Question : What was the impact of the expansion of the state sector on private sector development during the initial Five-year Plans?

 

Option 1: It fostered healthy competition.

Option 2: It provided support through subsidies.

Option 3: It led to a crowding out of private investment.

Option 4: It encouraged joint ventures with foreign companies.


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: It led to a crowding out of private investment.


Solution : The expansion of the state sector during the initial Five-year Plans led to a crowding out of private investment, as the focus on public sector development limited the resources and opportunities available for private sector growth.

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