(i) “Under the liberalisation measures taken by the Government of India, regulation of industrial sector was extremely crucial.” Reject or support the given statement with valid arguments. (ii) “Despite the implementation of Green Revolution, 65 per cent of India’s population continued to be engaged in the agriculture sector till the 1990s.” Justify the given statement with valid explanation. (i) “Every coin has two sides — debate over farm subsidies is one such classic example of the same.” Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies. (ii) State the importance of “Growth with equity” as the objective of Indian economic planning.

Question

Accepted Answer

(i) **I support the statement** that industrial sector reforms were crucial under liberalisation. Arguments:

1. **Reduction in Industrial Licensing:** Abolished licensing for all except 5 industries, removing entry barriers
2. **Decrease in Role of Public Sector:** Industries reserved for public sector reduced from 17 to 3
3. **De-reservation under Small Scale Industries:** Many goods de-reserved, allowing market forces to determine prices
4. **MRTP Act Replaced:** Competition Act, 2002 introduced more liberal framework

(ii) **Impact on Industrial Sector:**
- Increased competition leading to better quality products
- More consumer choice and lower prices
- Technology transfer from foreign companies
- Job creation in manufacturing sector
- However, some domestic industries faced stiff competition from imports