The correct answer is C. Decrease.
The Tandon Committee was set up in 1977 to review the working of the banking system in India. The Committee recommended a number of measures to reduce the dependence of industry on bank finance. These measures included:
- Increasing the role of non-banking financial institutions (NBFIs) in providing finance to industry.
- Promoting the development of capital markets.
- Encouraging the use of leasing and hire-purchase finance.
- Reducing the cost of bank finance.
The Committee also recommended that the government should provide more support to small and medium enterprises (SMEs). This support could be in the form of financial assistance, technical assistance, and marketing assistance.
The Tandon Committee’s recommendations were accepted by the government and implemented over the next few years. As a result, the dependence of industry on bank finance has gradually decreased.
Option A is incorrect because the Tandon Committee recommended that the dependence of industry on bank finance should gradually decrease.
Option B is incorrect because the Tandon Committee recommended that the dependence of industry on bank finance should gradually decrease.
Option D is incorrect because the Tandon Committee recommended that the dependence of industry on bank finance should gradually decrease.