Question

Why was adopting a capitalist economic system not a viable option for India right after independence?

• A. No other country succeeded by adopting a capitalist economic system till the 21st century.
• B. A profit-oriented capitalist economy would have benefited only a few.
• C. A capitalist economic system would not have been favourable for a democracy.
• D. The majority of Indians opposed the decision of adopting a capitalist economy.

Answer 1

The correct option is B A profit-oriented capitalist economy would have benefited only a few.

Right after independence, the majority of people in India were poor. The inherent profit-making motive of a capitalist economy would have harmed the majority of the population that was already living in extreme poverty. Thus, it was not a viable option.