Which of the following statement (s) is/are correct in the context of effect of Policies on Industrial Development during the first seven 5 year plans of India?

Statement 1: Protection from foreign competition enabled the development of indigenous industries in the areas of telecommunications and capital goods sectors which otherwise could not have developed.

Statement 2: 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.

Only Statement 2 is correct.

The achievements of India’s industrial sector during the first seven plans are impressive indeed. The proportion of GDP contributed by the industrial sector increased in the period from 13 per cent in 1950-51 to 24.6 per cent in 1990-91. The rise in the industry’s share of GDP is an important indicator of development. 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. Protection from foreign competition enabled the development of indigenous industries in the areas of electronics and automobile sectors which otherwise could not have developed.