Answer» - Entrepreneurs were required to follow so many procedures and had to wait for many years to get the approval from the government offices.
- Licenses were not given to the most efficient producers.
- The selection was biased in favour of people with political connections and the economically powerful.
- All this discouraged new entrepreneurs who would work with latest technology available.
- Further control on prices led to shortage of goods. E.g.: Scooters.
- Such shortages were common for important basic goods like coal and cement, which in turn caused a lot of delay in production of other goods.
- Another problem was lack of quality of some of goods.
- There were restrictions on the import and export of industrial goods including machinery and raw materials.
- Prices were laid down by the government and the producers had to sell only at that price.
So the above restrictions acted as hindrance to the growth of industry.
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