Question 11
Describe the causes of the development of the Cotton Textile or Automobile industry in India.
Answer
Causes of development of Cotton Textile industry in India:
- Availability of raw material: Cotton, the main raw material for the textile industry, is abundantly available in India.
- Skilled labour: India has a large pool of skilled labour, especially in the textile industry, which has contributed to the growth of the industry.
- Capital: With the growth of the banking sector in India, capital became available to entrepreneurs who wanted to start textile mills.
- Transport: With the expansion of the railway network, transportation of raw materials and finished goods became easier and faster, contributing to the growth of the industry.
- Government support: The government provided various incentives and subsidies to promote the growth of the textile industry, such as tax holidays, low-interest loans, etc.
Causes of development of the Automobile industry in India:
- Market potential: India has a large and growing market for automobiles, which has attracted many multinational companies to set up their operations in India.
- Skilled labour: India has a large pool of skilled labour in engineering and manufacturing, which has contributed to the growth of the industry.
- Government policies: The government provided various incentives and subsidies to promote the growth of the automobile industry, such as tax holidays, low-interest loans, etc.
- Joint ventures: Many foreign automobile companies formed joint ventures with Indian companies to take advantage of local expertise and market knowledge.
- Economic liberalization: The liberalization of the Indian economy in the 1990s led to the removal of many restrictions on the automobile industry, which contributed to its growth.
