The government is responsible for developing all regions of a country. Earlier, most of the development was limited to few areas like port towns. For providing employment to the people and for accelerating the economic development of backward areas many industries were set up by public sector in those areas.
Four major steel plants “were set up in the backward areas to accelerate economic development.
The government also makes efforts to prevent mushrooming growth of private sector units in already advanced regions.
Government provided many incentives to private sector like tax concessions, loan at cheap rate of interest etc. to motivate them to set up industries in backward regions.
