As per the Economic Survey 2015 – 16, which one of the following has been constructed as the Chakravyuha Challenge of the Indian economy?

The answer is C. The Economic Survey 2015-16 used the Chakravyuha metaphor from the Mahabharata: it is easy to enter a maze but very hard to get out. The Survey argued that India moved from socialism with limited entry (licence-permit raj, dominant public sector, controls on private entry) to marketism, where entry is now open, but without a smooth exit. Firms that fail cannot easily wind up, and resources stay trapped in unviable units.

Why the others are wrong:

• A ignores the middle stage. India never moved straight from socialism to capitalism, and the Survey's framing is about the entry-exit mismatch.
• B adds an exit. That is the opposite of the Survey's point, since the challenge is the absence of a workable exit.
• D describes a mixed economy moving to capitalism, which is not the Survey's framing.

This links to Mains questions on insolvency, the Insolvency and Bankruptcy Code 2016 (enacted after the Survey, as a response to this exit problem), labour and land laws, and the ease of doing business.

Trap: Aspirants pick B because "with exit" sounds like the reform goal. Read the question for the problem the Survey described, not the solution.