Question

'The New Economic Policies did not have a positive impact on the small and cottage industries. They remained underdeveloped.'
Which of the following could be the reason(s)?

• A. These industries were not financially strong.
• B. Foreign investors ignored the small and cottage industries.
• C. The market was dominated by big players.
• D. The government provided several grants to these industries.

Answer 1

Answer: (A), (B), (C)

The market was dominated by big players.

Economic policies of 1991 failed to bring a positive change for small and cottage industries. As the market was dominated by the big players, these industries got sidelined. Besides, small industries were not financially strong enough to make investments like big private players. So, these industries remained underdeveloped.