UPSC Prelims 1999 · General Studies
Question 20: Economy and Social Development
Consider the following statements: Industrial development in India, to an extent, is constrained by I. Lack of adequate entrepreneurship and leadership in business. II. Lack of savings to invest. III. Lack of technology, skills and infrastructure. IV. Limited purchasing power among the larger masses. Which of the above statements are correct?
AnswerThe answer is (c).
The given answer counts three constraints on India's industrial growth: too little savings and capital to invest (II), a shortage of technology, skills and infrastructure (III), and low purchasing power among the masses, which limits the market (IV). Lack of entrepreneurship and business leadership (I) is not counted, since India has a long tradition of enterprising business communities. Remember: supply side (capital, technology, infrastructure) and demand side (mass purchasing power).
- I. Entrepreneurship is not counted as a constraint, given India's business traditions.
- II. Limited savings restrict investible capital.
- III. Technology, skills and infrastructure gaps hold industry back.
- IV. Low mass purchasing power limits the market for industrial goods.
Why each option is right or wrong
- (a) Wrong. Counts I as a constraint and leaves out IV.
- (b) Wrong. Counts I and leaves out II.
- (c) Right. II, III and IV are the constraints counted.
- (d) Wrong. Counts I and leaves out III.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 1999, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.