13 July 2024 : Daily Answer Writing
Q1) What do you understand by footloose industries? Discuss their significance and provide a suitable strategy for the growth of footloose industries in India.
(250 Words/15 Marks)
ANS
Footloose industries are those industries that are not tied to any location and can operate from anywhere. They do not require any specific raw materials or access to a particular market.
Examples of footloose industries include software development, call centres, and data processing.
The significance of footloose industries is as follows:
- Flexible and Mobile: Footloose industries can be established and operated from anywhere with access to the necessary resources. This flexibility allows entrepreneurs to set up businesses in regions with lower costs of living or in areas that offer specific advantages such as a skilled workforce or a favorable regulatory environment.
- Employment Generation: Footloose industries have the potential to create significant employment opportunities for a diverse range of skills. These industries often require specialized skills and knowledge, which can lead to high-paying jobs and more opportunities for upward mobility.
- High-tech and Innovative: Footloose industries are often characterized by high levels of innovation and the use of cutting-edge technology. It can lead to growth of technological competence and intellectual property that can provide a base for sustained economic growth.
E.g., prospective semiconductor plant in Dholera, Gujrat.
- Regional Development: Footloose industries can bridge regional inequalities. By creating jobs and generating economic activity in less developed regions, footloose industries can help to reduce poverty and increase access to education and healthcare.
- Diversification of Economy: The footloose industries can help to diversify the economy and reduce dependence on traditional industries such as agriculture. This can help to promote more balanced economic growth. It also reduces the impact of economic shocks in specific industries.
- Contribution to GDP: Footloose industries operate in sunrise sectors which generate higheconomic value such as blockchain, ITeS, software development, financial services, and research & development. They can help India move swiftly to higher milestones in GDP growth such as the $5-Trillion economy.
Following steps can help to promote the growth of footloose industries in India:
- Investment: The government needs to invest in infrastructure, particularly in the areas of transportation and communication. This will help to improve connectivity and reduce the cost of doing business, making India a more attractive destination for footloose industries.
E.g., PM Gatishakti Masterplan; PLIs etc.
- Ease of Doing business: The government also needs to focus on creating a favourable business environment. This includes reducing bureaucratic red tape, simplifying regulations, and providing incentives for investment.
E.g., Tax breaks and other forms of financial support for businesses in India; GIFT city (IFSCA) in Gujrat
- Training: To make footloose industries grow more in India, it’s important to educate and train people so they have the skills needed to work in these industries. This way, there will be enough skilled workers who can do the jobs that are needed.
E.g., ASEEM portal; PMKVY4.0 etc.
- Collaborations and Innovation: The government of India could collaborate with industry associations and educational institutions to create specialized training programs that focus on the specific needs of footloose industries.
E.g., setting up incubators and accelerators for mentorship to startups; AIM; ATLs etc.
Footloose industries are an important driver of economic growth and employment. If India improves the conditions for footloose industries, it will become a better place for them to do business. This will help these industries to grow and create more jobs, and in turn, boost India’s economy
