Indian Economy 1950-1990

Question 1

Which is not the goal of 5 year plan
a) growth
b)self sufficiency
c) modernization
d) self reliance

Answer 1

B) self sufficiency

Question 2

First phase of green revolution achieved approximately

Answer 2

a) Mid 1960-Mid1970

Question 3

Chairperson of planning commission is_________________

Answer 3

Prime minister

Question 4

Small scale industries use more of_________ than large scale industries

Answer 4

Labour

Question 5

Regional equality was the main purpose of _________________________

Answer 5

Industrial policy resolution 1956

Question 6

Prime minister

Answer 6

Chairperson of planning Commission

Question 7

Quota

Answer 7

Quantity of goods that can be imported

Question 8

Land reforms

Answer 8

Improvements in the field of agriculture to increase its productivity

Question 9

Subsidies

Answer 9

The monetary assistance given by the government for production activities

Question 10

What are the goals of five year plans

Answer 10

The goals of five year plans are
1. Growth
2. Modernization
3. Self reliance
4. Equity

Question 11

Write two advantages of small scale industries

Answer 11

a)it is believed that small scale industries are more labour intensive i.e., they use more labour than capital

b) it is obvious that development of small scale industries requires them to be shielded from the large firms

Question 12

Why did the state have to play an extensive role in promoting the industrial sector?

Answer 12

At the time of independence, Indian industries did not have capital to undertake investment in industrial ventures required for the development of our economy. Hence there was a need for the state to play an extensive role in promoting the industrial sector

Question 13

Write a short note on land reforms in India

Answer 13

At the time of independence the land tenure system was characterized by intermediaries namely zamindars etc who merely collected rent from actual tillers of the soil without contributing towards improvements on the farm. This led to low productivity of food grains and forced us to import it from the U.S.A. due to this problem, it was necessary to take land reforms in India .

Land reforms comprises of the following steps:
A) abolition of intermediaries like zamindars:
Before independence zamindars were exploiting farmers in our country by paying less wages and farmers has to sell all the produce to zamindars, but after independence the system of zamindars were completely abolished in our country.
B) making the tillers the owners of land:
After independence lands were taken from zamindars and it was equally distributed among farmers and they were made the owners of the land

C) ceiling on land holdings: it was another policy to promote equity in the agricultural sector. This means fixing the maximum size of land which he owned by an individual

Question 14

Write a short note on green revolution

Answer 14

Green revolution refers to a remarkable increase in the production of food grains, by using a high yield variety of seeds, fertilizers and pesticides.
It was implemented because productivity in the agricultural sector was very low because of the use of old technology and the absence of required infrastructure for the vast majority of farmers.
In the first phase green revolution (mid 1960-mid 1970) the use of hyv seeds was restricted to more affluent states such as Punjab, ap and tn. Further the use of hyv seeds primarily benefitted the wheat growing regions only.
In the second phase of the green revolution (mid 1970 to mid 1980) the hyv technology spread to larger number of states and benefitted more variety of crops
The spread of green revolution technology enabled India to achieve self sufficiency in food grains production.

Question 15

Write the economic justification of the policy of subsidies.

Answer 15

It is generally agreed that it was necessary to use subsidies to provide incentives for adoption of the new hyv technology by farmers in general and small farmers in particular.
Subsidies were therefore needed to encourage farmers to test the new technology l.
Some economists believe that once the technology is found profitable and is widely adopted subsidies should be phased out since their purpose has been saved. Subsidy does not benefit the target group and it is a huge burden on the government’s finances.
On the other hand some believe that the government should continue with agricultural subsidies because farming in India continues to be a risky business. Most of the farmers are very poor and they will not be able to afford the required inputs without subsidies.
Eliminating subsidies will increase the inequality b/w rich and poor farmers and violates the goals of equity.
So a proper planning, suitable reforms and allocation of subsidies only to the needy farmers are required.

Question 16

Briefly explain the goal of five year plans

Answer 16

The goals of five year plans are

Growth: it refers to an increase in the country’s capacity to produce the output of goods and services within the whole country. A good indicator of economic growth , in economics, is a steady increase in GDP. It is necessary to produce more goods and services if the people of India are to enjoy a more rich and varied life.

Modernization: to increase the production of goods and services the producers had to adopt new technology. The adoption of new technology is called modernization. For example a farmer can increase the output on the farm by using new seed varieties instead of the old ones.
However modernization does not refer only to use of new technology but also on a social outlook such as women deserve equal rights as men.

SELF RELIANCE: a nation can promote economic growth and modernization by using own resources. The first seven year plans gave importance to self-reliance which means avoiding imports of those goods which can be produced in India itself. This policy was considered a necessity in order to reduce our dependence on countries, especially for food.

Equity: a country can have high growth, the most modern technology developed in the country itself, and also have most of its people living in poverty. It is important to ensure that the benefits of economic prosperity reach the poor sections as well instead of enjoyed only by rich.
So in addition to growth, modernization and self reliance equity is also important.
Every Indian should be able to meet his or her basic needs such as food, clothing, shelter, education and good health care and inequality in the distribution of wealth should be reduced