What hindered the growth of entrepreneurship in India during post independence period till 1990?

Both 2 and 3

The correct answer is option 4: Both 2 and 3

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.

Excessive government regulation: The Indian government adopted a highly regulated approach to economic development, which imposed numerous restrictions on businesses. This included licensing requirements, price controls, and bureaucratic procedures, making it difficult for entrepreneurs to start and operate businesses.

Protection against foreign competition: The government's emphasis on import substitution, which aimed to protect domestic industries from foreign competition, also hindered entrepreneurship. This policy created a sheltered environment that discouraged innovation and efficiency, as domestic businesses did not face significant competition.