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Why is it preferable To Set up Industries in Villages?

India is a country of villages. About three-fourth of India’s population are living in rural areas. A great share of economy still depends on rural areas and their contributions, as agriculture, etc. Apart from agriculture, industries too are being set up in villages at a rapid pace – which is also contributing in the growth of the nation.

Why is it preferable To Set up Industries in Villages?

Industries constitute an important segment of the economy. The Village and Small Industries have played a vital role in the development of the Indian economy and still there is scope for increase in production and productivity in this sector.

There is more than one reason to pursue setting up industries in villages.

1. Affordable resources

Villages are rich in resources and it is easy to locate affordable land for your industry. The transportation cost is also minimal in villages. Also, rural industrialization ensures balanced development by avoiding excessive concentration of industries in the cities.

2. Affordable labor cost

People in the villages are usually poor or unemployed. Hence it is easy to find affordable labor to work for you in the industries. You will also benefit the nation’s economy by lowering the level of unemployment. Also, the villagers are local people will have another way of earning income besides their normal farm jobs.

 3. Raw material availability

Rural entrepreneurs play a vital role in the overall economic development of the country. In villages, entrepreneurs have access to locally available quality raw materials. Rural places have tremendous untapped resources and are an untapped market for new products.

 4. Government encouragement

The Government usually supports and encourages entrepreneurs who wish to set up industries in the villages. Government of India has been continuously assigning increasing importance and support for the promotion and growth of rural entrepreneurship. The scope for improvement and growth for an industry within the rural areas is tremendous.

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