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 ?

The correct answer is Option 1 (I, II, and III). Industrial development in India is primarily constrained by supply-side bottlenecks and capital deficiencies.

• Statement I: Historically, India faced a shortage of risk-taking entrepreneurship due to a restrictive regulatory environment (License Raj) and a traditional preference for mercantile activities over industrial manufacturing.
• Statement II: As a developing economy, India has struggled with low rates of domestic savings relative to the massive capital requirements for heavy industrialization, leading to a dependence on foreign investment.
• Statement III: Deficiencies in physical infrastructure (power, logistics) and a gap in high-end technical skills and indigenous technology remain significant hurdles to global competitiveness.
• Statement IV: While purchasing power is a factor, it is often considered a consequence of slow industrial growth rather than a primary structural constraint in the context of these specific economic models.

Thus, Statements I, II, and III represent the fundamental structural constraints on India's industrial trajectory.