Question

“Under the liberalisation measures taken by the Government of India, regulation of the industrial sector was extremely crucial.” Reject or support the given statement with valid arguments.

Hint:

Liberalization policies aim to create a competitive industrial environment by removing regulatory bottlenecks.

Answer 1

Understanding Industrial Liberalisation:
- Liberalization aimed at reducing excessive government control over industries to boost efficiency and competition. Arguments Against the Statement (Rejection):
1. Reduced Industrial Licensing: - Most industries were freed from licensing restrictions, promoting private sector participation.
2. Deregulation of Small-Scale Industries: - Many goods previously reserved for small industries were dereserved, allowing large-scale production.
3. Market-Driven Pricing Mechanism: - Price controls were removed, allowing industries to determine prices based on market forces. Conclusion: The statement is rejected, as liberalization reduced unnecessary regulations, enabling faster industrial growth.