Explain the concept of Rural Industrialization?
R I means encouraging location of large and small scale units away from urban areas
Planned shifting of small units from urban to rural.
Existing Medium and large urban units not to be disturbed.
Encouragement from governments for industrialization in rural areas.
ADVANTAGES OF RURAL INDUSTRIALIZATION:
Small and cottage industries require low capital investment.
Rural industries can take advantage of local resources.
By catering to local demand, avoid transaction cost.
Entrepreneurship emerging at village level which can take place in a variety of Endeavour such as business, industry, agriculture , etc and acts as a potent factor for economic development.
Specialized components of large industries manufactured at less cost in small rural unit by sub-contract system.
Rural Industries can produce best products where skilled labor of specific nature required.
Rural Industrialization will slow down urban migration.
Higher income generation
Meeting local consumption demands
An effective mobilization of rural resources , capital and skills which might otherwise remain unutilized