Question : The 'License-Permit-Quota' system in India was aimed at:
Option 1: Promoting ease of doing business
Option 2: Regulating foreign investment
Option 3: Controlling inflation
Option 4: Managing industrial growth
Correct Answer: Managing industrial growth
Solution : The correct answer is (d) Managing industrial growth
The 'License-Permit-Quota' system in India was aimed at managing industrial growth. This system was prevalent during the period of economic planning in India, particularly from the 1950s to the 1980s. Under this system, industrial activities required licenses, permits, and quotas from the government, which controlled and regulated various aspects of industrial development. The objective was to ensure planned and controlled growth of industries, regulate the allocation of resources, and promote a balanced industrial sector. However, over time, this system was criticized for its bureaucratic complexities, stifling entrepreneurship, and hindering the ease of doing business, leading to its gradual dismantling in the 1990s.
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