Why Government Role in Industry
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Question (English)
Government had to play an extensive role in industry because:
- Industrialists had surplus capital
- Industrialists lacked capital and market was not big enough ✓ Correct
- Foreign companies refused to invest
- Too many industries existed already
Explanation:
Correct Answer Explanation
Indian industrialists lacked capital and the market was not big enough to encourage major projects.
Key Points:
- Decision to develop on socialist lines also contributed.
- Government controlled commanding heights.
- Private sector's role was complementary.
📚 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.
