Which of the following was NOT a way in which regulatory mechanisms for controlling industry were enforced in various way before 1991 in India?
Answer & explanation
Correct answer: option 4
In India, regulatory mechanisms were enforced in various way, before 1991:
(i) industrial licensing under which every entrepreneur had to get permission from government officials to start a firm, close a firm or decide the amount of goods that could be produced
(ii) private sector was not allowed in many industries
(iii) some goods could be produced only in small-scale industries, and
(iv) controls on price fixation and distribution of selected industrial products.