Question
How can developing small scale industries help in alleviating poverty?

Answer

  • In India, small and cottage industries immensely contribute in gross national income and employment. So, if small and cottage industries can be developed and encouraged then poverty can be reduced on a larger scale.
  • Favourable environment, reducing controls, making available raw material, providing loans and technology and market to sell final goods are few developmental activities that the government should undertake.
  • Recently on $8th$ April, $2015$ Indian government has established $MUDRA ($Micro Unit Development and Refinance Agency Ltd.$)$ to provide loans to micro and small units.
  • The government has also started ‘Start-up India’ scheme from $16th$ January, $2016.$The objective of this scheme is to encourage entrepreneurship, provide loans to new ventures and increase employment opportunities.

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