What is Medium and large Scale Industries? Explain its importance. |
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| Ans : The industries which produces the goods in large amount by using more capital, efficient manpower, improved machine, equipment and technology are known as medium and large scale industries.
According to industrial policies, “the industries having fixed investment of more than. 500000 to Rs.15,00,00,000 are taken the medium scale industries and industries having fixed investment above Rs.15,00,00,000 have been classified as the large scale industries.”
# Importance of medium and large scale industries.
Ans:- The importance of medium and large scale industries are mentioned below:
i) Increase employment opportunity:- There is problem of unemployment in Nepal due to seasonal nature of agriculture. The development of medium and large scale industries helps to increase employment opportunity in Nepal.
ii) Proper utilization of resources:- Nepal has various important natural resources. These resources are not fully utilized due to lack of industrial development in Nepal. The development of medium and large scale industries helps to utilize the available natural resources and present exporting of these resources to other country.
iii) Raising standard of living:- The establishment and development of medium and large scale industries provides employment and increase the income of the people. The regular incomes of the people from the industries have to raise the living standard of people.
iv) Development of basic infrastructure:- Medium and large scale industries can’t developed without proper infrastructure like transport, communication, electricity, banking etc. So, along with the development of industries, developments of infrastructure also increase simultaneously.
v) Modernization of agriculture:- The development of industries helps to modernize agriculture sector because only large scale industries produces machinery, equipment, chemical fertilizers etc. which are required for modernization of agriculture.
vi) Increase in export:- Nepal imports consumer goods as well as capital goods from different countries. The development of medium and large scale industries promote export and reduce import. Therefore, it helps to balance of payment of a country favorable.
vii) Source of government revenue:- The Government received revenue from the industries in the form of income tax, VAT, custom duty, excise duty, etc. with the development of medium and large scale industries. Therefore, it helps to increase government revenue.
viii) Capital formation:- Medium and large scale industries helps to accelerate the process of capital formulation within the country. Development of these industries helps to expand the capital market by providing investment opportunity to the people which is the basis of economic development.
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