Which of the following was NOT an achievement of India’s industrial sector during the first seven plans?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Indian industry built a strong export sector.
Industry did well in the first seven plans. But the policies were inward oriented, and they failed to build a strong export sector.
Option (1) The industrial sector became well diversified by 1990. — True. Industry was no longer limited to cotton textiles and jute.
Option (2) Small-scale industries let people with little capital get into business. — True. People without capital for large firms could start small ones.
Option (3) Protection helped electronics and automobile industries develop. — True. These indigenous industries grew behind protection.
Option (4) Indian industry built a strong export sector. — False. Inward-oriented policies failed to develop a strong export sector.
NCERT (2026-27): “2.5 Trade Policy: Import Substitution … No longer was Indian industry restricted largely to cotton textiles and jute; in fact, the industrial sector became well diversified by 1990, largely due to the public sector. The promotion of small-scale industries gave opportunities to those people who did not have the capital to start large firms to get into business. Protection from foreign competition enabled the development of indigenous industries in the areas of electronics and automobile sectors which otherwise could not have developed. …” “2.6 Conclusion … In the name of self-reliance, Indian producers were protected against foreign competition and this did not give them the incentive to improve the quality of goods that they produced. Indian policies were ‘inward oriented’ that failed to develop a strong export sector. …” |