Daily Current Affairs Quiz: September 24, 2025

Answer: B [Both Statement 1 and Statement 2 are correct and Statement 2 is not the correct explanation for Statement 1]
Explanation:

Statement I is correct: While the delicensing of manufacturing sectors under the 1991 reforms did boost capital goods production, the growth in consumer durables was initially hampered by continued high import duties on essential components, which were only gradually reduced.

Statement II is correct: The reforms did propose greater autonomy and reduced intervention for PSUs to enhance efficiency, and the subsequent disinvestment efforts did encounter significant hurdles, including strong employee resistance and difficulties in accurately valuing the assets of these large public enterprises.

Answer: B [While the state controlled key industries, the private sector was encouraged to participate in specified areas within the plan framework, particularly consumer goods.]
Explanation:

A is Incorrect: The IPR 1948 classified industries into categories, including state monopolies, but it did not nationalise all existing private industries. Existing private companies in even the ‘basic industries’ category were allowed to continue.

B is Correct: The IPR 1948 laid the foundation for a mixed economy. The state focused on core sectors and infrastructure, but the private sector was assigned a role in the plan, especially in consumer goods and other non-core areas. The idea was to combine the strengths of both sectors.

C is Incorrect: While the state did invest heavily in infrastructure, it also directly controlled key heavy industries and did not delegate primary responsibility for industrial development to the private sector.

D is Incorrect: While the licensing system was indeed complex and often criticised, the intention was not to actively discourage the private sector but to regulate and direct it within the planned framework. The private sector played a significant role during this period, albeit within the broader context of centralised planning.

Answer: C [All of the above]
Explanation:

Statement 1 is correct: The Bombay Plan, while advocating for state intervention in core sectors, also envisioned a significant role for the private sector, promoting a mixed economy model.

Statement 2 is correct: The People’s Plan, drafted by M.N. Roy, did prioritize agricultural development alongside consumer goods manufacturing and the development of crucial infrastructure like transport and communication networks.

Statement 3 is correct: The Gandhian Plan, developed by Sriman Narayan Agarwal, centered on rural development through decentralized planning and the promotion of village and cottage industries, aligning with Gandhian economic principles of self-sufficiency.

Answer: D [All of the above]
Explanation:

Statement 1 is correct: The Visvesvaraya Plan aimed to double the national income through rapid industrialization, with a focus on heavy industries. It prioritized heavy industries to build a strong industrial base.

Statement 2 is correct: The Bombay Plan advocated for a mixed economy model, acknowledging the role of both the state and the private sector. This contrasted with the socialist approach of the People’s Plan.

Statement 3 is correct: The National Planning Committee, while acknowledging the importance of agriculture, aimed for a comprehensive development strategy across various sectors, including industry, agriculture, transport, education, and health. This differed from the Gandhian Plan, which primarily focused on village industries.

Statement 4 is correct: The People’s Plan, drafted by M.N. Roy, emphasized decentralized planning and village-level self-sufficiency. It prioritized agriculture and small-scale industries, contrasting with the emphasis on heavy industries in plans like the Visvesvaraya Plan.

Answer: B [1, 2 and 4 only]
Explanation:

Statement 1 is correct: The NPC was formed in 1938 with Jawaharlal Nehru as its chairman.

Statement 2 is correct:  The NPC envisioned a mixed economy model.

Statement 3 is incorrect: While the NPC emphasized heavy industries, a specific target of self-sufficiency within a decade was not part of its proposals.  The NPC’s work was a long-term vision, not tied to such a rigid timeframe.

Statement 4 is correct:  The NPC’s work was disrupted by World War II and the arrests of its members. However, its reports and recommendations influenced planning after independence.