Multiple choice

Referring to the 1947-80, the Indian Industry was severely hit by the following constraints: (a) Profit ceilings on companies in many sectors (b) FERA restriction on foreign equity holdings (c) MRTP restricted growth of firms (d) No control on prices (e) License Raj

Which of the above is /are incorrect?

  1. Only (a)

  2. Only (b) and (e)

  3. Only (a), (b) and (c)

  4. Only (d)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Indian government presided over a closed command economy instead of an open market economy. Market prices were controlled in a number of non-luxurious goods sector such as pharmaceuticals in order to facilitate accessibility to the poor.

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