Question

Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative from the options given below:
Assertion (A): Excessive regulation of permit license raj prevented certain private firms from becoming more efficient.
Reason (R): Private sector wasted a significant time in obtaining licenses rather than enhancing product quality and international competitiveness.

• A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
• C. Assertion (A) is true, but Reason (R) is false.
• D. Assertion (A) is false, but Reason (R) is true.
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Hint:

Permit-license raj hindered private sector efficiency by imposing excessive regulatory barriers.

Answer 1

The Correct Option is A

Both the assertion and the reason are valid. The proliferation of excessive regulations during the permit-license raj hindered private sector expansion, while protracted licensing processes negatively impacted efficiency and global competitiveness.