Multiple choice

The term 'industrial policy' refers to:

  1. the rules and regulations relating to the establishment of industrial undertakings and their expansion

  2. remove the structural, financial, fiscal, administrative, infrastructure related impediments to the efficient functioning of a market oriented economy

  3. the culmination of liberalisation programme

  4. increase the efficiency of public sector undertakings
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B Correct answer
Explanation

Industrial policy comprehensively addresses structural, financial, fiscal, administrative, and infrastructure barriers that prevent efficient market functioning. It creates the framework for a market-oriented economy by removing impediments. The other options describe narrower aspects - establishment rules, liberalization outcomes, or PSU efficiency - but don't capture the full scope.

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