Question

Why was public sector given a leading role in industrial development during the planning period?

विकल्प

• Need of Heavy Investment

• Low Level of Demand

• Both Need for Heavy Investment and Low Level of Demand 

• None of the above

Answer 1

Both Need for Heavy Investment and Low Level of Demand

Explanation:

The following are the reasons that explain the public sector's driving role in industrial development:

1. Need for Heavy Investment:
   Heavy investment was required for industrial development. The private sector found it extremely difficult to invest such a large sum. Furthermore, the risks associated with these initiatives were extremely high, and they had a protracted gestation time. As a result, the government took the lead in establishing the basic framework for heavy industry.
2. Low Level of Demand:
   The bulk of the people was poor and had a low level of income at the time of independence. As a result, demand was minimal, and there was no incentive for the private sector to develop in order to meet these desires. As a result, India was caught in a vicious cycle of low demand. The only option to stimulate demand was for the government to invest.