(a) “Under the British rule, India underwent systematic economic exploitation with its resources and wealth being diverted to Britain.” Justify the…

During the colonial period, India's resources and wealth were exploited and diverted to Britain by transforming the country into exporter of raw materials and importer of finished industrial products from Britain. Moreover, the export surplus did not result in any flow of gold or silver into India. Rather, this was used to make payments for the expenses incurred by an office set up by the colonial government in Britain, expenses on war, fought by the British government, and the import of invisible items, all of which led to the drain of Indian wealth to Britain.

In order to improve efficiency, infuse professionalism and enable them to compete more effectively in the liberalised global environment, the government identified a few Public Sector Enterprises and declared them as ‘Navratnas’. They were given greater managerial and operational autonomy, in taking various decisions to run the company efficiently and thus increase their profits. The granting of Navratan status resulted in better performance of these companies.