Economics · Class 12 Commerce
Ch 8Indian Economy 1950-1990 — Class 12 Economics, concept-first.
When India gained independence on 15 August 1947, its leaders faced a foundational choice: which kind of economic system would best serve a newly free nation. The overriding aim was a system that promoted the welfare of all citizens, not merely a privileged few.
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Plan Definition
Imagine you are planning a family trip. You sit down with a notebook and write: We will leave at 6 AM, drive 300 km, stop for lunch at a specific town, reach the hotel by 4 PM, and spend exactly ₹12,000.
Most relevant Q&A
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Introduction
When India gained independence on 15 August 1947, its leaders faced a foundational choice: which kind of economic system would best serve a newly free nation.
The Goals of Five Year Plans
A plan must set out clear goals. India's five year plans pursued four of them -- growth, modernisation, self-reliance and equity.
Agriculture
Under colonial rule, Indian agriculture had seen neither growth nor equity. After independence the policy makers tackled these problems mainly through land reforms and the promotion of High Yielding V…
Industry and Trade
Economists have found that poor nations progress only with a strong industrial sector: industry offers employment that is more stable than farm work and drives modernisation and overall prosperity.
Trade Policy: Import Substitution
India's industrial policy was closely tied to its trade policy. Across the first seven plans, trade followed what is commonly called an inward-looking trade strategy, technically known as import subst…
Conclusion
The progress of the Indian economy over the first seven plans was genuinely impressive. Industry became far more diversified than it had been at independence, and the Green Revolution made the country…
Recap
- A mixed economy by choice. After independence India envisaged a system combining the best features of socialism and capitalism, which culminated in the mixed economy model — a strong public sector a…
Exercises
+−Show 19 questionsHide questions19 questions
- Q1Define a plan.Free
- Q2Why did India opt for planning?Free
- Q3Why should plans have goals?Free
- Q4What are High Yielding Variety (HYV) seeds?Preview
- Q5What is marketable surplus?Preview
- Q6Explain the need and type of land reforms implemented in the agriculture sector.Preview
- Q7What is Green Revolution? Why was it implemented and how did it benefit the farmers? Explain in brief.Preview
- Q8Explain 'growth with equity' as a planning objective.Preview
- Q9Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.Preview
- Q10Why was it necessary for a developing country like India to follow self-reliance as a planning objective?Preview
- Q11What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.Preview
- Q12Why was public sector given a leading role in industrial development during the planning period?Preview
- Q13Explain the statement that green revolution enabled the government to procure sufficient food grains to build its stocks that could be used…Preview
- Q14While subsidies encourage farmers to use new technology, they are a huge burden on government finances. Discuss the usefulness of subsidies…Preview
- Q15Why, despite the implementation of green revolution, 65 per cent of India's population continued to be engaged in the agriculture sector til…Preview
- Q16Though public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy's re…Preview
- Q17Explain how import substitution can protect domestic industry.Preview
- Q18Why and how was private sector regulated under the IPR 1956?Preview
- Q19Match the following: | Column I | Column II | |---|---| | 1. Prime Minister | A. Seeds that give large proportion of output | | 2. Gross Dom…Preview