Study the cartoon given below carefully and answer the questions … - Vidyadip

Question

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

Identify and name the person who is holding the balancing beam between the public sector and the private sector.
Why has a big tilt towards the public sector been shown in the cartoon?
How did the over-emphasis on public sector adversely affect the Indian economy?

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Answer

Pt. Jawaharlal Nehru.
A big tilt towards the public sector has been shown because the state controlled key heavy industries, provided industrial infrastructure, regulated trade and made some crucial interventions in agriculture.

The state intervened only in those areas where the private sector was not prepared to go. Thus the state helped the private sector to make profit.
Also, instead of helping the poor, the state intervention ended up creating a new ‘middle class’ that enjoyed the privileges of high salaries without much accountability.
The state controlled more things than were necessary and this led to inefficiency and corruption.

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