(i) "Direct and active participation of state was considered essential in Industrial development process in period 1950-1990." Justify the given statement with valid explanation. (ii) "New Economic Policy 1991 altered the role of Reserve Bank of India (RBI) in the economy." Justify the given statement with valid explanation. (i) Explain the changes that were observed in India's occupational structure during the British rule. (ii) "Navratan Policy of the government has helped in improving the performance of Public Sector Undertakings in India." Do you agree with the given statement ? Justify your answer with valid arguments.

Question

Accepted Answer

(i) **I justify the statement** that direct state participation was essential in industrial development 1950-1990. Justification:

**Reasons for Public Sector Role:**
1. Shortage of capital with private sector
2. Lack of incentive for private sector due to limited market
3. Social welfare objective could be achieved through state participation
4. State control over vital industries

**Impact:**
- Public sector led industrial development
- Created industrial base in the country
- Generated employment
- However, also led to inefficiency and bureaucracy

(ii) **New Economic Policy 1991:**
- Liberalisation removed industrial licensing
- Privatisation improved efficiency of PSUs
- Globalisation integrated economy with world
- Led to increased growth, FDI, and foreign exchange reserves