Which of the following steps did the government NOT take to promote industry in backward regions after independence?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Exempting such units from the need to obtain a license
To bring industry to backward regions, the government made licences easier to get there and gave concessions. It never removed the need for a licence: no new industry was allowed without one.
Option (1) Making it easier to obtain a license for an industrial unit set up in an economically backward area — True. This was the main step.
Option (2) Giving tax benefits to such units — True. Tax benefits were one of the concessions.
Option (3) Supplying electricity to such units at a lower tariff — True. Cheaper electricity was another concession.
Option (4) Exempting such units from the need to obtain a license — False. Every new industry needed a licence, including those in backward areas.
NCERT (2026-27): “2.4 Industry and Trade … Although there was a category of industries left to the private sector, the sector was kept under state control through a system of licenses. No new industry was allowed unless a license was obtained from the government. This policy was used for promoting industry in backward regions; it was easier to obtain a license if the industrial unit was established in an economically backward area. In addition, such units were given certain concessions such as tax benefits and electricity at a lower tariff. The purpose of this policy was to promote regional equality. …” |