What was the central government’s concern if the industry is not allo…

The correct answer is Option (3) → It will discourage investments in the country.

The central government feels that if the industry is not allowed, it would set a bad example and discourage investments in the country.

Option (1) It will cause displacement from home. — Incorrect. This is the tribal population’s fear: setting up industries would mean displacement from their home and livelihood.

Option (2) It will threaten health of the tribals. — Incorrect. The tribals’ fear in this case is displacement from home and livelihood, and the central government’s worry is investment, not the tribals’ health.

Option (4) It will pollute the environment. — Incorrect. This is the environmentalists’ fear about mining and industry.