India adopted a policy of Import Substitution Industrialisation (ISI) after independence. Which of the following was a common limitation faced by ISI-led strategy by the 1980s?

Correct option is B

Correct Answer: B: Technological backwardness

Explanation:

• After India gained independence, it adopted the Import Substitution Industrialization (ISI) strategy to reduce dependence on foreign goods by promoting domestic industries.
• By the 1980s, one of the key limitations of the ISI strategy was technological backwardness.
• While ISI helped India build a strong industrial base, it also led to industries that were not very competitive on the global stage due to outdated technologies and limited innovation.
• This technological gap hindered the development of high-tech industries and reduced the efficiency and productivity of Indian industries.

Information Booster:

• ISI Strategy (Post-Independence): Aimed to promote self-sufficiency by encouraging local industries to produce goods that were previously imported.
• Limitations of ISI by the 1980s:
• Technological Backwardness: The emphasis was more on quantity over quality, which led to industries that lacked modern technology, research and development, and innovation.
• Increased Protectionism: The protectionist measures resulted in a lack of competition, which reduced the incentive for industries to innovate and improve quality.
• Low Productivity: Many industries operated at a small scale with inefficient production processes due to the lack of modern technology.
• Dependency on Imported Capital Goods: Despite the focus on reducing consumer goods imports, India still needed to import capital goods and technology for industrial growth.