Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 1 and 2
Concept & Option Breakdown
Standard Reference Verified- Statement 1 is correct: Small-scale industries are inherently labour-intensive and generate higher employment per unit of capital invested compared to large-scale industries.
- Statement 2 is correct: Small-scale units facilitate decentralised growth and spatial dispersion of industrial activity away from metropolitan centres, fostering balanced regional development.
- Statement 3 is incorrect: Large-scale industries enjoy economies of scale and global supply chains, outperforming small firms in volume and competitiveness in major export segments.
- Statement 4 is incorrect: While SSIs employ workers with varied skills, it is not the primary macroeconomic justification for institutional policy reservation.
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