ROLE OF INDUSTIES IN THE ECONOMIC DEVELOPMENT

The industry which needs small amount of investment, small space to run and small number of labours is called the cottage (small scale) industry, or according to the definition of Industrial Enterprises Act, 2054 (emended), “the industries having a maximum of 30 million rupees of fixed deposit called small scale industries”. Such an industry mainly provides the employment opportunity to the people of the rural areas. It ensures use of leisure time, utilization of raw materials, utilization of labour and still and provides employment opportunity. Thus, it helps the economic progress. The industries which need large investment, skilled and semi-skilled human power and use of machine and tools and yield large scale production are called medium and large scale industries. According to Industrial Enterprises Act (amended), Industries having thirty million to one hundred million rupees as fixed capital are called medium scale-industries”. The role of medium and large scale industries is significant in bringing remarkable change for the economic progress of the country. Such industries produce goods needed for the nation. These productions fulfill the need of the nation. As a result, we don’t need to import goods from aboard. This types of arrangement saves currency. The saving can be used for industries and other sectors. Such industries help the development of agricultural sector. Similarly, they create employment opportunities, increase exports and mobilize resources and means. Therefore, medium and large scale industries have significantly contribution to the economic progress of a country.

INDUSTRIES AND ECONOMIC ACHIEVEMENT

This is the age of industrialization. Only the development of industries can bring about changes in economic status of any country. There are some countries in the world showing quick pace of development. Those counties are called ‘Developed Countries’, like the USA, Japan, France, Germany, etc. All these counties are categorized as industrial countries.

Countries whose economy is based upon agriculture are called developing countries like the countries of Asia and Africa. Therefore, the measuring rod of the economic achievements of a country is its industries.

Nepal is predominantly an agricultural country and the development of industry is absolutely essential for its economic achievement. Thus, industry is next to agriculture which can contribute to making the economy strong and powerful.

The advantages of industries are as follows:

• Proper use of the country’s means and resources.
• Creates job opportunities.
• Maximum production will enhance export and reduce import.
• Helps to earn foreign currencies.
• Development of infrastructure.
• Increase in per capita income and bring improvement in the standard of living.
• Helps to support the development of agricultural sector.
• Country will become self-dependent.

In recent years, several industries have been established at different places, but, have not developed well due to various problems. The problems are as follows:

• Lack of sufficient raw materials.
• Lack of appropriate industrial policy.
• Lack of capital.
• Lack of skilled human resources.
• Lack of market.
• Lack of better means of transport and communication.
• Lack of proper machinery and tools.

Solutions to the problems faced by industries:

• Provision of market.
• Availability of raw materials.
• Availability of skilled manpower.
• Preparation of appropriate industrial policy.
• Provision of capital.
• Facility of transport and communication.
• Provision of storage.
• Political stability and good governance.

RELATIONSHIP BETWEEN AGRICULTURE AND INDUSTRY

Many industries running in Nepal are based on agriculture. Such industries are dependent on the raw materials that come from agriculture sector. The examples are sugar industry from sugarcane, jute industry from jute, cotton factory from cotton, leather industry from animal skin, tea factory from tea leaves, etc. To run these industries, raw materials are made available from the agriculture sector.

Agriculture tools like spade, plough, etc are produced in the industries. Increased production in agriculture is made possible by the use of these tools. Other items including chemical fertilizers and insecticides are made available by industries. We can have increased agriculture production through appropriate use of agriculture tools, chemical fertilizers and insecticides. Similarly generator needed for irrigation is produced and supplied by industry. Therefore, there is mutual relationship between agriculture and industry. Agriculture and industry can be promoted through mutual relationship between these two. More than 80% of the people of Nepal are involved in agriculture. Over 50% of the national income and over 40% of national production comprise agriculture. So, it is necessary to develop more and more agro-based industries in Nepal. Agro-based industries utilize the raw materials available from agriculture like tea leaves, sugarcane, cotton, oil seeds, milk, etc. There are many such industries in Nepal. Agriculture and industries are like two sides of a coin. They are inter-dependent.

Agriculture provides agricultural raw materials to the industries and industries produce manufactured or finished products from those raw materials. Thus, we have seen that without agricultural raw materials, agro-based industries cannot run. The development of agro-based industries depends upon the availability of agricultural raw materials. The quality and quantity of agricultural raw materials also depend upon industries. In other words, agriculture also depends upon industry.

The development of agriculture depends upon industry because:

• Industry produces agriculture tools plough, spade, thrasher, hoe, etc which help to make agricultural work and production more efficient and productive.
• Chemical fertilizers, insecticides, pesticides for agriculture are produced by industries. They protect the crops from diseases and help to grow in a better way.
• Industry provides generators needed for irrigation in many of the places of Nepal.

Thus, there is a mutual relationship between agriculture and industry. In the absence of industry, agricultural production goes down and without agricultural production agro-based industry will have no meaning. One fulfils the needs and the other fulfils the demands of a nation. This harmony is the key to rapid economic development of Nepal.