indian economy(15950-1990) Flashcards
What are the different types of economic systems?
What goods should be produced?
Capitalism - Goods that have high demand and are profitable - market forces of supply and demand
S - Decided by government in accordance with needs of society not much imp given to individual desires
How should the goods be produced
C - whatever is cheaper - brings more profit
S - what is more beneficial - labour intensive can help in employment opportunities
How should goods be distributed?
C - Purchasing power - inequalities
S - on what people need not what they can afford
MIXED - private produces what it can produce well - state provides essential commodities that market cannot produce
Jawaharlal nEhru liked the socialist model but not that of the Soviet union where ALL factors of production were in the hands of the government - no private property - could change ownership of land and other properties theerfore mixed
What is a plan?
What are the four goals of planning in India
A plan is a document that spells out how the resources of the nation should be used
borrowed from Soviet Union - pioneer
general + specific goals
5 year plans 20 year plans - perspective plans
5 year form the basis
which sector more importance limited resources all goals cannot have equal importance
GROWTh - refers to the capacity to a country to increase the total production of goods and services
by increase in size of capital stock
increase in supporting services
improved efficiency if both
GDP - good indicator
higher GDp - more rich and varied life
structural composition GDP contribution by different sectors developed countries higher contribution by services
MODERMNISATIOn
- adoption of new technology and infrastructure
change in social outlook
SELF RELIANCE
- growth and modernisation either by using own or imported resources - own self - reliance - reducing imports of goods india can produce Why? - reduce dependency on foreign countries for food capital and technology prevent interference in policies
EQUITY
all of these pointless if not enjoyed by both rich and poor
each india - basic living standards - decent house education food healthcare
social justice
raise standard of living of all people
What were the land reforms that were passed after Independence
ABOLISHMENT OF INTERMEDIARIES
- ownership of land - tillers
incentivise - increase agricultural output
- equity
- provided they had sufficient capital
200 lakh tenants were brought into direct contact with the government as a year after independence these intermediaries were abolished
- however in some areas zamindars still retained control over large areas of land due to loophole
evict tenants and claim themselves as self-cultivators
even where it did work poorest did not benefit
LAND CEILINGS
limit to the amount of land an individual could own
equity
however big landholders challenged this legislation causing delay during which they transferred their property to near relatives escaping legislation
other loopholes they managed to get away with
REforms only worked in Kerala and West Bengal where the governments were dedicated however most other state governments did nit have dedication - inequality still exists to this date
