Introduction To Indian Economic Development

Liquor, Cigarettes, Defence Equipments, Industrial Explosives, Specified Dangerous Chemicals

Step 1: The 1991 New Industrial Policy delicensed most industries — meaning they no longer need government license to operate. Step 2: Originally 18 industries were kept under compulsory licensing; this was later reduced to five. Step 3: The five industries that still require compulsory licensing are: (a) Liquor, (b) Cigarettes, (c) Defence equipments, (d) Industrial explosives, and (e) Specified dangerous chemicals. Step 4: These are kept under licensing because they pose risks to public health, safety, or national security. Step 5: Options B, C, and D include items like Atomic Energy, Railwa

Rice and Sugar

Step 1: India's foreign trade section and agriculture importance section in the chapter discuss agricultural exports. Step 2: The chapter explicitly states: 'Rice and sugar have been two big contributors to India's agri exports.' Step 3: India is the second largest grower of rice in the world and the second largest producer of sugarcane after Brazil — so it is natural that these dominate agri-exports. Step 4: Tea, coffee, cotton, and jute are traditional export commodities of India, but the chapter specifically names Rice and Sugar as the 'big contributors' to agri-exports in recent years. Ste

Competition Act 2002; CCI started functioning from May 20, 2009

Step 1: Before 1991 reforms, the MRTP (Monopolies and Restrictive Trade Practices) Act 1969 restricted large companies (assets above ₹100 crore) from expanding without prior government approval. Step 2: The New Industrial Policy 1991 gave MRTP companies freedom to expand without prior sanction. Step 3: In 2002, the MRTP Act was replaced by the Competition Act 2002, which is more liberal and market-friendly. Step 4: The Competition Commission of India (CCI) was established under this Act and started functioning from May 20, 2009. Step 5: CCI approval is now mandatory for any merger and acquisit

India adopted import substitution policy which restricted trade and limited export competitiveness.

Step 1: The chapter explains that India adopted the 'import substitution policy' for a large part of 1950-90. Step 2: This policy meant replacing imports with domestic production — imports were restricted using tariffs and quotas to protect domestic industries. Step 3: While this helped build domestic industry, it created inefficiencies as domestic industries were shielded from competition and did not develop international competitiveness. Step 4: As a result, India's exports grew slowly and could not keep pace with global trade growth — hence the declining share from 1.78% to 0.6%. Step 5: In