SEMAINE D'ÉTUDE SUR LE ROLE DE L ANALYSE ECONOMETRIOUE ETC. 1107
India, and in most of the other underdeveloped countries, it
is not possible continually to import machinery for production
of goods or of fuel on account of shortage of foreign currency.
[t is essential to establish and expand industries to manufac-
ture machinery, electricals, transport and construction equip-
ment. To increase the capacity for the production of capital
goods and energy would be thus the only sound foundation for
the expansion of consumer goods and services in future.
At the same time, in all underdeveloped countries it is
possible to increase the production of consumer goods with
small tools by using traditional methods. This type of pro-
duction is labour intensive and would give gainful employ-
ment to a large number of people who would otherwise remain
idle for a good part of their time.
In India a dual strategy was adopted from 1956 in the
Second Plan to expand, on one side, the strategic heavy in-
dustries for steel, metals, machinery, electricals and chemic-
als, etc. to build up the foundations of industrial progress,
and at the same time also to expand the traditional cottage
industries and small scale production.
Targets of capital goods: It is therefore necessary to ex-
pand and set up not only targets of income or of consumer
goods but also of machinery, steel and other metals, electricity,
transport, etc. which would be used for the production of the
desired volume of consumer goods and services.
Targets of scientific and technical .personnel: - To achieve
the targets of production, it would be necessary rapidly to
Increase the technical staff to prepare and implement an in-
creasing number of projects. Training facilities must be
expanded sufficiently quickly to turn out technical and scien-
tific personnel in adequate numbers at all levels. Scientific
and technological research would have to be expanded and
oriented to serve the needs of national development in an effec-
tive manner. Fundamental research as well as training in
+5, Mahalanobis II - pag.
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