Scholars differ on India’s mixed economy framework before 1991. Group X says its rules and laws ended up hampering growth and development. Group Y says India achieved a lot under it. Which of the following would Group Y cite?
(A) Growth in savings
(B) A diversified industrial sector producing a variety of goods
(C) Industrial licensing for starting, closing or expanding a firm
(D) Sustained expansion of agricultural output that ensured food security
(E) Tight import controls that reduced efficiency and competitiveness
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B) and (D) only
Group Y defends the framework, so it cites its achievements. The controls are what Group X blames.
(A) Growth in savings — Correct. An achievement of the pre-1991 path.
(B) A diversified industrial sector producing a variety of goods — Correct. Another achievement.
(C) Industrial licensing for starting, closing or expanding a firm — Incorrect. Licensing is one of the controls that Group X says hampered growth.
(D) Sustained expansion of agricultural output that ensured food security — Correct. A third achievement.
(E) Tight import controls that reduced efficiency and competitiveness — Incorrect. This is a failure of the old policy, which supports Group X.
NCERT (2026-27): “3.1 Introduction You have studied in the previous chapter that, since independence, India followed the mixed economy framework by combining the advantages of the capitalist economic system with those of the socialist economic system. Some scholars argue that, over the years, this policy resulted in the establishment of a variety of rules and laws, which were aimed at controlling and regulating the economy, ended up instead in hampering the process of growth and development. Others state that India, which started its developmental path from near stagnation, has since been able to achieve growth in savings, developed a diversified industrial sector which produces a variety of goods and has experienced sustained expansion of agricultural output which has ensured food security. …” |