Which of the followig best describes the public sector's role in the Indian economy during 1947-1991?

Correct option is A

Correct Answer: (a) Dominant in core and heavy industries

Explanation:

• From 1947 to 1991, India followed a mixed economy model where the public sector was given a leading role in industrial development.
• Public sector enterprises dominated in core sectors like steel, coal, petroleum, power, heavy machinery, transport, and infrastructure.
• This was in line with the Industrial Policy Resolutions of 1948 and 1956, which emphasized state control over commanding heights of the economy.

Information Booster:

• The Second Five-Year Plan (1956-61) (Nehru-Mahalanobis model) focused on heavy industries and public sector growth.
• Public sector created basic infrastructure for private industries to develop.
• PSUs like SAIL, BHEL, ONGC, NTPC were established.
• Public sector aimed to achieve self-reliance, balanced regional growth, and employment generation.
• After 1991 (Economic Reforms), the role of the private sector increased, and the public sector's dominance reduced.

Additional Knowledge:

• Only limited to agriculture (B): Agriculture was mainly in the private sector; public sector focused more on irrigation, research, and institutions, not direct farming.
• Minimal presence (C): Incorrect, as public sector had a major and dominant presence in this period.
• Focused only on foreign trade (D): Public sector did play a role in trade through agencies like STC, MMTC, but its main role was heavy industries and infrastructure, not just trade.