Read the following hypothetical text and answer the given questions:
The performance of Indian economy during the period of first seven five year plans (1950-1990) was satisfactory if not very impressive. On the eve of independence, India was an industrially backward country, but during this period of first seven plans our industries became far more diversified, with the stress being laid on the public investments in the industrial sector. The policy of import substitution led to protection of the domestic industries against the foreign producers but we failed to promote a strong export surplus. Although public sector expanded to a large extent but it could not bring desired level of improvement in the secondary sector. Excessive government regulations prevented the natural trajectory of growth of entrepreneurship as there was no competition, no innovation and no modernization on the front of the industrial sector. Many Public Sector Undertakings (PSU’s) incurred huge losses due to operational inefficiencies, red-tapism, poor technology and other similar reasons. These PSU’s continued to function because it was difficult to close a government undertaking even it is a drain on country’s limited resources. On the Agricultural front, due to the measures taken under the Green Revolution, India more or less became self-sufficient in the production of food grains. So the needs for reform of economic policy was widely felt in the context of changing global economic scenario to achieve desired growth in the country.
a. Which of the followingwas not a reason for the public sector to play a major role in the initial phase of Indian Economic Planning? (choose the correct alternative)
a) Private entrepreneurs lacked sufficient capital for investment.
b) Government aimed at social welfare.
c) The market was big enough to encourage private industrialists for investment.
d) The government wanted to protect the indigenous producers from the foreign competition.
2. Inward looking trade strategy aimed at _________ (fill up the blank with correct answer)
3. State whether the given statement is true or false: Mechanization of the Indian agriculture was one of the cause of Green Revolution in India.
4. Read the following statements - Assertion (A) and Reason ( R)
Assertion (A): Many public sector undertakings incurred huge losses due to operational inefficiencies.
Reason (R): Red-tapism was one of the reasons for continuation of such enterprises.
Select the correct alternative from the following:
a) Both Assertion (A) and Reason (R) are true.
b) Both Assertion (A) and Reason (R) are false.
