REPORTS / MEMIOGRAPH

Potential of New Industries in Himachal Pradesh, Kulwant Singh Rana, Department of Commerce, ICDEOL, HPU; Rakesh Singh, Chaman Premi and Shivani Singh, IIHS, HPU.

The term Industrialization can be defined as a system of production which has arisen from the steady development, study and use of scientific knowledge. It based on the division of labour force and on specialization and uses mechanical, chemical and power driven as well as organizational and intellectual aids in production. Industrial location could help the businessmen in making decisions on plant location and related matters such as product distribution etc. In setting up a factory a manufacturer has to take three interrelated decisions simultaneously (1) The scale of operation (2) The technique to be adopted which involves the selection of the appropriate combination of the factors of production. (3) The location of the factory. This report is based on the study conducted for evaluating and investigating the role of industrialization in Himachal Pradesh.  The objectives of the study were to assess the level of industrialization and resource base of Himachal Pradesh; to study the structural changes and regional variations; to study the problems of existing industries and identify the potential for setting-up new industries in industrial areas.  The study has come out with suggestions for setting-up agro based, manufacturing based and hi-tech (IT based) industries.  Alternative industrial areas, potential sights for special economic zones, alternative tourism strategy and tribal and remote area based industries have been recommended in the study. From the study it can be said that industrialization is the major contributor of economic development. Empirical evidence suggest that in modern industrial sector the anticipated accumulation and saving process are inclined towards rich whose propensity to consume on foreign luxuries goods was insatiable. Therefore major funds are diverted to the elite. But the income and employment multiplier points to the fact that the direct employment effect of industrial investment is small in relation to the secondary effects, namely, the inter industry effects resulting from the inter-industry purchases of inputs and the income induced effects of income propagation in the traditional analysis. Industrial growth is considered as a synonymous of economic growth. Economic growth is after all, for the people. If the people are poor, if they remained unemployed, or their livelihood are threatened, if they don’t have access to clean water and clean fuel, if they do not have adequate health services, and if rural and urban development remain unsatisfactory, then growth loses its luster. In the words of Amartaya Sen, development requires the removal of major sources of unfreedom: poverty as well as tyranny, poor economic opportunities as well as systematic social deprivation, neglect of public facilities as well as intolerance or over activity of repressive states.

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