Which of the following statement (s) is/are correct?

Statement 1: The post independent Indian policy of protection of domestic industries from foreign competition has been criticised on the ground that it did more harm than good.

Statement 2: Protection from foreign competition made domestic industries inefficient.

Both the statements are correct.

The answer is Option 3: Both the statements are correct.

Statement 1: The post independent Indian policy of protection of domestic industries from foreign competition has been criticised on the ground that it did more harm than good. This is correct.

Statement 2: Protection from foreign competition made domestic industries inefficient.This is also correct. This statement reflects a consequence of protectionism, where shielding domestic industries from foreign competition led to inefficiency due to lack of competitive pressure. This inefficiency is a widely recognized phenomenon associated with protectionist policies.

"The protection from foreign competition was being criticised on the ground that it continued even after it proved to do more harm than good. Due to restrictions on imports, the Indian consumers had to purchase whatever the Indian producers produced. The producers were aware that they had a captive market; so they had no incentive to improve the quality of their goods. Competition from imports forces our producers to be more efficient."