Explanation
There are many challenges that small scale industries use to face because of lack of adequate capital, resources, technology, and much more. There is one main problem associated with the small scale industry that the people who are working in such industries are usually not employed for the whole year as seasonal employment is seen much in such industries, where labours used to work for a particular season and rest of the season they remain unemployed or keep on looking for other opportunities for their survival.
SSI are those industries that require and promote more manpower rather than machines. These industries play a vital and most important role in the development of the country as a whole. In a country like India where the major part of the country’s population resides in the rural area, these industries create employment opportunities for people living in that area which helps to grow the rural sector. These industries also contribute towards the exports by making such products and services that are exported outside the country. SSI contributes around 45%-50% to Indian exports. Thus, SSI is working to create equal employment opportunities, economic growth, and the promotion of exports in the country.
Hence, option (A) is the correct answer.
National Small Industries Corporation (NSIC): It was established in 1955 to promote and foster the growth of SSI in the country. Its main focus was:
Products and services are sold based on the quality and price at which they are offered to the consumers in the market. Small business usually is not able to maintain the quality of product due to many reasons such as they always making efforts to cut the cost that is involved in the process of production of the product by using low quality of raw material that is cheap because of which they keep the price of the product low. They don’t have adequate funds that are required to maintain the industrial standards and quality of the product and usually, these small businesses are operated by the people who are not much educated and versatile due to which they are also not able to upgrade the technology that is required to run the business that will help in meeting the present demand of the market. Thus, all of the above options are correct.
Regional Rural Banks that were set up in the rural area of the country was facing many problems related to the branch expansion, slow progression, Procedural rigidities, and Difficulties in deposit mobilisation.
For this, the committees that were associated with the RRB’s pointed out the shortcomings of the RRB’s and gave many suggestions and recommendations that could improve the working of RRB’s in the country.
In June 1977, the Reserve Bank of India appointed a committee to monitor the working of RRB. Professor M.L. Dantwala headed it and the committee submitted a report to the Reserve Bank of India with some important suggestions like Providing rural credit in a more efficient manner, Sponsoring banks should provide training to the staff of the RRB, The RRB should adequately recruit technical staff, etc.
The Working Group on RRBs i.e. the Kelkar Committee in 1984 recommended that small and uneconomic RRBs should be merged in the interest of economic viability and with this suggestion the government of India stops its further establishments of Regional Rural Banks in India so that no further problem can be there associated with the RRB’s.
According to the Khusro Committee, which was led by Dr. A.M. Khusro there was no place for RRB in the country rural system in near future and they should be merged with sponsored banks.
Thus all of the above options are correct.
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