Correct Option
The correct option is (a) 1 only.
Explanation
In a modern democracy, the government performs both sovereign functions (defense, foreign relations) and welfare functions (socio-economic development). The Constitution of India, particularly through the Directive Principles of State Policy (DPSP), mandates the State to secure a social order for the promotion of the welfare of the people.
Statement-wise Analysis
- Statement 1 is Correct: Protecting national boundaries and maintaining international relations are core sovereign functions of the State. Under the Seventh Schedule of the Indian Constitution, Defence and Foreign Affairs are listed under the Union List, making the central government exclusively responsible for these areas. Additionally, Article 51 (DPSP) directs the State to promote international peace and security.
- Statement 2 is Incorrect: The government is not constitutionally prohibited from regulating prices. On the contrary, the government frequently intervenes to control inflation and ensure the affordability of essential goods (e.g., through the Essential Commodities Act, 1955). Article 39(b) and (c) of the DPSP direct the State to ensure that the ownership and control of material resources are distributed to subserve the common good and to prevent the concentration of wealth.
- Statement 3 is Incorrect: The Indian State is not a "Laissez-faire" state but a "Welfare State." It is constitutionally mandated to intervene in social issues to ensure social justice and equity. The government actively legislates on social issues such as the prohibition of untouchability (Article 17), protection of weaker sections (Article 46), and banning social evils like dowry or child marriage.
Key Takeaway: The Indian Constitution establishes a Welfare State where the government has the duty to intervene in economic and social spheres to ensure justice, liberty, and equality, rather than maintaining strict market neutrality.