The correct option is 1 and 3 only.
Explanation
The question evaluates the impact of the Economic Reforms of 1991 (Liberalization, Privatization, and Globalization) on the performance of the Indian industrial sector. While the reforms aimed to boost industrial efficiency, the actual performance has been mixed due to various domestic and external factors.
Statement-wise Analysis:
- Statement 1 is Correct: The industrial sector witnessed a slowdown in growth during the post-reform period. A primary reason was the influx of cheaper imports following the reduction in tariff barriers and import restrictions. These cheaper foreign goods replaced the demand for domestic goods, adversely affecting local manufacturers.
- Statement 2 is Incorrect: Infrastructure bottlenecks remained a critical constraint for industrial growth during the reform period. While investment was made, infrastructure facilities (such as power supply, roads, and ports) did not become world-class. Inadequate infrastructure continued to hamper the competitiveness of Indian industries compared to global standards.
- Statement 3 is Correct: Despite the liberalization of trade, developing countries like India have faced significant hurdles in accessing markets in developed countries. Developed nations often impose high non-tariff barriers (such as strict sanitary and phytosanitary measures) and retain protectionist policies, limiting the export potential of Indian goods.
Key Takeaway:
The post-reform industrial performance in India was constrained by stiff competition from cheaper imports, persistent infrastructure deficits, and restricted access to developed markets due to non-tariff barriers.