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Q.Highlight any four steps taken by Indira Gandhi to remove poverty.

CBSECBSE Class XII Board 2023Subjective· 4mImportance★★★★★
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Indira Gandhi's government implemented several key measures to combat poverty, including nationalising banks, abolishing privy purses, pushing for land reforms, and launching the comprehensive 20-Point Programme.

Indira Gandhi's political agenda in the late 1960s and 1970s was significantly shaped by the pervasive issue of poverty in India. Her famous slogan, "Garibi Hatao" (Remove Poverty), became the central theme of her 1971 election campaign, reflecting a direct commitment to addressing the economic hardships faced by a large segment of the population. This commitment translated into a series of policy initiatives aimed at redistributing wealth, empowering the poor, and stimulating economic growth that would benefit the masses.

Here are four significant steps taken by Indira Gandhi's government to remove poverty:

  • Nationalisation of Major Banks (1969): One of the most impactful decisions was the nationalisation of 14 major commercial banks in 1969, followed by six more in 1980. Before nationalisation, private banks primarily served large industries and established businesses, often neglecting agriculture, small-scale industries, and rural credit needs. The government's rationale was that public control would enable these financial institutions to channel credit towards priority sectors, including farmers, small entrepreneurs, and the rural poor, thereby fostering inclusive economic growth and reducing regional disparities. This move was seen as a direct assault on the concentration of economic power and a step towards making financial resources accessible to those who needed them most for productive activities.

  • Abolition of Privy Purses (1971): The privy purses were payments made by the Indian government to the former rulers of princely states as part of the agreements for their accession to the Indian Union. Indira Gandhi viewed these payments as an anachronism and a symbol of inherited privilege that was inconsistent with the socialist goals of an independent India. After a prolonged political and legal battle, the 26th Amendment to the Constitution was passed in 1971, abolishing the privy purses and the special privileges of the former rulers. This step was presented as a measure to reduce economic inequality and redirect public funds towards development and welfare programmes for the common people.

  • Implementation of Land Reforms: While land reforms had been on the agenda since independence, Indira Gandhi's government intensified efforts to implement them more effectively. The focus was on several aspects:

    • Ceiling on Landholdings: Laws were enacted to impose limits on the maximum amount of land an individual or family could own. Surplus land beyond this ceiling was to be acquired by the government and redistributed among landless labourers and marginal farmers.
    • Tenancy Reforms: Measures were introduced to provide security of tenure to tenants, regulate rents, and grant ownership rights to cultivating tenants. This aimed to protect tenants from arbitrary eviction and exploitation by landlords.
    • Consolidation of Landholdings: Efforts were made to consolidate fragmented landholdings into larger, more viable units, which could improve agricultural productivity and efficiency. …

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