Conservative Economic Policies were followed by India, immediately after independence in the ________________.

Industrial Sector

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External Trade Sector

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Financial Sector

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All of the above

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Solution

The correct option is C All of the above
Soon after independence, India adopted socialist form of economy which involved a lot of government intervention into all the sectors of the economy to uphold the traditional values of work which made Indian economy a little conservative compared to other economies that was prevalent then.

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Similar questions

Q. Economic Policies followed by India, immediately after independence, were _____________ in nature.

Q. Assertion (A): The industrial sector contributed a mere 16% to the total national income during independence. By 2017, it had increased to 23%.

Reason (R): India also started importing many of the products.

Q. One way of privatisation adopted by India was to reduce the number of sectors reserved for the public sector.

How many sectors were reserved for the public sector before and after the new economic policies of 1991?

Q. 31. The unorganized sector is an often repeated term in Indian economic sector discussions. Which of the following is not a characteristic of the unorganized sector in India?

Q. The government initiated a variety of policies in new economic policy which fall under three headings:
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation

Liberalisation means removing all unnecessary controls and restrictions like permits, licences, quotas, etc. imposed by the government. Liberalisation concept were introduced for the following reasons:
(i) To unlock the economic potential of the country by encouraging the private sector and multinational corporations to invest and expand.
(ii) To encourage the private sector to take an active part in the development process.
(iii) To reduce the role of the public sector in the future industrial development.
(iv) To introduce more competition into the economy with the aim of increasing efficiency.

The economic reforms under liberalisation taken by the government include the following:
(i) Industrial Sector Reforms
(ii) Financial Sector Reforms
(iii) Tax Reforms
(iv) Foreign Exchange Reforms
(v) Trade and Investment Policy Reforms

Industrial Sector Reforms
The new policy abolished the requirement of obtaining a licence for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, and drugs and pharmaceuticals. Licence is no longer required to set up new units or to expand the existing one.

Under the new industrial policy, the number of industries reserved only for the public sector was reduced from 17 to only 3.
It is only (i) Defense equipment (ii) Atomic energy generation (iii) Railway transport.Read the following statements - Assertion (A) and Reason (R) and choose the correct answer from the following:
Assertion (A)- Liberalisation concept to encourage the private sector to take active part in the development process.
Reasons (R) - Industrial Sector Reforms and Financial Sector Reforms were taken by the government under liberalisation.

[0.80 marks]

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