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.

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Q: 20 (IAS/1999)
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 ?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,21,72,40,21,26,6

keywords: 

{'industrial development': [0, 2, 0, 3], 'adequate entrepreneurship': [0, 1, 0, 0], 'limited purchasing power': [0, 1, 0, 0], 'technology': [1, 5, 15, 27], 'india': [8, 1, 7, 13], 'infrastructure': [1, 4, 4, 6], 'extent': [0, 1, 1, 0], 'iv': [6, 110, 77, 8]}

The correct answer is option 2 - I, III, and IV.

Option 1 includes lack of savings to invest, which is not a significant constraint to industrial development in India. India has a good savings rate and also FDI and FII inflows. Option 3 also includes this incorrect statement.

Option 4 lacks one of the correct statements, which is III - lack of technology, skills and infrastructure. This is a constraint as India is still developing its technological, skill, and infrastructure base.

In contrast, option 2 includes all the significant constraints to industrial development in India: I. lack of adequate entrepreneurship and leadership in business; III. lack of technology, skills, and infrastructure; and IV. limited purchasing power among the larger masses. The development of any industry largely depends on entrepreneurship and leadership. Limited technology, skills and infrastructure restrict the easy and cost-effective manufacturing of goods. Lastly, limited purchasing power impacts the demand for goods, which, in turn, affects industrial development.