Impact of an Industry In The Development of A Rural Area: A Case Study Of Facor in Odisha


  • Lopamudra Behera Lopamudra Behera, Lecturer in Economics, Pranakrushna Mahavidyalaya, Baitarani Road, Jajpur, Odisha.
  • Mitali Chinara Mitali Chinara Professor, department of Analytical and Applied Economics, Utkal University.


Odisha, Rural Development, CSR, FACOR.


Odisha being a mineral-rich State along with abundant labour force, industrialisation has a fair scope to generate industrial employment, income and economic growth. The current study aims to analyse the impact of FACOR, a Ferro-alloys company, established in one of the rural districts of Odisha. Industries have both backward and forward linkages; they not only create direct employment but are also capable of creating indirect and induced employment. The study has attempted to assess the employment generated by the company, both direct and induced. To study the employment elasticity, a regression analysis has been done, and CAGR has been calculated to know the growth rate. A field survey of the business establishments in the local market was conducted to look at the induced employment created. The study found that though the direct employment generated by the industry is not very satisfactory, it has provided livelihood to many households through induced employment. The study also found that FACOR has undertaken many CSR activities which are helpful to enhance the living standard of the locality.


Download data is not yet available.


Ahamad, T., & Pandey, K. J. (2015). A Study on Development of Rural Areas through Industries in India. International Journal of Applied Research, 1(4), 93-96. Retrieved from http://

Behera, P. (2015). Socio-economic Impact of Industrialisation and Mining on the Loacal Population: A Case Study of Nalco Industrial Area, Koraput. International Journal of Economics & Management Sciences, 4(8). Retrieved from o_Industrial_Area_Koraput

Bertrand, A. L., & Osborne, H. W. (1959). The Impact of Industrialisation on a Rural Community. Journal of Farm Economics, 41(5), 1127-1134. Retrieved from

Bowman, C. T. (1968). Employment Related to Exports by State. Monthly Labor Review, 91(9), 42-44. Retrieved from

Channabasavalah, H. M., & Naidu, G. V. (2021). Income and Employment Generation through Mining Industry in India. Retrieved from

Das, P. (2007). Economic Reform, Output and Employment Growth in Manufacturing; Testing Kaldor's Hypotheses. Economic and Political Weekly, 42(39), 3978-3985. Retrieved from stable/40276475

Ganeshan, M. K., Vethirajan, C., & Kumar, A. R. (2021). Role of CSR on Rural Development in India. Retrieved from publication/351228237_Role_of_CSR_on_Rural_Development_in_India

Gray, I. (1969). Employment Effect of a New Industry in a Rural Area. Monthly Labor Review, 92(6), 26-30. Retrieved from

Hilson, G. (2002). Small-scale Mining and Its Socio-economic Impact in Developing Countries. Natural Resources Forum, 26(1), 3-13. Retrieved from

India. (2017). Union Budget 2017-18. Economic Division, Department of Economic Affairs, Ministry of Finance. Retrieved from

Jain, L. (2020). Rural Development and Corporate Social Responsibility: A Better Hope Through Gandhian Views (Study of IFFCO-CSR unit, Kalol, in Gujrat). Retrieved from publication/341481782_RURAL_DEVELOPMENT_AND_CORPORATE_SOCIAL_RESPONSIBILITY_ A_BETTER_HOPE_THROUGH_GANDHIAN_VIEWS_Study_of_CORDET_IFFCO-CSR_Unit_Kalol_in_Gujarat

Kapur, R. (2019). Rural Industrialisation. Retrieved from

Meller, P., & Marfan, M. (1981). Small and Large Industry: Employment Generation, Linkages and Key Sectors. Economic Development and Cultural Change, 29(2), 263-274. Retrieved from http://

Odisha. (2017). Economic Survey 2016-17. Planning and Convergence Department, Government of Odisha. Retrieved from

Pal, S. (2013). A Study on Performance and Prospects of Indian Steel Industry from National Perspective Under Globalization. International Journal of Economics, 3(3), 53-60. Retrieved from https:// s`` AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1559545716&Signature=yJUN8CGU3Pa5V XisLMo%2FB7f%2FxE4%3D&response-content-disposition=inline%3B%20filename%3DA_STUDY_O

Prasad, P. (1957). Some Econopmic Problems of Public Enterprises in India. RecherchesÉconomiques de Louvain/ Louvain Economic Review, 24(2), 200. Retrieved from S1373971900078033

Sengupta, S. (2015). India Ferro Alloy Scenario-An Overview. Retrieved from newsletter/2015/March15/PDF/Sanjay%20Sengupta.pdf

Sethi, B. (2011). District Census Handbook. Directorate of Census Operations. Retrieved from

Wilson, G. W. (1960). The Relationship between output and employment. The Review of Economics and Statistics, 42(1), 37-43. Retrieved from



How to Cite

Behera, L., & Chinara, M. (2023). Impact of an Industry In The Development of A Rural Area: A Case Study Of Facor in Odisha. Journal of Rural Development, 41(2), 230–242. Retrieved from