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: Policy of self reliance prevented growth of entrepreneurship.

Statement 2: Excessive government regulation prevented the domestic companies to improve the quality of goods that they produced.

None of the given statement is correct.

In industrial sector, many economists became dissatisfied with the performance of many public sector enterprises. Excessive government regulation prevented growth of entrepreneurship. In the name of selfreliance, Indian producers were protected against foreign competition and this did not give them the incentive to improve the quality of goods that they produced. Indian policies were ‘inward oriented’ that failed to develop a strong export sector. The need for reform of economic policy was widely felt in the context of changing global economic scenario, and the new economic policy was initiated in 1991 to make Indian economy more efficient.