License Misuse by Industrial Houses
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Question (English)
Big industrialists misused the license system by:
- Starting too many factories
- Getting licenses to prevent competitors from starting new firms ✓ Correct
- Importing foreign technology
- Investing in agriculture
Explanation:
Correct Answer Explanation
Big industrialists got licenses not to start new firms but to prevent competitors from entering.
Key Points:
- This prevented competition and efficiency.
- More time spent lobbying than improving products.
- Part of the permit license raj problem.
📚 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.
