Question
Discuss the causes of development and problems of the Iron and steel industry or Food processing industry of West Bengal.
Answer
Iron and steel industry
Causes of development:
- Availability of raw materials: West Bengal has abundant reserves of iron ore, coal, manganese and limestone which are the primary raw materials required for the production of iron and steel.
- Cheap labour: The state has a large pool of skilled and unskilled labour, which is available at a low cost compared to other parts of the country.
- Port facilities: The Kolkata port provides easy access to the raw materials and finished goods from other parts of the country and the world, making it an ideal location for the establishment of iron and steel industry.
- Government support: The state government has taken various measures to support the growth of the iron and steel industry, such as providing subsidies, tax incentives, and land at low rates.
Problems:
- High production costs: Despite the availability of raw materials and cheap labour, the iron and steel industry in West Bengal faces high production costs due to factors like power shortage, high transportation costs, and outdated technology.
- Lack of infrastructure: The lack of proper infrastructure, such as good roads and efficient transportation, makes it difficult to transport raw materials and finished goods.
- Environmental concerns: The iron and steel industry is a major source of pollution, and the lack of proper pollution control measures has resulted in severe environmental degradation in the surrounding areas.
Food processing industry
Causes of development:
- Abundant agricultural produce: West Bengal is a major producer of rice, jute, tea, potatoes, and other crops, providing ample raw material for food processing.
- Strategic location: The state is strategically located with easy access to the northeastern states, Bangladesh, and other countries in Southeast Asia, making it an ideal location for the food processing industry.
- Government support: The state government has taken various measures to promote the food processing industry, such as providing subsidies, tax incentives, and setting up of food parks.
- Skilled labour: West Bengal has a large pool of skilled and unskilled labour, which is essential for the success of the food processing industry.
Problems:
- Lack of infrastructure: The lack of proper infrastructure, such as good roads and efficient transportation, makes it difficult to transport raw materials and finished goods.
- Competition from other states: The food processing industry faces stiff competition from other states, which have better infrastructure and facilities.
- Fragmented supply chain: The supply chain in the food processing industry is highly fragmented, which results in inefficiencies and waste.
- Quality control issues: The lack of proper quality control measures has resulted in the production of substandard products, which hampers the growth of the industry.
