The owner of a small factory makes two complaints in the reform period: (i) imported goods are now cheaper than his goods, and (ii) power supply is often inadequate. In the assessment of the reforms, these two complaints together illustrate:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → why industrial growth slowed down after 1991
Industrial growth slowed down after 1991 because demand for industrial products fell. Two reasons given are cheaper imports and inadequate infrastructure, including power supply. These are the factory owner’s two complaints.
NCERT (2026-27): “Reforms in Industry: Industrial growth has also recorded a slowdown. This is because of decreasing demand of industrial products due to various reasons such as cheaper imports, inadequate investment in infrastructure etc. In a globalised world, developing countries are compelled to open up their economies to greater flow of goods and capital from developed countries and rendering their industries vulnerable to imported goods. Cheaper imports have, thus, replaced the demand for domestic goods. Domestic manufacturers are facing competition from imports. The infrastructure facilities, including power supply, have remained inadequate due to lack of investment. …” |