Part B: Indian Economic Development Notes Class 12
Unit -1: Development Experience (1947 – 1990) – Marks 07
Q.1. State two main reasons for decay of handicrafts during british rule? 2015, 2017
Ans: a) Transformation of India to a mere exporter of raw materials. b) They captured India’s growing market for selling the finished products of British industries.
Q.2. What is Commercialisation of agriculture? 2015
Ans: Commercialisation of agriculture is a phenomenon where agriculture is governed by commercial consideration i.e. certain specialised crops began to be grown not for consumption in village but for sale in national and even in international market.
Q.3. Define occupational structure. 2015
Ans: Occupational structure of an economy shows how many percentage of the total workforce are employed in different sectors viz., agriculture (primary) industry (secondary) and services (tertiary).
Q.4. In which year was the first industrial policy of India announced? 2015
Q.5. Mention the date of first and present five year plan.
Ans: First five year plan: (1951 – 1956), Present five year plan: (2017 – 2022)
Q.6. What is Economic Planning? 2016
Ans: It means utilization of country’s resources into different development activities in accordance with the national priorities.
Q.7. When was planning commission of India set up? 2015, 2017
Ans: It was set up in 1950. It was set to formulate economic plans in India.
Q.8. When was National development council set up?
Ans: It was set up in 1952
Q.9. What is import substitution?
Ans: It is a policy that eliminates the importation of commodity and allows for the production in the domestic market.
Q.10. What was the condition of agriculture sector at the time of Independence?
Ans: 1. Low level of agricultural productivity, 2. High dependence on Monsoon, 3. Lack of Proper Input, 4. Lack of storage facility, 5. Lack of Agricultural marketing.
Q.11. What was the condition of Industrial sector and foreign trade (Economy) at the time of Independence? 2017
Ans: Condition of Industrial sector:
(i) Discriminatory Tariff Policy,
(ii) Competition from machine by the handicraft man,
(iii) New Patterns of Demand,
(iv) More market for British Good,
(v) Lack of public and private finance for industrial sector.
Condition of foreign trade
(i) Due to discriminative tariff policy adopted by the British Government, India became net exporter of raw materials and primary products.
(ii) Composition of exports and imports showed the backwardness of Indian economy.
(iii) Surplus profit made and account of foreign trade during the British rule was distributed on administrative and as well as on war expenses.
Q.12. What was the condition of Infrastructure at the time of Independence?
Ans: Conditions for infrastructure at the time of independence:
(1) There was some infrastructural development during the British in the area of transport and communication.
2) Introduction of railways was a major breakthrough followed by the development of some ports and the construction of some roads.
3) But the main motive of the British government was to foster the interest of the British Government rather than to accelerate the growth of Indian economy.
4) There was transition from barter system of exchange to monetary system of exchange, which facilitated division of labour& large scale production.
Q. 13. Mention the demographic profile during the British rule.
Ans: Demographic profile during british rule:
1) High birth and High death rate implied low survival rate.
2) Life expectancy was as low as 32 years which shows the lack of health care facilities, lack of awareness as well as lack of means for health care.
3) Literacy rate was as low as 16 percent, which reflects the social and economic backwardness of the country.
Q.14. What was the main sources of livelihood in India at the pre-independence period? 2016
Ans: Pre-independence the main sources of livelihood are:
a) Agriculture was the principal source of occupation and about 72.7 percent of working population was engaged in agriculture.
b) Only 10.1% of the working population were engaged in the manufacturing sector mainly in handicraft sector.
c) 2% of the working population were engaged in the service sector.
d) There was an unbalanced growth of Indian economy at the time of Independence
Q.15. Mention the development of Agriculture sector between 1950-1990.
Ans: (i) Land reforms: Land reforms were initiated in order to bring equity in ownership of landholdings. It was decided to establish intermediaries and to make the tillers of the owners of land. It gives the tillers the incentives to invest in making improvements in land provided sufficient capital was made available to them.
(ii) Land Ceiling: If refers to fixing the maximum size of land which could be owned by an individual. The purpose of land ceiling was to reduce the concentration of land ownership in a few hands and to promote equality in the agricultural sector.
(iii) Green Revolution: It refers to large increase in reduction of food grains resulting from the use of High yielding variety (HYV) seeds. The use of fertilizers, pesticides, irrigation facilities is important along with HYV seeds in order to increase agricultural productivity & production. The farmers should be provided adequate financial resources in order to purchase agricultural inputs.
Q.16. Mention various characteristics of Indian Agriculture.
Ans: Indian is an agricultural country. Indian agriculture has its own characteristics which are as follows:
a) Subsistence farming,
b) Monsoon based agriculture,
c) Small size of land holding,
d) Low productivity,
e) Dual ownership of land.
Q.17. Mention some importance of Agriculture. Or why the development of agriculture is essential? 2015, 2016, 2018
Ans: Ans: Importance of agriculture is as follows:
a) Source of livelihood of majority of population
b) Prime source of food grains for our country,
c) Source of industrial raw materials.
d) Source of national income.
e) Increase in production of agricultural products helps in reducing inflation.
f) It is the best mean to increase employment and reduce poverty.
Q.18. Mention various problems of Indian agriculture.
Ans: Problems of Indian Agriculture:
a) High pressure of population on land,
b) Use of traditional technology,
c) Lack of irrigation facilities,
d) Lack of agricultural credit facility,
e) Lack of marketing facilities,
f) Lack of storage facility,
g) Lack of agricultural research,
h) Lack of physical infrastructures.
Q.19. what is marketed Surplus?
Ans: The excess portion of agriculture produce which is sold into the market by the farmers is called marketed surplus.
Q.20. What are the objectives of industrial licensing?
Ans: The Prime objectives of industrial licensing are given below:
a) To utilize the scarce resources to the maximum.
b) To realize the objective of economic growth on the basis of priorities.
c) To generate more employment opportunities.
d) To achieve the objective of regional balanced growth.
e) To secure industrial efficiency.
f) To develop strong infrastructural base.
Q.22. Mention the objectives or goals of planning in India. Briefly explain it. 2015, 2016, 2017, 2018
Ans: The goals or objectives of planning in India are as follows:
(i) Growth: It refers to increase in the country’s capacity to produce the output of goods and services within the country. It implies either a large stock of productive capital or an increase in the efficiency of productive capital.
(ii) Modernization: It is necessary to adopt new technology in order to increase production of goods & services. Adoption of new technology is called modernization.
(iii) Self-reliance: It refers to utilization of country’s resources in order to promote economic growth and modernization without using the resources imported from other countries. It means avoiding imports of those goods which could be produced in India itself.
(iv) Equity: It means equal distribution of income and wealth among the societies. It is important to ensure that the benefits of economic development should reach the poor sections of the society as well.
Q.23. What is mixed economy? Is it fruitful to an underdeveloped country? 2016
Ans: Mixed economy is an economic system in which both public and private institutions exercise economic control. It is a mixture of both capitalism and socialism.
Since India is a developing country, mixed economy system is best for our country and some extent this economic system is fruitful for our country. Mixed economy is a mixture of both private and public sector. Private sectors are motivated by profit motive but government economic and fiscal policy also influence them to make them contribute to economic welfare of the society at larger level. Again, public sector aims at service motive. They helps in avoiding regional inequalities, provides larger employment opportunities and often its price policy is guided by considerations of economic welfare rather than by profit motive.
AHSEC CLASS 12 CHAPTER-WISE NOTES
Part A: Introductory Macro Economics
- INTRODUCTION TO MICRO ECONOMICS
- NATIONAL INCOME AND RELATED AGGREGATES
- MONEY AND BANKING
- GOVERNMENT BUDGET AND THE ECONOMY
- BALANCE OF PAYMENTS
Part B: Indian Economic Development
- Development Experience (1947 – 1990)
- Economic Reforms since 1991
- Current challenges facing Indian Economy
- Development Experience of India: A Comparison with Neighbours