MasteryExams
Economics • Economic BasicsHard

How do ecological preservation mandates, such as Supreme Court rulings and central forestry acts restricting commercial felling in Uttarakhand, structurally constrain the primary and secondary sectors of the state economy?

A. They completely ban all forms of economic activity including digital services across the state
B. They limit forest-based timber industries and impose strict environmental clearance requirements on infrastructure projects, necessitating alternative growth models like eco-tourism and horticulture✓ Correct Answer
C. They replace forest revenue with international trade tariffs collected at state borders
D. They mandate the immediate conversion of all reserved forests into agricultural tea estates

💡 Solution & Explanation

Strict environmental regulations and forest conservation laws restrict traditional timber-based secondary industries in Uttarakhand, shifting the state economic focus toward eco-friendly sectors such as horticulture, aromatic plant cultivation, hydro power with ecological safeguards, and sustainable tourism. These measures balance ecological preservation of the fragile Himalayan ecosystem with livelihood generation. Compensatory afforestation funds further finance local environmental management.

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