10.  Does modernization as a planning objective create contradiction in the light of employment generation? Explain.

Adoption of new technology is called modernization.  While modernization increases the production of goods, it can also lead to displacement of human labour and create unemployment.  For example machines can do the work of several people and while few are required to operate the machines, others will lose their jobs.  Thus modernization has to be proceeded with caution.

11.  Explain the statement that green revolution enabled the government to procure sufficient food grains to build its stocks which could be used during times of shortage.

Prior to green revolution frequently we had to import food grains due to  low agricultural productivity and famine.

Since agricultural production increased during green revolution there was a surplus of food grains.

This enabled the government to procure sufficient food grains to build its stocks which could be used during times of shortage.

12.  While subsidies encourage farmers to use new technology, they are a huge burden on government finances.  Discuss the usefulness of subsidies in the light of this fact.

A subsidy is a benefit given by the government to groups or individuals, usually in the form of a cash payment or a tax reduction. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public.  (Fertilizer subsidy, power subsidy, credit subsidy etc.)

* The subsidies ensure that the farmers get fertilizers at low rate.

* Subsidies help farmers to get power, seeds at low rates which reduce the cost of production.

* Credit subsidies help the farmers to get finance at low rates of interest.

* Subsidies also help the growth of fertilizer industry.

* On the whole it reduces the cost of production and the burden to the farmers.

*Agriculture is extremely risky, a gamble in the monsoon and unpredictable so subsidies go a long way to help the farmers.

13.  Why despite the implementation of green revolution, 65 percent of our population continued to be engaged in the agriculture sector till 1990?

Despite achieving self sufficiency in food grains thanks to green revolution, 65% of our population continued to be engaged in the agricultural sector till 1990 since the industrial and services sector did not absorb the people working in agricultural sector.

14.  Explain how import substitution can protect domestic industry?

Import substitution refers to substituting imports by producing the same goods at home.  This would increase domestic production. The government protected the domestic industries from foreign competition through tariffs and quotas.  Tariffs refer to tax on imported goods which would make imported goods costly and discourage their use.

Quotas specify the quantity of goods which can be imported. So, both tariffs and quotas restrict imports and protect the domestic industries.