Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 1, 3 and 4
Concept & Option Breakdown
Standard Reference Verified- Statements 1, 3, and 4 are correct: Constraints to industrial growth include underdeveloped entrepreneurial leadership, technological/infrastructural bottlenecks, and low domestic purchasing power that curtails aggregate demand for manufactured products.
- Statement 2 is incorrect: India has traditionally maintained relatively high domestic household savings rates; the primary constraint is the efficient intermediation and institutional conversion of savings into productive long-term industrial investment rather than an absolute lack of savings.
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