After four decades of planning, critics said the government kept providing some goods and services that the private sector could also provide. Which of the following is NOT an example of this?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Supplying national defence
No line was drawn between what only the public sector can do and what the private sector can also do. National defence belongs to the first group.
Option (1) Telecommunication service — True. Telecom stayed reserved for the public sector though private firms could provide it.
Option (2) Bread manufacturing — True. The government set up Modern Bread, as if private firms could not make bread.
Option (3) Running hotels — True. The government runs hotels, though the private sector can manage hotels well.
Option (4) Supplying national defence — False. Only the public sector supplies national defence. It is something the private sector cannot provide.
NCERT (2026-27): “2.5 Trade Policy: Import Substitution … It is now widely held that state enterprises continued to produce certain goods and services (often monopolising them) although this was no longer required. An example is the provision of telecommunication service. This industry continued to be reserved for the Public Sector even after it was realised that private sector firms could also provide it. …” “… Another instance could be the establishment of Modern Bread, a bread-manufacturing firm, as if the private sector could not manufacture bread! In 2001 this firm was sold to the private sector. The point is that after four decades of Planned development of Indian Economy no distinction was made between (i) what the public sector alone can do and (ii) what the private sector can also do. For example, even now only the public sector supplies national defense. And even though the private sector can manage hotels well, yet, the government also runs hotels. …” |