Question

Why do you think most of the heavy industries were run by the Indian government right after independence?

• A. Such industries required huge investments.
• B. There was no wealthy private person/company to invest in it.
• C. Profitability of such ventures were doubtful due to delay.
• D. India had put restrictions on private investment under the pressure of international organisations.

Answer 1

Answer: (A), (C)

Profitability of such ventures were doubtful due to delay.

Right after independence, most of the heavy industries like iron and steel manufacturing were run by the government. There were negligible private investments. There were many reasons behind this. For starters, such industries required a huge investment. Besides, there were also delays in profit generation. These, along with other factors, prevented private investment in the heavy industries sector.