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Which of the following is the effect of liberalisation and foreign direct investment on iron and steel industry of India?
- a)Lower productivity of labour
- b)High costs and limited availability of coking coal
- c)Irregular supply of energy
- d)Boost to the industry
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Which of the following is the effect of liberalisation and foreign dir...
Correct Answer :- d
Explanation : Liberalisation help our country's steel industries as it bring up with new technologies and better method of production.
Most Upvoted Answer
Which of the following is the effect of liberalisation and foreign dir...
The effect of liberalisation and foreign direct investment on the iron and steel industry of India is a boost to the industry. This means that option 'D' is the correct answer.
Explanation:
1. Liberalisation:
- Liberalisation refers to the reduction of government regulations and restrictions on the economy, allowing for more open market competition and foreign investment.
- In the case of the iron and steel industry, liberalisation has led to increased competition and access to global markets, resulting in the growth and expansion of the industry.
- Liberalisation has also facilitated the entry of foreign players into the Indian market, leading to the infusion of new technologies, capital, and expertise.
2. Foreign Direct Investment (FDI):
- FDI refers to the investment made by foreign companies or individuals in the domestic economy of another country.
- In the iron and steel industry, FDI has played a crucial role in the modernization and expansion of existing steel plants, as well as the establishment of new ones.
- FDI has helped in the transfer of advanced technologies, management practices, and access to international markets, which has significantly contributed to the growth and development of the industry.
3. Boost to the industry:
- Liberalisation and FDI have resulted in increased competition, which has pushed domestic firms to improve their efficiency and productivity.
- The entry of foreign companies has also led to the adoption of advanced technologies and best practices, leading to higher productivity and quality standards.
- Increased investments, both domestic and foreign, have led to the expansion of existing steel plants and the setting up of new ones, thereby increasing the production capacity of the industry.
- The growth of the iron and steel industry has also contributed to job creation, income generation, and overall economic development.
In conclusion, the effect of liberalisation and foreign direct investment on the iron and steel industry of India is a boost to the industry. These policies have facilitated competition, technological advancements, and increased investments, leading to the growth and expansion of the industry.
Explanation:
1. Liberalisation:
- Liberalisation refers to the reduction of government regulations and restrictions on the economy, allowing for more open market competition and foreign investment.
- In the case of the iron and steel industry, liberalisation has led to increased competition and access to global markets, resulting in the growth and expansion of the industry.
- Liberalisation has also facilitated the entry of foreign players into the Indian market, leading to the infusion of new technologies, capital, and expertise.
2. Foreign Direct Investment (FDI):
- FDI refers to the investment made by foreign companies or individuals in the domestic economy of another country.
- In the iron and steel industry, FDI has played a crucial role in the modernization and expansion of existing steel plants, as well as the establishment of new ones.
- FDI has helped in the transfer of advanced technologies, management practices, and access to international markets, which has significantly contributed to the growth and development of the industry.
3. Boost to the industry:
- Liberalisation and FDI have resulted in increased competition, which has pushed domestic firms to improve their efficiency and productivity.
- The entry of foreign companies has also led to the adoption of advanced technologies and best practices, leading to higher productivity and quality standards.
- Increased investments, both domestic and foreign, have led to the expansion of existing steel plants and the setting up of new ones, thereby increasing the production capacity of the industry.
- The growth of the iron and steel industry has also contributed to job creation, income generation, and overall economic development.
In conclusion, the effect of liberalisation and foreign direct investment on the iron and steel industry of India is a boost to the industry. These policies have facilitated competition, technological advancements, and increased investments, leading to the growth and expansion of the industry.
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Which of the following is the effect of liberalisation and foreign direct investment on iron and steel industry of India?a)Lower productivity of labourb)High costs and limited availability of coking coalc)Irregular supply of energyd)Boost to the industryCorrect answer is option 'D'. Can you explain this answer? for UPSC 2026 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is the effect of liberalisation and foreign direct investment on iron and steel industry of India?a)Lower productivity of labourb)High costs and limited availability of coking coalc)Irregular supply of energyd)Boost to the industryCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is the effect of liberalisation and foreign direct investment on iron and steel industry of India?a)Lower productivity of labourb)High costs and limited availability of coking coalc)Irregular supply of energyd)Boost to the industryCorrect answer is option 'D'. Can you explain this answer?.
Which of the following is the effect of liberalisation and foreign direct investment on iron and steel industry of India?a)Lower productivity of labourb)High costs and limited availability of coking coalc)Irregular supply of energyd)Boost to the industryCorrect answer is option 'D'. Can you explain this answer? for UPSC 2026 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is the effect of liberalisation and foreign direct investment on iron and steel industry of India?a)Lower productivity of labourb)High costs and limited availability of coking coalc)Irregular supply of energyd)Boost to the industryCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is the effect of liberalisation and foreign direct investment on iron and steel industry of India?a)Lower productivity of labourb)High costs and limited availability of coking coalc)Irregular supply of energyd)Boost to the industryCorrect answer is option 'D'. Can you explain this answer?.
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