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RATIONALIZATION IN INDIAN BtJSINESS ENTERPRISE 251
large number of subsidiary or allied industries, and thus
-embody the results of rationalization in marketing, it is
the comparative absence of facilities for rationalization
in. marketing, that is, the non-existence of associated
industries, that explains the· rather slow progress or
·even insignificance of modern ~hemical enterprises in
India. 20
Like every other enterprise, chemical enter­
. prise also in India must have to meet its customers on
the world market, in other words, have to offer competitive
prices. International cost-analysis furnishes the
foundation of price-economics in the epoch of world­
·economy and the economics of chemical industry is,
like that of hydroelectric, essentially none other than the
. technology of $ubsidiary or affiliated industries. It 'is
.-()nly whe~ the industrial ecology j or for that matter, the
-economic region. is rich, variegated and complex enough
to enable the chemical bye products of certain enterprises
.being treated as raw materials for independent finished
.products in others that the gooc:ls can be placed on the
market at the ~inimum supply-prices. In price­
.economics, indeed. the problem is the same for chemical
goods as for hydroelectric power and iron or I steel.
The problem consists in introducing or utilizing economies
by the most rational exploitation of "wastes" or sub­
.sidiary goods. In other words, in order to develop one
.-chemical industry it is not enough to invest money and
employ technical experts in that line only. One will
.have to develop simultaneously a .large number of
.ind~stries in the same group. It is necessary either to
20 The present situation is described in Heavy Chemical Industry
,{Report of the Indian Tariff Board) Calcutta 1929, pp. 8-15.