SOMERVILLE SCHOOL, GREATER NOIDA

CLASS-12 –ECONOMICS
CHAPTER--2 -INDIAN ECONOMY 1950-1990
STUDY MATERIAL AND PRACTICE WORKSHEET
Textbook- Indian Economic Development

About the chapter-

Through this chapter we come to know the goals of India’s five-year plans, know about the
development policies in different sectors such asagriculture and industry from 1950-1990.
We will also learn about the merits and limitations of a regulated economy.
Read the chapter and answer the following questions
Topic – 2.1 (Introduction)
On 15th August 1947 finally we were masters of our own destiny aftersome two hundred years
of Britishrule; the job of nation building wasnow in our own hands. The leadersof independent
India had to decide,among other things, the type ofeconomic system most suitable forour nation,
a system which wouldpromote the welfare of all rather thana few. There are different types of
economic systems among them; socialism appealed toJawaharlal Nehru the most.
Q1. How many years did the British rule in India?
Q2. What do you mean by socialists’ economy?
Q3. _______________ refers to an arrangement by which central problems of an economy
are solved.
Q4. What type of economy system, Nehru and other leaders were thinking for newly
independent India?
Q5. In which year PlanningCommission was established?
Q6. Who was the chairperson of planning commission?
Q7. Which economy system was envisaged by India after independence?
Q8. Write any four differences between capitalist economics and socialist economics.

Topic-2.2 (The Goals of Five Year Plans)

A plan spells out how the resources of a nation should be put to use. It should have some general
goals as well as specific objectives which are to be achieved within a specified period of time; in
India plans are of five years duration and are called five-year plans (we borrowed this from the
former Soviet Union, the pioneer in national planning). Our plan documents not only specify the
objectives to be attained in the five years of a plan but also what is to be achieved over a period
of twenty years. This long-term plan is called ‘perspective plan’. The five- year plans are
supposed to provide the basis for the perspective plan.

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Q9. Who is known as Architect of Indian Planning?
Q10. Why did India opt for planning?
Q11. Why should plans have goals?
Q12. What are the common goals of five-year plans?
Q13. How five-year plan is different from prospective plan.

A. Growth
Q14. What do you mean by'Growth' as a planning objective?
Q15. Define GDP.
Q16. What is structural composition of an economy?
Q17. Is it necessary that the service sector should contribute maximum to GDP of an
economy? Comment.

B. Modernisation
Q18. Define modernisation?
Q19. How modernisations help to increase GDP of an economy?

C. Self-reliance
Q20. Give the meaning of self-reliance.
Q21. Which five-year plan has given importance to five-year plans?
Q22. What are the dimensions of the objective of self-reliance?
Q23. Why was it necessary for a developing country to follow self-reliance as planning
objective?

D. Equity
Q24. What do you mean by equity?
Q25. Why equity play an important role in objectives of planning?
Q26. Explain growth with equity as a planning objective.

Topic-2.3 (Agricultural)
You have learnt in Chapter 1 thatduring the colonial rule there wasneither growth nor equity in
theagricultural sector. The policy makersof independent India had to address these issues
which they did throughland reforms and promoting the useof ‘High Yielding Variety’ (HYV)
seedswhich ushered in a revolution inIndian agriculture.

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Q27. Which sector is contributing more in GDP and how much?
Q28. What are the major policy initiatives in agriculture sector?

A. Land Reforms
Q29. What do you mean by land reform?

B. Land ceiling
Q30. How did 200 lakh tenants come into direct contact with the govt.?
Q31. What changes in ownership bring growth in agriculture?
Q32. Why goal of equity was not fully served by abolition of intermediates?
Q33. What type of hurdles are faced by land ruling legislation?
Q34. In which states land reform were completely successful and why?
Q35. Explain the need and types of land reform implemented in agricultural sector?

C. The Green Revolution

Q36. State any two reasons behind the low productivity in agricultural sector.
Q37. How does monsoon affect agriculture?
Q38. What is green revolution?
Q39. What are high yielding variety seeds?
Q40. Why was green revolution implemented and how did it benefit the farmer.
Q41. Explain the effect of green revolution in different phases.
Q42. What is marketable surplus?
Q43. Explain the statement - 'GreenRevolution enabled the government to procure sufficient
food grains to build its stocks that could be used during times of shortage.'

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Q44. While the nation had immensely benefitted from the green revolution the technology
involved was not free from risk, Comment on this statement.
Q45. To avoid risk explain the steps taken by the government.

D. The Debate Over Subsidies

Q46. What do you mean by subsidies?
Q47. Why subsidies should be given? Give some argument in favour of given subsidies in
agriculture.
Q48. Why subsidies should not be given?
Q49. Why despite the implementation of green revolution 65 percent of our population
continued to be engaged in the agriculture sector in 1990?

Topic-2.4 (Industrial And Trade)

Economists have found that poornations can progress only if they havea good industrial sector.
Industryprovides employment which is morestable than the employment inagriculture; it
promotes modernisationand overall prosperity. It is for thisreason that the five year plans placea
lot of emphasis on industrialdevelopment.
Q50. In which five year plan, planning commission focused on industrial sector’s growth?
Q51. Which sector brings fast growth of a nation?
Q52. Mention few points highlighting importance of industries.
Q53. Where were iron and steel industries located at the time of independence?

A. Public and Private Industrial Development

Q54. Why had government taken responsibility to promote the industrial sector?
Q55. Why was public sector given a leading role in industrial development during a planning
period?

B. Industrial Policy Resolution 1956 ( IPR 1956)

Q56. What do you mean by industrial policy resolution 1956?
Q57. How did IPR 1956 classify industries?
Q58. What and how was private sector regulated under the IPR act 1956?
Q59. What is regional equality?

C. Small- Scale industry

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Q60. Village and small-scale industries committee is also called_____________________.
Q61. What is a small-scale industry?
Q62. What is the role of SSI? Explain.
Q63. Why does SSI need protection by the government?

Topic-2.5(Trade Policy: Import Substitution)

Q64. What is an inward looking trade policy?
Q65. What is meant by Import substitution?
Q66. Explain how import substitution can protect domestic industry.

A. Effects of Policies on Industrial Development

Q67. Which types of industry developed due to effect of policies on industrial development?
Critically appraise the import of industrial development in 1950-90.

Q68.Though public sector is very essential for industries,many public sector undertaking
incurhuge losses and are a drain on the economy’s reserves.Discuss the usefulness of
PSU in the light of this fact.

Q69. What is Permit License Raj?

Q70. Why economists called for a change in the policy of restriction in import?

Topic-2.6(Conclusion)
The progress of the Indian economy during the first seven plans was impressive indeed.
Q71. Write a short note on the progress of the Indian economy during the first seven five-
yearplans.
Q72 Construct a pie chart for the following table on sectoral contribution to GDP
and discuss the difference in the contribution of the sectors in the light of
effects of development during 1950-91.

Sector 1950-51 1990-91

Agriculture 59.0 34.9
Industry 13.0 24.6
Services 28.0 40.5

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