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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    1/18

    Industrial Development in Rajasthan and Madhya Pradesh, IndiaAuthor(s): Judith A. DaveyReviewed work(s):Source: Transactions of the Institute of British Geographers, No. 49 (Mar., 1970), pp. 183-199Published by: Wiley-Blackwellon behalf of The Royal Geographical Society (with the Institute of BritishGeographers)Stable URL: http://www.jstor.org/stable/621648.

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

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    Industrial

    evelopment

    n

    Rajasthan

    nd

    Madhya radesh,

    ndia

    JUDITH

    A.

    DAVEY, B.A.,

    PH.D.

    (formerly

    esearch

    ssistant,

    entre

    f

    SouthAsian

    Studies,

    niversity

    f

    Cambridge)

    Revised

    MS.

    received

    7

    May

    1969

    ABsTRAcT-Industrialization

    as

    now been

    accepted

    s

    a

    necessarytep

    owards

    conomic

    rogress

    n

    India,

    ut

    more

    controversy

    urrounds

    ocational

    olicy

    or

    ndustry-the

    entralization-decentralization

    ssue.This

    problem,

    nd the

    economic,

    ocial

    nd

    political

    actors hich ffectocational

    ecisions,

    an

    be

    illustrated

    y

    an

    examinationf ndustrial

    growth

    n

    Rajasthan

    nd

    Madhya

    radesh,

    wo statesn Centralndia. n

    a

    survey

    f

    arge-scale

    ndustrialnits

    n

    these

    states,atawere ollectedn ocational ecisionsnddates f stablishment.ourperiods f ndustrialevelopmentan

    be defined. he role of British

    nterprise

    nd the

    part

    layed

    by

    Indian

    rinces

    were

    mportant

    efore

    ndependence.

    Since

    1948,

    government

    olicies

    have affectedndustrialocation nd

    growth,

    nd

    public

    ector

    rojects

    ave

    been

    established.

    resent

    roblems

    f

    power hortages,

    he

    carcity

    f

    certain

    aw

    materials,

    nd

    deficienciesf nfra-structure

    should

    e overcome n time.The

    paper

    lso considershe

    governmental

    ole n

    establishing

    nd

    promoting

    ndustrial

    development,

    nd

    the

    patterns

    hat

    will

    emerge

    f

    he

    ndian

    overnment's

    olicy

    fbalanced

    egional evelopment

    s

    put

    nto ffect.

    INDUSTRIALIZATIONas

    now been

    largely accepted

    as

    a

    necessary

    step

    towards economic

    progress

    n

    India. There are

    several

    rguments

    upporting

    his onclusion.

    s

    with

    many

    of

    India's

    ocial

    nd

    economic

    roblems,

    he

    ssue s

    immediately

    omplicated

    y

    herenormous

    population. ll attemptstprogressre burdened ysheerweight f numbers ndanysmall

    success

    s

    immediately

    wallowed

    up

    by

    the

    annual

    growth

    ate

    of

    2.2

    per

    cent,

    which dds

    12

    million o India's

    population

    veryyear.

    The

    1961

    Census

    of ndia

    gave

    a

    population

    f

    439

    million;

    he total

    s

    now estimatedo have

    passed

    5oo

    million.

    Of

    these,

    0

    per

    cent

    re

    dependent irectly

    n

    agriculture

    or their ivelihood.

    Few

    areas remain

    where

    and can

    economically

    e

    brought

    nder

    ultivation

    y

    irrigation,

    learance

    r

    reclamation

    nd,

    in

    view of the

    high

    rateof

    underemployment

    nd

    the

    uneconomic se

    of

    abour

    n

    agriculture,

    it s

    unlikely

    o absorb

    larger

    work-force.

    esides,

    mprovements

    n

    agriculturalechniques

    are

    ikely

    o

    make his

    ector ess

    abour-intensive,

    ertainly

    ot

    more o. Lack of

    employment

    and economic

    pportunity

    n

    rural

    reas

    have

    already

    ccasionedmassive

    migration

    o

    cities,

    eventhough nemploymentn urban reashasbeen estimatedt 10percentof the abour

    force,

    ising

    o

    I8

    per

    cent n

    the

    metropolitan

    entres

    f

    Bombay,

    Calcutta,

    Delhi and

    Madras.

    Underemployment

    n urban

    reas dded

    nother

    I

    per

    ent

    o

    that

    ust

    overone-fifth

    of the

    workforce as

    not

    fulfilling

    tswork

    potential.1

    Employment

    ust

    e

    found

    or his

    arge

    nd

    growing

    ool

    of

    abour.The

    development

    of

    ndustry

    ould

    ppear

    o

    provide

    ot

    only

    source f

    workbut lso

    of

    profit

    o the

    conomy

    in

    general,

    hich s beset

    y

    difficulties

    ith

    oreignxchange

    hat

    make

    ightmport

    ontrols

    necessary.

    ndia

    lacks

    capital,

    ntrepreneurship

    nd

    technological

    kills,

    nd

    labour,

    albeit

    largely

    nskilled,

    s a

    major

    nd

    abundant

    esource

    f

    which he must ake

    full

    dvantage

    f

    economic

    rogress

    s to be

    achieved.

    183

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    3/18

    Industrialization

    s also

    necessary

    o

    support griculturalevelopment,

    specially

    n

    the

    drivefor

    elf-sufficiency

    n food.

    ndustry

    ot

    only

    provides

    many

    f

    the

    inputs

    or

    modem

    farming,

    uch

    s

    fertilizers

    nd

    mproved

    mplements,

    ut lso

    supplies

    market or

    gricultural

    products,

    hus

    timulating

    urther

    rowth.

    Anotherrgumentnsupportf ndustrializationn ndia sthe xistence ithin erbound-

    aries

    f valuable esources

    hich an

    provide

    aw

    materials or

    ndustry

    nd

    which hould

    e

    developed.

    hese

    nclude

    gricultural

    roducts

    uch s

    sugar,

    otton,

    ilseeds,

    wool,

    hides nd

    skins,

    nd lso

    minerals.ndia

    possesses

    ome f heworld's

    argest

    eserves

    f ron

    re,

    haematite

    and

    magnetite

    f

    high

    ron

    ontent,

    nd s

    among

    he

    eading

    world

    producers

    f

    manganese,

    mica and

    bauxite.Thus ndia

    s

    well ahead of

    many

    underdeveloped

    ountries,

    otably

    er

    neighbour,

    akistan.

    he

    position

    n

    respect

    f

    ead,

    zinc

    and

    copper

    s less

    favourable,

    ut

    shortage

    f

    foreign

    xchange

    ncourages

    he

    exploitation

    f

    whatever ocal

    deposits

    re

    available

    n order o save

    mports.

    ower

    potential

    n India s also

    high

    nd

    progress

    s

    being

    made,

    although

    t is restrained

    ainly

    y

    the need for

    heavy

    nvestment

    n

    the

    building

    f

    coal-firedndatomic ower tationsndof damsforhydro-electricaleneration.

    More

    controversy

    urroundsocational

    olicy

    or

    ndustry,

    specially

    he

    entralization-

    decentralization

    ssue.

    Among

    Asian

    nations,

    ndia

    lready

    anks

    high

    s

    an ndustrial

    roducer,

    for

    example

    n

    cotton extiles

    nd

    ute products,

    nd is

    beginning

    o

    export

    manufactured

    goods

    to her

    neighbours.

    owever,

    argely wing

    o her

    history

    fcolonial ule

    by

    he

    United

    Kingdom,

    ndia's

    ndustry

    as

    become

    oncentrated

    n

    the

    great

    ort

    ities,

    specially

    ombay

    and

    Calcutta.

    hese

    cities,

    with

    he

    apital,

    elhi,

    have

    developed

    s thedominant conomic

    magnets

    f

    the

    country.

    oth

    cause

    and effect

    f

    this entralized

    evelopment

    s the

    virtual

    absence f

    any

    ndustrialnfra-structure

    n

    nterior

    egions,

    ith he

    xception

    f a

    few

    entres

    such s

    Bangalore, yderabad

    nd

    Kanpur.

    Continuing

    olarization

    s shown

    n thedistribu-

    tionof ndustrialicences, hichbecameobligatoryn I95I for ndustriesf

    a

    certain

    nvest-

    ment

    ize.

    Up

    to

    I964, 3618

    icences

    ad

    been

    granted,

    f

    which

    I

    per

    ent

    went o

    cities

    with

    populations

    f

    over

    one million.

    In

    the

    past,

    ndustry

    as

    been

    given

    free

    and n ts hoice f ocation

    nd this

    as

    ed to

    agglomeration

    n

    the

    hief

    rban entres hich

    ould

    well

    continue.

    he

    metropolis

    ffers

    o

    the

    private ntrepreneur

    he

    advantages

    f a concentrated

    arket,

    n established

    usiness

    community,roximity

    o

    suppliers,

    host ffinancial

    nd

    other

    ervices,

    nd

    a

    greaterppor-

    tunity

    f

    finding

    orkerswith the

    skills

    ecessary

    o his

    enterprise.

    he overall

    mpression,

    gained

    romnterviews

    ith

    ndustrialists,

    s that onsiderable

    ifficulties

    nd

    probably

    inancial

    loss

    mustbe

    faced

    by entrepreneursstablishing

    way

    from

    metropolitan

    entres

    nd that

    concentration ould

    result

    n

    the

    maximum conomic

    benefit,

    t least

    to themselves.

    his

    would,however,nvolve heurban rea, nwhich heunitswere ocated,ncommunityosts

    suchas the

    provision

    f

    housing,

    ublic

    ransport

    nd other

    menities,

    ost

    of which

    grow

    with

    he

    ize of

    the

    city.2

    Yet

    overcrowding

    nd

    the

    proliferation

    f slums

    n

    urban

    reas

    n

    India s

    already pressing roblem;

    t

    is

    estimated

    hat

    7

    per

    cent

    of

    families

    n

    Bombay,

    Calcutta,

    elhi and Madras ive

    n one room

    only.3

    he

    inadequacy

    f

    uchbasic

    menities

    s

    water,

    lectricity,rainage

    nd

    ewerage

    s felt

    ll

    over

    ndia,

    ut

    hese eficiencies

    re

    specially

    acute where

    people

    are

    massed

    ogether

    n

    very arge

    numbers

    nd

    where

    shortages

    re

    aggravated

    y ever-rising

    emands.

    The

    concept

    f

    decentralization,

    n

    the ndustrial

    nd

    other

    ields,

    as

    an

    integral

    art

    f

    the

    Gandhian

    heory

    f

    self-sufficiency

    nd

    the

    preservation

    f traditional

    ultural

    alues.

    Thisphilosophyeactedgainsthe vils fmetropolitanoncentrationndthefactoryystem

    I84

    J.

    A. DAVEY

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    4/18

    INDUSTRIAL DEVELOPMENT

    IN

    RAJASTHAN

    AND MADHYA PRADESH

    I85

    which

    ncouraged

    t,

    and

    theview was thus

    ut

    forward

    hat

    ndustry

    hould

    be

    completely

    decentralized,

    ispersed

    nd based

    n

    villages,

    nd that

    nly

    abour-intensive,

    anual

    methods

    shouldbe used. Studies ave

    shown

    hat

    he

    financial

    ondition f

    city-dwellers

    s

    betterhan

    that

    f

    the

    rural

    opulation,

    ut the

    benefits

    f

    cheap

    food and

    housing

    nd

    a

    healthy

    ocial

    andmental nvironment,oundnvillages,revery aluable, lthoughmpossibleomeasure

    in

    money

    erms.

    Whatever he

    social

    advantages

    f the

    village,

    his deal of a static nd

    tradition-based

    society

    as

    many isadvantages

    rom he

    point

    f

    view

    of

    ndustrialocation. t cannot

    rovide

    an

    adequate

    market

    wing

    to

    scattered

    opulation

    nd

    undeveloped

    onsumer

    emand;

    kills

    of

    labour and

    management

    re absent

    nd

    there

    s a

    lack of

    services,

    ocial

    overheads nd

    amenities.

    n

    addition,

    mostmodem

    production

    s not

    adaptable

    o methods hichdo

    not

    use

    power.

    Nevertheless,

    here s a

    strong

    movement

    mong

    some

    politicians,specially

    n

    the

    Congress arty,

    o followGandhian

    hought

    ven

    n

    economic

    olicies,

    nd

    this

    rend an

    be

    seen

    n

    the

    encouragement

    f

    cottage

    ndustries

    n

    the

    ndianPlans.

    The influence f

    such

    views shouldnotbe underestimated.

    Political

    pressures

    rom

    the federal

    tates

    f

    independent

    ndia,

    which have

    become

    increasingly

    ocal

    n

    the

    pastyears,

    nd which

    vie

    for

    he tatus

    ymbols

    f modern

    ndustry,

    also

    encourage

    ecentralization.

    owever,

    n

    the

    absenceof

    government

    ntervention,

    he

    economic

    orces f

    concentration

    re

    likely

    o

    outweigh

    he

    advantages

    f

    decentralization,

    which

    re

    mainly

    ocial

    benefits.

    The

    authorities

    hus

    ace n

    unfortunateilemma. f

    they

    llow thefree

    evelopment

    f

    industry

    t

    may

    ead to even

    greater

    oncentrationnd

    social

    distress,

    ut

    bring

    onsiderable

    economic enefits.

    he

    enforcement

    f

    controlsimed t

    dispersal

    nd

    morebalanced

    evelop-

    ment would

    spread

    modernizing

    nfluencesmore

    evenly throughout

    he

    country,

    with

    resultant

    olitical

    nd social

    gains, ut

    t would

    be themore ostlylternative.here hen rises

    a

    double

    danger.

    Over-strictontrol f

    industrialocation

    would

    discourage ntrepreneurs,

    a

    consequence

    hichno

    Indian

    overnment

    an allow

    to

    happen,

    whilevital esources

    ay

    be

    unprofitably

    issipated

    n

    an

    attempt

    o

    spread

    hem oo

    thinly

    ver wide areas.

    Perhaps

    he

    most beneficial

    rocedure

    would be

    the creation f

    'counter-magnets'

    o divert

    migrant

    streams hichwould

    otherwise ave

    been attractedo

    metropolitan

    entres nd to

    promote

    regional

    evelopment.

    his

    mustbe

    done

    by

    providing pportunities

    or

    mployment

    n a

    decentralized

    asis.

    Balanced

    regional

    development

    nd

    a

    more

    widespread

    diffusion

    f

    manufacturing

    units

    have been

    inherent

    rinciples

    f

    Indian

    government

    olicy,

    but

    only

    with the

    Third

    Five-year

    lan

    did

    decentralization

    ecome

    a

    major planning

    im. This

    document tated

    clearly hat, s far s possible, ewindustrieshouldbe establishedwayfromarge ndcon-

    gested

    ities.4

    n

    Actof

    1951

    equired

    ll ndustrial

    nits bove

    a

    certain ize o

    be

    icensed,

    nd

    locations or

    new

    units

    ave

    to

    be

    approved,

    utthishas had

    ittle uccess

    n

    directing rivate

    industryway

    from

    metropolitan

    entres.

    he

    policy

    f

    decentralization

    oes,

    however,

    eem

    to

    be

    operating

    more

    efficiently

    n

    locational

    ecisions

    regarding

    ndustrial

    rojects

    n

    the

    public

    ector. t is

    obvious

    hat he ocation f

    steelworks

    must e

    related o occurrencesf

    iron

    ore

    and coal.

    However,

    he

    gitation

    urrounding

    he

    ocation f ndia'sfifthteel

    plant

    shows

    hat

    olitical

    onsiderations

    re

    lso a

    pressingrgument.

    ther

    ndustriesre ess

    losely

    tied

    to local

    raw

    materials nd

    here

    nteriorocations

    ave

    been

    chosenboth

    for

    strategic

    reasons nd

    to

    promote

    egional

    evelopment.

    he

    establishmentf

    aircraft,

    achine

    ool,

    telephone ndelectronicsactoriesn Bangalores anexample f this.Others,ncludinghe

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    5/18

    Bhilai

    steel

    plant

    and

    Heavy

    Electricals

    td.,

    Bhopal,

    are discussed

    n

    more detailbelow.

    Madhya

    radesh

    nd

    Rajasthan

    Some ofthe

    problems

    f ndustrializationnd decentralizationn ndia, nd the conomic,

    social and

    political

    actors

    hichhave

    affected

    ocational

    ecisions

    an

    be illustrated

    y

    an

    FIGURE

    -India:

    position

    f

    Rajasthan

    nd

    Madhya

    radesh

    examination

    f

    industrial

    rowth

    n

    Rajasthan

    nd

    Madhya

    Pradesh.

    These states

    over

    a

    quarter

    f

    ndia's

    rea,

    but

    hey

    have

    only

    2

    per

    ent

    f

    her

    population

    nd have

    escaped

    he

    overwhelmingressure

    n land

    which

    holds

    back

    development

    lsewhere.

    ajasthan

    as

    I6

    per

    ent

    f

    ts

    population

    n urban

    reas,

    nd

    Madhya

    radesh

    4

    per

    ent,

    s

    against

    8

    per

    ent

    for

    ndia

    s a whole.

    The

    corresponding

    igures

    or

    population

    n

    centres

    f over

    oo,ooo

    re:

    Rajasthan .2percent,MadhyaPradesh .6percent nd ndia8.7percent.

    J.

    A.

    DAVEY

    86

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    6/18

    INDUSTRIAL

    DEVELOPMENT

    IN

    RAJASTHAN

    AND MADHYA PRADESH

    These tates aveconsiderable

    ealth

    n raw

    materials,

    specially

    minerals,

    ncluding

    ron

    ore,

    copper,

    zinc, imestone,

    efractory

    lays,

    alt,

    mica,

    soapstone

    nd

    coal;

    agricultural

    products

    uch

    s

    cotton,

    wool,

    oilseeds

    nd

    cereals;

    nd

    various orest

    roducts.

    ll

    these

    ould

    form

    ases or

    ndustry.

    ines

    f

    ommunicationetween he

    metropolitan

    entres f

    Bombay,

    Calcutta, elhiandMadras un hrough ajasthanndMadhya radesh nd revery

    mportant

    to their

    conomic

    ife

    Fig. ).

    The

    development

    f

    Kota

    n

    Rajasthan

    nd of

    Gwalior,

    hopal

    POPULATION OF

    STATE CAPITALS

    150,000

    ----

    50,000

    ---

    25,000

    10,000

    * under

    10,000

    *

    other

    centres over

    15,000

    FIGURE

    2-Rajasthan

    nd

    Madhya

    Pradesh,

    s

    in i88i

    and

    Raipur

    n

    Madhya

    Pradesh

    wes

    much

    o their

    ocation

    n

    broad-gauge

    runk

    ines.

    Before

    ndependence,

    ajasthan

    nd

    Madhya

    Pradesh

    were

    a

    collection f

    native

    tates,

    each

    centred

    n

    a

    capital

    ity

    which

    reflectedts

    rulers'

    wealth

    nd

    prestige.

    he

    capitals

    f

    large

    nd

    mportant

    tatesuch

    s

    Jaipur,

    ndore,

    Gwalior

    andJodhpur

    ere,

    nd

    remain

    oday,

    the

    leading

    ities

    f

    the

    area.

    n

    addition

    here

    were

    British

    nclaves,

    uch s

    Ajmer,

    which

    occupied centralpositionnRajputana,ndpartoftheBritish entral rovincesFig.

    2).

    I87

    0o 200

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    7/18

    These

    factors,

    eographical,

    istoricalnd

    demographic,

    ave all

    affectedndustrial

    evelop-

    ment n

    thetwo

    states.

    Industrialurvey

    A

    detailed

    urvey

    f

    ndustrialnits

    n

    Rajasthan

    nd

    Madhya

    Pradesh

    was

    carried

    ut

    by

    the uthor

    n

    1966-67.

    hese

    were

    large-scale'

    stablishments

    s defined

    y

    the

    1951

    icensing

    Act,

    ach

    having

    ver

    500,000

    upees

    f nvestment

    apital.

    f

    arge

    entral

    nd state

    overn-

    ment

    nterprises

    re

    also

    included,

    here re

    63

    such units n

    Rajasthan

    nd

    114

    n

    Madhya

    Pradesh,

    r a

    total

    f

    I77.

    Interviews

    ere

    obtainedwith

    managers

    nd

    proprietors

    f about

    half

    f

    hese

    nits,

    mainly

    hose

    n

    the

    arger

    rban

    entres. aterial ollected elated

    articularly

    TABLE

    Large-scalendustrialnitsnRajasthanndMadhya radesh

    Number

    f

    units

    Madhya

    Category

    Rajasthan

    Pradesh Total

    Cotton

    pinning

    nd

    weaving

    I

    I8

    29

    Cotton

    pinning

    3

    4

    7

    Wool

    treatment

    nd

    spinning

    2

    - 2

    Jute

    mills

    -

    I

    I

    Silk nd artificialilk

    weaving

    -

    3

    3

    Staple

    ibre

    weaving

    -

    I I

    All

    textiles

    I6

    (25 )

    27(23 ) 43(24 )

    Sugar

    mills

    2

    5

    7

    Flour

    nd starch

    mills

    4

    4

    8

    Oil,

    vanaspathi

    nd

    solvent

    xtraction I

    7

    8

    Guar

    gum

    I

    -

    I

    Bone

    crushing,

    lue

    and

    gelatine

    1 2

    3

    Opium

    manufacture

    -

    I

    I

    Distilleries

    nd alcohol

    manufacture I

    I

    2

    Cattle

    nd

    poultry

    eed

    -

    i

    I

    All

    other

    griculturalroducts

    ased

    0o

    i6 )

    2I

    (i8 )

    31

    i8 )

    Cement

    actories

    3 5

    8

    Refractories

    nd firebricks

    I

    7

    8

    Stoneware

    ipes

    nd tiles I

    3

    4

    Othermineral ased 5 6

    All

    mineral

    ased Io

    (I6 )

    I6

    (I4 )

    26

    25 )

    Wood

    products

    I

    2

    3

    Strawboard

    nd

    paper

    I 7

    8

    Engineering

    nd

    machinery

    5

    12

    17

    Metal

    working

    10

    14

    24

    Electric

    ables

    3

    2

    5

    Electrodes

    -

    2

    2

    Chemicals

    nd ndustrial

    ases

    5

    6

    II

    Miscellaneous

    2

    5

    7

    Total

    63

    I

    4

    177

    Percentagesre of state rgrand otals f units.

    I88

    J.

    A.

    DAVEY

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    8/18

    INDUSTRIAL

    DEVELOPMENT

    IN

    RAJASTHAN

    AND

    MADHYA

    PRADESH

    to choiceof

    ocation ndthe

    dvantages

    nd

    disadvantages

    f the

    ite or he

    particular

    ype

    f

    industry.

    Industrial

    nits ave been classifieds in Table

    I

    and

    broadly

    rouped

    ccording

    o

    their

    raw material

    ase. Textile

    mills orm he

    argest ategory

    nd

    are

    mainly

    otton

    pinning

    nd

    weavingmills.Theseandotherndustriesased nagriculturalroductso notnecessarilyse

    raw materials

    rom

    Rajasthan

    nd

    Madhya

    Pradesh,

    orcertain

    pinning

    mills

    import

    aw

    cotton rom

    Gujarat

    nd

    Maharashtrand some

    of

    the

    flour

    s

    milled rom

    mported

    wheat;

    but,

    n

    general,

    hey

    depend

    on

    local

    products.

    he

    mineral-basedndustries

    o

    so

    almost

    entirely.

    hus

    units ased n local

    raw

    materials

    omprise

    0

    per

    ent f

    the

    total,

    with imilar

    percentages

    n both states.

    ajasthan

    as a

    slight

    ias towards extile- nd

    mineral-basedn-

    dustries

    nd

    Madhya

    radesh owards

    gricultural-based

    nits,

    specially

    ugar

    ndoil

    mills,

    ut

    theoverall ndustrialtructure

    f the

    two

    states

    n

    these ectors

    s

    very

    imilar.

    Measured

    n

    units,

    metal-working,ngineering

    nd

    chemical ndustrieslso

    occupy

    n

    important

    lace.

    They

    nclude wide

    range

    f

    ndustries,

    ld

    and

    new,

    with

    products

    anging

    fromwatermetersoarmamentsndfrommatches otransformers.anyunits laim n all-

    India

    market,

    or

    whicha

    central

    osition

    s

    advantageous.

    hey

    draw

    their aw

    materials

    from ron nd steel

    lants

    n ndia

    nd

    manufactured

    omponents

    rom ndustrial

    entres ut-

    sidethese

    tates,

    nd

    mport significant

    art

    f their

    eeds.Restrictionsn

    foreign

    urchases

    and

    the

    scarcity

    f

    Indian ron and steel

    n

    the

    open

    market ave

    hit these ndustriesard.

    Shortages

    re felt

    especially

    y

    those

    using

    non-ferrous

    etals,

    pecial

    steels

    nd

    certain

    chemicalswhich

    re

    allocated

    y

    the

    government

    n a

    none-too-efficient

    uota

    system.

    Dates

    of

    stablishment

    Large-scalenitsnRajasthanndMadhyaPradesh avebeenclassifiedccordingotheir

    dates

    f

    establishment

    ntofour

    periods.

    n

    each

    an

    increasing

    umber

    f

    new units as been

    founded

    Table

    I).

    The most

    ecent

    eriod

    has thus

    een themost

    prolificlthough

    t

    covers

    only

    6

    years,

    nd

    n

    Rajasthan,

    verhalf heunits ate

    from

    96I

    or

    ater;

    n

    Madhya

    Pradesh

    the dates f establishmentre more

    evenly

    paced hrough

    he

    four

    periods.

    This

    contrast

    s

    repeated

    n a

    longer

    view,

    for

    three-quarters

    f

    Rajasthan'sarge

    unitswerefounded

    fter

    Independence,

    s

    against

    o

    per

    cent

    n

    the

    case

    of

    Madhya

    Pradesh.

    Certain

    ypes

    f

    ndustryeveloped

    arlier han

    thers. he

    general icture

    sof ndustries

    based

    on

    local

    raw

    materials,

    specially

    extile

    nd

    mineral-based

    nits,

    eveloping

    efore

    Independence,

    ith

    greater

    iversification

    f

    production

    n

    the ast wo

    decades.

    Pre-i925Period

    The most

    mportant

    ndustrial

    entres

    f the

    pre-I925

    period

    were

    Beawar,

    Ajmer,

    Jabalpur,

    ndore

    nd

    Gwalior

    (Fig.

    3),

    thefirsthree f

    which

    were

    n

    British

    erritory.

    eawar,

    an

    mportant

    arket or

    otton,

    cquired

    hree

    extile

    mills

    efore

    9IO;

    Ajmer

    housed

    rail-

    way

    workshop

    which

    erved he

    growing

    metre-gauge

    etwork f

    Rajputana;

    while

    three

    out

    of

    four nits n

    Jabalpur

    ounded

    efore

    9Io

    were

    basedon

    local

    clay

    deposits,

    he

    other

    being

    gun-carriageactory

    or he

    British

    orces f

    entral

    ndia.

    These

    nterprisesepresented

    a

    mixturef ndian

    nd

    Britishnvestmentnd

    were able

    to

    flourishn

    the

    more

    progressive

    atmosphere

    f

    Britishndia t a time

    when

    factory

    ndustry

    as

    still n

    nnovation,

    t

    east

    n

    this

    egion.

    Incontrast ith hegenerallyackwardndreactionaryovernmentsfthenative tates,

    I89

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    9/18

    TABLE II

    Large-scale

    ndustrial

    nits n

    Rajasthan

    nd

    Madhya

    radesh

    Dates

    of

    stablishment

    Centres

    pre-1925

    1925-47

    1948-60

    1961-67

    Not kznown Total

    Number

    f

    units

    (a)

    Rajasthan

    5

    (8/)

    II

    (I7 )

    13

    (2I )

    33

    (52 )

    I

    63

    (100 )

    Class

    I

    cities i

    5

    4

    21

    31(49 )

    Jaipur

    -

    4

    I

    6

    II

    Ajmer

    I -

    -

    I

    2

    Jodhpur

    -

    -

    2

    I

    3

    Kota

    -

    - -

    11

    II

    Udaipur

    -

    I

    2

    4

    Class

    2

    towns

    3

    I

    I

    -

    I

    6

    (9.5 )

    Class

    3

    towns

    -

    4

    6

    4

    I4

    (22 )

    Class

    4

    towns I

    -

    I

    3

    5(8 )

    Class

    5 towns

    -

    - 3 4 (6.5 )Rural reas -

    I

    -

    2

    3(5 )

    (b)

    Madhya

    Pradesh

    I8

    (16 )

    27

    (24 )

    31

    (27 )

    38

    (33 )

    II4

    (IoO )

    Class I

    cities

    13

    13

    15

    19

    60

    (53 )

    Indore

    4

    2

    6

    4

    16

    Jabalpur

    4

    2

    I

    I

    8

    Gwalior

    4

    3

    2

    3

    12

    Bhopal

    -

    3

    2

    4 9

    Ujjain

    I

    2

    2

    3

    8

    Raipur

    -

    I

    -

    I

    2

    Durg

    and Bhilai

    -

    -

    2

    3

    5

    Class2

    towns

    2

    3

    4

    4

    13

    )

    Class

    3

    towns

    I

    7

    4

    7

    19

    17 )

    Class 4 towns I 2 3 7(6 )

    Class

    5

    towns

    -

    -

    I

    ((I )

    Rural reas

    2

    4

    7

    14

    12 )

    Towns

    are

    classified

    s

    by

    Census f

    ndia, 961,

    s

    follows:

    Class

    -population

    ioo,oo0

    and over

    Class

    2-50,000-99,999

    Class

    3-20,000-49,999

    Class

    4-10,000-19,999

    Class

    5-

    5,00o-

    9,999

    The

    percentages

    fthe otal

    nits

    n

    each tate

    re

    hown n

    parentheses.

    the rulers fGwalior ndIndorebecame nterestednmodern

    ndustry

    t an

    early

    date. n

    Gwalior

    he

    Maharaja

    himself

    ounded

    pottery

    orks nd eather

    actory

    o

    serve

    his

    court

    and

    army,

    nd a

    railway

    workshop

    with a

    mint ttached.

    arly

    ndustrial

    evelopment

    n

    Indore ook theform f four

    extile

    mills ounded

    y

    ocal

    and

    Bombay

    businessmen.

    hey

    were

    ncouraged y

    the

    vailability

    f otton n theMalwa

    Plateau

    nd

    by

    concessions

    ranted

    by

    the

    Maharaja

    f

    ndore.

    n

    return,

    he

    princes

    eceived othrevenue

    rom hefactories

    nd

    considerable

    restige

    or

    heir

    aringly rogressive

    nterprise.

    1925-47

    Period

    In

    the

    subsequent

    eriod

    more

    princes

    ttempted

    o ride he

    bandwagon

    f

    ndustrializa-

    tion ndvied withoneanotheroattractndustryyofferingoncessions,ften isregarding

    I90o

    J.

    A.

    DAVEY

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    10/18

    INDUSTRIAL

    DEVELOPMENT IN

    RAJASTHAN

    AND MADHYA

    PRADESH

    a

    '

    TV

    IAn

    INDUSTRIAL

    CATEGORIES

    *

    Textile mills

    A

    Cement

    works

    V Refractory

    and firebricks

    works

    T Stoneware pipes and tile works

    A Other mineral

    based

    industries

    ]

    Machinery

    and

    engineering

    works

    *

    Metal

    working

    industries

    X

    Other

    industries

    FIGURE

    -Large-scale

    ndustrial

    nits

    n

    Rajasthan

    nd

    Madhya

    Pradesh,

    ounded

    efore

    925

    economic

    onsiderations

    n

    ocation.

    hey

    owered r

    waived

    taxes nd

    customs,

    ffered

    ree

    land,

    heap

    power

    and

    water

    supplies

    nd,

    especially

    mportant,

    ave

    their

    oyal

    nterestnd

    patronage

    ithoutwhich

    t would

    have

    been

    difficultor

    factory

    o

    survive

    n an

    autocratic

    state.Rulingfamiliesnvested n industryutwere rarely he

    entrepreneurs

    hemselves.

    Branches f

    the

    great

    ndustrial

    empires

    f ndia

    were now

    extended o this

    rea.

    While Indore nd

    Gwalior

    dded to

    their

    ndustrial

    ase,

    Jaipur

    nd

    Bhopal,

    both m-

    portant

    tate

    apitals,

    ow

    entered hefield

    (Fig.

    4).

    InJaipur

    our

    large

    units

    werefounded

    n

    the

    940s

    under

    he nfluencef n

    energetic

    rime

    minister.

    he

    Nawab

    of

    Bhopalpatronized

    industry

    n

    the ate

    3os

    and

    40s

    when

    three

    actories

    ere

    founded n

    Bhopal

    and

    one

    in

    Sehore,

    nd

    many

    other

    xamples

    f

    princely

    ncouragement

    o

    industry

    ould be

    quoted.

    In

    fact,

    ompared

    withthe

    pre-I925

    period,

    he

    native

    tates

    ow had a

    much

    higher

    ro-

    portion

    f

    new

    industrial nits.

    Only

    six

    out

    of

    thirty-eightarge

    units

    ounded etween

    1925

    and

    I947

    were

    n

    British

    ndia.

    Princely

    ndia

    appeared

    o have

    risen o

    the

    challenge

    f

    modem ndustryt last.

    I9I

    0

    200

    Km

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    11/18

    192

    J. .

    DAVEY

    .

    AO

    *

    A

    V

    *.

    INDUSTRIAL

    CATEGORIES

    *

    Textile Mills

    O

    Sugar

    Mills

    (

    Flour and

    starch mills

    Oil mills

    e

    Board and

    paper

    mills

    e

    Other

    agricultural

    product

    based

    industries

    A

    Cement works

    VRefractory

    and

    firebricks works

    Other

    mineral

    based industries

    [-

    Machinery

    and

    engineering

    works

    *

    Metal

    working

    industries

    O

    ndustrial

    gases

    and

    chemical works

    X

    Other

    industries

    FIGURE

    -Large-scale

    ndustrialnits

    n

    Rajasthan

    nd

    Madhya

    Pradesh,

    ounded

    925-47

    1948-60

    Period

    Once

    India

    was

    independent,

    ew factors

    egan

    to

    operate

    n

    industrial

    ocation.

    Con-

    cessionswere wept waywithprincelyuthorityndwerereplaced ycontrols rom entral

    and

    state

    governments,

    nd

    contrasts etweenBritishndia and

    the native tates

    o

    longer

    operated.

    owever,

    he

    egacy

    of

    former

    olicies

    emained

    nd the

    patterns

    f

    development

    to

    which

    hey

    had

    given

    rise

    persisted.

    New industrial nitsfound

    hemselvesttracted

    owards he

    former

    rincely

    apitals

    which

    were

    now the

    regional

    entres f

    Rajasthan

    nd

    Madhya

    Pradesh

    Fig.

    5).

    Indoremade

    considerable

    rogress

    nd

    Gwalior,

    hopal

    and

    Jodhpur

    lso

    gained.

    n

    numbers

    fnew

    units,

    the

    1948-60

    period

    hows

    ittle

    mprovement

    verthat

    efore

    ndependence.

    he removal f

    concessions

    essened

    he

    ttraction

    f

    these

    tates,

    hile

    he

    upheaval

    f

    partition

    nd

    delay

    n

    defining overnment

    ttitudes o

    industry

    ast doubts

    n

    the mindsof

    industrialists.

    he

    First ive-Year lanconcentratedn agriculturendturnedtsattentiono industry ainly

    I92

    0

    200

    Km

    J.

    A.

    DAVEY

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    12/18

    INDUSTRIAL

    DEVELOPMENT

    IN

    RAJASTHAN

    AND

    MADHYA

    PRADESH

    0

    O

    V.

    A

    x

    v

    *

    e

    INDUSTRIAL

    CATEGORIES

    *

    Textile

    mills

    0

    Sugar

    mills

    (DFlour

    and starch mills

    Oil mills

    e

    Board

    and

    paper mills

    ?

    Other

    agricultural

    product

    based

    industries

    A

    Cement works

    V

    Refractory

    and

    firebricks works

    Stoneware

    pipes

    and tile works

    A

    Other mineral

    based

    industries

    ] Machinery

    and

    engineering

    works

    *

    Metal

    working

    industries

    Ondustrial

    gases

    and

    chemical

    works

    X

    Other

    industries

    FIGURE

    -Large-scale

    ndustrialnits

    n

    Rajasthan

    nd

    Madhya

    Pradesh,

    ounded

    948-60

    to

    regulate

    nd

    control.

    certain

    tagnation

    s therefore

    nderstandable,

    t

    east

    n

    these tates

    where

    he ndustrial

    ase

    was

    not

    strong

    nough

    o overcome uch

    uncertainties.

    The two

    most

    ignificantrojects

    fthis

    eriod

    re

    governmentnterprises,

    new feature

    ofthe ndustrialcenen these tates. he site ftheBhilai teelworkswas chosennrelationo

    iron-ore eserves

    t

    Dhalli-Rajhara,

    bout

    go

    km

    away,

    oal from

    engal

    nd

    Bihar,

    nd

    ime-

    stone

    from

    Madhya

    Pradesh;

    he

    township

    f

    Bhilainagar

    s

    situated n

    the main

    Bombay-

    Calcutta

    railway.

    This choice

    also

    exemplifies

    he central

    overnment's

    im to

    promote

    modern

    ndustry

    n

    less

    well-developed

    reas

    nd the tate

    overnment's

    uccess

    n

    acquiring

    such

    prestigious

    roject.

    A

    moredirect

    xample

    f

    decentralization

    s

    the

    Heavy

    Electrical lant t

    Bhopal.

    Bhopal

    was

    not hosen

    or conomic

    easons,

    lthough

    he

    ity

    as

    good

    rail

    inks,

    ts

    limate

    smoderate

    and

    relatively

    ust-free

    nd andwas

    offered

    y

    the

    tate

    overnment,

    ut

    rather ecause

    f

    ts

    position

    n a

    backward

    nd

    under-industrialized

    tate.

    Over

    20,000

    people

    from

    ll over

    ndia

    havealreadyettledn theHeavyElectricallant ownship. ecentralizedocationsremore

    I93

    0 200

    K,m

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    13/18

    194

    J.

    A.

    DAVEY

    feasible

    where

    government

    rojects

    re

    concerned,

    ecause

    profit-making

    s

    not so

    vital

    a

    considerationnd

    funds

    re

    available or he

    necessary

    nfrastructure,

    uch s

    housing,

    nd for

    training

    abour.

    1960-67Period

    The

    years

    ince

    1960

    have seen

    a

    rapid

    growth

    n the number

    f

    large-scale

    nits

    n

    Rajasthan

    nd

    Madhya

    Pradesh

    nd

    also

    in

    the

    diversity

    f

    their

    roducts.

    arge

    cities

    till

    A

    x

    *-

    X

    V

    V

    ^

    E

    e

    INDUSTRIAL CATEGORIES

    v

    Textile mills

    (

    Floor

    and

    starch

    mills

    Oil

    mills

    e

    Board and

    paper

    mills

    3

    Other

    agricultural

    product

    based

    industries

    A Cement works

    VRefractory

    and tirebricks works

    Stoneware

    pipes

    and tile

    works

    A

    Other

    mineral based industries

    Machinery

    and

    engineering

    works

    Metal

    working

    industries

    -

    Industrial

    gases

    and chemical

    works

    X

    Other

    industries

    FIGURE

    -Large-scale

    ndustrial

    nits n

    Rajasthan

    nd

    Madhya

    Pradesh,

    ounded fter

    960

    retain

    strong

    ttraction

    or

    ndustry,

    ith

    orty

    ut of

    seventy

    ew units

    n

    cities

    f

    oo,ooo

    and

    above

    Fig.

    6).

    This

    category

    ow includes ota

    and the

    Durg-Bhilai

    own

    group.

    The

    rise f

    Kota has

    been

    meteoric;

    leven nits avebeen

    stablished

    here

    ince

    96I,

    attracted

    y

    prospects

    f

    hydro-electricower

    from

    he

    Chambal

    Valley

    ams,

    y

    cheap

    and,

    y

    good

    rail

    linkson the

    Bombay-Delhi

    ine,

    and

    by encouragement

    rom

    he

    government.

    hemical

    industriesre importantnd the central overnmentasbuilt large precisionnstrument

    0

    200

    Km

    This content downloaded by the authorized user from 192.168.72.231 on Mon, 26 Nov 2012 14:46:00 PMAll use subject toJSTOR Terms and Conditions

    http://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsp
  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    14/18

    INDUSTRIAL

    DEVELOPMENT

    IN

    RAJASTHAN

    AND

    MADHYA PRADESH

    plant

    here.

    Raw

    materials

    re

    argely

    mported

    rom

    ther

    arts

    f ndia nd

    abroad.

    Despite

    acute

    hortages

    f

    power

    n

    1967,

    fter

    wo

    years

    f

    drought,

    nd

    of

    raw

    materials,

    specially

    imported

    tems,

    ota

    shows

    great

    romise

    or hefuture

    hen

    he

    hydro-electric

    tationsnd

    atomic

    ower

    station

    re n full

    peration.

    Rajasthan'smineralwealthhasnow come nto tsownas a basisfor ndustrialevelop-

    ment.

    he salt

    eposits

    f

    Sambhar

    ndDidwana

    are

    being

    xploited

    y

    chemical nits nd

    two

    important

    on-ferrous

    melters

    ame

    nto

    operation

    n

    1967,

    or

    opper

    t Khetri

    n

    thenorth

    and for

    inc at

    Debari

    near

    Udaipur.

    In

    Madhya

    radesh

    he

    main

    eaturesf

    development

    ince

    961

    have

    been he

    grouping

    f

    industrial

    nits

    round

    Heavy

    Electricals

    td.

    nd

    theBhilai teelworks.

    hey

    nclude

    ncillary

    concerns,

    y-product

    nits

    ndothers

    ttracted

    y

    the

    tmosphere

    f ndustrial

    progress.

    Investment

    n

    this

    eriod

    has been

    mixed;

    central nd

    state

    overnments,

    ll-India

    om-

    panies

    nd

    ocal

    entrepreneurs

    ave all

    participated.

    ew

    lines

    f manufacture

    ave

    ppeared,

    such

    as

    electrodes,

    opeds,

    lectric

    ables,

    xygen

    nd

    acetylene,

    elatine

    nd

    teakveneers.

    Industryasedon ocalrawmaterialsccountsor ess han alf ftheunits oundedince

    960.

    The

    local

    markets

    small,

    ut hese tates

    rovide

    entral

    ituationsn

    major

    ail

    outes,

    hich

    is

    especially

    mportant

    s

    many

    f

    thenew units erve

    country-wide

    arket.

    The state

    governments

    ave

    played

    their

    part

    n

    attracting

    ndustry y

    offering

    ax

    exemptions

    nd

    by

    mproving

    acilitiesuch

    s water

    nd

    power

    upplies.

    ack

    of

    power

    had

    long

    been

    a

    major

    drawback

    o industrial

    xpansion

    n central

    ndia,

    but

    the

    development

    f

    hydro-electricower

    n

    theChambal

    valley,

    hermal

    tationsuch

    s

    Satpura

    ndAmarkantak

    in

    Madhya

    Pradesh nd the

    extension f an inter-connected

    rid

    will overcome his.

    The

    industrial

    states

    rogramme

    rimarily

    enefits

    mall-scale

    nits,

    ut ndustrial

    reas,

    where

    firms

    may

    ease

    and and build

    o their

    equirements,

    re

    beingdeveloped,

    s

    in

    ndore,

    Kota

    andBhopal.

    Many

    firms

    ewly

    stablished

    ncentralndia

    omplain

    f

    problems

    n

    obtainingupplies,

    spare arts

    nd

    pecialized

    echnical

    ndfinancial

    ervices,

    nd

    n

    attracting

    abour,

    wing

    o

    the

    distances

    rom

    metropolitan

    entres,

    ut

    thesedifficulties

    re unavoidable

    n

    the

    transitional

    stage

    twhich

    Rajasthan

    nd

    Madhya

    Pradesh

    ow

    find hemselves.

    ell-organized

    nd

    well-

    connected

    irms

    o notfind hem

    nsuperable,

    utconsiderable

    apital acking

    nd

    experience

    is

    needed.

    Others

    ave uffered

    rom

    elays

    n

    government

    ealings, specially

    hen

    xpected

    concessions o

    not materialize.

    The chief

    roblems

    aced

    by industry

    n

    this

    rea are

    shortages

    f

    power,

    partly

    rom

    natural

    auses,

    nd

    of

    raw

    materials,

    hich

    may

    be

    an

    all-India

    roblem,

    eyond

    he

    capabil-

    ities

    f the

    ocal

    authoritieso solve.

    Given hat

    hese

    an

    be

    overcome

    n

    time,

    Rajasthan

    nd

    MadhyaPradesh avea goodchance fcatchingp theirmore dvanced eighbours.

    Summary

    f

    Locational

    rends

    In these tates e

    may

    recognize

    n

    early

    eriod

    when ndustrial

    evelopment

    ook

    place

    in

    British

    erritories

    nd

    n ndian tates ith

    progressive

    ulers.

    ater,

    nterest

    rew mong

    he

    princes

    nd,

    by givinggenerous

    oncessions,

    hey

    were

    able

    to

    attract

    ndustries,

    specially

    those

    based on

    agricultural

    roducts.

    ome

    remainedither

    ndifferent

    r

    hostile

    o

    modern

    industry,

    nd

    there re

    cases

    of a

    ruler's

    pathy

    n

    the

    past

    ondemning

    is

    domain o remain

    backward

    ven

    today.

    After

    ndependence

    ame

    a

    period

    of

    uncertaintymong

    private

    industrialists,uthuge rojects ere oundedy he entralovernment.ince

    960

    industryas

    I95

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    15/18

    196

    J.

    A.

    DAVEY

    blossomed

    n both stateswith

    great

    variety

    f

    new

    products,

    eaping

    he

    advantages

    f

    a

    centralocation ndthe ttractiveerms ffered

    y

    central

    overnment

    ommittedo

    promote

    decentralization

    f

    ndustry

    nd

    by

    state

    overnments

    nxious

    o

    pursue policy

    f economic

    expansion.

    rom hefactst

    might

    e

    concluded hat

    conomic actorsuch s the

    elative osts

    ofrawmaterials,abour,

    ower

    ndsoon,havebeen

    econdary

    o

    political

    nfluencesndecid-

    ing

    the

    pattern

    f ndustrialocation

    n

    Rajasthan

    nd

    Madhya

    Pradesh.

    * 0 0

    ?O..

    POPULATION

    SIZE CLASSES

    0

    O

    Classl

    100,000

    and

    over

    (with initials)

    0

    Class2

    50-99,999

    0

    Class

    3

    20-49,999

    *

    Class4

    10-19,999

    *

    ClassS

    5-

    9,999

    *

    Class6 under

    5,000

    NUMBER

    OF

    CENTRES

    IN SIZE

    CLASSES

    Rajasthan

    Class

    1 6

    Class

    2

    4

    Class

    3

    23

    Class

    4

    52

    Class

    5

    51

    Class 6 9

    TOTAL-TOWNS AND

    TOWN

    GROUPS

    145

    tee?

    QO

    ?

    *.

    ??

    C

    ;000

    .@

    O

    *

    .0P

    **

    0

    * 0

    ,

    **

    *

    ?

    ?

    Madhya

    Pradesh

    8

    5

    30

    55

    96

    16

    210

    FIGURE

    7-Rajasthan

    and

    Madhya

    Pradesh,

    urban

    centres,

    96I

    Decentralization

    ith

    espect

    o

    large-scale

    ndustry

    as made

    ittle

    rogress

    s

    yet,

    ut

    a

    pattern

    s

    emerging

    f

    regional

    entresuch

    s

    Jaipur,

    ota,

    Gwalior, ndore,

    abalpur,

    hopal

    and

    Raipur,

    ll with

    populations

    f

    between

    oo,ooo

    and

    500,000

    Fig.

    7).

    These

    offer

    he

    facilities

    f

    well-developed

    rban

    uclei,

    ut

    void

    the vils

    f

    over-concentration.

    uch

    cities

    could act

    as the

    counter-magnets'

    eeded

    to

    divert

    he

    flowof

    migration

    o

    metropolitan

    centresnd topromotemore vendevelopmentfallparts f ndia.

    o

    200

    K.m

    This content downloaded by the authorized user from 192.168.72.231 on Mon, 26 Nov 2012 14:46:00 PMAll use subject toJSTOR Terms and Conditions

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    16/18

    INDUSTRIAL

    DEVELOPMENT IN

    RAJASTHAN

    AND

    MADHYA

    PRADESH

    Industrial

    ecentralizationn ndia

    Points

    rising

    rom his

    pecific egional tudy

    may

    erve o throw

    ight

    n

    more

    general

    industrial

    nd

    economic

    roblems

    n

    ndia s a

    whole.These

    nclude

    he

    question

    f

    ndustrial

    decentralizationhich, or arious easons,sexercisingconomicplannersnmany ountries,

    not

    only

    he

    underdeveloped

    tates. he

    creation f

    'counter-magnets',

    here

    ttractive

    erms

    are offeredo

    ndustry,

    arge

    or

    small,

    s

    the

    positive

    spect

    f

    government

    ction

    o

    promote

    decentralization.

    s

    a

    compromise

    etween

    metropolitan

    oncentration,

    hich

    obtains

    t

    present

    n

    ndia,

    nd

    total

    decentralization

    ith

    village-basedndustry,

    xisting

    medium-sized

    towns

    may

    be set

    up

    as

    growth oints.

    This

    approach

    s

    implicit

    n

    a

    Ministry

    f

    Industry

    report

    f

    965

    which

    uggests

    hat,

    uring

    he

    period

    f the

    Fourth

    lan,

    ll

    centres f

    5,000-

    50,000

    hould

    e

    selected

    s

    growth-points'

    nd,

    rather

    ptimistically,

    hat hese

    entres

    hould

    absorb he

    greater art

    f

    the

    population

    moving

    ntourban

    reas

    n

    the

    next

    decade.5

    On

    the

    one

    hand,

    he ize of

    centre

    pecified

    eems

    ow,

    even for

    mall-scale

    ndustry

    f

    the

    modem

    type.John . Lewisrecommendsowns n the

    0,000-300,000

    range s growth oints fhis

    'town-centred

    evelopment',6

    hile

    Britton

    arris

    would

    put

    the

    imit

    higher;

    as

    between

    independent

    ities

    f

    different

    izes,

    hose

    in

    ndia]

    under

    present

    opulation

    f

    200,000

    end

    to be

    unable

    o

    supply

    o

    many

    f

    thedesirable

    eaturesf an

    environment

    hich

    timulates

    manufacturingrowth

    hat

    hey

    annot

    t

    present

    e

    seriously

    onsidereds

    potential

    rowth

    centres'

    cf.

    Fig.

    7).7

    However,

    otential

    nd

    readiness or

    development,

    ather han

    ize,

    hould

    eterminehe

    choice

    to

    be

    made.

    ndia cannot fford

    o

    waste

    carce

    esourcesn

    subsidizing

    nprofitable

    industrial

    entures,

    ven

    n

    deserving

    reas.

    E.

    Staley

    nd

    R.

    Morse

    make the

    point

    that t

    is

    better o

    find

    parks

    f

    ncipient

    evelopment

    ndfan

    hem

    nto

    flame han o

    try

    o

    energize

    a

    locality

    which has

    shown

    ittle

    igns

    of

    readiness or ndustrial rowth.8Once growth

    points

    avebeen

    ocated,

    t

    s

    necessary

    o

    make n

    all-out

    ffort

    o

    promote

    ndustry

    here

    y

    providing

    ervices

    nd

    all

    possible

    ncentives

    or

    ntrepreneurs,

    s

    with

    the

    oncessions

    iven

    by

    state nd

    central

    overnments

    n

    Rajasthan

    nd

    Madhya

    Pradesh.

    The

    negative

    anctions f

    government

    ontrol n

    industrial

    ocation

    nd

    restrictionsn

    expansion

    hroughicensing

    nd

    axation

    ave

    lsobeen

    ried,

    ut

    he

    metropolitan

    entres ave

    proved

    exceptionally

    enacious

    nd have

    retained

    heir

    ttraction

    espite overnment

    fforts

    and a

    correspondingrowth

    n

    ndustrial

    evelopment

    lsewhere.

    he Third

    Plan

    period

    aw

    the

    million'

    ities f

    ndia

    reduce

    heir hare

    f

    ndustrial

    icences

    ranted

    o

    39

    per

    cent,

    s

    opposed

    o

    46

    per

    cent

    during

    he

    First nd

    Second

    Plans,

    nd

    those

    ranted

    or

    ural reas

    ose

    from

    .6

    per

    cent

    to

    I.4

    per

    cent.

    These

    figures

    re

    perhaps

    he

    beginning

    f

    a

    movement

    whichwillgrow.

    The

    role

    of

    the

    public

    ector

    n

    industry

    n

    general

    nd in

    industrial

    ecentralization

    n

    particular

    s

    also a

    matter fwide

    debate.

    ince

    ndependence,

    ndia

    hashad a

    mixed

    conomy,

    but

    the

    hare f

    the

    public

    ector n

    ndustry

    as

    ncreased nd

    become

    morediversified

    ith

    each

    succeeding lan.

    n

    the

    First

    lan,

    public

    nvestmentn

    ndustry

    as

    ow,

    at Rs.

    55

    crores

    (I

    crore

    =

    ten

    million)

    s

    against

    s.

    3 3

    croresn

    the

    rivate

    ector. ublic

    nterprisexpanded

    massively

    n

    the

    Second

    Plan,

    mainly

    wing

    o

    the ron nd

    teel

    works

    t

    Rourkela,

    urgapur

    and

    Bhilai,

    nd

    nvestmentose

    rapidly

    o

    Rs.

    938

    crores,

    urpassingrivate

    utlay,

    lthough

    this

    lso

    increased

    ramatically

    o

    Rs.

    850o

    rores.

    espite

    this

    ncrease,

    he

    public

    ector till

    produced

    nly

    one-tenth

    f

    the

    output

    f

    organized

    ndustry

    n

    India

    n

    i960-6I.

    The ThirdPlan sought o raise his hare o 24 percentby I965-66,at the same time

    I97

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    17/18

    shifting

    nd

    diversifying

    roduction

    rom

    eavy

    metallurgy

    nto

    apital oods

    f

    he

    ngineering

    type,

    uch as

    precision

    nstruments,

    achine

    ools,

    electronic

    nd

    other

    machinery.

    he

    moderateuccess

    f

    ndustry

    n

    theThird

    lan,

    t

    east

    ompared

    ith ther

    ectors,

    ncouraged

    the

    framers

    f the

    Fourth

    lan

    to an even

    higher

    arget

    or

    public pending

    n

    industry.

    his

    amounted o Rs. 3900crores,utofa total fRs. I6,ooocroresnthepublic ector,nd was

    the

    argest

    tem

    on

    the

    ist;

    planned

    nvestment

    n

    agriculture

    nd

    rrigation

    as

    Rs.

    3374

    crores,

    nd that

    n

    transport

    nd

    communications

    s.

    3010

    crores.9

    he

    figure

    f Rs.

    3900

    crores

    s

    very

    high

    onsidering

    ndia's

    financial ituation

    nd

    the avowal of the

    planners

    o

    strengthen

    he

    agricultural

    ector

    s a matter

    f

    urgency.

    The

    DraftOutline

    f

    the

    Fourth lan

    was

    published

    n

    August

    966,

    ut

    ts

    mplementa-

    tion

    was

    postponed,

    nd the

    ndian

    government

    as taken

    three-year

    planning

    oliday',

    proceeding

    ith

    development

    rogrammes

    n

    a

    yearly

    asis.

    External onflicts

    ith

    Pakistan

    and

    China,

    s well as

    internal

    pheavals

    nd the

    growing

    risis

    f

    relations

    etween he tate

    and central

    overnments,

    ave

    disrupted

    he

    ndian

    conomy

    nd the

    1967

    lections

    pset

    he

    hierarchyfthePlanning ommission.t remainsobe seen f hegovernmentill ver eturn

    to

    planning

    n

    the

    same

    basis as

    before,

    lthough

    he

    Fourth lan

    document

    was

    finally

    approved

    y

    theNational

    Development

    ouncil

    n

    Delhi

    in

    April

    1969.

    Nevertheless,

    he

    public

    ector

    as

    played

    n

    mportant

    ole

    n ndustrial

    ecentralization,

    as

    n

    the

    ases

    f

    the

    Bhilai teelworks

    nd

    Heavy

    Electricals

    td.,

    Bhopal.

    The relativemerits

    of

    uch

    induced'

    ndustry

    s

    against

    natural'

    rowth

    re

    rguable,

    s the

    ubsidizing

    f

    ndustrial

    development

    y

    the tate

    ould nterfere

    ith

    he

    free

    lay

    of

    ocational

    nd

    market

    mechan-

    isms

    and

    thusresult

    n diseconomies.

    ather,

    he

    government

    hould

    build

    up

    the

    infra-

    structure

    ecessary

    or

    ndustrial

    evelopment-roads

    nd

    railways, ower upplies,

    inancial

    and

    commercial

    ervices,

    abour

    raining,

    nd

    thereby

    ttract

    rivate

    nterprise

    nd

    facilitate

    itsrunning. owever, hese woexamples ave shownhowpublic nterprisesaveattracted

    other

    ndustry

    nder heir

    umbrella'

    ffect,

    s ancillaries

    r

    users f

    by-products,

    o

    share

    improved

    ransport

    acilities,

    r to

    exploit

    newmarkets

    rought

    y

    ncreased

    opulation

    nd

    wealth

    n the

    region.

    n

    many

    ountries

    t

    has been

    found

    hat,

    n

    attempts

    o

    help

    backward

    areas,

    ocial

    questions

    mustbe considered

    ith economic

    spects,

    nd

    may

    even

    outweigh

    them.

    hus

    artificiality'

    nterms

    f

    economicocational

    orces

    may

    be tolerated

    or he ocial

    benefits

    hich

    ccrue.

    Whatever

    he

    position

    f

    government

    n industrial

    ecentralization,

    he

    basic

    questions

    remain:which entres

    re to be

    developed,

    which

    ndustriesrebest

    uited

    or

    dispersal

    nd

    at

    what

    scaleof

    production,

    ndwhat

    are the

    regional

    atterns

    f

    growth

    which

    emerge?

    All

    these

    must

    be considered

    n

    depth

    fthe

    movement

    owards

    ndustrial

    ecentralization

    in

    anycountry

    sto

    gain

    momentum.

    ACKNOWLEDGEMENTS

    The

    research

    or

    his

    aper

    wascarried ut

    during

    he

    period

    965-68,

    while he

    uthor,

    hen

    Miss

    Judith

    rown,

    was Research

    ssistant

    t

    the Centre

    f South

    Asian

    Studies,

    niversity

    f

    Cambridge.

    he

    is

    verygrateful

    o the

    Director

    nd Committee

    f

    Management

    f

    the

    Centre

    or hefacilities

    hich

    were

    provided

    n

    Cambridge

    ndfor

    grants

    or ravel

    n ndia.

    During

    herfieldwork

    he uthorwas

    helped y

    numerous

    ndustrialists,

    overnment

    fficials

    and

    academics

    n

    ndia,

    o whom

    he

    xpresses

    er hanks.

    NOTES

    'National

    ample urvey,

    enth

    Round,

    ecember

    955-May

    1956,

    No.

    34,

    Tableswith

    otes

    n

    employment

    nd

    unemployment'

    Govt.

    of

    ndia,Delhi,

    960).

    See also

    W. MALEMBAUM,

    Urban

    unemployment

    n

    India',

    Pacif.

    ff.

    30I957),38-50

    I98

    J.

    A.

    DAVEY

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  • 7/26/2019 Industrial Development in Rajasthan and Madhya Pradesh, India

    18/18

    INDUSTRIAL DEVELOPMENT

    IN

    RAJASTHAN

    AND MADHYA

    PRADESH

    I99

    2

    G.

    M.

    NEUTZE,

    conomic

    olicy

    nd

    he ize

    of

    ities

    Canberra, 965),

    6-9

    3

    National

    ample urvey,

    eventh

    Round,

    October

    1953-March 954,

    No.

    26,

    Preliminaryeport

    n

    housing

    condition'

    Govt.

    of

    ndia,

    Delhi,

    1960).

    See also R. R.

    PARK,

    The

    urban

    hallenge

    o local

    and

    state

    government:

    West

    Bengal,

    with

    pecial

    eference

    o

    Calcutta,

    n

    ndia's rban

    uture

    Berkeley,

    962)

    4

    Government

    f

    ndia,

    lanning

    ommission,

    hird

    ive-year

    lan

    New

    Delhi,

    1961),

    689

    5Governmentf ndia,Ministryf ndustryndSupply, eportf he ub-groupnsmall-scalendustriesJuly

    965);

    Working

    roup

    n mall-scale

    ndustry,

    andicrafts

    nd ericulture

    New

    Delhi,

    1965),

    149

    6

    J.

    P.

    LEWIS,

    Quiet

    risisn ndia

    Washington

    .C.,

    1962),

    174

    7

    BRITTON

    ARRIS,

    Urban centralization

    nd

    planned

    evelopment',

    n

    India's rban

    uture

    Berkeley,

    962),

    68

    8

    E. STALEY

    nd

    R.

    MORSE,

    odernmall

    ndustryor

    developing

    ountries

    1965),

    313

    9

    Government

    f

    ndia,

    lanning

    ommission,

    ourth

    ive-year

    lan-A

    draft

    utline

    New

    Delhi,

    1966),

    41

    REsuME-Developpement

    ndustriel

    ans e

    Rajasthlan

    t

    e

    Madhya

    radesh,

    nde.A

    present,

    'industrialisationete

    cceptee,

    en

    nde,

    omme n

    pas

    necessaire

    ers e

    progresconomique,

    mais a

    politique 'implantation

    e

    'industriest

    oujours

    l'objet

    d'une

    ontroverse

    ur a

    question

    e a

    centralisationu

    de a

    decentralisation.

    n

    peut

    llustrer

    e

    probleme,

    insi

    que

    les

    facteurs

    conomiques,

    ociaux

    t

    politiques

    ui

    influentur

    es

    decisions

    'implantation,ar

    un examendu

    developpement

    ndustrielans

    e

    Rajasthan

    t e

    Madhya

    radesh,

    eux

    tats

    u

    centre

    e 'Inde.

    Les materiauxassembles

    a la suite 'uneetude ur uelques omplexesndustrielseces etats omprennentes ndicationsur esdecisions'im-

    plantation

    t sur

    es datesd'etablissement.n

    peut

    definir

    uatreperiodes

    e

    developpement

    ndustriel.

    e

    role de

    l'initiative

    ritannique

    t

    celui

    oue

    par

    es

    princes

    ndiens

    taient

    mportant

    vant

    'Independance.

    epuis

    I948,

    la

    politique

    u

    gouvernement

    influeur

    'implantation

    t e

    developpenlent

    ndustrielle,

    t des

    projets

    u

    secteur

    ublic

    ontete

    etablis.

    es

    problemes

    ctuels e

    manqued'energie,

    a rarete e certaines

    ati&res

    remieres,

    t

    es

    deficiences

    d'infra-structure

    evaient te urmontes

    temps.

    eci accroit

    'importance

    u

    role

    du

    gouvernement

    ans

    'etablissement

    et a

    promotion

    u

    developpement

    ndustriel,

    t

    des

    types

    'implantationuiemergeront

    i a

    politique

    e

    developpe-

    ment

    egional

    quilibre

    u

    gouvernement

    ndien

    st

    mise n

    application.

    FIG. -Inde:

    position

    u

    Rajasthan

    t du

    Madhya

    Pradesh

    FIG.

    2-Rajasthan

    et

    Madhya

    Pradesh,

    omme n

    1881

    FIG.

    3-Complexes

    industrielsans e

    Rajasthan

    t e

    Madhya

    radesh,

    ondesvant

    925

    FIG.

    -Complexes

    industriels

    ans

    e

    Rajasthan

    t

    e

    Madhya

    Pradesh,

    ondes

    925-47

    FIG.

    5-Complexes

    industrielsans

    e

    Rajasthan

    t e

    Madhya

    Pradesh,

    ondes

    948-60

    FIG. -Complexes industrielsans e Rajasthant eMadhyaPradesh ondespres

    960

    FIG.

    -Rajasthan

    et

    Madhya

    Pradesh,

    entres

    rbains,96I

    ZUSAMMENFASSUNG-Industrielle

    ntwicklung

    n

    Rajasthan

    nd

    Madhya

    radesh,

    ndien.

    ndustrialisierung

    st u notwendi-

    gen

    Massnahmeur

    den

    wirtschaftlichen

    ortschrittndiens

    eworden,

    ber

    mehr

    treitfragen

    mgeben

    ie 6rtliche

    Verteilungs-Police

    ur

    ie

    ndustrie,

    ie

    Zentralisations-Dezentralisationsfrage.

    ies Problem nddie

    wirtschaftlichen,

    sozialen

    nd

    politischen

    aktoren,

    elche

    die

    Entscheidungen

    er

    Verteilung

    eeinflussen,

    onnen urch

    ine

    Unter-

    suchung

    es Anwachsens

    er

    ndustrie

    n

    Rajasthan

    nd

    Madhya

    Pradesh,

    wei Staatenn

    Zentralindien,

    nschaulich

    gemacht

    werden.

    Bei

    einer

    Vermessung rosser

    ndustrieller

    nternehmungen

    n

    diesen

    taaten,

    wurdeMaterial

    gesammelt,

    as Informationen

    rtlicher

    erteilungsEntscheidungen)estimmungen,

    owie

    Daten der

    Entstehung

    enthalt.

    ierZeitabschnittendustrieller

    ntwicklung

    6nnen

    estgestellt

    erden. ie

    Rolle

    die

    britischer

    nternehm-

    ungsgeist

    nd ndische tirstenorder

    Unabhangigkeitpielten,

    ar

    wichtig.

    eit

    1948

    hatdie

    Regierungspolitike

    en

    Standorter ndustrie,owiedaswachsen eeinflusstndProjekte ffentlicherektorenind ntstanden.egenwartiger

    Mangel

    an

    Kraftversorgung,angel

    an bestimmten

    ohmaterialiennd

    Unvollkommenheiten

    er

    Infra-Struktur

    konnenmit

    er

    Zeit iberwunden erden. ies

    zeigt

    ie

    Aufgaben

    er

    Regierung

    ei

    der

    Griindung

    nd

    Forderung

    er

    industriellen

    ntwicklung

    nd

    das

    Muster,

    as

    entstehen

    ird,

    wenn

    die Police

    gleichmassig

    erteilter

    ntwicklung

    er

    indischen

    egierungngewandt

    ird.

    ABB.

    i-Indien: die

    LageRajasthan

    nd

    Madhya

    Pradesh

    ABB.

    2-Rajasthan

    und

    Madhya

    Pradeshwie in 1881

    ABB.

    3-Grosse

    industrielle

    nternehmungen

    n

    Rajasthan

    nd

    Madhya

    Pradesh

    or

    1925

    gegriindet

    ABB.

    4-Grosse

    industrielle

    nternehmungen

    n

    Rajasthan

    nd

    Madhya

    radesh wischen

    925

    und

    947

    gegriindet

    ABB.

    5-Grosse

    ndustrielle

    nternehmungen

    n

    Rajasthan

    nd

    Madhya

    radesh wischen

    948

    und

    1960

    gegriindet

    ABB.

    6-Grosse industrielle

    nternehmungen

    n

    Rajasthan

    nd

    Madhya

    Pradesh

    ach

    1961

    gegrtindet

    ABB.

    7-RajasthanundMadhyaPradesh, tadtzentrum