Question

Why was the industrial sector performed poorly during the reform period?

पर्याय

• Cheaper Imports

• Lack of Investment

• High Non-tariffs Barriers by the Developed Countries

• All of the above

Answer 1

All of the above

Explanation:

The industrial sector, like the agricultural sector, had a terrible result. The following factors may contribute to the industrial sector's bad performance:

1. Cheaper Imports:
   Because of the lower costs, demand for industrial output decreased. Because import tariffs were removed, imports from developed countries became cheaper. The demand for indigenous goods fell as a result of the cheaper and more reliable foreign imports.
2. Lack of Investment:
   Domestic enterprises could not compete with their developed overseas counterparts in terms of cost of production and quality of goods due to a lack of investment in infrastructure facilities (particularly power supply). Inadequate infrastructure investment increased domestic producers' costs of production, making their development prospects unfeasible.
3. High Non-tariffs Barriers by the Developed Countries:
   Due to substantial non-tariff barriers erected by wealthy countries, it was extremely difficult to get entry into their markets. For example, the United States has not removed quota limits on textile imports from India and China.