At independence, India’s variety of industries was very narrow, but by 1990 the industrial sector had become well diversified. Which option correctly gives the industries to which Indian industry was largely confined at independence and the main reason for its diversification by 1990?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Cotton textiles and jute; largely the public sector
At independence, Indian industry was largely confined to cotton textiles and jute. By 1990 it had become well diversified, largely due to the public sector, which built the heavy industries private firms could not.
Option (1) Cotton textiles and jute; largely the public sector — Correct. Both parts match.
Option (2) Machinery and jute; largely the public sector — Incorrect. Machinery was not a major industry at independence. The base was cotton textiles and jute.
Option (3) Cotton textiles and jute; largely the small-scale sector — Incorrect. Small-scale units gave jobs and openings to people without capital, but the diversification came largely from the public sector.
Option (4) Sugar and cement; largely foreign investment — Incorrect. Neither part fits. Under import substitution, foreign firms were kept out by protection.
NCERT (2026-27): “2.4 Industry and Trade … You might have studied in the previous chapter that, at the time of independence, the variety of industries was very narrow — largely confined to cotton textiles and jute. There were two well-managed iron and steel firms — one in Jamshedpur and the other in Kolkata — but, obviously, we needed to expand the industrial base with a variety of industries if the economy was to grow.” “… The six per cent annual growth rate of the industrial sector during the period is commendable. 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. …” |