessary to regulate industries, control monopolies, and ensure fair competition. Government policies and regulations aimed to prevent exploitation, promote social welfare, and safeguard national interests in industrial development.
-
Technology Transfer and Innovation: The state facilitated technology transfer and innovation through collaboration with foreign partners, research institutions, and public sector enterprises. This helped modernize industries, improve productivity, and enhance competitiveness in the global market.
-
Employment Generation and Social Welfare: Industrial development led to employment generation, income redistribution, and improvement in living standards. The state’s involvement ensured that industrialization benefited all sections of society, including marginalized communities, through employment programs, welfare schemes, and labor laws.
