question_answer

Study the cartoon given below carefully and answer the questions that follow:

(i) Identify and name the person who is holding the balancing beam between the public sector and the private sector.

(ii) Why has a big tilt towards the public sector been shown in the cartoon?

(iii) How did the over-emphasis on public sector adversely affect the Indian economy?

Answer:

(i) The person holding the balancing beam between the public sector and the private sector is Jawahar Lal Nehru.

(ii) India did not accept the capitalist model of development in which development was left entirely to the private sector nor did it follow the socialistic model. Elements from both these models were taken and mixed together in India and made pubic sectors having majority holdings by government. Heavy industries and other important works/departments were given to public sector.

(iii) The enlarged public sector under the control of government, with powerful vested interests of government ministers and ministerial secretariat have created enough hurdles for private capital specially in giving licenses and permits to private sector. The state controlled more things than were necessary and this led to inefficiency and corruption.