INDIAN ECONOMY 1950-1990

1.  Define a plan.

A plan refers to the scheme, detailed procedure or strategy to use the nations limited resources in the best possible manner for economic growth and development.

2.  Why did India opt for planning?

India opted for planning for using the limited resources for the economic growth and development which will raise the living standards and open out to the people new opportunities for a richer and more varied life.

3.  Why should plans have goals?

Plans should have goals for the utilization of the resources for the economic growth and development of the country.

4.  What are High Yielding Variety seeds?

High Yield Variety (HYV) seeds were developed by scientists to improve food supplies and reduce famine in developing countries. These HYV or 'miracle' seeds can produce up to ten times more crops than regular seeds on the same area of land.

5.  What is marketable surplus?

The portion of agricultural surplus which can be sold in the market is called marketable surplus.

6.  Explain the need and type of land reforms implemented in the agriculture sector

Land reforms were needed to bring about a change in land holdings and to improve agricultural production.

There are four main categories of reforms:

·    Abolition of intermediaries (rent collectors like zamindars, under the pre-Independence land revenue system);

·    Tenancy regulation (to improve the contractual terms including security of tenure);

·     A ceiling on landholdings (to redistributing surplus land to the landless);

·      Attempts to consolidate small landholdings.

7.  What is green revolution?  Why was it implemented and how did it benefit the farmers? Explain in brief.

Green revolution refers to the spectacular increase in agricultural production.

Green revolution was due to the following factors:

1.  Use of High yielding varieties of seeds.

2.  Use of chemical fertilizers and pesticides in appropriate quantities.

3.  Regular supply of water.

4.  Adoption of large scale farming.

5.  Use of tractors, threshers, harvesters etc.

6.  Extension of Credit facilities.

Benefits: 

1. It improved the income and standard of living of farmers (including the small farmers due to the loans provided by the government at low interest rates)

2. It reduced the price of food grains.

3. Green revolution enabled the government to procure sufficient amount of food grains to build buffer stock.

8.  Explain growth with equity as a planning objective.

Growth refers to an increase in the country’s capacity to produce the output of goods and services and Gross Domestic Product is an indicator of economic growth.  It is the market value of the final goods and services produced in a country during a year.  It is necessary to produce more goods and services for the people to enjoy a rich and varied life.

A country with high growth and modern technology can still have majority of people suffering from poverty.  So it is important to ensure that the benefits of economic prosperity reach the poor sections.  It was felt that every Indian should have food, clothing, shelter, education and health care and inequality in the distribution of wealth should be reduced.

9.  Why was it necessary for a developing country like India to follow self reliance as a planning objective?

Self reliance was followed as a planning objective in order to reduce our dependence on foreign countries.

It was feared that dependence on imported food supplies, foreign technology and foreign capital may make India’s sovereignty unsafe to foreign interference.