Question

“The Industrial Sector has performed poorly in the reform period (1991).”

Justify the given statement with valid argument.

Hint:

Give valid reasons. Cheaper imports replaced demand for domestic goods. Power and other infrastructure stayed weak because of low investment.

Answer 1

Step 1: Understand the statement:
India began economic reforms in 1991. The statement says that industry did poorly after that. We must support it with valid arguments from what happened to the industrial sector.

Step 2: Argument 1 - Fall in demand for domestic goods:
After reforms, imports of industrial goods became cheaper as tariffs and import limits were reduced.
Cheaper imports took over the demand for goods made at home. So many Indian industries found it hard to sell, and their growth slowed.

Step 3: Argument 2 - Weak infrastructure:
Infrastructure such as power supply stayed inadequate. There was too little investment to improve it.
Without enough power and other facilities, Indian industry could not raise output or compete with foreign producers.

Step 4: Argument 3 - Limits on exports:
Developed countries did not give fair access to Indian goods. They used non-tariff barriers, so Indian industry could not make up the lost home demand through exports.

Final Answer:
The statement is justified. Cheaper imports reduced demand for domestic goods and poor infrastructure such as power held back industrial growth in the reform period.