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Consider the following statements about the licensing Raj system.
1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms
2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.
Which of the statements is/are not correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
Consider the following statements about the licensing Raj system.1. A...
- The need to obtain a license to start an industry was misused by industrial houses; a big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms.
- The excessive regulation of what came to be called the permit license raj prevented certain firms from becoming more efficient. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.
- The protection from foreign competition is also being criticised on the ground that it continued even after it proved to do more harm than good. Due to restrictions on imports, the Indian consumers had to purchase whatever the Indian producers produced.
- The producers were aware that they had a captive market; so they had no incentive to improve the quality of their goods. Why should they think of improving quality when they could sell low quality items at a high price? Competition from imports forces our producers to be more efficient.
Most Upvoted Answer
Consider the following statements about the licensing Raj system.1. A...
The correct answer is option 'D': Neither 1 nor 2
Explanation:
The licensing Raj system refers to the system of licenses and permits required by businesses to operate in India during the period of economic regulation between 1947 and 1990. This system was characterized by extensive government control and intervention, which often resulted in inefficiencies and limited competition in the economy.
1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms:
This statement is not correct. While it is true that the licensing system created barriers to entry for new firms and limited competition, it is not accurate to say that big industrialists obtained licenses solely to prevent competitors from starting new firms. Obtaining a license was necessary for any business to legally operate during that time, regardless of the size of the firm. The licensing system was a way for the government to control and regulate economic activity, and licenses were granted based on various criteria, including the need for the product or service, availability of resources, and compliance with government regulations.
2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products:
This statement is also not correct. While it is true that obtaining a license could be a bureaucratic and time-consuming process, it is not accurate to say that industrialists spent more time on obtaining licenses or lobbying than on improving their products. Industrialists during the licensing Raj system faced numerous challenges, including limited access to resources, bureaucratic red tape, and a lack of competition. However, many industrialists still focused on improving their products and processes to remain competitive and meet consumer demand. While the licensing system did create barriers to entry and limited competition, it does not imply that industrialists neglected product improvement.
In conclusion, both statements are not correct. The licensing Raj system created barriers to entry and limited competition, but it did not solely exist to prevent competitors from starting new firms. Additionally, while obtaining licenses could be a bureaucratic process, industrialists still focused on improving their products and processes to remain competitive.
Explanation:
The licensing Raj system refers to the system of licenses and permits required by businesses to operate in India during the period of economic regulation between 1947 and 1990. This system was characterized by extensive government control and intervention, which often resulted in inefficiencies and limited competition in the economy.
1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms:
This statement is not correct. While it is true that the licensing system created barriers to entry for new firms and limited competition, it is not accurate to say that big industrialists obtained licenses solely to prevent competitors from starting new firms. Obtaining a license was necessary for any business to legally operate during that time, regardless of the size of the firm. The licensing system was a way for the government to control and regulate economic activity, and licenses were granted based on various criteria, including the need for the product or service, availability of resources, and compliance with government regulations.
2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products:
This statement is also not correct. While it is true that obtaining a license could be a bureaucratic and time-consuming process, it is not accurate to say that industrialists spent more time on obtaining licenses or lobbying than on improving their products. Industrialists during the licensing Raj system faced numerous challenges, including limited access to resources, bureaucratic red tape, and a lack of competition. However, many industrialists still focused on improving their products and processes to remain competitive and meet consumer demand. While the licensing system did create barriers to entry and limited competition, it does not imply that industrialists neglected product improvement.
In conclusion, both statements are not correct. The licensing Raj system created barriers to entry and limited competition, but it did not solely exist to prevent competitors from starting new firms. Additionally, while obtaining licenses could be a bureaucratic process, industrialists still focused on improving their products and processes to remain competitive.
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Consider the following statements about the licensing Raj system.1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.Which of the statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements about the licensing Raj system.1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.Which of the statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about the licensing Raj system.1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.Which of the statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about the licensing Raj system.1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.Which of the statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
Consider the following statements about the licensing Raj system.1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.Which of the statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about the licensing Raj system.1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.Which of the statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about the licensing Raj system.1. A big industrialist would get a license not for starting a new firm but to prevent competitors from starting new firms2. More time was spent by industrialists in trying to obtain a license or lobby with the concerned ministries rather than on thinking about how to improve their products.Which of the statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
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