Question

Read the following statements - Assertion (A) and Reason (R):
Assertion (A) - At the time of independence, the Indian economy was a 'depleted economy.
Reason (R) - Depleted economy refers to an economy, where no arrangements have been made to replace the physical assets, depreciated due to excessive use. From the given options choose the correct one:

[0.80 marks]

• A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
• C. Assertion (A) is true but Reason (R) is false.
• D. Assertion (A) is false but Reason (R) is true

Answer 1

The correct option is A Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

At the time of independence, the Indian economy was a ‘depleted economy’. Depleted economy refers to an economy where no arrangements have been made to replace the physical assets, depreciated due to excessive use.
During the Second World War, Indian industries had to work beyond their capacities to meet the increased demand for plant, machinery, equipment etc., for the war.