Q. With reference to the Industrial Policy Statement of 1977, consider the following statements:
1.The policy promoted decentralised industrialisation and emphasised the development of small and cottage industries through District Industries Centres (DICs).
2.It encouraged foreign investment, especially in sectors lacking capital or technology.
3.Khadi and village industries were restructured in alignment with democratic decentralisation principles.
Which of the statements given above is/are correct?
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 and 2 only

[B] 1 and 3 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

Explanation:

  • The 1977 policy strongly supported decentralised industrialisation, and District Industries Centres (DICs) were established to promote small and cottage industries across districts.
  • Contrary to the 1973 policy, the 1977 policy discouraged foreign investment, especially in non-essential areas, reflecting a Gandhian-socialist approach.
  • The policy restructured khadi and village industries in line with the broader goal of democratic decentralisation and mass participation in industrialisation.

Source- 11th NCERT: Economics: Indian Economic Development and TMH Indian Economy by Ramesh Singh

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