1 Mark Questions
Question 1 : Who is the ex-officio chairperson of the Planning Commission of India?
Answer : Prime Minister of India.
Question 2 : What was ‘Bombay Plan’?
Answer : A section of the big industrialist got together in 1944 and drafted a joint proposal for setting up a planned economy in the country. It was called the Bombay Plan. They wanted the state to take major initiatives in industrial and other economic investments.
Question 3 : Who was significant about PC Mahalanobis?
Answer : PC Mahalanobis was the founder of Indian Statistical Institute (1931). He was the chief architect of Second Five Year Plan. He supported rapid industrialisation and achieve role of the public sector.
Question 4 : Who was popularly known as the milkman of India?
Answer : Verghese Kurein was popularly known as the milkman of India.
Question 5 : What was the main objective of the second Five Year Plan?
Answer : The main objective of the second five year plan was quick structural transformation by rapid industrialisation.
Question 6 : When was India’s New Economic Policy launched? Who was its chief architect?
Answer : India’s New economic policy was launched in 1999. Its chief architect was Dr. Manmohan Singh.
2 Mark Questions
Question 1 : Differentiate between the capitalist and the socialist models of development.
Answer : The capitalist economic model allows free market conditions to drive innovation and wealth creation. The socialist-based economy incorporates elements of centralised economic planning, utilised to ensure conformity and to encourage equality of opportunity and economic outcome.
Question 2 : Differentiate between the main objective of the First and the Second Five Year Plans.
Answer : There were some differences between First and Second Five Year Plans which are elaborated below (any two):
(i) The First Five Year Plan totally focussed on agriculture whereas Second on industrial sector.
(ii) The First Five Year plan started all round balanced development which would ensure increase in the level of national income 22.6 per cent allocation was done on education, health, housing etc. whereas Second Plan reflected the goal of socialist pattern of society and it allocated on 19.7 per cent on social services.
(iii) First Five Year Plan allocated 15 per cent on agriculture, 17 per cent on irrigation and food control whereas, Second Five Year Plan allocated only 11.8 per cent in agriculture and 10 per cent on irrigation and food control.
Question 3 : What is meant by decentralized planning?
Answer : Decentralised planning is a strategy to involve people directly in developing activities through voluntary citizens’ organisations. The state also takes initiatives to involve people in making plants at the panchayat, block and district level.
Question 4 : Mention any two merits of Green Revolution.
Answer : The two merits of Green Revolution were:
(i) After launching this revolution, India achieved self-sufficiency in food production. Poor farmers also get benefit from this revolution.
(ii) Due to this, the states of Punjab, Haryana and Wester Uttar Pradesh flourished more and here the living standards also improved. Thus, first socially, then politically and economically the status of farmers in these states was risen.
Question 5 : Which are the two models of development? Which model of development was adopted by India?
Answer : The two models of development are:
(i) The liberal capitalist model as it was in much in Europe and US.
(ii) Socialist model as it was in USSR. India adopted a mid way path of both the models i.e. mixed economics.
Question 6 : Write the meaning and importance of economic planning in the Indian context.
Answer : Planning always plays a crucial role in the economic development of the country. Economic Planning is a strategy to achieve the goal of economic development by pursuing a policy of planned economy. Planning opens new opportunities for development for people and also enhance the standard of living.
4 Mark Questions
Question 1 : Evaluate the major outcomes of the Indian model of mixed economy.
Answer : The major outcomes of the Indian model of mixed economy:
(i) Private sectors and public sectors flourished well.
(ii) State controlled the key industries and provided industrial infrastructure.
(iii) The enlarged public sector provided powerful vested interests that built enough hurdles for private capital by way of installing the license and permit system.
(iv) The state intervened into areas where private sector made profits. The policy of state restricted import of goods and production in the domestic market.
Question 2 : Which two models of modern development were there before India on the eve of independence? Which model did India decide to choose and why?
Answer : On the eve of Independence, India had two models of modern development before it, they were the liberal-capitalist model as in much of Europe and the US and the socialist model as in the USSR. India decided to choose socialist model of USSR because:
(i) There were many in India then who were deeply impressed by the soviet model of development.
(ii) These included not just the leaders of the Communist Party of India, but also those of the socialist party and leaders like Nehru within the Congress.
Question 3 : Describe the strategy adopted by the Government of India to promote the Green Revolution.
Answer : Following strategies were adopted by Government of India to promote the Green Revolution:
(i) The New Agriculture strategy was adopted in India during the Third Five Year Plan i.e. during 1960.
(ii) The government decided to shift the strategy followed in agricultural sector of the country.
(iii) The government introduced a pilot project known as Intensive Area Development Programme (IADP) in selected areas.
(iv) In Kharif season, in 1966, India adopted High Yielding Verities Programme (HYVP) for the first time.
Question 4 : Explain any two merits and two demerits each of the Green Revolution.
Answer : Merits have been mentioned earlier.
Demerits of Green Revolution
(i) This revolution created a valley between the poor farmers and richer ones. Discrimination and exploitation of poor farmers by the landlords became a wide set practice. Some political parties started politics on it and managed seats in Assemblies and Lok Sabha elections.
(ii) This revolution also increased the power of middlemen who worked as mediators between poor farmers and affluent landlords.
Therefore the middlemen created a condition due to which farmers were impoverished. The political strength of the middlemen also increased.
Question 6 : How was the Planning Commission of India set up? Mention its scope of work.
Answer : The Planning Commission was set-up by a simple resolution passed by Government of India in March 1950. The Planning Commission has a advisory role and its recommendations become effective when government approves them.
Scope of Work of Planning Commission
The Planning Commission drafts the Five Year Plans for India keeping all resources in mid when its is drafted. The resolution which set-up the commission defined the scope of its work in the following terms:
(i) The Constitution of India has guaranteed certain Fundamental Rights to the citizens of India.
(ii) It enunciated certain Directive Principles of State Policy in particular. According to it, the state shall strive to promote the welfare of the people by securing and protecting a social order, in which justice , social economic and political shall direct its policy towards securing among other things.
Question 7 : What led the policy-makers to reduce the importance of state in India’s economy from 1980s onwards?
Answer : Following factors led to reduce the importance of state in India’s economy from 1980s onwards:
(i) The period of 1980s is seen as a period of rising regional aspirations for autonomy, often outside the framework of the Indian Union.
(ii) Movement for autonomy involved armed assertions by the people, their repression by the government, and a collapse of the political and electoral processes.
(iii) Most of those movements were long drawn and concluded in negotiated settlements of accords between the Central Government and the groups leading the movement for autonomy.
6 Mark Questions
Question 1 : Examine the different areas of agreement and disagreement with respect to the model of economic development to be adopted in India after independence.
Answer : Agreement of Economic Model : After independence, there were lot of discussion with respect to the model of economic, development to be adopted in India. ‘Development’ was about becoming more ‘modern’ and modern was about becoming more like the industralised countries of the West.
Indian planners did not follow any of the two known models of development i.e. capitalist model of development and socialist model of development.
India adopted both elements of these models that is why Indian economy is called Mixed Economy. Private sectors and public sectors flourished well. In India, state controlled the key industries and provided industrial infrastructure.
Disagreement of the Economic Model : A mixed economy was criticised by many scholars and they argued that the planners had refused the private sector with enough space and the stimulus to grow. The enlarged public sector provided powerful vested interests that built enough hurdles for private capital by way of installing the license and permit system.
Some critics have opinion that the era of public sectors where poverty did not decline even number of poor were adversely increased. The public sector did not spend much money on health care and education.
The state intervened into areas where private sector made profits. The policy of state restricted import of goods and production and in the domestic market. Little or no companion left the private sector with no incentive to improve their products and make them cheaper.
After all the criticism government adopted the policy of globalization, liberalisation and privatisation in 1991. This policy is called new economy policy where private firms enjoy their independence and government interests only in economic matters.
Question 2 : Assess the outcomes of the early phase of planned development in India.
Answer : In 1938, Indian National Congress set-up a Planning Committee to formulate a plan for the development of India’s future. In April 1951, India adopted the planned development procedure. It was felt that the procedure of planned development created a sound economic development and land reform.
Some points which related with the planned development towards the foundation of India’s economic growth and land reforms are mentioned below:
(i) In 1950, Government of India passed a resolution and set-up the Planning Commission to prepare a plan for the most effective and balanced utilisation of the countries resources.
(ii) The Planning Commission initiated the process of development which would increase the living standard and provide new opportunities.
(iii) According to the long term objectives laid originally, it was to double the per capita income and to raise communication standards by 70% by 1977.
(iv) The First Five Year Plan brought with it an era of a planned country with total outlay of Rs. 2,249 crore which had two fold aims.
(v) The revolution like green revolution attained the record of production of food up to 7.6 million tonnes.
(vi) The Kerala model was also very effective in terms of land reforms, public distribution system, poverty alleviation, health and literacy rates.
(vii) Zamindari systems was abolished, consequently, lands were distributed among the landless farmers.
(viii) Also White Revolution and Blue Revolution raised the development of country. In 1990, we adopted the mixed economy due to this planning of development increased and allowed investment in public sectors also.
(ix) Research work, technologies in field of agriculture has been adopted therefore, India became self sufficient in food.
(x) In 1991, Indian Government adopted the new economy policy, i.e. globalization, privatisation and liberalisation. It has helped a lot in development. Thus, the planning led to India’s growth in terms of literacy, infrastructures moreover in GDP.
Question 3 : Describe briefly the composition and any four functions of the Planning Commission of India.
Answer : Composition of Planning Commission:
(i) The Prime Minister of India is the chairman of the commission.
(ii) The commission has a deputy chairman.
(iii) The finance minister and planning minister are the ex-officio members of the commission.
(iv) The commission has four to seven full time expert members.
Four Functions of the Planning Commission are:
(i) To make an assessment of material, capital and human resources of the country and investigate the possibilities of augmenting them.
(ii) To formulate a plan for the most effective and balanced utilisation of the country’s resources.
(iii) To determine priorities and to define stages in which the plan should be carried out.
(iv) To indicate the factors that retard economic development.
Question 4 : What were the early initiatives taken by the Planning Commission for building a new India?
Answer : After the independence India was suffering from poverty, literacy rate was very low. Therefore, Government of India passed a resolution and set-up a Planning Commission in March 1950. The Planning Commission planned a structure of development in terms of five Years Plans and mixed economy policy.
First Five Year Plan : The First Five Year Plan emphasised on agricultural sector, dams, irrigation facilities. It also increased the literacy rate. It focused on saving, therefore the per capita income was increased.
Second Five Year Plan : The Second Five Year Plan focused on industrial development and infrastructural development. So that agricultural sector also grew to meet the demands of agricultural products in industries.
Mixed Economy Plan : India adopted the mixed economic policy. Therefore, the two sectors private and public could do better in development of India. The state controlled the heavy industries and provided industrial infrastructure, regulated trade and some important intervention in agriculture. This all buildup a new India.