Question 19 of 24intermediate🔧 ApplyShort Answer3 marks

What would be your suggestions to revive small industries affected by reforms?

Correct Answer

To revive small industries, the government should ensure the supply of electricity at subsidised rates. The steep rise in power tariff and power cuts have severely affected production and workers' wages, leading to livelihood crises.

Secondly, small industries require protection from cheaper imports. In a globalised world, domestic goods face competition from imports, reducing demand for local products. Policies should safeguard domestic manufacturers against this vulnerability.

Finally, there must be increased investment in infrastructure. Inadequate infrastructure, particularly power supply, has slowed industrial growth. Improving these facilities will enable small industries to compete effectively.

Exercise: Box 3.3: Siricilla Tragedy | Q: 18 | (Chapter: Page 16)
For More Understanding

Explanation

The answer is derived by identifying the specific problems faced by small industries in the provided text and suggesting the reverse measures. The context in Box 3.3 highlights that power reforms led to a rise in tariffs and removal of subsidies, suggesting the need to restore them. The section 'Reforms in Industry' identifies cheaper imports and inadequate infrastructure (power supply) as causes for the slowdown, suggesting that addressing these issues—by protecting against imports and investing in infrastructure—are the necessary steps for revival.