Avail­ability of credit, which in the past used to be another causative factor for entrepreneurial concentration, is sought to be ensured for small entrepreneurs through nationalised banks. During the past two years a great deal has been achieved in channeling financial resources to small entrepreneurs and self-employed persons. To correct the regional imbalances a series of steps have been taken to offset through specific subsidies and credit facilities on softer terms the disadvantages and the unattractiveness of investment in backward areas. Series of measures have been taken to give an incentive to the export industries. Last month the Government decided to subsidise half the cost of transporting raw materials and finished products incurred by new industries to be started in Jammu & Kashmir, Assam. Meghalaya, Nagaland, Manipur, Tripura and NEFA. In order to strengthen marketing and promotional activity, assistance to recognised export houses for promotion and market research was liberalised and a Trade Development Authority was set up to provide a comprehensive range of services to exporters. particularly those in the small scale sector.

Far-reaching policy changes have thus already been initiated to check and correct the undesirable features of industrial develop­ment and to ensure a smoother, faster and more balanced indus­trial growth in the future. However, policy, whether permissive or constraining, can be fully effective only if the guidelines and incentives offered by it evoke an adequate response from entre­preneurs, workers and industrial managers. The task of industrial development is the joint responsibility of policy makers, indus­trial interests and the labour force and our efforts will be successful if we approach this task in a spirit of constructive cooperation.

This brings me to the crucial question of labour-management relations on which depends the future course of industrial deve­lopment. In my view it would be easier to foster the right climate of industrial relations, if the industrial working force acquires the confidence that a greater effort on its part would lead to a betterment of its earnings and working conditions. I am sure that the young and progressive entrepreneurs are already giving some thought to this problem. After all, to ensure industrial harmony is also an entrepreneurial function.