Consider the following statements regarding the public sector in the industrial sector during British rule: 1. The public sector had a very wide area of operation including heavy industries. 2. It was confined only to railways, power generation, communications, and ports. 3. It played a major role in the Gross Domestic Product (GDP). Which of the statements given above is/are correct?

The correct option is 2 only. Explanation During British colonial rule in India, the state's participation in the industrial sector was minimal. The colonial government did not actively promote a diversified industrial base, and the public sector's footprint was restricted to specific strategic areas required for administration and trade facilitation. Statement-wise Analysis: - Statement 1 is Incorrect: The public sector did not have a wide area of operation. It largely neglected the development of heavy industries and capital goods sectors, which are crucial for a self-reliant economy. - Statement 2 is Correct: The operations of the public sector were strictly confined to critical infrastructure sectors. These included railways, power generation, communications, ports, and a few other departmental undertakings. - Statement 3 is Incorrect: Due to the limited scope of operation and the overall underdevelopment of the industrial sector, the public sector's contribution to the Gross Domestic Product (GDP) was insignificant. Key Takeaway: The public sector under British rule was characterized by a limited scope, confined primarily to Railways, Power, Communications, and Ports, without a significant role in the country's GDP or heavy industrialization.

Consider the following statements regarding the public… - NCERT Class 11 Economics MCQ

NCERT Class 11 Economics — Chapter 1: Indian Economy on the Eve of Independence

mcqmedium

Consider the following statements regarding the public sector in the industrial sector during British rule:

The public sector had a very wide area of operation including heavy industries.
It was confined only to railways, power generation, communications, and ports.
It played a major role in the Gross Domestic Product (GDP).

Which of the statements given above is/are correct?

NCERT textbook question

From NCERT Indian Economic Development · Page 8

Options

A1, 2 and 3
B1 only
C2 only
D1 and 3 only

Did you get this right?

Solution

The correct option is 2 only.

Explanation

During British colonial rule in India, the state's participation in the industrial sector was minimal. The colonial government did not actively promote a diversified industrial base, and the public sector's footprint was restricted to specific strategic areas required for administration and trade facilitation.

Statement-wise Analysis:

Statement 1 is Incorrect: The public sector did not have a wide area of operation. It largely neglected the development of heavy industries and capital goods sectors, which are crucial for a self-reliant economy.
Statement 2 is Correct: The operations of the public sector were strictly confined to critical infrastructure sectors. These included railways, power generation, communications, ports, and a few other departmental undertakings.
Statement 3 is Incorrect: Due to the limited scope of operation and the overall underdevelopment of the industrial sector, the public sector's contribution to the Gross Domestic Product (GDP) was insignificant.

Key Takeaway:
The public sector under British rule was characterized by a limited scope, confined primarily to Railways, Power, Communications, and Ports, without a significant role in the country's GDP or heavy industrialization.

Your note

More from Chapter 1: Indian Economy on the Eve of Independence

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