Industrial Clusters in Tamil Nadu
10th Social Science | Economics | Chapter 5: Short Answers
(i) There are limits to the ability of agriculture to absorb labour due to the declining marginal productivity of land.
(ii) When more and more people continue to rely on agriculture for their livelihood the wages cannot increase but remain low.
An industrial cluster is a group of firms in a defined geographic area that share common markets, technologies and skill requirements.
(i) Industrial clusters are groups of firms in a defined geographic area that share common markets, technologies and skill requirements.
(ii) Certain clusters evolve over a long time, when artisans settle in one locality and evolve over centuries (Ex: Handloom weaving clusters)
(iii) In some sectors, when a large firm is established, a cluster of firms may emerge to take care of its input and service requirements.
SIPCOT: SIPCOT was formed in 1971 to promote industrial growth in the state by setting up industrial estates.
TIDCO: TIDCO was formed in 1965 to promote industries in the state and to establish industrial estates.
TANSI: TANSI was formed in 1965. It is the first industrial corporation operating in the domain for small enterprises.
(i) Some clusters, especially chemicals, textiles and leather tend to generate a lot of polluting effluents that affect health. The effluents also pollute water bodies and adjoining agricultural lands.
(ii) Employment generation potential has declined because of the use of frontier technology because of the need to compete globally.
(iii) Quality of employment has suffered as most of the workers are employed only temporarily.
(i) Entrepreneur is an innovator of new ideas and business process.
(ii) He possess management skills, strong team building abilities and essential leadership qualities to manage a business.
(i) Entrepreneurship is a process of action of an entrepreneur who undertakes to establish his enterprise.
(ii) It is the ability to create and build something.