Question

Many economists believe that the new economic policies did more harm than good to India.

Which of the following justify the above statement?

• A. Due to fierce competition between foreign players and domestic producers, consumers got a variety of products but at higher prices.
• B. Use of more capital-intensive technologies increased unemployment in the country.
• C. The production of goods increased, but there was no significant growth in the agricultural sector.
• D. The benefit received by the domestic players were limited as the investment was restricted to a few big players.

Answer 1

Answer: (B), (C), (D)

The benefit received by the domestic players were limited as the investment was restricted to a few big players.

The fierce competition between foreign and domestic producers reduced the prices of goods. As small producers were not financially strong, a few big producers had monopoly in the market. The domestic producers used capital-intensive technologies that reduced the need for labour. Job security was also reduced. Among all these developments, the agriculture sector remained neglected.