Role and Importance of Small Scale Industries in Development of Rayalaseema (A.P.)

Abstract

Industrial development has played a crucial role in the process of economic development of all countries of the world, including India. Industrialization of developing countries and its role in economic transformation is essential in order to attain economic and social growth. They play an important role in employment creation, resource utilization and income generation and help promote changes in a gradual and phased manner. They have been given an important place in the framework of Indian planning since the beginning, both for economic and ideological reasons. The reasons are obvious. Rapid industrial development contributes to the process of accelerated economic growth and welfare. Indian economy is one of the thresholds of change today, consequent upon the economic reforms initiated in 1991.The reforms in different spheres of economic activity have led to changes in various ways. It is the production of industrial goods that helps and sustains the momentum of growth in a developing economy. Small scale industrial sector plays a vital role in the Rayalaseema regions. They provide immediate large scale employment with lower capital ratio. They need only a short gestation period and relatively smaller market to be economic and Small scale industries need only lesser amount of capital. Empirical studies have shown that small scale enterprises are an important engine for economic growth and equity with social justice.