Q1. What was the primary impact of the 'License Raj' system on industrial growth in India before 1991?
- (a) It created entry barriers, hindered expansion, and fostered inefficiency.
- (b) It ensured balanced regional development and prevented monopolies.
- (c) It led to efficient resource allocation and increased competition.
- (d) It promoted rapid industrial diversification and innovation.
Answer & solution
Answer: (a) It created entry barriers, hindered expansion, and fostered inefficiency.