Significance of small scale and cottage industries are:
1. Basis of Employment –
Small scale industries and handicrafts open employment opportunities for the people of Rajasthan. About 8.5 lakhs persons are employed in the registered small scale industries.
2. More production and Employment with less investment –
In the situation of scarce capital and financial resources, it has become possible to set up small scale and cottage industries with less investment and to create employment opportunities.
3. Fair Distribution of Income –
The small scale and cottage industries are owned and managed by many small entrepreneurs and often the workers play a prominent role in production and income are distributed among many heads and hands, making almost equal distribution of income.
4. Balanced and All Round Development of Economy –
By developing handicrafts as well as small scale and cottage industries population burden on agriculture can be reduced and the people get alternate opportunity of production and employment. Along with the development of agriculture and industries, the state too achieves its balanced and all round development.
5. Benefits of Decentralised Economy –
Unlike the large scale industries, the small scale and cottage industries are widely scattered and are not centralised in a few hands, the economy of the state becomes decentralised.
6. Relief from the industrial scale problems and drawbacks –
Decentralisation of the small and cottage industries as well as handicrafts help in the widespread and closeness to each other. Consequently the industrial disputes, problems of polluted atmosphere and housing for the labour can be easily solved.
7. Increase in Imports and Accumulation of Foreign Capital –
Production can be increased with less capital investment in small scale and cottage industries and handicrafts. Consequently imports will get a boost and more and more foreign currency will accumulate.
8. Control of the circulation of currency –
With increase in production in small and cottage industries with less investment, supply of goods will increase in the market and the circulation of money will be brought under control.
9. Reduce Regional Imbalance –
With the use of local raw material and other resources, more production with less investment, more employment and more income for the locals etc. become possible.
10.Production of Artistic goods and Development of talents –
Handicrafts and small industries produce artistic goods of good quality. Consequently, the production of artistic and quality good increases, and also the artists talents and aptitudes are developed and are made good use of.
