Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

What hindered the growth of entrepreneurship in India?

Options:

Land reforms

Excessive government regulation

Diversification of industries

Protection against foreign competition

Correct Answer:

Excessive government regulation

Explanation:

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.