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Question
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
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Solution
- Industrialisation is a process of growth and expansion of industries in a country. The government can come forward for the establishment of basic industries (e.g. steel industry, heavy chemical industry) which are generally not taken up by the private investor for want of risks and huge investments.
- The state can also provide various inputs at subsidised prices to encourage private investment in industries.
- The government can provide relief to certain industries in the shape of lowering the taxes so that they could compete with foreign industries.
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