Diversification License
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Question (English)
An existing industry needed a license for:
- Only starting a new factory
- Expanding output or diversifying production ✓ Correct
- Hiring new workers
- Buying raw materials
Explanation:
Correct Answer Explanation
Even existing industries needed licenses for expanding output or diversifying production (producing new variety of goods).
Key Points:
- This ensured quantity produced was not more than what the economy required.
- License to expand given only if government was convinced of the need.
📚 About this Topic — CH-2: INDIAN ECONOMY 1950–1990
This multiple choice question is from CH-2: INDIAN ECONOMY 1950–1990, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-2: INDIAN ECONOMY 1950–1990 to strengthen your preparation.
