Chapter 2: Indian Economy - (1950-1990)
Economics - Indian Economic Development • Class 11
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Chapter Analysis
Intermediate19 pages • EnglishQuick Summary
The chapter examines India's economic development from 1950 to 1990, highlighting the adoption of a mixed economy model combining socialism and capitalism. It discusses the formulation and goals of five-year plans focusing on growth, modernization, self-reliance, and equity. Key initiatives such as land reforms and the green revolution brought changes to the agricultural sector, while industrial policies leaned towards import substitution. The chapter also notes the critiques of public sector inefficiencies and sets the stage for economic reforms introduced in 1991.
Key Topics
- •Five-Year Plans
- •Mixed Economy
- •Import Substitution
- •Green Revolution
- •Land Reforms
- •Public vs. Private Sector
- •Industrial Policy
- •Economic Inequality
Learning Objectives
- ✓Understand the economic rationale behind India's mixed economy model.
- ✓Learn about the key components and goals of the five-year plans.
- ✓Evaluate the impact and criticisms of India's import substitution policy.
- ✓Analyze the significance of agricultural policies such as the green revolution.
- ✓Discuss the role of the public sector in India's industrial growth.
- ✓Assess the reasons and results of economic policymaking from 1950 to 1990.
Questions in Chapter
Define a plan.
Page 34
Why did India opt for planning?
Page 34
What are High Yielding Variety (HYV) seeds?
Page 34
What is marketable surplus?
Page 34
Explain the need and type of land reforms implemented in the agriculture sector.
Page 34
What is Green Revolution? Why was it implemented and how did it benefit the farmers? Explain in brief.
Page 35
Explain ‘growth with equity’ as a planning objective.
Page 35
Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.
Page 35
Why was it necessary for a developing country like India to follow self-reliance as a planning objective?
Page 35
What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.
Page 35
Additional Practice Questions
Explain the role of the Planning Commission in India's economic development.
mediumAnswer: The Planning Commission was established in 1950 to map out India's planned economy. It strategically organized resources to ensure growth and modernization while fostering a socialist pattern of society with mixed economic governance.
Discuss the impact of import substitution on India's industrial growth.
hardAnswer: Import substitution aimed to reduce dependency on foreign goods, fostering domestic industry by imposing tariffs and quotas. It was instrumental in diversifying industrial output and increasing the GDP contribution of the industrial sector from 13% in 1950 to 24.6% by 1990.
What were the limitations of India's protectionist policies during 1950-1990?
mediumAnswer: Protectionist policies limited foreign competition, leading to inefficiency and low-quality domestic goods. They failed to develop a robust export sector, maintaining economic inwardness that hindered entrepreneurial growth.
Analyze the effects of the Green Revolution on agricultural productivity and inequality.
mediumAnswer: The Green Revolution significantly increased agricultural yield through HYV seeds, fertilizers, and irrigation, reducing food dependency. However, benefits were uneven, primarily aiding affluent farmers, thereby perpetuating rural inequality.
Evaluate the challenges faced by small-scale industries during the planning phase.
easyAnswer: Small-scale industries struggled with limited resources and competition from larger firms, despite fiscal and market protection. While labor-intensive, their development was crucial for employment and rural economic upliftment.