Indian Economy and Policy

External assistance (bilateral and multilateral) historically constitutes a significant portion of India's external debt.

Sickness in industrial units is typically caused by internal factors like poor management, obsolete technology, or external factors like labor disputes and raw material shortages. Capital account convertibility is a macroeconomic policy, not a direct cause of individual unit sickness.

Industrialisation is the process of manufacturing consumer goods and capital goods and of building infrastructure in order to provide goods and services to both individuals and businesses. As such Industrialisation plays a major role in the economic development of underdeveloped countries with vast manpower and varied resources.

The Industrial Policy Statement was issued in 1991, but it is typically referred to as the New Industrial Policy. Option D is marked as the incorrect combination, likely because the 1991 policy is a major reform package rather than just a 'statement'.

Statement I is correct as the policy aimed to boost industrial development. Statement II is incorrect because India's balance of trade has frequently been negative due to high imports, especially of oil and capital goods.

The 1991 policy aimed to increase competition by opening the Indian market to foreign investment and reducing trade barriers, not by limiting exposure to foreign competition.

The 1991 policy significantly increased the limit for foreign equity participation in high-priority industries to 51 percent to attract foreign capital.

The 1991 policy shifted from public sector dominance to private sector participation. It involved de-reservation, not further reservation, of industries for the public sector.

Abolition of industrial licensing and promoting private sector participation are core components of the industrial policy reforms initiated in 1991.

The 1991 policy abolished various registration requirements (like DGTD) to simplify procedures, but it actively encouraged, rather than abolished, Foreign Direct Investment.

A strategy for development of heavy industry is sometimes preferred for a developing economy because it can provide a strong base for rapid industrialization.

This statement is correct that during the planning period, the structure of Indian industry has shifted in favour of basic and capital goods and intermediate sector. Others are wrong because the industrial pattern on the eve of Independence was imbalanced and very few big industrial units in India are sick.

Bhillai Steel Plant is India's first producer and the main producer of steel rails and also various other steel products and the sole supplier of India's longest rail tracks, established in the year 1955 with the help of Russia then USSR (Union of Soviet Socialist Republics).