Why is India adopting more LIT( Labour intensive tecniqtec) for production & USA is using CIT for the same. What are the reasons behind so explain by giving suitable examples.
Under labour intensive technology, labour is used more than the capital. It ensures greater employment and social justice.
Under capital intensive technology, capital is used more than the labour. It ensures greater efficiency and productivity.
In a developing country like India, there is always a choice between labour intensive technology and capital intensive technology. Dealing with an ideal ratio between labour and capital in order to achieve the maximum output per unit of input, the labour will remain unemployed. India face the problem of unemployment at the time of solving the problem of ‘how to produce’. hence, india with high population will always provide more employment opportunities by opting labour intensive technology. om the other hand, in developed economy like USA, they always opt for capital intensive technology with the ability to make huge investment.
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