Role of Small, Medium and Large Scale Industries in Economic Development

To accelerate the wheel of development medium and large scale industries should be established.According to the definition of Industrial act 2054,"The industries which have 30 million to 100 million rupees as a fixed capital is called medium scale industry.and the industries which have above 100 million rupees as a fixed capital are called large scale industries."The medium or large scale industries need skilled manpower,more capital,more machine and big area.

Importance of Medium and large scale industry

When there is an establishment of industry there will create lots of job opportunities and there will be able to have good production and developed our economy which helps us to fulfilled our needs and wants .Due to the establishment of an industry, we can improve our lifestyle and we also can develop our nation too.

Bases of economic development

The industries such as iron,cement,equipment,production of electricity,steel etc get enough platform and favorable basis due to the development of medium and large scale industries.The bases create a conducive milieu for industrial development.

Helps in agriculture development

Agriculture depends on the industry.There is the need of various agricultural tools and equipment like plough,spade,shovel,thresher etc for agricultural works.There are manufactured in factories.Industries produces insecticides,pesticides and fertilizers to be used in agriculture.

Development of Import and Increment of Export

The establishment of more industries helps to produce more goods so that the surplus goods can be exported and earn foreign currency.It also helps in our development works like constructing roads,bridges etc.

Improvement in people's lifestyle

Due to an establishment of large industries people can easily get job opportunities and increase their income which helps to fulfill their needs and wants and improve their lifestyles.

Problems and solution of medium and large scale industry

Lack of capital

In Nepal, lack of capital has always been a major hindrance of industrialization. The government is also highly dependent on foreign aid for large aid scale industries. Due to lack of capital, the existing industries and factories also cannot be improved.

Lack of transport and communication

The transport and communication facilities should be extended to the rural and remote areas. The transport facility can help the farmers to carry their produce easily to a market where they can sell at reasonable price.

Lack of market

There is a lack of sufficient market in Nepal.Nepali consumers have low purchasing power. They cannot use many industrial products. Nepali goods are generally costly because of the manual labor it has involved and small scale production. These goods also cannot maintain quality enough to compete in the competitive international markets.

Lack of competitiveness

Most of the Nepalese industrial products are of low quality. Such low-quality products pose a formulate difficult to complete in both domestic and international market.

Lack of skilled manpower

In Nepal,there is a lack of skilled manpower.Generally, medium and large scale industries need skilled manpower for handling the delicate task but there is a situation of Brain Drain in our country.

Solutions

• Promote local raw materials
• There should be a mobilization of local resources
• There should be establishment of auxiliary industries
• There should be establishment of vocational and technical sectors
• Transportation and communication facility should be improved
• There should be end of political transition and instability

Prospects of medium and large scale industries

The development industries help to develop agriculture sector also.It helps to utilize our raw materials.The abundance minerals like limestone etc can be used.For this reason, this is how we can say that there is an extremely high perspective of the development of large scale industry in Nepal.