112 SOCIAL SCIENTIST under cultivation remained nearly stagnant. Thi& strengthened the idea that agriculture would not be capable of supporting additional employment for the growing labour force. Finally, the crucial assumption about the large industries that they would be run to their full capacity did not hold* The growth of the economy Was inadequate for the expansion of demand for their products^ Public sector investment declined severely after 1966. Private consumption was restricted because of the inequitable distribution of income among the economically active population and the presence of the large mass of unemployed persons. The large industries thus failed to reap the economies of scale, failed to generate the surplus for irivestHaent expected of them and kept a large amount of capital locked up without any commensurate return. This however is not to suggest that the large industries have little role to play in a developing economy. The large and heavy industries arc essential for the development of the small and the medium industries. Although the large industries provide a r^ati^elv small volume of employment, greater employment in the small and the medium industries depends on thie large industries for the supply of equipment and raw materials. Further, the large. indTOitwt^wy^ ihe^EiBtobiat^ri implements and chemicals needed for rural development work < and agriclillural activities and thus open up the scope for wider employment. It can be appreciated that for the generation of a large volume^ of additional employment we have. to look to sectors other thaw large industry. It is acknowledged thai the small industrial units are capable of offering a larger employment per unit of investment. Doabta^havx; however beed raised aWiU their afficiewy as compared to the large units. It tnay however be seen that when ttw large units ofproductiott do not benefit from the possible economics of scale in the absence of full capacity operation, smaller units producing the same or sitoilar goods may turn out to be more economic Besides, there is the question of a trade off between effieienay and employment. It tftay be ^dvfcable under the existing conditions to ^lecotd^oiateqpriority to employment as against efficiency. Unutilized capacities in the bargee aunt the heavy industries in India can be used to advantage for supporting ^the e^tCtirion of the small and the medium i^uttries^ In contrast to the present poHcy f^ providing relic? lothe industry by eiiww^gteg expotU ^f their |W»tecis a more reasonable appADacb would^td fo»€W ^th^tfe^te^toent of the small industries within the Axinuy which wouhi generate demand for goods ^ised by them as ate €oa^ those used by the poptitatlon-cfts^ly em-ployed in theae industries, i L!'J ^i* itethinkin^ is also necessary abotttthe pOtemMbf^fiduttture to absorb surplus labour m the country. Until rewntty it vw tteughfthae Indian a^rfcultmrc has reached' the liasem ^ oB ^s capacity t® afcb$orb