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Question

On which of the following sectors did an increase in capital formation have a direct impact?

A
Agricultural sector
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B
Banking sector
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C
Industrial sector
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D
Service sector
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Solution

The correct option is C Industrial sector
Producing or increasing capital goods is known as capital formation. It is directly proportional to the development of the country. The increase in capital formation had a direct impact on the development of agriculture and industries in India.

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