Defend or refute the following statements with valid arguments : (i) "The policy of protectionism encouraged the growth of domestic industries, but at the same time proved to be an impediment." (ii) "New Economic Policy 1991 altered the role of Reserve Bank of India (RBI) in the economy." (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 support the statement** that protectionism encouraged domestic industries but proved to be an impediment. Arguments:

**In Favour:**
- Protectionism gave domestic industries time to grow and develop
- Reduced competition from foreign goods initially
- Helped build industrial base in the country

**Against:**
- Reduced efficiency due to lack of competition
- Higher prices for consumers
- Limited choice of goods
- Technology remained outdated
- Domestic industries became dependent on government support

(ii) **Impact of Globalisation:**
- Increased competition for domestic industries
- Technology transfer and modernisation
- Access to global markets
- However, also led to job displacement in some sectors
- Some domestic industries couldn't compete with cheaper imports