Question

How does the government maintain a regional balance in the country?

Answer 1

The following are the ways in which the Government of India has employed to maintain regional balance in the country.

(a) Setting up steel industries in rural areas: During the 1950s, the Government of India established four major steel plants in rural areas. The basic rationale behind this move was to facilitate the economic development and growth of rural and backward areas.

(b) Creating employment opportunities: The steels plants and many other enterprises in rural areas provided the rural people with employment opportunities, helping them to earn a higher income and enjoy a better standard of living.

(c) Facilitating development through linkages: The setting up of the industries contributed to the development of various forward and backward linkages, besides providing employment opportunities. These linkages encouraged the agricultural sector, which in turn spurred the development of ancillary industries (i.e., related industries).

(d) Ensuring infrastructure development: The establishment of industries in rural and backward areas necessitated infrastructure development, including better roads, railways and bridges. The infrastructure made the backward areas well connected with the rest of the country, facilitating the growth and development of these areas.