Economics · Economic Reforms
Which of the following was a negative consequence or fallback of the pre-1991 industrial licensing system in India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Many small private firms appropriately monopolized the licensing process
- 2Most licenses were strictly meant for importing raw goods
- 3Most industrial licenses were utilized efficiently by backward states
- 4Large industrial houses availed licenses primarily to prevent new competitors from entering the market✓
Correct answer
Large industrial houses availed licenses primarily to prevent new competitors from entering the market
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