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Benefits

In an effort to promote the village industries, the various state governments have come up with several welfare schemes for the people working in such industries. Financial support is often extended to the workers to set up small scale and cottage industries. Various welfare measures like employee pension, provident funds and insurance schemes have also been introduced. Some states provide incentives to the workers. The incentives are linked to the production. The village industries have been responsible for providing employment to millions of people across India. This has helped in eliminating drudgery and enhancing the competitive capacity of the rural population.

By providing gainful employment to millions of people living in rural India, the village industries have been partly successful in reducing dependence on agriculture. The migration to urban areas has also been controlled to an extent. The industries encourage creativity and acts as a forum for people to provide ideas. These enterprises have made a significant contribution to total exports, both direct and indirect thereby contributing to the National Income as well. The living conditions for the people involved in the industries have also been positively impacted. Awareness has increased and dependence on local money lenders is now a thing of the past. Due to increased awareness, they are also able to resist exploitation by the people who are more sophisticated. Such exploitation was earlier rampant. Lastly, the industry also benefits people living in urban areas, who are in no way associated with the industry, by providing them with quality products which are aesthetically pleasing and unique.

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