Question

Which one among the following was NOT a regulatory mechanism of the industrial sector?

• A. Industrial licensing
• B. Private sector was allowed to operate in majority industries.
• C. Some goods could be produced only in small-scale industries.
• D. Controls on price fixation and distribution of selected industrial products.

Hint:

In early India, industrial policies favored state control over the private sector, especially in key industries.

Answer 1

The Correct Option is B

Historically, the Indian industrial sector was tightly regulated by the government. Industrial licensing, small-scale industry limitations, and controls on price fixation were common regulatory mechanisms. However, Private sector was not allowed to operate freely in most industries under early industrial policies in India. The private sector was only allowed in a limited set of industries, especially during the license-permit raj.
Thus, the correct answer is (2) Private sector was allowed to operate in majority industries.