Question

Read the following statements—Assertion (A) and Reason (R). Choose one of the correct alternatives given below: 
Assertion (A): License Permit Raj was a major obstacle for growth of private sector.
Reason (R): Private sector wasted huge amount in obtaining, rather than on improving the product, quality, and international competitiveness.

• 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.

Hint:

Reforms like liberalization in 1991 aimed to dismantle the License Raj and promote private sector growth.

Answer 1

The Correct Option is A

The License Permit Raj created significant barriers for the private sector by: Increasing bureaucratic hurdles, leading to delays in project approvals. Diverting resources toward compliance and lobbying for licenses instead of investing in innovation and quality improvement. Limiting international competitiveness due to inefficiencies and lack of technological advancement. Hence, both the assertion and the reason are true, and the reason correctly explains the assertion.