Another area where industry could help in fostering self-employment is a purposeful and planned policy of sub-contracting and development of ancillary industries. There are many industrial ventures, in the engineering industries in particular, where small-scale units are not by themselves less competitive in relation to bigger units. In fact, where individual skills fetch a premium, a smaller scale of activity may confer certain special advantages. Young entrepreneurs engaged in activities on a modest scale, could develop profitably in the ancillary lines, provided they had custom from the bigger units. It is market imperfection which is holding them back. It could well be that one reason inhibiting industry from entering into contractual arrangements with small entrepreneurs is fear of default on orders or lack of confidence about quality. But this is a matter where guidance is necessary and will be rewarding. A little risk has to be accepted if social stability is to be ensured. Placing faith in the country's young men and women — making an initial outlay on them — is bound to offer dividends in the long run. Past experience indicates that where appraisal is carefully done at all stages and proper contact is maintained with the parties, there is little default on orders placed. Quality control too is a matter of continuous communication between the party contracting and the party delivering. What is called for is a certain breadth of vision on the part of the bigger units. In many instances, they will have to go out of the way to encourage young people to set up on their own, to advise them with technical expertise on marketing and on the methodology of financial appraisal. Devoid of this approach, mere dispersal of industries or location of a few big industries in the backward areas to meet the aspirations of the people will hardly serve any worthwhile purpose. As I mentioned earlier, I would look at rural industrialisation more as a catalytic agent to bring about a total transformation of the socio-economic climate in the rural areas. The generation of employment opportunities is only one facet of this change. Thus there is a large area of give and take between organised and large scale industry and the small scale and self-employed sector which needs to be explored and encouraged.
Self-employment can be generated not just in industry but in several other spheres too. One can also think of the service occupations, including, for example, small scale trade or, for that matter, even journalism. It could be that our financial institutions have till now maintained a bias towards small industrial and transport operations while thinking of problems related to the creation of self-employment. In part, this reflects the predilections currently prevailing. It is however quite clear that if the programme of self-employment is to make a substantial impact, it has to encompass not merely industry but various other occupations depending upon the nature of regional dispersion of young talents. In each of these spheres, industry, either as a supplier of raw material or as a buyer of what is produced, could offer a helping hand. Its sympathy and understanding could help to set up in life thousands of young men and women all over the country.
As I said earlier, the promotion of self-employment and rural industrialisation is a task which truly ought to be a common endeavour of industry and the Government. If industry would come up with suggestions and ideas for meaningful cooperation in the matter, the Government is anxious to listen to, and to act together with it.