The problems that the cottage and small scale industries face are related to improper management. On a cost per item basis, the small industries face a high cost of production. There is a lack of standardization and almost no quality control. Credit facilities are not easily available. Power supply is erratic and costly and raw materials are often not available. Marketing facilities are limited so production is not according to the actual needs. The government policy is to encourage automation in large-scale industries; therefore, labour is increasingly available for small scale industry, but it is not sufficiently trained.
Encouragement should be given to small scale and cottage industries as opposed to establishing new large scale industries in urban centers, where the infrastructure is already strained. Generally, those producing for the world market must expand and develop their technology and follow strict quality control standards. But development requires the growth of traditional and non traditional industry. The renowned economist Gustav Papanek contends that, 'It is through the expansion of non-traditional exports that the major contribution to an efficient solution of the balance of payments problem will be found. Focus must therefore be on the growth of non traditional industries (whether large or small scale) which can generate foreign exchange and create employment.
Encouragement should be given to small scale and cottage industries as opposed to establishing new large scale industries in urban centers, where the infrastructure is already strained. Generally, those producing for the world market must expand and develop their technology and follow strict quality control standards. But development requires the growth of traditional and non traditional industry. The renowned economist Gustav Papanek contends that, 'It is through the expansion of non-traditional exports that the major contribution to an efficient solution of the balance of payments problem will be found. Focus must therefore be on the growth of non traditional industries (whether large or small scale) which can generate foreign exchange and create employment.
