Assertion (A) : Industrial liberalisation became an imperative condition for the growth of forces of competition leading to high efficiency and productivity in Indian industries.
Reasoning (R) : Industrial development and curbing of poverty is only possible through government intervention.
This question requires evaluating two statements about Indian industrial policy and economic development.
Evaluating Assertion (A) and Reasoning (R) on Indian Industry
Assertion (A) Analysis: Liberalisation and Competition
Assertion (A) states that industrial liberalisation became essential for promoting competition, which in turn led to higher efficiency and productivity in Indian industries. Following the economic reforms of 1991, India significantly reduced government controls on businesses (liberalisation). This opening up allowed for greater private sector participation and foreign investment, intensifying market competition. Companies had to become more efficient and productive to survive and thrive in this new environment. Therefore, Assertion (A) is considered correct.
Reasoning (R) Analysis: Government Intervention vs. Market Forces
Reasoning (R) claims that industrial development and poverty reduction are *only* achievable through government intervention. While government policies can play a role, this statement is overly restrictive and incorrect. Economic growth and poverty reduction can also be driven by market forces, private enterprise, competition, and investment, often stimulated by liberalisation policies. Attributing these outcomes *solely* to government intervention ignores the significant impact of other economic factors. Therefore, Reasoning (R) is not correct.
Correct Option Determination
Based on the analysis:
- Assertion (A) is correct.
- Reasoning (R) is incorrect.
Since Assertion (A) is correct and Reasoning (R) is incorrect, Reasoning (R) cannot be a correct explanation for Assertion (A). This matches Option 2.
Correct Option: 2. (A) is correct but (R) is not the correct explanation of (A).
Important Questions from Business Environment
- The Micro-Economic environment deals with the operations of the firm in __________.
- Which of the following are "work-family conflict" faced by women?
a. Time based conflict
b. work conflict
c. Inter personal conflict
d. Behaviour based conflictChoose the correct answer from the options : - Assertion (A) : Buyers, for several industries, are potential competitors-they may integrate backwards.
Reasoning (R) : They have different degrees of bargaining power.
Code : Match List - I with List - II relating to the roles played by government in an economy and indicate the correct code of their matching.
List - I (Roles) List - II (Examples) (a) Regulatory role (i) Deciding timing and usage of resources (b) Promotional role (ii) Capital intensive projects of public sector (c) Entrepreneurial role (iii) Imposing of high import duty (d) Planning role (iv) Measures to control and cover risk in priority sectors Match items of List - I with List - II relating to macro environment of business and indicate the code of correct matching :
List - I List - II (a) Economic environment (i) Etdical issues (b) Political and government environment (ii) Trade and transport policies (c) Socio - cultural environment (iii) Economic stratification of population (d) Demographic environment (iv) Judiciary powers
