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What is Industrial Devolution in India: Recent Trends

The government of India is also taking steps to promote industrialization.

India CSR by India CSR
in Words Power
Reading Time: 4 mins read
What is Industrial Devolution in India: Recent Trends

Industrial Devolution

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Industrial Devolution in India: Recent Trends Reflecting Shifts in Manufacturing Landscape


Industrial devolution in India is a term that refers to the process of shifting industrial activities from centralized and urbanized areas to decentralized and rural areas. This is done to promote balanced regional development, reduce congestion and pollution in the cities, and create employment opportunities for the rural population.

India has a long history of industrialization, dating back to the early 19th century. However, the pace of industrialization has been uneven, with periods of rapid growth followed by periods of stagnation. In recent years, there has been a renewed focus on industrialization, as the government has identified it as a key driver of economic growth.

There are a number of factors that have contributed to the recent slowdown in industrialization in India. One factor is the global economic slowdown, which has led to a decline in demand for Indian exports. Another factor is the rise of protectionism in developed countries, which has made it more difficult for Indian companies to access foreign markets. Additionally, the Indian government has not been able to provide the necessary infrastructure and support to businesses, which has made it difficult for them to grow and expand.

Despite these challenges, there are a number of recent trends that suggest that industrialization in India is picking up again. One trend is the rise of start-ups in India. Start-ups are playing an increasingly important role in the Indian economy, and they are helping to drive innovation and growth. Another trend is the increasing investment in manufacturing by foreign companies. Foreign companies are attracted to India’s low labor costs and its large domestic market.

The government of India is also taking steps to promote industrialization. The government has announced a number of initiatives, such as the Make in India campaign, which are designed to attract investment and create jobs. The government is also investing in infrastructure, such as roads, ports, and power plants, which will help to improve the business environment.

Trends

The future of industrialization in India is uncertain. However, recent trends suggest that industrialization is picking up again. The government of India is taking steps to promote industrialization, and the rise of start-ups and foreign investment is helping to drive innovation and growth. If the government can continue to provide the necessary support, industrialization can play a major role in driving economic growth in India.

Some of the recent trends of industrial devolution in India are:

Industrial corridors: The emergence of industrial corridors and clusters along the major highways and railways, such as the Delhi-Mumbai Industrial Corridor, the Chennai-Bangalore Industrial Corridor, and the Amritsar-Kolkata Industrial Corridor.

Special economic zones: The development of special economic zones (SEZs), export-oriented units (EOUs), and industrial parks that offer tax incentives, infrastructure facilities, and regulatory exemptions to attract domestic and foreign investors.

MSMEs: The promotion of micro, small and medium enterprises (MSMEs) that cater to the local demand and supply chains, and provide low-cost and innovative solutions to various sectors such as agriculture, textiles, food processing, leather, handicrafts, etc.

Technology: The adoption of new technologies such as artificial intelligence, the internet of Things, robotics, cloud computing, etc., that enable digital transformation, automation, and innovation in the industrial sector.

Skill: The implementation of various policies and schemes by the central and state governments to support industrial devolution, such as Make in India, Startup India, Skill India, Atmanirbhar Bharat, etc.

Challenges

Here are some of the challenges that India faces in its quest to industrialize:

Infrastructure: India’s infrastructure is underdeveloped, which makes it difficult for businesses to operate efficiently. The government needs to invest in roads, ports, power plants, and other infrastructure in order to improve the business environment.

Skills: India’s workforce is not adequately skilled for the needs of the manufacturing sector. The government needs to invest in education and training in order to create a skilled workforce.

Regulations: India’s regulatory environment is complex and burdensome. The government needs to simplify regulations and make it easier for businesses to comply with them.

Corruption: Corruption is a major problem in India. It can discourage investment and make it difficult for businesses to operate. The government needs to take steps to fight corruption.

Advantages


Despite these challenges, India has a number of advantages that could help it to industrialize. These advantages include:

A large and growing population: India has a population of over 1.3 billion people, and it is the second most populous country in the world. This large population provides a large market for manufactured goods.

A young population: India has a young population, with over 60% of the population under the age of 35. This young population is a source of labor and innovation.
A low cost of labor: India has a low cost of labor, which makes it an attractive destination for manufacturing investment.

A growing middle class: India’s middle class is growing rapidly, and this is creating a demand for consumer goods.

If India can overcome its challenges and capitalize on its advantages, it has the potential to become a major industrial power. Industrialization would help to create jobs, boost economic growth, and reduce poverty. It would also help India to become a more powerful player in the global economy.

Tags: Industrial DevolutionWhat is Industrial Devolution in India?What is Industrial Devolution?What is Industrialisation?What is industrialization?

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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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