Decentralization of Industry

Several developments have taken place in modern times. which have plucked out old industries from their native soil and planted them in other lands.

The development in the means importation is one such factor. This development is really a double   edged weapon. On the one hand, it has helped the localized industries to keep to their original home If the supply of ‘raw materials. on the basis of which they originally developed. has been exhausted. the materials can be brought there. If the market, originally wide enough, is no longer adequate. distant markets can now be tapped through improved transport. But. on the other hand. improvement in transport.Alsop helped the transfer of heavy plants to distance countries which are better markets. e.g .. Swedish match factories were started in India. Labour and tech clinicians can  move out.

Finally. the advent of electricity which can be carried to a long distance. has enabled the industries to start at more convenient places. They need no longer cling to the source of power. say coal mines, and suffer from other handicaps.

Conclusion. Owing to the causes stated above, several of the factors which were responsible for localisation have ceased to operate and industries have been decentralized.


Meaning. Capital refers to that part of a man’s wealth which is used in producing further wealth or which yields an income. But capital is not a primary or original factor of production. It is a ‘produced means of production’. The term ‘capital’ is generally used for capital goods, e.g., plant and machinery. tools and accessories, stocks of raw materials, goods in process, and fuel. The raw materials are used up in a single act of consumption. Moreover, money spent on them is fully recovered when goods made with them are sold in the market. But plant and machinery is a permanent investment.

Is Land capital? Land is not regarded as capital because (a) land is a free gift of nature t capital is man – made or is a produced agent of production; (b) capital is perishable, whereas land is indestructible and permanent: (c) capital is mobile but land has no mobility; (d) the amount of capital can be increased but the quantity of land is fixed and limited; and (e) income from capital is uniform whereas rent of land varies.

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