Consider the following statements: Industrial development in India, to an extent, is constrained by: 1. lack of adequate entrepreneurship and leadership in business 2. lack of savings to invest 3. lack of technology, skills and infrastructure 4. limited purchasing power among the larger masses Which of the above statements are correct?

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YESPYQ · Accepted Answer

Correct answer: 1, 3 and 4. Option 1 is correct: India faces challenges in fos- tering entrepreneurship due to factors like risk aversion, limited access to capital, and regulatory hurdles. A shortage of skilled leadership hampers innovation and effective business strategies, which are key to industrial growth. Option 2 is incorrect: While savings are important, they are not the sole determinant of industrial development. Other factors such as access to credit, foreign investment, and govern- ment spending also play a significant role in driving industrial growth. Even with limited domestic savings, a country can attract foreign direct investment (FDI) to fuel its industries. Option 3 is correct: The lack of technology, skills, and infra- structure is a major constraint on industrial development. Modern industries depend on advanced technology, a skilled workforce, and strong infrastructure (such as transportation, communication, and energy). Deficiencies in any of these areas can severely hinder progress. For instance, an unreliable power supply can disrupt production, while a short

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