Indian economy on the eve of independence Flashcards
(160 cards)
1
Q
What was the state of India’s economy before British rule?
A
India had an independent, prosperous, agrarian economy rich in handicraft industry.
2
Q
What was the main objective of the colonial government’s policies towards the Indian economy?
A
To use the Indian economy as a feeder economy – a supplier of raw materials and importer of manufactured goods from England.
3
Q
Who made the first scientific estimate of India’s national income?
A
V.K.R.V. Rao in 1931-32.
4
Q
What percentage of India’s population was engaged in agriculture during British rule?
A
About 85%.
5
Q
What is the Zamindari system?
A
A land revenue settlement system where zamindars paid a fixed amount to the government and exploited landless farmers.
6
Q
Fill in the blank: The shift from food crops to cash crops like coffee and indigo was a result of _______.
A
Commercialisation of agriculture.
7
Q
What were some causes of stagnation in the agricultural sector under British rule?
A
- Land revenue settlement system
- Commercialisation of agriculture
- Low level of agricultural productivity
- Scarcity of investment.
8
Q
What was the impact of British colonial policies on India’s handicraft industries?
A
Systematic de-industrialization and decline of handicraft industries.
9
Q
True or False: Indian handmade goods faced heavy taxes on export while British industrial products were tax-free.
A
True.
10
Q
What was a significant demographic change in India after 1921?
A
It marked the beginning of the second stage of demographic transition.
11
Q
What was India’s literacy rate before 1921?
A
Less than 16%.
12
Q
What was the infant mortality rate in India during British rule?
A
About 218 per thousand.
13
Q
How did British policies affect India’s foreign trade?
A
India became an exporter of primary products and an importer of finished goods.
14
Q
What was the primary motivation behind infrastructure development during the colonial period?
A
To meet the needs of the colonies rather than to provide basic services.
15
Q
When was the first railway introduced in India?
A
1853.
16
Q
What was the purpose of roads built during British rule?
A
To mobilize troops and transport raw materials for export.
17
Q
What was the average growth rate of aggregate real output in India during the first half of the 20th century?
A
Less than 2%.
18
Q
Fill in the blank: The first five-year plan in India was launched on _______.
A
1st April 1951.
19
Q
What is meant by ‘mixed economy’?
A
Means of production are owned by both private sector and government, addressing both profit and social welfare.
20
Q
Who is known as the father of the Green Revolution in India?
A
M.S. Swaminathan.
21
Q
What was a key feature of the Green Revolution?
A
Use of high yielding variety (HYV) seeds.
22
Q
What are the four main objectives of economic planning in India?
A
- Growth
- Modernization
- Self-reliance
- Equity.
23
Q
What was the effect of the partition of India on the jute and textile industries?
A
It created a shortage of raw materials as fertile land went to Bangladesh.
24
Q
What was the role of the Planning Commission established in 1950?
A
To assess resources and prepare plans for effective resource use.
25
What is the significance of the year 1921 in demographic analysis of India?
It was called the year of great divide marking demographic transition.
26
What was the impact of the Suez Canal opening in 1869 on India's trade?
It intensified British control over India's foreign trade.
27
What was the life expectancy in India during British rule?
32 years.
28
What does 'market surplus' refer to in agriculture?
The portion of agricultural produce sold in the market by farmers.
29
What was the purpose of subsidies in agriculture during the Green Revolution?
To provide an incentive for farmers to adopt new HYV technology.
30
What did the Planning Commission's five-year plans aim to achieve?
Economic growth and effective resource utilization.
31
What were some infrastructural developments introduced by the British in India?
* Railways
* Roads
* Water and air transport
* Communication systems.
32
What is the main argument against continuing fertiliser subsidies?
They do not benefit the target group and are a huge burden on government finances.
33
Why do some believe that agricultural subsidies should continue in India?
Farming is risky and many farmers are very poor, unable to afford inputs without subsidies.
34
What is essential for the overall growth of a country?
Industrial development
35
What was the Industrial Policy Resolution 1956 based on?
The second 5-year plan
36
What are the three categories of industries defined in the Industrial Policy Resolution 1956?
* Industries exclusively owned by the government
* Industries where the private sector can supplement efforts
* Industries in the private sector
37
What was required for establishing a new industry under the Industrial Policy?
A license from the government
38
What did the Karve Committee (1955) suggest about small-scale industries?
They can promote rural development.
39
Define small-scale industry according to the Karve Committee.
An industry with a maximum investment of 5 L (current-1cr).
40
What is the inward-looking trade strategy also known as?
Import substitution
41
What are the two forms of protection from imports?
* Tariffs
* Quotas
42
What was the fiscal crisis India faced in 1991 primarily related to?
External debt
43
What was the foreign exchange reserve left with India during the 1991 crisis?
1.8 billion dollars
44
What led to India's balance of payment crisis in 1991?
The Gulf crisis increased oil import bills and reduced exports.
45
What was one condition for India to receive loans from the World Bank and IMF in 1991?
To liberalise and open up the economy.
46
What are the two groups of policies in the New Economic Policy (NEP)?
* Stabilisation measures
* Structural reform measures
47
What does liberalisation mean in the context of the economy?
Removing unnecessary controls and restrictions imposed by the government.
48
What was abolished for most industries under liberalisation?
Industrial licensing
49
What role does the Reserve Bank of India (RBI) play after financial sector reforms?
From regulator to facilitator.
50
What was one major change in foreign investment limits in Indian banks?
Raised to around 74%.
51
What are the methods of privatisation?
* Disinvestment
* Denationalisation
* Franchising
* Contracting
* Liquidation
52
What does globalisation refer to?
Integration of the economy of the country with the world economy.
53
What are some positive impacts of globalisation?
* Growth in the service sector
* Increase in foreign direct investment
* Decrease in inflation rates
* Increase in exports
* Increase in national income
54
What are some negative impacts of globalisation?
* Neglect of agriculture sector
* Jobless growth
* Uneven industrial growth
* Rise in income inequalities
55
What is outsourcing?
Contracting out activities to a third party.
56
What was the World Trade Organisation (WTO) established as a successor to?
General Agreement on Trade and Tariff (GATT)
57
What is demonetisation?
Withdrawal of existing currency and introduction of new currency.
58
What is GST?
A value-added tax levied on most goods and services sold for domestic consumption.
59
What does human capital refer to?
The stock of skills, abilities, education, and knowledge within a nation's workforce.
60
What is the significance of expenditure on education for human capital formation?
It contributes to the development of skills and knowledge.
61
What are two types of training mentioned for enhancing human capital?
* On-the-job training
* Off-the-job training
62
What is the impact of health expenditure on human capital?
It ensures a healthy workforce capable of contributing to economic growth.
63
What is one negative factor affecting human capital formation?
High poverty levels limiting access to education and healthcare.
64
What are the three levels of education in India?
* Primary education
* Secondary education
* Tertiary (higher) education
65
What was the increase in education expenditure as a percentage of total government expenditure from 1952 to 2014?
From 7.92 to 15.7
66
What was the increase in education expenditure as a percentage of GDP from 1952 to 2014?
From 0.64 to 4.13
67
What does the percentage of ‘education expenditure of total government expenditure’ indicate?
The importance of education in the government's priorities.
68
What does the percentage of ‘education expenditure of GDP’ express?
How much of people's income is committed to the development of education.
69
What was the increase in education expenditure as a percentage of total government expenditure from 1952 to 2014?
From 7.92% to 15.7%.
70
What was the increase in education expenditure as a percentage of GDP from 1952 to 2014?
From 0.64% to 4.13%.
71
Which level of education takes a major share of total education expenditure?
Elementary education.
72
True or False: Expenditure per student in tertiary education is lower than that of elementary education.
False.
73
What is the range of per capita public expenditure on elementary education in India in 2014-15?
From Rs 34,651 in Himachal Pradesh to Rs 4,088 in Bihar.
74
What did the Education Commission (1964–66) recommend regarding GDP expenditure on education?
At least 6% of GDP should be spent on education.
75
What did the Tapas Majumdar Committee estimate for education expenditure over a 10-year period?
Around Rs 1.37 lakh crore.
76
What is the current level of education expenditure compared to the recommended 6% of GDP?
A little over 4%.
77
What is the purpose of the 2% ‘education cess’ levied by the government?
To fund elementary education.
78
What fundamental right was established by the Right to Education Act 2009?
Education for children aged 6-14.
79
What significant disparities exist in access to education in rural areas?
Between males and females.
80
What are the limitations of access to quality education in rural areas?
Infrastructure and resource limitations.
81
What concern does the increasing reliance on private institutions raise?
Equity in access to education.
82
Fill in the blank: The _______ was appointed by the Government of India in 1999 to estimate education expenditure.
Tapas Majumdar Committee.
83
What are some areas that need development initiatives in rural India?
* Literacy, especially female literacy
* Education and skill development
* Health, sanitation, and public health
* Infrastructure development
84
What is the gestation period between sowing and harvesting?
It requires borrowing to fulfill needs during this period.
85
What types of rural credit exist?
* Long-term credit
* Medium-term credit
* Short-term credit
86
What is the role of cooperative credit societies in rural credit?
To address credit needs and provide guidance for increased crop productivity.
87
What are the functions of NABARD?
* Provide credit to state co-operative banks
* Grant long-term loans to state governments
* Coordinate development activities
* Promote agricultural research
88
Fill in the blank: The Kisan Credit Card (KCC) scheme was introduced in India in _______.
1998.
89
What features does the Kisan Credit Card (KCC) offer?
* Flexible credit facility
* Lower interest rates
* Insurance coverage for crops
* Repayment terms aligned with harvest
90
What does diversification of crops imply?
Production of a diverse variety of crops rather than one specialized crop.
91
What are some dynamic sub-sectors of non-farm activities?
* Agro-processing industries
* Food processing industries
* Leather industry
* Tourism
92
What is the significance of crop diversification?
* Reduces risk from monsoon failure
* Reduces market risk from price fluctuations
* Provides sustainable livelihoods
93
What issue do farmers face when selling their produce to traders?
Faulty weighing and manipulation of accounts.
94
What is the purpose of the Minimum Support Price (MSP)?
To assure farmers of a minimum price for their products.
95
What is buffer stock used for?
To stabilize prices during shortages.
96
What is a major challenge for rural banking even after nationalization in 1969?
Inadequate sources of institutional finance.
97
What is the role of cooperative marketing societies?
To advance finance to farmers against their stock of food grains.
98
What traditional home-based industries lack infrastructure and support?
Pottery, crafts, handlooms
## Footnote
These industries are significant for rural employment but face challenges.
99
What is the primary employment sector for the majority of rural women?
Agriculture
## Footnote
Men typically seek non-farm employment.
100
What are the benefits of diversification in rural livelihoods?
* Reduces risk from monsoon failure
* Mitigates market risk from price fluctuations
* Provides sustainable livelihoods
* Maintains ecological balance
101
What percentage of poultry is involved in animal husbandry?
61%
## Footnote
Other percentages include buffalo (22%), sheep (16%), and pigs (1%).
102
Which states are major fish producers in India?
* West Bengal
* Andhra Pradesh
* Kerala
* Gujarat
* Maharashtra
* Tamil Nadu
103
What does horticulture contribute to India's agriculture output?
Nearly one-third
## Footnote
It also contributes about six percent to India's GDP.
104
What types of crops fall under horticulture?
* Fruits
* Vegetables
* Tuber crops
* Flowers
* Medicinal and aromatic plants
* Spices
* Plantation crops
105
What are the advantages of organic farming?
* Inexpensive process
* Generates income
* Healthier and tastier food
* Solves unemployment problem
* Environment friendly
106
What are the disadvantages of organic farming?
* Yields less produce
* Lack of awareness
* Shorter shelf life of produce
107
Define a worker in economic terms.
An individual doing productive employment to earn a living.
108
What is the definition of workforce?
A person engaged in economic activity.
109
What is the term for the amount of labor workers are willing to offer at a certain wage rate?
Labour supply
110
How is labor force defined?
Number of people able and willing to work.
111
What is the formula for calculating the unemployed population?
Labour force - workforce
112
What defines a self-employed worker?
Individuals who work in their own business and earn profit.
113
What are hired workers?
People hired by others for wages or salaries.
114
Define casual workers.
Workers not hired on a regular basis without social security benefits.
115
What characterizes regular workers?
Hired on a permanent basis with social security benefits.
116
What is the rate of unemployment?
Percentage of unemployed individuals in the labor force.
117
What is the workforce participation rate?
Proportion of working-age individuals who are part of the labor force.
118
What is the estimated workforce of India?
About 471 million persons.
119
What proportion of India's workforce is in rural areas?
Approximately two-thirds.
120
What is the process of casualisation of workforce?
Movement from self-employment and regular salaried jobs to casual wage work.
121
Define the formal sector.
Organized sector with public and private enterprises employing 10 or more workers.
122
What is the informal sector?
Unorganized sector with private enterprises employing less than 10 workers.
123
What is jobless growth?
Economic growth not leading to increased employment opportunities.
124
What is open unemployment?
Situation where willing and able workers cannot find work.
125
Define frictional unemployment.
Temporary unemployment when workers are between jobs.
126
What causes structural unemployment?
Decline in demand for a product.
127
What is seasonal unemployment?
Unemployment occurring during off-seasons.
128
Define disguised unemployment.
Excessive labor without contribution to productivity.
129
What are some causes of unemployment?
* Faulty employment planning
* Emphasis on capital-intensive projects
* Excessive use of foreign technology
* Lack of financial resources
* Slow economic growth
* Fast population growth
* Increase in labor force
* Defective education system
130
What measures has the government taken to combat unemployment?
* Population control
* Reforms in education
* Diversification of farm activities
* Development of small industries
* Improvement in infrastructure
* Creation of employment opportunities
* Accelerating economic growth
131
What is the National Rural Employment Guarantee Act (NREG)?
A law providing 100 days of guaranteed wage employment for rural households.
132
What types of unemployment can be found in rural areas?
Open, seasonal, or disguised.
133
What types of unemployment are common in urban areas?
Industrial, educated, or technological.
134
Define environment in the context of resources.
Total planetary inheritance and all resources surrounding us.
135
What are the functions of the environment?
* Supplies resources
* Sustains life
* Assimilates waste
* Enhances quality of life
136
What does carrying capacity imply?
Resource extraction must be below regeneration rate, and waste generation must be within absorption capacity.
137
Define global warming.
Gradual increase in Earth's average temperature due to greenhouse gases.
138
What are the causes of global warming?
* Burning of coal and petroleum
* Deforestation
* Methane release from livestock
139
List some long-term effects of global warming.
* Melting polar ice caps
* Rise in sea level
* Disruption of drinking water supplies
* Extinction of species
* Frequent tropical storms
140
What is ozone depletion?
Reduction of ozone in the stratosphere protecting Earth from UV rays.
141
What causes ozone depletion?
High levels of chlorine and bromine compounds, primarily from CFCs.
142
What is the Montreal Protocol?
International treaty to phase out substances responsible for ozone depletion.
143
What are the primary environmental concerns in India?
* Poverty
* Pollution
* Rapidly growing industrial sector
144
Define sustainable development.
Meeting present needs without compromising future generations' ability to meet their own.
145
What did the Brundtland Commission emphasize?
Moral obligation to leave a better environment for future generations.
146
What are the 17 Sustainable Development Goals (SDGs)?
Goals set by the UN to be achieved by 2030.
147
What renewable energy sources are mentioned?
* LPG
* Gobar gas
* CNG
* Wind power
* Solar power
* Bio composting
* Mini-hydel plants
148
What is the significance of globalization in developmental strategies?
Helps nations understand and learn from each other's strategies.
149
When did China introduce its First Five Year Plan?
1953
150
What is the Great Leap Forward (GLF) campaign?
A program launched in 1958 aimed at rapid industrialization in China.
151
What was the aim of the Great Proletarian Cultural Revolution?
To eliminate opposition to communist ideology.
152
What reforms were introduced in China in 1978?
Agricultural and trade reforms focusing on individual household cultivation.
153
What was the aim of the revolution that weeded out people opposed to communist ideology?
To eliminate opposition to the communist ideology
## Footnote
This revolution involved sending students and professionals to work in the countryside, resulting in hardships for the people.
154
What reforms were introduced in China in 1978?
Phased reforms in agriculture, foreign trade, and investment sectors
## Footnote
This included dividing commune lands into small plots for individual households.
155
What is dual pricing in the context of China's reforms?
Farmers and industrial units buy and sell fixed quantities of raw material and products at government-fixed prices
## Footnote
This system was necessary due to the agricultural reforms.
156
What are Special Economic Zones (SEZ) in China?
Geographical regions with different economic laws aimed at increasing foreign investment
## Footnote
SEZs were established to attract foreign investors.
157
What type of economic system does Pakistan follow?
Mixed economy system
## Footnote
This system allows both public and private sectors to coexist.
158
What was the focus of the import substitution policy in Pakistan during the late 1950s-60s?
Tariff protection for manufacturing consumer goods and direct import controls on competing imports
## Footnote
This policy aimed to promote local industry.
159
What was the impact of the Green Revolution in agriculture?
Mechanization of agriculture and a rise in the production of food grains
## Footnote
This revolution dramatically changed the agrarian structure.
160
What occurred in Pakistan during the 1970s regarding capital goods industries?
Nationalization of capital goods industries
## Footnote
This move was part of broader economic policies during that period.
