Consider the emphasis placed on the public sector in India's industrial development strategy between 1947 and 1990. What was a key rationale behind giving the public sector a dominant role during this period?
Show answer & explanation
Correct answer: D
Explanation
Answer: The public sector was seen as a tool for achieving social goals, promoting balanced regional development, and controlling strategic industries.
Explanation
Between 1947 and 1990, India followed a mixed economy model where the public sector played a dominant role in industrial development.
The main idea was not just profit-making, but nation-building and equitable development.
The government gave priority to public sector industries because:
Private sector was weak after independence
Heavy industries required large investment and long gestation periods
Need to reduce regional imbalance in development
Control over strategic sectors like defence, energy, and infrastructure
Focus on social welfare and employment generation
Additional Key Points
This approach was based on the Nehruvian economic model
Key planning framework was implemented through Five-Year Plans
Public sector was called the “commanding heights” of the economy
It aimed to reduce inequality and prevent concentration of wealth
Industries like steel, coal, and power were developed by the state
Potential Questions & Answers
Q. What economic model did India follow from 1947 to 1990?
Ans: Mixed economy model.
Q. What does “commanding heights of the economy” mean?
Ans: It refers to key industries controlled by the public sector.