Word Count : 913

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The causes of industrial backwardness in India are:-

(i) Poor rate of capital formation: Poor rate capital formation is consider as one of the major constant which has been responsible for slow down rate of industrial growth in India.

(ii) Lack of credit facilities: Credit facilities in India are not easy. The problem is more complicated particularly for the micro and small scale sectors.

(iii) Political factors: During the periods of pre-independence, industrial Policy followed by British rulers were not at all favourable for the interest of the country. Thus India remained a primary producing country during 200 years of the British rule which ultimately retarded the industrial development of the country in its early period.

(iv) Lack of industrial facilities: India is still backward in respect of its infrastructural facilities. Thus in the absence of proper transportation, communication power in many parts of the country, industrial development could not be achieve.

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