Given below are two statements:
Assertion (A): Privatisation, introduced as a part of the economic reforms of 1991, was a reversal of the development strategy pursued so far by Indian planners.
Reason (R): Under the earlier economic planning, the government gave the public sector a lead role in infrastructure industries and reduced the importance of the private sector.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both (A) and (R) are true and (R) is the correct explanation of (A).
Assertion (A): Privatisation, introduced as a part of the economic reforms of 1991, was a reversal of the development strategy pursued so far by Indian planners. — True. Privatisation gave the private sector a greater role and the public sector a reduced role. This turned around the strategy the planners had followed till then.
Reason (R): Under the earlier economic planning, the government gave the public sector a lead role in infrastructure industries and reduced the importance of the private sector. — True. Under planning, the government gave a lead role to the public sector in infrastructure industries. It reduced the importance of the private sector and put many controls on it.
Why R explains A?
R tells us what the old strategy was: the public sector in front and the private sector held back. Privatisation does the opposite, because it gives the bigger role to the private sector and cuts the public sector’s role. So R shows what was turned around, and that makes privatisation a reversal.
NCERT (2026-27 Edition): “Economic Environment in India … In accordance with the economic planning, the government gave a lead role to the public sector for infrastructure industries whereas the private sector was broadly given the responsibility of developing consumer goods industry. At the same time, the government imposed several restrictions, regulations and controls on the working of private sector enterprises. …” “Privatisation: The new set of economic reforms aimed at giving greater role to the private sector in the nation building process and a reduced role to the public sector. This was a reversal of the development strategy pursued so far by Indian planners. …” |