Tax Concessions Will Not Help

February 24, 1968 at much less than full capacity either for lack of inputs or of demand. Fixed costs per unit of output are high and, protected as these industries are from foreign competition, there is hardly any inducement to bring them down. Extra- economic considerations often lead to faulty location and high raw material costs (for instance, of cotton, jute and sugarcane). Industries are often saddled with redundant labour as a result of political pressures