Indian Economy 1950-1990

After independence, India's leaders had to choose an economic system. They chose a mixed economy combining the best features of capitalism and socialism, with the state playing a leading role. The Planning Commission was set up in 1950 under the Prime Minister, and the Five Year Plans, beginning in 1951, pursued four goals: growth, modernisation, self-reliance and equity. The Second Plan, based on P.C. Mahalanobis's ideas, stressed heavy industry. In agriculture, the chapter covers land reforms, the abolition of intermediaries and land ceilings. It also covers the Green Revolution, which used high-yielding variety seeds, fertilisers and irrigation and made India self-sufficient in foodgrains, and the debate over subsidies. In industry, you will study the Industrial Policy Resolution of 1956, which classified industries into three categories with a leading role for the public sector. It also covers industrial licensing and the promotion of small-scale industries recommended by the Karve Committee in 1955. In trade, India followed an inward-looking policy of import substitution, protected by tariffs and quotas. The chapter ends by assessing the period.

Detailed Worksheet: Indian Economy 1950-1990 Section A - Definitions (10 marks) 1. What is a mixed economy? (2 marks) 2. What are the four goals of the Five Year Plans? (2 marks) 3. What is meant by land ceiling? (2 marks) 4. What is marketed surplus? (2 marks) 5. What is import substitution? (2 marks) Section B - Calculations and Applications (15 marks) 6. In an illustrative table, the share of industry in India's GDP rose from 11.8% in 1950-51 to 24.6% in 1990-91. Calculate the increase in percentage points and the percentage increase in the share. (3 marks) 7. A farmer produced 20 quintals of wheat per hectare with traditional seeds and 45 quintals with HYV seeds. Calculate the percentage increase in yield. If he keeps 15 quintals for his family, calculate the marketed surplus from 2 hectares with HYV seeds. (3 marks) 8. Under a land ceiling of 18 acres, a landlord owned 50 acres. Calculate the surplus land and the number of landless families who could get 4 acres each. Why did land ceilings often fail? (3 marks) 9. India's GDP grew at about 3.5% a year between 1950 and 1980. Using the rule of 70 (doubling time = 70 / growth rate), calculate how many years it would take for GDP to double. How would this change at a 7% growth rate? (3 marks) 10. A small-scale unit was defined in 1950 as one with a maximum investment of Rs 5 lakh. If this limit was later raised to Rs 1 crore, calculate how many times the limit increased. Why were small industries promoted? (3 marks) Section C - Diagrams (10 marks) 11. Draw a flowchart showing the goals of planning and how they are related. (4 marks) 12. Draw a bar diagram showing illustrative foodgrain production: 1950-51 51 million tonnes, 1970-71 108 million tonnes, 1990-91 176 million tonnes. (3 marks) 13. Draw a chart showing the three categories of industries under the Industrial Policy Resolution of 1956. (3 marks) Section D - Analysis and Higher-order Thinking (15 marks) 14. 'The Green Revolution made India self-sufficient in foodgrains but had some negative effects.' Explain this statement with reference to regional and crop inequalities and the debate on fertiliser subsidies. (5 marks) 15. Why did India give the public sector a leading role in industrial development? Explain its achievements and the problems that arose by the 1980s. (5 marks) 16. Explain the policy of import substitution. How did it protect domestic industry, and why was it later criticised? (5 marks) Instructions: Time allowed 2 hours. Attempt all sections. Show the steps of all calculations. Data marked illustrative are for practice only.