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Question

Bring out various factors responsible for declining of village Industries in India.

This question was previously asked in
UPSC CSE 2025 (Prelims) CSAT Official Paper (25-May-2025)

Several factors have contributed to the decline of village industries in India, leading to widespread economic and social consequences. A primary reason is the competition from large-scale, mechanized industries. Mass-produced goods are often cheaper, more uniform, and readily available, making it difficult for handcrafted village products to compete on price or scale.

Secondly, lack of modern technology and infrastructure hampers their efficiency and productivity. Village artisans often rely on traditional tools and methods, which are labor-intensive and slower, unable to meet large demands or match precision. Poor access to credit and raw materials is another significant hurdle, forcing them to rely on moneylenders or middlemen who exploit their vulnerability.

Furthermore, changing consumer preferences have shifted away from traditional, handmade goods towards factory-made alternatives. Lack of marketing and branding support also prevents village industries from reaching wider markets and fetching fair prices. Finally, inadequate government policy support and a focus on large industries, historically, have left many traditional crafts and village industries struggling to survive and adapt.

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