Small scale industries promote decentralized development and help to remove regional disparities in industrialization. The development of small scale industries leads to industrialization in rural area. Decentralized development contributes to the process of self-sustained growth and avoids concentration of industries in particular areas. By providing employment in rural areas, they help to check migration and overcrowding in urban areas. Small scale firms can be a useful means of rural reconstruction and development. Development of decentralized sector also improve the standard of living of people in backward regions.
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