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Industrialisation in Mizoram

Industrialisation in Mizoram

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Published by B.I.Laskar
This paper descrives the present industrial scenario of the remote north eastern state of India which is categorised as "No industry State" due to the non existence of any large and medium industry. The need, opportunities, growth and constraints of Small Scale Industries in Mizoam is elaborately discussed.
Dr. Baharul Islam Laskar
Associate Professor,
Department of Economics.
Govt.Aizawl West College, Aizawl.Mizoram
Ph +919436366259

This paper descrives the present industrial scenario of the remote north eastern state of India which is categorised as "No industry State" due to the non existence of any large and medium industry. The need, opportunities, growth and constraints of Small Scale Industries in Mizoam is elaborately discussed.
Dr. Baharul Islam Laskar
Associate Professor,
Department of Economics.
Govt.Aizawl West College, Aizawl.Mizoram
Ph +919436366259

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Published by: B.I.Laskar on Feb 08, 2009
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INDUSTRIALIZATION IN MIZORAM:NEED, OPPORTUNITIES, GROWTH AND CONSTRAINTS OF SMALL SCALE INDUSTRIES
B.I.LASKAR Sr.Lecturer, Deptt.of Economics Govt. Aizawl West College  Aizawl, Mizoram 
INTRODUCTION
 The pace of economic development of a country is preceded by the rate of industrialization of that country. Hence industrialization is considered asinevitable in a developing economy. Prof. S.C. Kuchhal has definedindustrialization “as a process in which the economic gains of industrialprogress, mainly in the nature of increasing returns are continuouslycreated and wholly or partly realized”. In UNESCO “industrializationmeans an absolute and relative growth in the importance of factories,mills, mines, power plants, railways and so on of manufacturing andclosely related activities, especially activities involved in the building andoperation of a modern economic infrastructure”.Industrialization is a continuous process which depends on the existingsocial structure in one hand and the rate of economic development orgrowth on the other. The available resources, availability of manpower,the techniques of production, attitude of the Government and its policiesand programmers and also the social system favoring or disfavoringindustrialization, all these together determines the progress oindustrialization.
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Industrialization usually passes through three different stages. In thefirst stage industry concern itself with the processing of primaryproducts like milling grains tanning leather etc. In the second stage itstarts producing somewhat finished products like breads, biscuits,leather bags etc. In the third stage industry use machines andequipments not only for direct satisfaction of wants but also to facilitatefuture process of production. During the first stage of production, thecountry will be exporting bulk of its output where as during the secondstage; the industry will be capable of serving its local need. Most of thedeveloping countries have only reached the second stage oindustrialization. Third stage of industrialization indicates industrialmaturity of the nation. At this stage the country is in a position to exportgoods to other countries to meet their needs along with satisfying its ownneeds and necessities satisfactorily.
INDUSTRIALIZATION IN MIZORAM : NEEDS AND OPPORTUNITIES
Mizoram is a poor underdeveloped state. One among the many reasonsfor it’s under development is the low growth rate of industrialization.Industrialization plays a vital role in economic development of anyregion. Development of industries can increase income, output, andemployment and can accelerate the rate of growth of a backward area.Further industry tends to exercise profound influence on other sectors of the economy including agriculture. That is why industrialization isconsidered as an indicator of economic growth and hence theunderdeveloped countries give highest priority to industrial development.Cottage and small scale industries, including traditional villageindustries and modern small enterprises has been given important placein India’s economic planning for ideological and economic reasons. This
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sector has found their economic rationale in Mahalanobis model which was the basis for India’s second and subsequent five year plans.In the traditional Mizo- villages agriculture was the sole occupation. Their agriculture was based on traditional shifting (jhum) cultivation. There was no alternative occupation worth mentioning as the villagepottery, black smithy, handicrafts etc were carried out on part timebasis.At present about 70% of the population are engaged in agriculture.According to the 2001 census, 60.66% (cultivators and agriculturallabourers) of the total work force are engaged in the primary sector of theeconomy (Table- I) while the state is far away from self sufficiency in foodgrain production. Only 1.5% of the total work force is engages in smallscale household industries (the only industrial sector in the state), whichreveals the industrial backwardness of Mizoram’s economy.In the traditional shifting cultivation, due to decreasing returns overtime, this occupation no longer remain desirable to the farmers tosupport their rapidly increasing population and their growing needs.Besides, there are hardly any plain area except Champhai, “the Rice bowlof Mizoram” and few other areas where cultivation can be practiced withscientific methods, modern tools and on permanent basis. Agro basedproducts like ginger, chilly, oranges etc which were grown intensivelythroughout the state, the farmers are forced to sell the products tooutsiders at cheap rates as most of the products are perishable in natureand no sufficient facilities like cold storage and other scientifictechniques to preserve these commodities are available in the state.
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