Question

Assertion (A): License Permit Raj was a major obstacle for growth of private sector.

Reason (R): Private sector wasted huge amount in obtaining licences, rather than on improving the product, quality and international competitiveness. 

विकल्प

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Prior to 1991, the Indian government implemented the Permit Licence Raj, which was seen as one of the restrictive policies that had a detrimental effect on the expansion of the industrial sector due to arbitrary restrictions.