Question

“After independence, the government took over the commanding heights of the economy.” What were the initiatives taken by the government to do the same?

Answer 1

This involved defence, transport and communication, power, mining and other projects which only government had the power to do, and which was also necessary for private industry to flourish. In India’s mixed economy policy. some sectors were reserved for government, while others were open to the private sector. But within that, the government tried to ensure, through its licensing policy, that industries were spread over different regions. The government also tried to encourage the small-scale sector through special incentives and assistance.