INDIAN ECONOMICS DEVELOPMENT -THE GAURAV JAIN

INDEX

1. Indian economy on the eve of independence 01-12

2. Indian economy (1950-1990) 013-032

3. Economic Reform since 1991 033-046

4. Poverty (Not in Class 12th But in CUET) 047-053

5. Human Capital development in India 055-064

6. Rural Development 065-074

7. Employment: Growth,lnformalisation and other issues 075-084

9. Environment and sustainable·dev. 8'"'ent 095-106

1O. Development experience of India: 107-116

A comparison with neighbours
117-127

101 MCO MANIA 129-138

Previous Year Paper

 INDLAN ECONOMICS DEVELOPMENT - Tl-IE GAU RAV JAIN

INDIAN
ECONOMY ON THE EVE
OF INDEPENDENCE
• Colonial Rule·· _ It ref ers to a system between 2 countries under with one ountr
being the ruler and another being the colony and the ruling country etermmes the
economic policies of the colony.
• In India, the coloial rule stays for around 200 years (1757(Battle of
Plassy)- 1947) [Link] which the Britishers exploited the Indian
country and form the economic policies in India .
• Stagnant economy: - Stagnant economy refers to the economy which is stuck
or very low at its path of development.
ys1

Features of Indian economy before coloni al

rul e
 ·- INDIAN l!CoNOMICS DIM!LoPMl!Nr -THBGAURAV IAIN

2. Dl11crimln11tory tariff PGllcy

The British Indian government followed
11 Fre?trade or unrestricted entry of Britishgoods
21Tariff free export of rawmaterialfromindiato
Britain
31 Heavy duty was placed on the export ofIndian handicraft products, due to which
the Indian handicraft industry startlosingits pride and place.

3_ Copetltlon rom machinemade product•

The pride of Indian hand craft indu1trlas·1tatad to decline whenit faced the
competition from machine made prodi..lctsiAs they are of IOw cost andeasi y
available.
Indian craftsmen are <fal'l•behind the speedrof .machines and hence the only
alternative availablefor .themist.9 h!Jt down their enterprises
2. Commercial zation of Agriculture .sibnl 4,.La1<· ii it&f9od 1 d1tw:1 1
"·S: 'i: .
.
It refers to the production of crops for salJJ81 -J Capital gooCls industry refers to,· tvhlc r. capabe of producing
[Link],'!, c9 Ufnf'-io[\ . . . machine [Link] promoting or·'supporting
any attention :.::J.:- r... ndustries
_ these. a . as they wantIndia to be a
Farmers were given higher prices for pr9\;'fiqp f.c'-' Cf Pt!, (}! '1'. jute, suppil
Duringercolonial period there was• no·capital goods1ndUstryiWOrth the name lTISCO-
indigo ) Tata Iron And Steel Co. Ltd. Establishedin 1907, Jamsl'tdpur·.moreover Brit shers
that they can use them as raw material for Britishindustries don't pay
High level of prices forced the farmers to produce cash crops rather thanfood crops.

of raw materials only. ' · ·· - ""·- ·

[Link]
owoflevel of productivity
technology ··
Negligible use of fertilizes
Prouctivity.refers_ to the out9;.rt ·
During colonial perrod the protfu ·f#llliilll tit!llidlifl if\lfl 6. Negative effects of Railways
[Link] of which are as follows,:- hitll'IM r----- Although introduction of Railways was one of the positiveimpact of colon al period
Lack ofirrigation facility _--., but at
that time, Railway s proves to be a terror for Indianindustries. '" "'
Britishers use railways for their benefits only as a resul,.sitt- el,ofl.o-cost
9JJQ. product started to expand whereas high-cost tJ Briish ganto
handmade pro shnnk.

Industria sector 01 1 the eve of i

l ndependence
1 ustrfe
. s
tl§hers S,t. ',"Jicl,ly troyed the
D Indian handicraft i ustri
.'!;Y .'P$ 1 1rio agriculture sect9r ..The basic motive of
bnt1sh rul' 1. Exporter of primary products andimporter of finished
goods
:nalizat1on was 2- fold .\.l\
During colonial rule, India became the exporter ot raw
materia fa
 ;i.! '=- ==== -
INDIAN ECONOMICS DEVELOPMENT -THE GAURAV JAIN

INDL\N BCoNOMICS DEVl!LoPMENT .Tiil!

GAURAV JAIN

[Link], jute etc) which are of low cost. And became the importer
of finished goods.( such
capital goods, woolen clothes,silk clothes and other machine
made products) which a·
:stiiQne

..
high cost. nt
Due to this the economic condition of our economy started to economv
decline. 11,, •I ,,
\
:e lini\ia
2. Monopoly control on trade by britishers , ,. , ..
etage
During colonial period the British government maintained a
monopoly control over lndi trade pol cies. ,,"•<>''1•b1tm
vnirbsrn "1011 r :• ·>· :• ,1
• Majorit y of trade was restricted to Britain ( [Link] Y.z •)1while the rest was
allowe INi
some other countries only ( such as china, Srilanka Ceylon) 3; Htui;i. m•11 _ir!
andIrani( [Link] I or:ta11ty rate
Opening of Suez Canal in 1869 provides a directitrade route for ships operating
betw6, Britain and India
lntanti !J;lor:tality rate refers, tQ lJ:le lS?
f [Link] the age of lvea1 pe1
thousand live births annually ,J Mjr,\
P:.&riod
was about 2 8 per thousand (before 1921).

now thereis no need toca

,;1. ;:;;• }.; .r1
··· [Link] · ·· -
- te . ( 4. -··-
51
-- . .. P oorHealthfa c ·
_ · ri
. ad
.. _
ll lties .. _ _ ·; • •
1

11
.
Public health fac1ht1es were either unava1ab e
n avai able, were higher inadequate.
Tariff free import and export betwee'nlndia·ad{Britai Whereas hayy d y was plac Due to which, Water and air-borne diseases
were\iV despread andtook a huge toll onife.
on the export of Indian handicraft products ( whichincrease their price in the market ) ·

1. Predominance of Agriculture
As colonial government aims
at makingIndia as:an
exporta1:>6f ti about 72.7%
of
As

™
backwardness of the
 INDIAN l!CONOMICS Dl!Vl!LoPMl!.NT -THI!. GAU RAV IAIN

2. Unbalanced growth
Growth of an economy is said to be balanced when all the 3sectors are equally deve1
01
But in case of Indian economy, only primary sector is the main source of emplo
As every coin has 2 sides,similarly the colonial rule had some leads some positive
impacts on our economy which are asfollows
whereas secondary and tertiary sector were in their infant stage of growl;l·
1. Introduction of railways
Infrastructure The first and the most efficient' coritribUtion was' the introduction ot railways in India.
Britishers introduced railways so that thev can transport their products and the raw
It refers to the basic physical and organizational structure and facilities (Buildings, r0111, materials easily from one place to another but in
post colonial period railways turned out to
power supplies etc) needed for the operation of an economy. be the key factor for the economy
The state of infrastructure was very poor during colonial period, although some efto 1

were taken by the British government to improve the condition of infrastructure in "tl 2. Commercialization of agriculture
economy (railways, ports, post and telegrams, roads etc) so that it can serve econorn' Under pre- colonial period, 'farmers grow' p';j st to sustain themselves and other people
of the village. But forced commercialization t' grYculture under colonial rule brings new
benefits to them. opportunities for f armers in the market
3, Monetary system of exchange
The condition of infrastructure was explained here:- Barter system of exchange was no longer effective in the'economv. Britishers bringsa new
system of exchange popularly known as monetary ·svstem of exchange llntroduction of
1. Railways . . . . . . . money)
One of the biggest contributions of colonial rule was the introduction p railways in India q
1850. It helps to remove geographical and. cu(tural [Link] ,in the economy. Although th 4 Effective system of administration
benefits of railways was mostly restricted to Britishers,during_ .colonial period but it als. Te colonial government in India left a legaciv · t'Vt'tticient svstem of administration,
helps in developing the Indian economy post•[Link]: ' ·· · · which serve to be a readymade reference for tiur c6R6mic·and political planners

2. Roads
The construction of roads during colonial rulejtvliii fvery)limited (duiH<fl1carcity of f unds:
The roads that were built, primarily senled'tt;8'11iilrWttsVof mobilfzing'the army and shifti
of raw materials so that they can be transported to Britain via ports.

3. Air and water transport _

The colonial government tqk
varJ1 But the development was far
[Link]

4. Communication During
colonial per iod, il8were the most popular means al
communication. The syste Introduced at a high cost to serve
purpose of malntalnlrig IMf/IM the '-' .
Despite serving a useful l::J •
Download Ollr .Mobile ApplicatiO
us on Whatsapp
1sfal srvice remained allthrough
inadequate
Co11nect
 INtlL\N 2CONOMit:il'Miifm:oftn!NT THE GAUBAV IAIN

• Colonial Rule
l • Stagnant economy .
ian economy before colonial rule
• Features of Ind
Agricultural sector at the eve of independence
•
• Zamindari system
• Commercialization of Agriculture
• Low level of productivity Ans.(al Fishing
• High degree of uncertainty 2. Which one belongstothe tert ary sector:-
• Industrial sector on the eve of independence a) Groin ":'heat, , ..•'. ,, ,., . \Ma, '[Link];!-!i\S,
• Decl ne of handicraft industries i>ing wheat tlour
c) Trading m wheat dl'[Link]'6fthe above
• Discriminatory tariff policy
• Competition from machine made products Ans. (c) Tradingin wheat

. , • Lack of capital goods industries

'
• Change in pattern of demand
• Negative effects of Railways
• Foreign trade
• Exporter of primary products and importer of finished goods
• Monopoly control on trade by britishers
• Economic exploitation
Demographic Condition Ans. (c) Under-developed economy
• High birth rate and death rate
• Low literac y rate
• High Infant mortality rate
• Poor Health facilities
• Low life expectancy Ans. (a) Primary sector
• High level of poverty
• Occupational Structure
• Infrastructure
• Positive contributions of British rule
Ans. (d) All the abov
 .D?- ..-Sl'

INDIAN ECONOMICS DEVELOPMENT - THE GAURAV JAIN

INDJAN llCONOIQ ·THllGAUUV IADI

c) Export er of both primary products and finished products

d) Importer of both primary products and finished products
8.
Ans. (b) Importer of finished products from Britain and exporter of primary What was th..,prirna QllJ..,OfMthe;[Link]'a stagnation under
British rule7 " f'-
products Britain 9.
Identify the ke. Jntr -..Sd rtngthe Britishcolonialera.
8. One of the following was high during the British rule over India: 0.>\11dln.'i1'\6"difjf uCV (J:I
b) Female literacy rate ,1· ' ul (f ·

[Link] was the state of baa cinfrastructureduringBritish rule?

a) Literacy rate
d) Life expectancy
c) Inf ant mortality
rate

Ans. (c) Infant mortality rate

9. The occupational structure of India during the British rule revealed that the
India economy was: 02 Explainthe concept of the drainofIndianwealthduringthe colonialera.
a) Underdeveloped bl Developed ,:, .- ,....1. 1 j l:.:.;l.1 .1 t·. 1 ,1•,1 si·.. 1 e\lJlubni tl ·11h. 1r.r .·
d) Underdeveloped and stagnant both 03. What were the dual [Link],thtllel e d&. ndustrieizat on carried
c) Stagnant out by the British in pre-independenceIndia? 't · '

Ans. (d) Underdeveloped and stagnant both

'
04. Identify the primary reasons for India's agriculturalstagnation during the
10. Whose estimate of nationalincome was considered very significant? colon a\ period.
a) Debadhai Naroji b) William Digby
c) RC Desai d) VKRV Rao Q5. Describe the state of the secondary sector \industry) as independence
1 approached .
Ans. (d) VKRV Rao
Q6. What were the key factors contributingtolnia 'SC 1
Veryshort questions Colonial Period?

1. Define the term "occupational structure. " 07. Provide a quantitative assessment of
Colonial period.
2. What were the primary factors contributing to the sluggish population growth
during 8. Outl ne the key characteristics of Ind a's occupat onal structure before
British colonialism? independence.

3. What was the state of the secondary sector (industry ) on the brink of 9. What do you understand by the drainofIndian wea thdurln_g
independence?
Q 10. Do you concur with the notion that tradt ona\ ham
4. What were the consequences of the handicraft industry's decline inIndia? under British rule? Provide reasons to support your stance.

5."The composition of a country's foreign trade reflects the types of goods it exports Longquestions
and imports." What insights can be drawn about foreign trade composition at the time
of independence? [Link] was the focus of the economic pol cies pursue,
inIndia? What was theimpact of these pol cies?
6. What were the dual motives behind the deliberate de-industrialization carried out by
the British in pre-independence India?

7. What was the leading cause of food shortagesinIndia post-partition?

 ucial economic challenges on the Eh,
04. Underscore ome of most Cr
v .. Ill
India's independence
05 "The demographic conditions during British rule showcased_ feaur s typica\ ()f
0
underdeveloped Indian economy." Do you concur? Provide a rationa support VIJ
e
.. \
pos1t1on.

06:.Provide a succinct overview of the policies implemented by British rulers tn

facilitated the exploitation of the Indian economy. .

7. Examine the primary factors contributing to India's agricultural stagnation durin H

<
the colonial period. • .

8. The traditional handicraft industries were ruined under British rule. Do you agre
with this view? Give reasons in support of your answer.

9. Describe the status of Indian industries as independence approached . U

[Link] the notable charcteristics of India's occupational structure during th
British period.
o 1 e it

\t

B«
The
1) u
2) L
3) t

1.
Hu
We

•
 INDIAN '
ECONOMICS DEVEL
OPMENT - THE GAURJ\V JArn

INDIAN
ECONo ·
MY ( 1950 -1990)
• Before independence I .
• India wa , nd1an economy was stagnant in nature
• s an oped country
under H d
- . evel
ence to eliminate th . .
development th f e existing problems and to promote economic
most feasible ,Ee irst [Link] foremost task of the government was to decide
the conom1c system' for the economy
• In order to remo h
I adopted th v t e problems and to grow the economy, the
government
· e technique of Progressive economic planning.
Indian .gov. ernment [Link] h the [Link] [Link] as a [Link] formed the

[Link]
comm1ss1on( w h'IC h·1s now known as Niti Aayog) on march 1950 and
adopted five year plans for the development of the country

Economic problem/Central Problem of the economy

 ......-....... __ ...,. ..... ..... ......

INDIAN ECONOMICS DEVllLOPMEN'f - THE GAURAV }'..._. --

JAIN
That is the resources are scarce in relation to our wants, so we should get b

'
what we have. est
Cl· C"":'
,of unemployment and poverty .
31 Whom to
3. Alternative use
produce
The scarce resources are used [Link] hence it becomes important to It is related to the distr bution of nationalpro'duct n'itteeconomy.
decid personal distribution
allocation/ distribution of resources effectively and efficiently· Under this the distribution of output [Link] ownershipof the property .
General example:- the salary of an individual is to used in different sectors such as The one who owes more gets more shareof outputinthe economy thanthe one who has
Ii less amount of property.· " - · -
expenses,medicine,installment of house,child fee and so on. • Functional distribution
Hence it should be carefully decided how much resource should be devoted forIn personal distribution thelfo'\81..c. lu\Blit d 'PJ>' i\l'tie d stributed among all the
e individuals in the 'cou'nuy Iaccofdiilig'tO''ttie' fi'iRife?c)Yl'[Link] in
purpose in order to get maximum possible benefit. ' functional distribution the total outputis distributed between the factofs of product
Standard example:- Coal,petroleumetc. on.
The above 3 reasons creates different economic problem in an economy which are Such as:-
f ollows:- Land will be paid by rent

How to produce whom to produce

What to produce

1} Whatto produce:
The first and foremost problem that is faced by an economy is 'What to produce', that•.
what type of goodsis to be produced more than the other.
Due to scare resources, the economy can't produce unlimited goods and hence the quanti'• Market economy

,
and priority of goods must be decided. t is a type of economy in whichthe total allocation of resourees ismade by private
captalst Wants for those goods which society decided not to produce will remains unsatisfied, r businessman for producing goods and services\ As:th89ti ical\y guded tor
mak ng Generally, the economy has 2 types of goods. i.e. consumer goods or producer goods. rofit hence the central problem of the econl)l1}V wii
If the country starts producing more quantity of producer goods with less quantity nder such economy, the prices of the product\8
consumer goods, then the demand tor consumer goods will increase and vice versa. oods and services, government does not play nv roleto co

2) How to produce • Mixed economy

Itis related to choice of technique of It is a type of economy in which both private"arid = :no
production.
Thegoods must be produced in such a way that it gives most efficient output to the economy productive act vities. The allocat on of resourcesis m;a ;_
• Labour Intensive Technique{LIT}
Basically there exist 2 types of techniques of production which are as t
follows:-
 the central problem of economy with the help of pn\fat\ '8i1
guided for maximizingtheir profit.

(Use of labour more than machines in the process of production)

• Capital Intensive Technique{CIT} (Machines are
used to maximize the output)
If a country selects LIT then the units of labour employed will be greater than the unit:
goods produced as a result, the employment opportunities will increase but the t:
production of the economy will goes down.
nd if CIT is selected then the production goes up lacking behind the employm1
 INDIAN ECONOMICS [Link]- THE GAURAV JAIN

at·

,
sbls snd willingtoworlt
According to planning commission of India, "Economic planning refers to the
utili:za country 's resources in different development activities in accordance to
efu
The objective of full 1

"\
the economy.
the 0tj, priorities." a
Goals of Planning of India
The planning commission of India has adopted Five year plans strategy for the
develop1
of theeconomy.
India launches its first five year plan on 1st April 1951 for the period 1951-56.
Sine
we have completed 12 five year pl ans (recent 5 year plan was in operation from
.1s
2012 for the period of 2012-201 7)
The planning commission decided 2 type of goals

1. Long term goals (objectives of planning)

It refers to the goals which are to be achieved over a period of 20 years
They are common to all the five year plans and hence they are studies as common
goals
five year plans

2. Short term goals (objective of plan)

It refers to the goals that are to be achievedina specific plan (plan-specific goals)
[Link] according to the need and requirement of the economy
"
Main Objectives of Five year plans are as f ollow s
1. Economic Growth
During colonial period Indian economy was stagnant in nature so the first and fore
objective of economic planningis economic growth .
Economic growth refers to the increase in productive capacity of the economy ( Self-reliance )-
The basic criteria of measuring economic growth is the change in level of GDP ( Gr1
domestic product)

2. Modernization
It refers to both adoption of modern technology in the process of growth and also to
forth changes in social outlook and ancient meaningless rituals
{ Equity ; '
For example- girls are not allowed to take education,child marriage etc

3. Full employment
It doesn't refer to zero unemployment, but it refers to a situation when all those W1
 JNDIAN ECONOMICS DEVELOPMENT -THE GAURAV JAIN

Short term goals

They are those objectives which vary from plan to plan according to the ne...
requirement of the economy -
"
Supply of food grains
India is one of those countries whichis self suttic:ieVtaitgralns
Indian agriulture sector is capable enough to m.e.!_mo. . the ent re food
,
ii

'
.requirement of the population · ·· ·
Increase in industrial production
Development of heavy industries
7th plan (1985-
Generation of employment1990)
opportunity
Increase in agriculture productivity

Growth and poverty reduction

Generation of high quality of job
Protection of environment
_ __ ..
Improving quality of education arid public health services
.'.,;.........,
.·,

6. Source of revenu

.:" .
'/» . I
Scan)or Complete Chapter
The government generates revenue
fro taxes onthe commodities
produced.
Video
 r

· \I G
1. Lack of Irrigation facility
1
The first and foremost problem of Indian agricultureis the lack of irrigation [Link]
in India was heavily dependent on rainfall. The criteria of rainfall decide the condit;
. h I . 01
crops, 1.e. eavy rainfallmeans good harvest, whereas drought causes oss rn output.

2. Small andscattered holdings

The backwardness of farmingis mainly due to small holding of [Link] farmers
be able to adopt modern technology which restricts them from increasing their producti·

3. Deficiency of institutional finance

Institutional finance refers to the arrangement of finance by registered banks or any
financial inst tutes)
During that period,farmers are dependent upon non institutional sources of financels1
as zamindar,moneylenders, and mahajans) for fulfilling their requirement of money. Thi • Ceilingonland holding Ila d
· · · · I d h f · · · n celling)
charge very hi gh rate interest
of from Hig cost borrowing ea s t e armers '"I It refers f1xrng the maximu amount m
of land h'ch
farmers. h of
to
debt-trap. In order to promote equity inthe'a ri • w 1 _, .owned by theind vidua .
?6'110"> r >1! ,,..., t f." : limit of land that any individual cag [Link] [Link] iiii6nlWPElcifiedthe .maximum
4. Conventional outlook ,. over by the government and will bnhold. Anv excesa&and ._Qd thalJ mit!wo,[Link] taken
Despite innovative farming techniques, Indian farmers still rely on traditional method e allotted tothe [Link]• I ·Ml'I · rt )"ma'\ffaners,
11
farming. Moreover, Indian farmer continues to consider farming more as means • Consolidationof hnl..tin · " ·' tiu1t.>111H ' ,.,. 8fnftt'"8
subsistence andless as a business venture.

5. Lack of organ sed marketing system

Huge number of small farmers continues to sell their output in the local market at
redu1 rates due to unorganized marketing system for agriculture in the economy.
Thef. restricted to sell their output to mahajans and money lender at lower pricein
order to r.
loans.

Reforms in Indian Agricul ture

After analyzing the problems of Indian agriculture, the next step is to cure them. 8) General reforms
government of India has taken a series of reforms for the development of agriculture • Expansion of irrigation facility:
s in the economy. These reform measures are popularly known as Agrarian reforms. ln order to increase the productivity of
agricultUi focused on providing proper and
AJ Land Reforms ( Institutional reforms J permanentirriga1
It refers to change in the ownership of landholdings.
In 1951, approx 17percent of land was urider perm'I
According to World Bank, about 35% of totarag 1

2010..
\ meu .-
 . ......; -,,-;rn..
INDIAN ECONOMICS Dl![Link]!Hf Tlll!GAURAV IAIN. . .

;• .-
I ....

• n s t it u ti o n a l c r e d t 1evement• of Green Revolut

R eg io n a l ru r a l b a n k s h ave been set up by the government of India
9 on [Link] 888eInproduction
to fulfill the requirel'l'l
agricultural credit. 1ncr . . .
A national Bank for Agriculture and rural development (NABARD) has been set-up llt basic and the fundamenta1111chl llfteh¥ot1fllen·rotul!Onis 1massiveIncrease in
a
Theductlon and producth t•totfood ialilnilft'tHI 1
apexinstitution in the field of rural credit in 1982. ea

• policy
Support price
rt increases from 82 milliontonsIn 1960'8'11cY'i'Je1di11nonfonsIn 1 90-91
to JI • increaseIn. natlonal nc.o..[Link] \ 1 ton = 1000
k

farmers for theirexcess output.

.
productivity of food grains in'ih8' :ci. . . .
neln
According to this policy, the government assures a Minimum support price The economic condition aufoindf\"ii lllt'1•· 9 \

(MSP)
The farmers are free to sell their products in the market at prevailing rate, but in ·.;I ,:J tJr1r)
'I·
k:i produCt onandlevel of
case nOJ·
market rateislower than the MSP,then the government will purchase their output. • increasein Marketablesurplus "
. . • • of aaric
It refers to the portion .. . . --
ltu 8
1
• Regulated markets and co-operative marketing soc1et1es nment control after self consumpt·ion.' ·.,,!:f::i sYorr$, .Pr{fd
'o ctian wh loat\.lli5v..,...
[Link] th.. market
. by the fa m
r ers
A regulated market or controlled market is a system where the gover . s oue to ·increase·in the 1ev'.e•lsoqfrni rltleio r:'!h·'·.,, • · · ,
forces of demand and supply, such as who is allowed to enter and what prices h same amou t f 1 p oductivrty ,higher amount of food grains can be produced
may1
charged. . .
on t e
market even after self cons .
n ° due to which f
armers can now sell their food grainsin the
They are set-up by the government with the objective of offering a standardized price to t umption
farmers and protect them against the exploitation of middlemen • Benefit tolowincome ro
Coopera. tive marketing societies are also establ shed to increase the bargaining power 10ue to availability of 1argge uapmsount of f I
00d
farmers in the market. They ensure that farmers output is graded and sold only wh comparison to othe [Link] of consum.g ra ·
as ns.1n
Th ·the [Link], theiniprice dec\\nes
f acceptable priceis available. \ t. n f th . . P ion. elow -1ncome«gwho spendlarge
. .. . propor 10 o eir income on food, ben · . . . . .
Storage and warehousing fac1l1t1es have been expanded to build up adequate buffer stocks efited from this decline in relat ve pnce.
.I
.• Change infarmers outlook
CJ Green Revolution or Technical Reforms
Due to increase in production and productivity the out oolto "' Qd l\ l lml dAS' ag ri cu\
Green Revolution refers to sudden and spectacular increase in agriculture tureis
productivity d1 to the use of high yielding variety of seeds. now changed. Farming is no longer viewed as a source of su \dn' s
After independence, although around 72% of population was engaged in bered as commercial venture as well. •' r ' 11"·'.l" n;;, lo lai!fl'l>OQ°""
agricultu1
sector, but the level of productivity was very low.
Buffer stock of food grains
The government initiated many technological measures, this continuous and
intensi efforts breaks the stagnancyin agriculture sector which was regarded as green
revolutio. It includes:-
1- Use of High yielding variety of seeds
Failure of green Revolution
Useof Chemical Fertilizers fl
3- Use of pesticides for crop protection • Limited crops only
4- Scientific crop Rotation 5- Modernized means of cultivation
pulses, jute, cotton etc.
 f!!iir -611 • . -...._ ·
••••·-•
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I
:: . .....
;,.,, . '""
-
T
k
c O
n f
c
o a
ng p
seeds

'
it
and a
modern l
techno
gy
comes
w
huge
wherea
Lao
. o a .
s . atrnta
lo
ulb.. v
n
d
n
e
s
t
major ft
..
.
of i ..:. o.1 r
farmers
of _
in '
are t
small
and u
marg p
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gains
est t
o

t
h
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1m1
Hendful p.r
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ivti ...
.
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w
1
.
"'

tma
attract
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ed
towar
ds
farmer
s
Iu
e
leads
to
ll
in
inequa
ty
betwee
n
and
farmers
.
 8 8 "H"er'\Ce the [Link]'ment of econo H ag
goivoe•rnmem.•1ector..bec0mes n
hich is requiredfor mandatorv for the process o' mic e e,
thedevelopmentof whole A t 1
economy. and onl

ind uS
trializat1on
!

,
tna----- ·
monet
t
t
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public/gove
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.
.
ar y h in f
, prosp du
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•
.
q erity of str
ie
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country h
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.
t s
i
sector in
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and chemical fertilizers has d:
•.4
infrastr
uctural
e pr s industrial
negative effect on land. o es
Product on of wheat and
_,.
'
project
f en developm
s. So, t
rice requires huge amount
of water, fertilizers and it i
n
th
s
ent ,
becam e e
Pesu d w The
e c
which resultsin a/arming ;
manda e ho development of
:
rate of groundwater p le t

'
: torv industrial sector
depletion and e se
for the
ct o or the process of
soildegradation pub\ic n industrialization
or. r
sector d So cannot be left
• Uneven spread toinvo\ e , .
solely in the hands
The concept of green vein
the
n e
go
: of private
revolutionis not spread over c
the whole country, only few ' e ve ' entrepreneurs.
states rn t
1
Indust , m Direct
Punjab,Haryana, t en involvement of
rial
tamilnadu,Maharashtra had h t
made a great impact. sector
of F public sector is
provid e
i In e also necessary
W on other states A private industrialist es
hwas relatively n di
a
for its
always aims at • a
i insignificance d
de development as
maximizing u t
l • cid
e wealth,whereasin Prom s es u
ot tr to
order to gtow the • r
es i pu
t industrial sector along Incr e
m a t
h e l att
the growth ot econov od s
e a s en
the_ ro.P er s .
e
i }!i'veis tc:> l>ovide niz e c o
m ati •
more and s t
p on f
t o •
a • h r n
c Incr e w • d
t e a a
o u
a m s
more employment i n s
opportunities rather
s o
e n th
than u t
s .
Indu concentrationotwea\th n e n
h
nfew hands. n t e
strial at o i
d a
Refo io f e l
m
n e m v
rms al x a
P
p el o
In the context of growth and development of a country, industrial sector in t
always play, • Development ofinfrastructure c o u o l
o rt r
dominant role. In the economy like India, The growth of industrial sector is p l
m s e
necessary for • oue to huge investment and low profitabilty, privattHaeotor m e
e s
[Link] undertake manv
t e
 '"°""=•••nc.<oBVE'-"
t •
Schedulec
Remaining industries , which are to beleft open tor private sector. • source of raw milt
1 are the source of raw
2. Introduction ofindustrial licensing terials from them onlv1u.-'lll -P.. a A•laldrlty Cif big lnduaules get raw
It ref ers to a written permission from the government for opening or for expandi builds the eco-svstem of flow Of ·
It
1ncomelnthe my.
industrial unit. According to this policy,no new industry was allowed to survive
unles"'
until licenseis obtained from government. Moreover, license was also needed if an
ex. ouring colonial period India waa
finished goods. But afterInd ,........... e1
industry wants to expand or diversif y production 3. c ......
Industrial h
concessi a
on n
g
e
Incentives like tax rebate and
subsidized rate of power supply I
were offered to Prl n
entrepreneurs for establ o
shingindustries in backward and r
rural areas of the country. d
The basic motive behind this e
policy is to encourage equality r
in income .
t
o
.
b
e

s
e
l
f
-

s
u
f
t
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n
,

k
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n

a
s
 } owner. (Due to small requirements)
i n 2. Quota
n g
w t Promotes equity
a r SS/ requires less amount ofinvestment
r a as compared to bigindustries,
d d concentrate the power of economy in few
l ,
hands. Moreover any one can start a
o import substitution refersto41·
o According to this policy,. n{e' a·d., fr- Smallsc industr y ( low investment )
&npdt\'S't)y\tbrl{esticproduct on
k
i
.
are encouraged by giv· o goods from fore gn which will bring equal distribution of
1m · countrv
pon
·
c income ahd wealth in economy
Sm n d'
mg ' domesti
all d 1ff in
Sc u er
en
ves to
ale s
t· producetheminlndla.
Ind tr
ust

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i
rie e
s
(55
1)
s
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o
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fIn
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ia

incenti
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s
2
w
a
i1
A small scale industry is presently defined as the one whose investment does not
exc
vsto protectdomesticgo6dsfrbm\mports
rupees 5 crore. (Earlierit was rupees 5lakhs in 1951).

1. Tariff

- ' • -- '
The government also focuses on developing and strengthening Small scale
industries as, It refers to the taxes levied
.

plays an important role in the development and equitable distribution of income

1
in
ti\. paying heavy amount of tax imported [Link] goods c&R!\Je'\mporteCi \
rl 1nd a after
on such goods·impo 'f f . :.ilr';i •

j goods which automatically redu

.
•
SIion o tax increases n..-µnce of such cesits demandinthemarket.
·
bigindustries are capital (machines)
Role of Small scale industries or
incentive
Characteristics of SSI
• Labour intensive
Small scale industries provide huge Promotes balanced regional growth
amount of employment in the These Industries are locational
friendly, unlike big industries which are
economy as the amo of labourin
required to be set near the raw
suchindustries are proportionately material hub in order to reduce the cost
high as comparison to big industries.
ol transportation these industries be
i.e. are Jabour intensive, whereas easily set up at the door step of the
 N
rNDIAN ECONOMICS oB\/ELOPMBNT - THB GAURAV JA.I

'
• Planning commission
• Economic problem
• What to produce
• How to produce
• whom to produce
• Market economy
• Mixed economy
• Central planned economy
• Economic Planning
• Goals of Planning of India
• Long term goals
• Short term goals
• Objective of Five year plans o\:I W \. 3. When was the Planning Commission
• Economic Growth estabished? ld) 1951
• Modernization lti (a) 1947 (b) 1948 \c) 1950 n
i
, • Full Ans <t> 1950
nl ni
employment
,. • Equity
• Self-reliance
4. Directive planningis pursued
• Importance of Agriculture in Indian economy under:u (a} capitalist economy \b\ mixedeconomy
• Contribution to GDP (c} socialist economy \d\ none of U
, • Supply of food grains oc 1r 1 Jo 'Jf""' Ans (a) capitalist economy
6
• Source of employment
• Supply of raw materials 5. The second Five-Year Planwas:
• Share of exports (a} 1950-1955
• Source of revenue <t> 1952-1957
• Market for
Ans (d) 1956-1961
i ndustrial sector
• Problems of Indian agr icu lture
• Lack of irrigation facility 6. The new base year for the estimation of nat ona\
• Small and scattered holdings income changed to: ··. ,
• Def iciency of institutional finance (a) 2004-05 (b) 2009-10
• Conventional outlook
• Lack of organised marketing system Ans (d) 2011-12
• Reforms in Indian Agriculture
• Achievements of Green Revolution
• Failure of green Revolution
' Small scale industries and Foreign trade
policy
...
 .........:
JNDIAN ECONOMICS 06\fELOPMflNT -THE GAURAV li\
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INDIAN ECONOMICS Dl![Link]'MllNr "'TIUIOA\RWr

(b} Finance Commission

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 Ans {al National Institution tor Transforming India (N ITI Aayog) l-scale industries? g vernment's steps to foster their
[Link] economy in which economic decisions are taken by some central
i t Describe the o growth.
5. Why wasn't the goal of equity f ully
3.
(c) E 1o. Which of the following is not a
authority Planning realized despitethe abolition of
.fxpl long-term objective of planning
government to maximise social welfare is called: in intermediaties7
ore
t in India?
started
the
Of with (a) GDPgrowth 6. Comment on the success of the Green
rol
{al capitalist economy (bl socialist economy heavy Revolution intwo phases.
e
(c} market economy , ,,...,, (d) mix,ed economy reliance
eof (b) Full employment
on (c) Better quality of life 7. Discuss three achievements of the
Ans (b} socialist economy ' sm
public
all- Green Revolution.
9. Whichof the sector (
is, correct
following
y sca
le
(d} d
about planning in ·e r
India? Ind
these )
(a) Mixed economy 1ust
has been the
ries
Ans E
framework of in
All
gen q
planning in these
era u
India
(b) Theduration of the tin i
Twelhh Five-Year g t
Plan was 2012- em a
17 plo
J
vm
ent >
. j

4 p
.
W i
h
Y s
t
w
a r
s i
t b
h u
e
r t
e i
a o
n i
e ;
e
d i
t 1
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p
r s
o
t v
e rr
c
t Ans (c) Better quality of shortquestions
life
s
m 1. What are the primar y central
a
l
Very dilemmas faced by an economy?
 enden
2 t Ip a ce?
4 g
. a r Q [Link] the benefits derived from
i increasing marketed
r 6 c
u
l Longquestions
H i 7. I
t
u 1. Evaluate the progress and challenges in
o f r agricu\tura1
a 1990.
w f l
2. Re
s s flect on
e
the
w ? c
t necessit
o o y of
r subsidi
u 3 es for
i impov1
l . s
despite
s
u the
d financi
e
s al
C
burden
a they
y o t impose
o u i onthe
n gove1
u l d
e 3. Examine the risks
d p associated with the g
1

e y

f o

i u

e e

x
 w ··- 0
government' s measures to mitigate them.
0
4. Provide a concise overview of industrial licensing policy·
1950 to 1990, high\igh .
5. . Assess the trajectory of industrial development from its \1

strengths and weaknesses.

6. Discuss the advancements in the Indian economy across agriculture I qty
,industry
trade dur'.ng the first seven plans. '
p
7. Explainthe concept of the New Agricultural Strategy, its 8ccompanying measur

£::"
and the rationale behindtheir implementation. ti
es" b 2 bib oH

rl 9

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INDIAN ECONo - ur.r. • -
J.\. csolWELOJ>M •·'
'SNT - Tllll G/\URJ\V 11\IN

ECONOl\ftc
r
h
t
REFORM SIN
; CE 1991
1
1

,
<
l
t
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Economic
J term [Link] combination ot
Reforms
r 1 policies and
p ro g
c o m p e t ra m
e itmi e for
the arsepetehde

. y Iong
. ve environment growth,
efficiency in production and make a
Econom1c reform ·
0) WhY di.d
govesrnwmeerentaodfoptd byIndian
governmentin 1991
India
announced
new
economic
policyin
1991?
0
a What is the need of d . r
, opting e n

Ans -
Before 199
 · I ndia in 1991?
reorm in
the c
1 om1c
.oTndition of Indian economy was
hin a state ot crises . expendjUll:l
e lt was estimate
e 91It represents
c
o
n
o
m
y

w
a
s

n
e ar 1Y
inthe
condition
of getting
collapse.

Factor
s
respon
sible f
or
econo
mic
ref orm
Fall in foreign exchange reserve
r
Que to the process of
industrializationthe imports of the
economy grew much t aster than
the amount of exports. Increasein
impo(ts [Link],_uces the foreign
exchange reserve althe

econom y.
 .t!Cf'llQIOp;-
"°""' "'°NO>Uc< o.,,.W•M""'- THBGAURAV'""'

• D e fi c it in B a la n c e o f pa y m e nt
B a la n c e o f p a y m e n t re f er s to the statistical statement of receipt and PaYrrie .
country with rest of the world in an accounting year r:lt
Due to slow growth of exports and hugeincrement inimp,orts [Link] of pa Yrri
our economy remains in deficit (Foreign payments > Foreign receipts

• Rate of inflation also increases

In order to eliminate the situation of crises from Indian economy, Prime M
[Link] Roa along with the finance minister Or. Manmohan Singhintroduced th'.
economic policy in 1991

It includes

l . Liberalization

'
2. Privatization
3. Globalization

I The set of policies introduced by the government is placed under 2 different Ql'i
(popularly known as measures of new economic policy)

• Stabilization measures 1·
Freedom toImport capital goods
It refers to short time policies/ measures which aim at correcting the deficit in balance Indian industrialist will be free to impon ma .
payment and controlling the inflation rder to expand and to modernize their ld .. '""
· ·· :
• Structural reform measures
It refers to long term measures aims at improving the ef ficiency of [Link] and
ihcrea the international competitiveness · u,

Elements of New Economic Policy

[Link]
The removal of entry and growth restrictions onprivate sector enterprises or the remoy 1

trade barriers is known as liberalization

Before 1991,government imposed many restrictions on private enterprises which res
them to take risk or to get indulge in a big project.
According to the policy of 1991, the government tries to remove such barriers so t
private sector of the economy shall grow
In order to get liberalized, government introduced
I. Industrial sector reform
Financial sector reform
 .
....... ...........,,, .. , . .. .. .. .
the
to
u
n
promote d
sav e
'" i voluntary r
i and
disclosur
i
. e accep
F o t the
i
s struct
c
a
l gover ure
r ent
e regu iv.
f
o and Fo
r
m re rei
s
the gn
o
r of
ex
t ch
a ind
x an
tax,
ge
r that
e ref
f com or
o
r national
m
m
s markets
for It
I goods re
t
r and fe
e servicesrs
f
e
r can to
s th
establish
t e
o ed
ra
t •
h te
e Th
at
r w
e
f hi
o
r ch
m
s th
i e
n
g cu
o rr
v
e en
r
n cy
m
e of
n
t on
t e
a co
x
e un
s
try
a is
n
d ex
p
u ch
b
l an
i ge
c
e d
x wit
p
e h
n
d th
i e
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1

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other country. A
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Foreign exchange rate measures the number of units of one currency required to exch N
A
with one unit of other currency.
P R
E
T N
"NA I
R
VRA G
O
TNA A
L
n M
E
I U
• Devaluation of Rupee- L
N M
Devaluation refers to decrease in the value of domestic D T
currency by the government. I B D
1
n order to attract foreign investors and toincrease the A H .
t
amount of foreign excha nge N E
rovernment reduces the value of domestic currency O L N
IL I T
S P P
H C C
A
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... A
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 3.
Theintegration of domestic economy with world economy is known as globalizatio
In [Link] words, It may e,..
be defined as a process associate.d [Link] [Link] opti
growing economic interdependence and deepening econom c integration in the
economy. '
Policies promoting globalization
• Increase in limit of equity in foreigninvestment .
The equity limit which was 40 per cent was now upgraded to 51 % and even higher.
The concept of increasing the limit is to welcome foreign investment and increase the
of foreign exchange

• Reduction in tariff
The amount of tax imposed on import of goods is also reduced upto the maximum PO
limit. So that international competition and technological upgradation can be enjoyed
1
• Removal of quantitative restrictions · ''
The quota system was abolished by the government of India to promote trade( UPt•
maximum limit)
India being the member country of World trade organization (WTO) since april 2001 , td
1

removed the quantitative restrictions on foreign trade v '

• Partial convertibility of rupee , Noglocled agdcultu,. "cto< ••1he -_......, OOticy has - on
It refers to a system wherein the currencyis allowed to determine-its own industrial and IT sector . .. . . .1.. _
exchanger'
in the international market on the basis of demand and supply (without any direct security of job has Qeen.ecm_ased because of entry of FDIandmu\,.DAllk>na\ companies
off ' small scale and cottage industries has decl nedbecause of ncreaseincompet t on dueto
intervention) · globalization
The convertibility of rupee attracts the foreign investors to invest in India
The metropolitan cities are developed withlack ng behil;\d the deve opment ot rura\
Outsourcin areas The disinvestment policy was also notfavorab efordomestic nvestor
, Leads to unbalanced growth betweenthe sectors
g is one of the most important outcomes of globalization.
This Under this, a company h , Spread of consumerism (the promotion of
regular services from external sources (mostly from other countries) which were previo1 theinterests: The new policy has been encouraging a
done internally. The low wage rates, availability of skilled manpower and existence· dangerous °t!'
Special economic zones have made it a destination for global outsourcing in the post
the production of luxuries anditems of super or cons°'Omp1
ref1 period. The main services which are outsources from India by developing
countries are
centres, film editing, music recording, record keeping etc

Special economic zones (SEZs) Before WTO, GATT (General agreement of [Link],d,
It is ap. tc. zone which was established by the governi' ent of India 23 countries as the global trade organ zation to
C:_Oj·i&-m: fQDlndostrial
development. · · · agreements by providing equal opportunities to a\\ th
.\ . ' .
In such zones variaus facilities were provided by thegovern ent 11oo11J trading purposes.
jJu11

GATT
i-.- · • Five year tax fh tl plan • Flexibility in laur la\
Ys

L_
 - ll\--- - O NOW' .CONOMOCSO,.,.W• -TffEGAURAV A>N

The WTO is body incorporated for the purpose of making the whole world a village
good• and .eNic••can toow w;ohou< any undu• """"" "''•
The headquarter of WTOis located in Geneva (Switzerland),
The WTO has 164 members and 23 observer governments 1
The current director-general of WTO is Ngozi Okonjo-lweala of Nigeria (since

2021}

Role/Functions of WTO
• To facilitates international trade
• To provide financial assistance to the member country in international trade
• Always tries to remove the tariff barriers between the countries
• Acts as a watch dogininternational trade
• Acts as a forum for trade negotiations
• To provide a platform to member countries to decide future strategies related to

and tariff
• To administer the rules and processes related to dispute settlement

• .
Connect us 011 Whatsapp
Download Our Mobile Applic • Globalization

tl'Jam
WA · ·
.
-•npj\U:N'J -THE GAURAV JAJN
rNDVJll ECONOMICS Oh''.,..... "
'

..•JiMiU."f*@·"'mn•f'
"'*#''li'·enm•• (b)from a
(cl both (al and (bl rn ·
tdl none of these •n
Multiple choice questions
. . . tf
privatisation?
1. Whichof the following 1snot a cornponen o
(al Contraction of public sector
(bl Disinvestmentin public-sector enterprises
(cl Sale of the public sector's share
(di Purchase of industrial shares by the government

Ans (di Purchase of industrial shares by the

government
2. Which of the following is an element of the
financial sector of the economy?
(a) Banking and non-banking financialinstitutions
(b) Stock exchange market
(c) Foreign exchange market
r
(d) All of these
, .J9"fig"trpolicv reforms
(d) none of these
Ans (d) All of these
ot (c) both(a)
Ans
and (bl
0
3. Which of the following is an example
of indirect tax?
(a)Income tax

(b) Wealth tax

(c) Goods and services tax (di None of these
g, Which of the following are the compon ill&\W\
llMMWm [Link] new [Link] c
Ans (c) Goods and services tax Policy? ·b·1· f h I ·
a) partial convert•. 1 rty t e .nd1anrupee
4. Which of the following is the strategy to promote the ( ) Increase inequity lrmrt of foreigninvestment
globalisation of the Indian (b . 'ff (c) Reduction rn tan s
economy? (d) All of these
(a) Partial convertibility (b) V to
Reduction in tariffs
ano11on Ans (d} All of these
(c) Increase in equity limit of foreign
u1
investment
(d) All of these

Ans (d) All of these

5. In the context of the Indian experience, controls were financial resources of the
imposed by the government country
witha view to: (c) both (a) and (b)
(a) checking the growth of private monopolies (d) none of these
(b) minimising the hold of large industrial houses on the
Ans (c) both (a)
and (b)

Ans (c) both (a)

andlbl
,

Verysho
rtquest
ions
1. Define
Privatisation.

2. When was the

New Economic
Poil cy announc 1
rNDIAN ECONOMICS o6VJlLDPM£NT- THE GAURAV
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3. Explain the
concept of
Structural
Measures under
the new
economic policy.

4·What are the

two categories
of taxes?
5. Define
economic
reforms.
6. Describe the
stabilisation
measures under
the new economic
policy·

7. Can you name

two industries
exclusively
reserved for the
public sector?

9. Define
disinvestment.
10. How many
countries are
members of the
World Trade
Organization
(WTO)?
 Short questions w t the concept of outsourcing
h and provide examples of
1 02, services outsourced to
i
. Identif y
c
the three India by developed
D
h primary countries.
i
features
s 9. Enumerate the major
t of the
c New functions of the World
h
u Economic Trade Organization.
e Policy.
s
s Q [Link] privatization
n 03. What and [Link] the two
e was the methods through which it
t objective
w can be
h of
e liberalizati executed.
e on?
c
t
o 04 List the
w economic
n
o reforms
o
implement
m ed bythe
c
i Governme
a
c nt during
t liberalizatio
e n.
p
g
o
o 05 What
l significant
r
i reforms
i
c were
e introduced
y
s in the
'
foreign
c exchange
o
market?
f
b
e 06 Explore
m the tax
e reformsintro
c duced as
a
l part of the
s
a New
u Economic
s
r Policy 1991.
s
e
i
s 07.
f
"Globalizatio
i n has
u
e yielded both
n
d positive and
d negative
.
e outcomes."
r Elaborate.
I
[Link]
 INDIANEcoNol\ucs n ,_ ;r..
EVELoPMENT - Ti:
IE GAU RAV ll\.1N

HDMAN
OEVELOPME lTAt.
T IN INDIA

ysical capital
It includes all those .
uucmh aans Cplan.t ' raw maintpeuritaslswmhiacchha·re [Link] .m the process of
production, ap1tal ' inery, building etc
It [Link] to the k nowledge Sk"I
point of time. , 1 Iand eff1c·1ency of human beings in a nation at a
• [Link] Capital
format1on
It 1s process of [Link] and . .
the.
t e s 111 , education a d . increasing the number of persons who have
h k
political developmen fexhpenece which are essential for the economic and
0 t e nation . .

.Investment/expenditure on education
he most important source of human capital form ffn ·sto '/;vest on the education
system
d training of people. Education enables a,,n individual to0m0akeriat:ood living
throughout his
 r
3. On thejob training
It refers to the training of employees whi e they are performing a job,
The 8 1
k 'll concept of on the job trainni g increases the productivity r and
. of labour · sharpent11
s s as they work under professional guidance and wit.h practical app ication. Moreo
1
'i
enab/es the workers to adapt new technologies and hence creat'es human &r• \
capital.

4· Expenditure on information
Information related to job markets and educationalinstitutes offering specialized Skills·18
important determinant of skill formation as it enables the individuals to actualize the1•r t '-.I

m c'[Link].',inGIQ 2fl rf:>LI ·

5. Migration tlaB::> nBmuH •
It refers to moving from one place to
other
It contributes to human capital formation as it enables the utilization of inactive skills ofu,.
peoples or it facilitates better utilization of resources ,,. •.,
People migrates from rural to urban areas in order 'to find better earnings and a g0
standard of living

Role of human capital formation in economic growth

1. Increases production
Human capital formation focuses on building a productive environment by providing
Skills and education to the people of the countr y. The productivity of the
economy \\'i' automatically increases with increase in the level of education and skilled
workforce

2. Raises life expectancy

"·
Human capital formation increases
1
the life expectancy of the people.
Better health facility and good food increases the life span of people and raises the
4 .Inefficient educat on system
qualityof
life Everything in the economy changes with the c\langing1 t\e>tcept\th9leducat
's1e110 am ni a11u on system of our economy. The education system of our economy'i round 100
3. Improves the quality of life yeats old,
People migrate for better earning and quality of life.
The number of universities increases with the great pace \acki d the quaitv
of education.
The quality of life depends upon the level of education, health care facilities, better worki
g
[Link] on thejob traininginagriculture
environment and good quality food.
Human capital formation increases the quality of life of the people of the economy India is an agriculture based economy and yet ag\c y

[Link] and brings equality

Here part1c1pat1on refers to the
- • .. ·· · ·,." .--'- ,-, rf••-:!" '.-. •t ;...
percentage of labour force participating the process
·'' I in the area of professional skijl,- The concept.9f OJl;. ,dbj
sector
Of product1v1ty
ich ultimately [Link] in traditional meth9d
 -a mtE>""""'
1NDIAN i;coNOl\flCS ofi\lliLOPllf fiNT -THE GAURAV
JAIN INDIAN ECONOM1cs l)l'!Vl!topMl!Ni- ..... .
1 I
- "ll GAuiv.v1,.111 T
·-
llmentr
o atio
0 =-
f• 5
5
r e
n
a r
t o
u
develop
m
of b
cap e
r
I o
c f
s
t t
a u
r d
e
requi n
to t
s
resources
e
o.,,, n
in r
d ters
to .
f di e
humana
n
d
el'll1g
sc
o
o
.,
,
·
most
mportant
part of
fl({•Je human
7Js capital
formation
f enables
. the
. p eople

, to change
their
Edu
n outlook,
the
become
pr
o more
t efficient
a
an and to
g increase
espec
m a,
coll productiv
t ty.
In India
the
kn education
e sector
has been
develope
d since
d independ
s ence.
B
y
e
n
ter
t
 • refe rs toage. .J'•, ,i.- i
1 reGar rY• rtno1dthe n h' h h I) ''""-'•or "'..-lb,",. . ' . e t
Oiled · n1 •c.h. ,oo1 8t Several 11 ianQU te of India is approJt 7!-.'ll}J'.'l'
no s o
ditterent grade levels rir11
1
P y rate ' os"""c tate is Ke<ala Wltlt 93.9% t e
l.. .....,..,MwOh 63.8% o d
iterac the percentage of People sbove, ftl t litera ··• t... . ' ,.,._._ _ . u
eara wh... can read write and understand anv s to t ource development s c
""'""'ee development of the "9t of 1 . t a
1liOi mikes up r t
tho wmkto<ee e i
an n o
g
1. '
refer 9.1'\IJ}Y,.- 01 t
n
,
Element h
ary busine e
m
educa n
tion sector i
l e d
l
It covers the students from orga ·1T1n..-- d
-·-,"" e
a
class 1 to class 8 ( 6- 14 years) n1·z m
• The number of primar y and e y
middle school (upto class 8) has atron,
increased from 2.24 [Link] · n
t m
e
1950-51 to
11.92 lakhs in ,_ _ ;'.\
a
r a
l
201 1-12. y
• Nearly 97 % children receives p
e
elementary education d r
• u o
G c g
o a r
v t a
e i m
r o m
n e
n
m S a
e a n
n r d
t v
a s
i o
n s
t i o
r k n
o h 2. e
d s Secondary
u •
h and The
c a senior nu
e
seconda be
d a ry of
b Se
v educatio
h on
a n
i ary
r y
i an
a se
o
n or
u
s , se
c
nd
p r o
y
o i v
sch
g er
l ol
h
i ha
t th
c inc
 -·
ased from 7.i
thousands in 1950-51 to
2.32 lakhs in 201 1- 12.
• The number of students also
increases from 15 lakhs in
1950-51 to 482 lakhs in
2011.
12
• An important role is played by Navodaya Scanfor Complete
schools and kendriya vidhyalayas at Chapter Video
cent
level.
f v t
3.
Hi
gh
er
ed
uc
ati
on
• The number of colleges ( general ) has increased from 578 in 1950-51 to
35,839 I
201 1-12
• - The number of universities has a/soincreased from 2 7 to 665
• Thenumber of students getting higher education is about 130 lakhs ( 2011-12)
-
- I

• The expenditure on education has also increased from 1.5% of GDP in 1950
to 3.1%ii!
I

-- -
• . /
' -. -

1 ... .. :
·, --
t.,;.__.....
- ._ ..
 • Summary
• Physical capital
• Human Capital
• Human Capital formation
• Sources of human capital formation
• Investment/ expenditure on education
• Expenditure on health " VI/ [Link] of
I the followingis
. .. the p! a in-dram
-

• On the job training (alB ing population

(Cl f!IS
• Expenditure on information
[Link] (dl All of these
• Migration
• Role of human capital formation in·economic growth 3,The abilityn to read and writers
(8l
educat10
• Increases production (clliteracy
• Raises life expectancy
[Link] (clliteracy
• Improves the quality of life
• Increases participation and brings equality 4 W h i c h o f t h e fo llo w ing organisationsis engagedindes gningte
· . r s e c o n d a ry le ve l?
sen10
• Innovative skills
ena\:upto
• Problems facing in human capital formation the
• Rising population (alUGC (bl AICTE
(clICMR ldl NCERT
• Brain drain
Ans (d) NCERT
• Insuf ficient man power planning
• Inefficient education system
• Insufficient on the job training in agriculture
• Insuff icient resources '
Ans (c) University Grants Commission
• Education sector: An essential part of human capital formation
• Gross enrollment ratio 6. Who is responsible for the implementation ohul
s<'ll education in
1

• Literacy rate the country?

Human resource development (a)National Councilof Educational Research andTrainng
(b) University Grants Commission
(c) All India Council of Technical Education
(d) Indian Councilfor Medical Research

Ans (c) All India Councilof Technical Educat on

 - •oPfsrtf - T}lll GAURAV
1ND"4N ,;c;oNOfJcS DI>",,_- [Link]
NDIAN ECON01111cs l)'l!Vt!to"t.i:R>-

1 - .- 111e.c,.ul\.\v1"11'1

7. As per th . 1 1ndia is about:

(a/74'16 ""
" (b2)08'5%ma ""'"''
{C,a<•6'9'%"" (di 60 %

Ans (c) 69%

B. Female literacy in India (d/ 66%

is: (cl
(a) 75 % (bl 85 70"/o
%

Ans (d)
66%
1 11 in India (d) 60%
;s:
9. Overall literacy rate {census 20 (c} 65 %
(a) 74% (b} 56 %

Ans (a) 74%

[Link] capital formation leads to: rnw ..., ·l <'tlf

(a) efficient utilisation of inputs ..,,,...... ......... m- --·aourcea.
(b) increase in the stock of physical capital WhV
06· . government expen. ditunron tertiary education important?
(c) increase in GDP growth
(d) both (a) and (c) V· Discuss
how human capital creates both private and socia\ benetits.
.. [Link], o7- . M. . n"'
Ans (d} both (a) and (c) i,T'
J
s. HoW does "Expenditure on 19ra·t.i._o. n"•'[Link]\tormat10 •
l/J1/I
Veryshortquesdons :ni
aQ9.Prov1..d e examples to illustratethe concept of human • .,....n.,;
c. apita
TF1::>11J Is th e rapidly rising population a constraint in the prdces
1. Define physical capital. 10. . n?
1 tor rnat1 0 ·
2. What is the irJ1portance of investing in human )Sir
capital?
•
Long questions
3. Enumerate the different types of health expenditures.

4. Explain how expenditure on health contributes to human capital formation.

5. In what ways does on-the-job trainil)g contribute to human capital formation? 8. Explain the concept of the Right to Education. 169.:.JH lsoic;

6. How does expenditure on migration contribute to human capital formation?

9. Define financial capital. T

7. What do variations in male and female literacy rates signify?

E 'V.1.111.. " [Link] between physical capital and human capital.

[Link] how expenditure on health and education contributes

formation.

3. Review the educational accomplishments in India.

4. Provide a brief overview of the challenges associated1

formation.

5. Explain how spending on "On-the-job training" and •\n1

I
human cap1. tal formation. relationshI·p \:)
t

[Link] e challenges in establishing a

cause-and-effect and economic growth.
'
[Link] between human capital and human development.

,...,
v

q
 RURAL
DEVELOPMENT

It is a continuous and
IIth c o mprehen · · .
a e aspects of rural li f s ive soc1 0-econom1 c process trying to
improve
In other words Ru De.
' ra1 evelo ·
f ocuses on action for th Pment is a comprehensive term which essentially
overall development f _e development of area which is lacking behind in
the o v11lage e
The overall developm conomy .
Such as ent of rural economy comes under rural development.

• Development of hum
an resources
• Development of infrastructure Land reforms
• Poverty Alleviation program etc

ources of Agricultural
credit ere exist 2 types of
s u.-.oJc;.:'e!. nra

.Non Institutional sour9s

.I nstitutional sources
 rqmqm mun11w1•112r meant to prov;de credit.
It refers to organizations which are
legally

• Co-operative credit societies:- onable rate ofinterest

. . ers at reas
They provrde adequate credrt to the farm ations to the farmers
They also provide directions in agricultural aper
increase their productivity · · itl )mC'IO

1
ItCommercial banks
is aninstitution which performs the functions of accepting deposit, grantin
mak · · · 9 lo •
rng investment, with the aim of earning profit. . ans,,
Example:-SBI (State Bank of India), PNB (Punjab National Bank), Canara Bank etc
The_government realized that agricultural credit needs cannot be solely met by ·
credit societies and commercial banks should play animportant role cooper

• Regional rural bank (RRBJ

These banks are set up to promote er-edit facilities in rural
countr y
They operate at district levels and focus on the credit requirements of the weaker
of the societies s

• NABARD (National Bank tor Agriculture and Rural Development)

It is an Apex bank in agricultural and rural credit (established in 1982)
Thebank has been entrusted with the matters concerning policy , planning and
• Co-operative agriculture marketing societies
operationi the field of credit for agriculture and other economic activities in rural
It refers to the type of marketing societies are formed, .
areas of the coun. The basic objective of this is to promote the strength of
collectively and to take advantage of collective,bar ?iin·-
agricultural credit in rural area$
· crops.

• Self help groups (SHGsJ

Self help groups are small groups of poor people. They help each other to solve
problems. SHGs promote small savings among their members. The savings are
kept the bank with the name of the self help group. Later on this common fund is
usecMo
.,.
. ,.-.:
d-..:..rf.>,,-
I ,,,., ._ _. ._._._1
 -roP sN'f -TH£GAURAV ))JM - ----
,,;v"'1" ECONOflcs pJ5YP"" JAJ111
to the farmers for their
b
' 1 tion of productive
r
s
lf
ernment
.
er()

_ "8
e treated as the offer price Curden of crop farrni
bY the gotvhe tarmers at
Minimum support Price arill& ·
0
.go.v 1¥' "er
ernm rt .. .
ent q . 0•. o
purch ment oppo
ases u111t1eaII\
the no 1 ._
produ
cts
from
d·a
(FCI)
it m the godowns of Food
'Corporat on of In I , ef1r mary • ·11 ..ealng
w ttelereworlttorce
'
. oy
1P sector
. 8.•.,
111
cl IIS:ecto
ve ra.
pri in udes t:e{)\

• Subsidised transport •"[Link] •'' I d"b'....... ... ....-

lture 111 t e '' . h economY • the
government . "lihn9U onlmo "like ca•
I d
·
•rit 'b•nd<y
I'"
n or er to promote and ii''"'" ck e<o) "·" --•.
strengthen agncu ·" 1
5
.
offer row rate transport t
r()..
s b·d ·

Aa1rwaY

o th

' ,
u .s1
f1ze d .
transport rnaY theY
whereget a
better dear frlh., • A •"·."")
include,
e
c•<ohig,P•o.,.,,.....
nts etc\
system
[Link] .........
far g!
f•'l"1"
O S
"oul
Ultu
tlOr
"ino
lude
,dcu
)"h'
°" "
'"

"""
°
"" '

'" '
' "
*·"
•"''9•
n,
._
,R
....,..
.

__ _H..,

or brmgmg their prod uce to the ·

,
pl•

urban markets 1 ·.
 5
1
re"'c . n oonnecto to.
• Public distribution system • It
,
tes the public
distribution (1'1e !!.J,i Ii& d
a

eCconcept of [Link] shops ph

and fair pr ice [Link] y·iel
oprreiroad1.t1es 1.1ke rice' ding
wheat ' PulseYste!'ll.•n
5s, ker,·
vari
onomy. Fatr price ety
tiea.
shops offer essent1a 1 0cie . of
see
com. ds .
( beloW poverty 1i ne) of
.
th a Y'
und
etc, at alower price to er
the financially rower suc
sections · hfar
e m
ngt
he
G• ·c farming
use
radianngdiasrdthzeatipornoa 0
' of
cnedssgroafdidnigviding the . che
products .into [Link] lots g mic
whrch hav a alfe
characteristics in n rt
shape,size. type, • zer
[Link] etc.
Produts of differente_ illii Grading and s
r controls
to
bette morequality
securehelps the farmers
prrce for cul
1
\opment
in the
o
c pro
t
e e
s d
s .
It is
o an
f
ttvat
p ion'
r wh
clnb
o rlng
d S
u Sulf
c talri
i ab\
n rdW
g e
f produ cts and to earn more.
countrY· alty
. ·I
o : ·: · 1i
o noi·,,,
d
Example - different grades of rice are · st
n Basmati,Arborio,brown,ja smine,white et Diversification refers to the shift from
a crop farming to other areas of
t
·"@MO®'''·'·*·'tititir@tME'DM"WP
production
u
r employment ; It raises the level of
Due to huge amount of rise and sole income and reduces th [Link].
. dependence of rural areas on agricultu Finding liveilhfi
1
5 e [Link] ex; away ram crop farming becomes more

•hould
gwup•
,to be •eP""ed
ond
''""'"'""p<oducr.
a grnde. ''I
inw
r qu "e put -'
1
1 need to diversif y theagricultural
activities
important when 1t ts realized -that crop
farmi
hi9 is totally h'1b· : ·, •
an eco- sector ts overburdened .
friendly .,, r
method of
It has 2 aspects
 h r words, 1t rs a type of farming · ' .
.
. .
In ot e system
in which the totalfarming restores,mamtam
[Link] d enhance the balance of ecological system
·. ' ···- - · ·
sificatio ·
n of an . thod of farming is very pop 1
·
crop fh1S me .
product u ar across the
globe,
ion manv.coontqestp10Cluces
It refers to changing the single around 1o% of their food
output through organic
cropping system into multi-cropping farming
system.
Earlier a single food grain is
produced on a piece of land; the senef ts of organic farming
Eco-friendly system of production
basic agenda of diversi (Due to noninvolvement of fert lizers)
this is to change the cropping
pattern from food grains to cash ..
crops
.
Multi-cropping refers to production
of more than 1 cropin a year. • . •
It decreases the dependence of , It is aless expensive
farmers on one or 2 crops as they method because of useof \
are now engag· radh\on'a\
production of variety of crops 1\fiq
ci\on Increases the level
ofincome, as the demand
for organ cptqdµ
in9 tap\d\v in
international market
• It provides healthier and tastier food
.
• Provides more employment opportunities
as itis labo flmtetts\ff

• Labour intensive technique . .

It refers'[Link] fechnque<\
Nflfa\[Link]
produce th-e goods
• \' rirt1"'
• Labour force
.
It refers to the actual
number ofiP.81

,. ,,,,,,,,., ..i1
n•.- .
. t
,,.,.MC\
- ••,,!..._ .
 • ""'3 TPflll
tiple choicequestions
• Development of human resources i\f . hof the followingis anon-I .
• Development ofinfrastructure 1. v••'[Link] nst1
5oc1·et1es
• Land reforms (81 oneylenders
(Cl
Poverty Alleviation program etc. p..ns ( lMoneylenders
c
• Agricultural credit rt-period creditis needed for:
• Sources of Agricultural credit z. Sh intenance of the existingland
(al rn chase of seeds andmanures
• Non Institutional (cl pur
sources
p..ns
• Institutional sources
. ress sale by the farmers refersto:
• Agriculture marketing 3. oist ate of rotten crop
• Defects of agriculture marketing
(althe s le of crops through the commission agents
• L·ack of storage facility · n in rural areas (b) th• ,, of cmp•"the [Link]"m '"PPort-foxO•fbV\i;e -- . ·ot the
• Lack of effective transportat 10
Lack of marketing information in farmers

• Lack of adequate finance

• Inadequate communication
·
• Measures taken for agriculture marketing
• Regulated market
• Co-operative agriculture marketing societies Minimum support

price ( MSP)
• Subsidised transport
• Public distribution system
• Standardization and grading
• Diversification of Agricultural activities

• Sustainable development
• Organic Farming
• Benefits of organic farming
 ((cditthhee sa le of crops 1mmed1ately after harvest owing to urgent cast\ needs Ans (d) Use of chemical fertilisers
farmers

Ans (d) All of these

Ans (c) Organic farming

5. Which of the following is not relatedto agriculturalmarkf1i\lJ 1J8111,.,, '('lS'l

(a) Storage
(cl Processing
(b) Preservat on
(d) Use of chemicalfrt\l se\.
'
 _,.,.orl\1llN'f -Tl:fll GAU
1ND ,;cONOflflCS Db• RAV ll\JN

[Link]: rners
(a) Minimum support price to the';' rners
lb) Maximum support price to thB ar t ·1 rnar1<et
(c) Minimum price of the crop in there a•
Id) Maximum price for the farrn inputs
. he (arrners
Ans (a) Minimum support price to t
. rural areas is:
B. Theprincipal lingering challenge in
(a) the challenge of rural marketing
(b) challenge of rural credit
(c) both (a) and (b}
(d) none of these
enumerate the obj .ba
0 1· rnment.
Ans (c) both (a) and (bl gove , ·1,1J;.:i1
9. Long-term credit is required for: OZ ·examinethe non- nstitut onalsources of rural credit.
(a) purchase of additional land
(bl purchase of machinery . ents on existing
land OGIBAAnRaDly)zien rtuhrealrcoreled?itf. the National Bank for'Agricultuta\ and Rllla ·Deve
(NA
(c) for carrying out permanent 1mprovem opment
(d) both (a) and ( c) .. 4
Define aricutural marketing and the ca\t . , . • .
.., 0rnar·keting their agricultural produce. ......,
Ans (d) both (a} and J,;tb .N
(c}

[Link] credit societies are to

ensure: Q5. Discuss the significance .of the role
"Jllr"""
(a) timely and rapid flow of credit to the farmers
(b) elimination of moneylenders as credit agencies
(c) spread of credit facilities across all regions of the country
(d) all of these

Ans (d) all of

these

Veryshort questions 0

1. Define cooperative marketing .

2. Identif y the two aspects of diversification of activities.

3. Whatis the apex institution in rural financing?

4. List three institutional sources of agricultural credit.

5. What is the purpose behind setting up Self-Help Groups (SHGs) ?

 rnarketing.
09 Identif y the limitations associated with organic farming.
Q6. Explain the concept of crop production diversification. • . !1$6

7. Defend or ref ute the assertion that

Q [Link] y the objectives that cooperative credit societi'd
India' ran, n production is due to the successf
ul implemeniation- f Flo9d'.
Longquestions
Q8. Provide a critical evaluation of livestock f arming.
 ...,,,f11LOPIVIENT -THE GAURAV JA.I
INDIANscoNOlVIICS D.C.""'

3. Explore th "S . programme" and its signific

-
e elf-Help Group Bank Linkages anc
of d. on the necessity of agdcurtural diversiflcauon,ots ' an the t\N
4. Analyze the challenges encountered in
rural banking· 1 .

05. Expl · · · benefits d

oversofocation. . o t;
a06·. Briefly out 1i·ne the measures implemented by the Government °f Ind1·a. to
grrcultural market·
ong.
enl')
•o
[Link] a bri'et d·1scussion on "Animal Husbandry " and "Da·irym· g" ·
1
sOeBc·[Link] on the o·ncreasing significance of fi·sher·ies as a non-f arm emp ""' \
[Link] the.•mportance of horticulture for potential diversification al
agriculture. •nd v

of Information Technology (IT) in promoting sustainab1

1 - Elucidate the role
I1velthood s i·n rural
areas.

1. self e
It refers
In other
worker

2.
Hire
It refer

as a re'

Hired
l. R4
Wher
wage
\n \nc
Exan
\\.
\t
re
The
Wo
Th
 ··· C\.;UN
OM1cs oBVE
LOPMENT
·Tl lE GAURJ\V I AlN

EMPLOYM
GROWTo ENT :
AND OToE1FsORMALISATION
1
SUES
Worker
It refers to an ind· .
. . 1ving
wh T ofiv1dual
ypesworkers
I o is engaged ·in some productive activity to earn a
Workers are broadlY classif ied·
into 3 categories

Type s of Workers
f. self employed
It re f e rs t o th e w o rk e rs w h o ar e en d. . ·
t h e r w o rd s , t h e w or ke r w h gage mtheo rnw o bus ness
or enterprises .
In o 0 own and operate an enterpriseis known as se\f emp\oyed

worker

2. Hired workers
It refers to the workers who are hired by others and are paidinthe form of wages or sa\
arv
as a reward of their services.
 ,.,,.,.,.- ••""_,._ _ ,,..=m•w '""'

1
• Labour force ·11ing and able to work at an e><·
It f 110 are Stj
WI
re ers to the sum total of thepersons w t)Q
rate inan economy ed persons -
Labour force includs both employed and vneP1 1 /seeking for work
Labour force = Persons working + person availa

• Work force engaged in.s. ome productive

11
It refers to the part of labour force who are acwa 0 persons who are actually e acth.,it1.,1
Jn oth.,wo•ds, wo•k Jo•'"""to th•""'""" <no1,;•- I
particular pomt of time in an economY I

Work force participation ratio . nstituteS work force in an

econom
It refers to the percentage of populanon co Y
x OO

I•t rLeafebrosurtosutphpelyamount of labour that workers are willing to work correspon .

art·icular wage rate . - . Qt
IPnothe• wo'd" the labou• supply is tMtotal hOU" that wotWS wish to Wotk a •,
. .
wagetate t th, g·
Example - Wage tate - 500 tupees pet day - wotket is teadV to wotk lot 8hou1r0n •
Wage rate _ 1000rupees per day - workers is ready to work for h
------------- - ours
Distribution of fmplovment in the Economy

bav'
• Self Employment
0Regular Salaried Employees
0casual Wage Labourers
• Jobless growth I·11•
It refers to a situation where gross domestic product of an economy grows faster than
employment opportunities which results in unemployment .
In India, the econom y is experiencing GDP growth more through technology than
employment of labour. .
-·- • ...'"- ·r .,.,r_. ·•' l tt o
A
• Casualisation of employment 1ereas it increases the bargaining power of employers
:asualisation refers a situation when the percentage of casually hired workers
'in'tl18lto
ork force tends to rise over time.
1

en the skilled workers of urban areas are to struggle for regular jobs due to
rtfassivl ..-.. .... ,t-.,
em ployment in the countr y . Unemployment reduces the bargaining power of wo
en
• Fictional unemployment ltemporary unemp\oyment\
It refers to the unemployment whichexist duringthe peiod
1
jointhe other [Link] people are mov ng or chang ng0
 -r oP1'1£l'ff •'f}fE [Link]
b "IJ"'°"'i;cor10 11CS p6V.....-
1N
v Jl\

Seasonal
INDIAN [Link]\1

unemploymen d ur
ed
IC::S t:lll'Vi!to

;ng few months (Off

re unernplOY
Se
"'-'l!Ni- 11
'

.._-....:.!f'_., •"•
0AUl\J\V IMN ..
be a )\ry
\ •, ""here
.
...,.--==
work f
. Elso,..1 1e. ..
orce co
It refers to a situation in
I • which peoP
18 8 -...
tiis
even. '
after •rn
Ul
s at certain seasons of t'- plern

!lj
d tO
,e81e t •ntlng t'
occur ••e l1lai.......
1 0
year due to their seasonal .,e t o rise· "arlau.......,'!" ot
work. l>Oiiulati

ent wh•C

d employment are seaso

'f,
. -.. I on comes
h under wor\
[Link]
d P ans h

11
s
d
S
t

.
.
"
'

it roduc na1
11
ectlve '
educational •'latern ·.
i aunernploy
In
other rype of
tion It e rate ol unemplovmen\ 'J 1.•.. ...
,s rn
words an
Example - industries
where demand .P
·'I\ pef ation system of the '· • ,,, •
9
• fn
touri s'lst •a a t conorn" l
0 sm
and . . h
e arO\!ncl
leisu
re,
farm .
ing,
etc ct1v
1t1e
s
who 0are willing and abi
mployment
n8 e s degree oriented
and rn_dOesn'tfita
'learsold due t
.
.
. luntarv une .d•ah all those et
t
lob 0ocontmuou11
le '
t•.,.Pra.e
ot
•
• Open unemploy ment or mvo, eS· chanc;ie1n .,, , c.. ·t r ntec1,._ ,.
ment in wh•C 1 ntscenario.'The education11vstem
.0
"r ifl lfl
1 85 It refers
 to a condition of unemP oy work.
n and counted in terms of nu....
' .,.,t :·""'1"··•· Ulia.\he "Iis not Prirnarit
9 educational unemnlovmen \ d bY a mismatch between
iflcr
·
fil/6 Ye country. Moreover
• •b
the eough to abso
it can e see
b ·"- ' "" ... ·
at '
·•1 h . ·' ,. ned for emplo'lment
the . .. .,,
ing ' c;ieneration.
exis ltY plann ..
· Structural unemployment ment which is ause anded by the employers. te s. rrot11 tion to urban
ting
areas , ... A .'. ana·could not be increasing rate ot unemplovmen\
wag It refers to the type of unemploy ff and the s1<1lls deI f many workers obsol It is
0
e poPlll
, ,,,. ._
rate &<I t........ bleHtO<Stop the migration ot rural
does h · h
my can o
n't er
· b s1<1I o
get ete ·"
It is called open unemployment c planning of our ount nom . ••;...Q>n t
becaue a countrY at workers m t e econo
\ , fe"' 0 d tion that makes a JO
rs e ec ds to structural
f fn unemployrn .
on " cessive
i ars use of
foreigntechnaiOQ
'" brought by technolog y
n p1ans up gra a riter would
lea
d are not 6nt i ,
"". onsidered to be a
efficien Labo .'i(e
t t Example - decrease in demand of typew - · - .- .
U\ 1ndia ' c
h xceptionally high Sur In ensive country
e
10rce is_ e
that it can . · uch country should• Where the amount ot available labour
n roduct1on so .
u give employment op
m . dopt labour intensive technique ot
.
Cycl1 cal unemployment . h arises to
Pdue to excess. 1ve use .of foreign technology
b b us•·ness cycle f lu ct uat1.o n . Portu.nit1estq maximum number ot people but
e
It refers to
. . . s. ,.e ornoted whi ch subst1tute capital for labo
r ./capita\ Intensive -technique ot production is
pr the type of u•.
o unemploym
ent wh1c
f normal ups and downs of the econo Y· clical unemployment is minimum
u Where .
When the economy is at boom period the cy
n
e as
m
underdeveloped agriculture
p the time of recession it is maximum . ·-- -
I _ he agri culture
sector in India is underdevelo ed . .
o
"'he
y maj
ority
e of
d peo
ple
of
p the
cou
e ntry
rel
 va
P
henc
a e
provide resu
s ts in
s
employ une
ment. mpl
. oym
ent .
I , Low capital formation
dSlow rate of economic growth . . ,
Increase in labour force
ay The rate of economic growth in India is very low due to which the economy 1s
agricul unable -
ture
' generate adequate amount of employment opportunity for the people of the
• Educated
for h' unemployment n doesn
natu re of'tagncu
have ture
the right job
oes not ....,_np1ovment
provide a stable .
It refers to a situation when an educated perso
but the seasonal
•meq,for,tbecom economat'J.!'-'!!lll!Tlll!l btotheta
p\ete'f ear. !llflllll11!11.1111!"1'-
also their qualificat· "'-·
1rnSe11 10 Moreover the rate of labour force is much higher than the rate of employment
• an economy,
be
Jack of employment
ca
us
e
doe rt
ronoppo ·res in
, Decline of cottage and small industry
[Link] llliiilllillliillli
.
growth rate of GDP
• Accelerating
,,.
of um 1 • Population explosion
Sn't In order to achieve the state of f ull employment growthrate of
i
match with thejob. f h 't
w 11 • b
After The constantly rise is population is one of main reason of unemployment in India.
independence the number of sm II · d . lndia i growth rate of the economy must rise by 3-4% lS.6% - 9%\ in
Faulty education system lack of employable ski lls, preference o r e co ar JO
s are solll n of demand
and preferen c
a m ustnes has dec\\neo,dueltO change in the:
. , .
f
-=
patter
.
eso general public; h
,......._..._,,,, .,,."
of the Emergence of md .\ . .
.og
• •• , ,· •• •

reasons large industries with latest o . \

c
.
.c .

responsible . er
for this n 1·
unemploymen
t.
tee no y ca ,mt
t1 p, ens"
8 ta '
1l
d
tech
Causes of unemplo yment e

roductio
n
reduces
the
employ
ment
opportu
nities
the
econom
 ....
i;VJ>i.0pl\J61"f -'f}IEGAURAV I

.. ......,,••••"0 ""'

the increasing er
unemployment reased so that the add· rnploved
. be deC
Id
.•1
. rkforce I ia" orl<
• Control over population ountrY shOU f existing wo · 'Ii. V' 5elf e
The rate of population growth of the c large nurnber , be introduced. . ., ' , ·1 red \/l/orkers
opportun ities don't fall short off for the Janning shou vir - • :-- , t- Regular workers
1
Programs like singlechild norm, family P . ' casual workers ( Part ti
. dustries all scale and cottage industries • r f orce me lb
• Encouragement of small scale'" 10 yrnent srn tax free, liberally credit s l'll11'1 L.8bOU
fn order to reduce the problem of unernPal ways such as ·ve technique of produt-1\Jbsiqi' • .•10rl<
·n sever · tens• · Ofl vv 0 pply
force encouraged by the go11ernment 1 Jabour 1n
rate tor raw etc as . 0rnotes
11. r s , , "" 111 8
1. < '''-·"
Yti.:., •
•
·° b ur SU
L. bless growth
materials , ..1 ,, l
increases employment opportunitie .. . ··· • JcOasu alisatio.n of employm en·
d A new model based on • lisat1on of empl
·
• Change in educational system ust be reforrne . . al studies Mo Woflt 1nforma OVtl).e·
The education system of the econornY rn ·th the vocation · re e'llpL • f ormal sector [Link]·
. d d along w
1 . · ·dual rather than degr • a... • I tu
skill development must. be 1111
. mclu d d e11eloprnent of an 1nd ee Ori "' •
lnforma sector emp·
should be given on trarnrng an e . l I '' ., I-
, nn· . J. .tl·•-· . Une......ployment
education , n ' "- . '· • es of unemployment
." - . d , WP
unemployment
Disguise ot .
• Encouragement of selt-emloymen_t. . to the public to generate _more [Link] f ictional unemplovrne'ntl tem M 'l !ml\'t \
Government must provide vanou facilities . training. easy credit etc. lncreasev_rnel\\
1
• Make in India
1
It includes facilities like marketing . techntCurden of providing employment fro in • Start up India campaign
amount of self employment reduces the Ill t

t
government.
• Change in technique of production
Basically there exist 2 types of techniques of production .
1. Labour intensive technique (more labour and less machines)
2. Capital intensive technique (more capital and fess labour)
lndia is a labour oriented country, it is essential [Link] .labour. inte. nsivde technique
rnust I
e mor1
encouraged by the government in place of capital intensive rn or er to provid
empIoyment opportunities .

Government policies and programmes

Thegovernment of our country has implemented various programmes in
order to develop technical skills and to remove poverty from the economy.
Such as
• National rural employment guarantee Act(NREGA)
• Sompoorna Gramin Rozgar Yojana (SGRY)
• Skill India campaign
 • seasonal unemploymentir·'.lub"3 \blrv u 'l'P el\t> • Def ective educational system
• open unemployment or involunta • Faulty planning
• structural unemployment rv un , t • Excessive use of foreign technology
• cyclical unemployment • U nderdeveloped agriculture
• Educated unemployment • Decline of cottage and sma\\ industry
• causes of unemployment • Low capital formation
• Slow rate of economic growth Population • Increase in labour force
explosion
• Remedial measu res for unemp\ovment
 -d0Pf6l'IT' -1'H£ GAURAV
U>IDf;CO,.;oM' cs pJ>V.....- IAIN

Multiple choicequestions ce 1_ 1 ..........

d- Labour for f 0rce
1. Number of persons unemploye - (blwor_k. tion Rate
la/ Supply oflabour (di part1c1pa
(c) Total population
Ans (b)
Workforce . parison to males i·s anindication of:
kwardness
2. Less employment of females incom (b) social baC
(a} economic backwardness (d) none of these N01
(c} both (a} and (b} r • to

Ans (c} both la} and

(b} h following?
3. Unemployment leads to which of t e (bl Lossof output
(a) Loss of manpower . (d) All of these
(c} Declineincapital formation

Ans (d) All of these .E xplainjobless growth.

4. Which type of unemployment is found in the agricultural sector? 01
(a) Disguised unemployment (b) Structural
unemployment
(c)Industrial unemployment (d} Educated unemployment

I I What factors contribute to a hi9 h .

Ans (a) Disguised unemployment 4
5. Unemployment arising trom economic fluctuations is called: rnployment compared to er proport on ot men \n regu\ar sa\ar\
{a) frictional unemployment (b) disguised women? ed
unemployment
{c) cyclical unemployment (d) urban unemployment
5. Explainthe concept of casualisation of theworkforce.
Ans {c) cyclical unemployment 6. Define the labour force participation rate.
6. The number of people who can work and are will ng to work at the existing
w 7. .Which individuals are considered part of thela9_urfQr
rate is known as: Q yrn.10 age
(a) labour force (b) workforce I [Link] disguised unemployment.
(c) labour supply (d) participation
:'I
rate Q9. Explainformal sector establishments.
Ans (a) labour
force
01O. Define the informal sector.
7. Percentage of the adult population participatinginproduction activity is called:
(a) labour force (b) workforce Short questions
( c) labour supply (d) participation rate

Ans (a) labour force

 t based on gender.
roymen
02. Examine the distribution of emP d'
. I n ia .
ment
3. Identity tour causes of unempiloY in
ment across various sector
of
emploY l\ l)j

4. Briefly discuss the distribution

economy . . structure of ernploym
ent
·
\
. . . f h chang .
5. Provide a brief overview o t ing
. ues in India .
e
ent iss
nernployrn
6. list four measures to address u . he informal sector.
rs 1n t
d by vvor ke
Discuss the problems encountere te employment can be b
efforts to genera t(l<llll
Comment on how government 1
categorized into two.
loyrnent data.
9. Explore the various sources of
unemP "
" . . d Unemployment.
010. Explainthe concept of
D1sgu1se

Long questions
main forms: formal and int
Q [Link]
employment and dl·scuss the two orl\\i
employment.
. of unemployment in India.
2. Provide a brief overview of various causes
the
workforce based on rural-urban re .
3. Discuss the distribution of male and fema 1e 9 10
1.
in India.
It
[Link] l y anal yze the [Link] of emp Ioyment across different sectors ot e
tk, It
c
economy.
d
[Link] various remedial measures required to address the issue of unemplovrne
11 in India.

[Link] formal and informal sEfotors and discuss the working conditions in ea '
sector.

[Link] the concept of casualization of the workf orce with relevant examples
ar.i
facts.
IRAV JJ\
- ,... -
n
I hand the
lN , in totality
entan
ce of all
the
. . ro
(non 1ving e nr . .
I l ne nt
the b1ot1c
e . (living
elements)
1 m el and abiotic
e i
n n
t c
l
It' u
d
e
s
Environment refers to t e
, resources. r
he total Pia n
e
n
t
s
W
h
i
c
h
.
a

Biotic I
e ernents -
L' ·
Functions of .
ononiy A
fies resources environment
>tainable s u P P nt provides various •
v i ro n me e p
eresourc h and they are available at free ofc elernents
nec essar y for the process of production cost in
es su as wood,
non minerals, soil etc . These - element
the · .
resources living s -
vironment air,wate
r,land
ironment assimilates waste etc
E
.onment absorbs [Link] waste generated in the process of production by
humart
·nigrv [Link] of the waste.1s necessary for the survival oflife on planet earth

Enhance the quality of life enjoys these

vironment includes land,fore surroundings
the scenic beauty of these proving the qua\ity of \
if e.
le
 11

,
,
Increase

which ultimatel y result in environment crises

. ozone layer is a region of earth stratos h -·

• Extraction of esour_ces . of both renewable and non-renew ble resourc fhe sun ultraviolet radiation. It contai P _ erelalayr o. f ..tm!S ;that. !_ _lbsorbs most
Ex tensive and intensive extraction . nmental resources due to whrch sorne v of the f the atmosphere .It protect th ns htghconentr n . + at onto other
decreases the natural reserves of enviro . parts o I . f t th d s e planet from direct o\etrays
. f t. tion · ....
resour ces are at the pom t o ex me ,' •
." .' .. .
. 0zone dep
o e estruction of [Link]·"o'z"o"[Link] [Link]
·· etr(oCnhrie erfsl hgh
system ,hampers the growth of otherliving elements ·
level
etc of CFCs oro uorocarbons) andbromine compoundsinthe at ··'i?
• Affluent consump!ion h
It refers to the spending of money on t e acquiring of luxury goods and services t PUbliN. CFC s is used as coo l n g s u b s t a
'--- .- - - . .: = -- .. :. : . ::.:n..:c.::e.::n.:.AC
display economic power of the income. and Refrige ci . . bi
. ."I! Effects of ozone depletion
Increase in the trend of affluent consumption of developed countries increases the amo111 Depletion of ozone layer allows more ultra violet radiation to=c'Ome1on'e1\ftt\1'»h\Ch
causes
of consumption which leads to a greater demand of resources. .. v . - · ,• • various problems to living organism such as skincancer, eye cancer and dal\\ 19 of
mmune

Pollution
It refers to adding a [Link] in the environment which has harmful or poisonous effect.
In other words, pollution refers to the introduction of harmful substance in air, water a

;>,: : \
,L

r '"•••••l•l•.•,...
 \JN ... ""''"CON0!'1. !csn _
' - .«-·"ir.
.,. """""
111f0Jl\N ECONOMICS 06\fEJ,OPMflNT • .,,.,., l!vlll()
w ·..., 1'1\11\N"r
·lltl!o...u

"..o••o• .......
5° to the removal of 4.,ef
er5
re

ess
enti
·al
for
th
UpP
er.l
ay
, ·
11 icti 8 e Qro er Of \I\
, .
(I
0S·
llVtl
\ Of
e
IQ
110
0
tio
n
of
mo
re
tre
es
c

. "'
.
·Pl
am,
.._.l
'Vh
ieh
co

.
4 s· d .
n<'M
.,,
5.· P'
I'&
· •t 1
•nuo'°n
po l/·-11
'.oo<''"them
'v e from
Y w·'"" '°" nta1na 9

Onpd1he Proce"''n;:.. , .. .1s

,o0 M
6
fl "°' •·''"'"
cause"d'bm"°'hV of [Link]
·
anagemen•off<e•h waW
°''·
.,"°" .
"' · "''"""n
d·,o<'itv loos d
'.'· ' •'
9
i
0
I
.
 ef p
'
r
·
e
on
h s
· Defore.'8•ion o• Deg,.darion ofland . . e

•; &i'""" ' e<s to the Vor '<h•l•Y •• ol ••\\ n

fo1•1esfe•1uss•eo.•he ',;
0• ; t
•o ."'"'" ·
t
"mo val of a fo•"''o• "and "
"fcom land wh10h "•h en
vo"t· ' .t
g

conveneo.
'•to
.
"' booots
y
ot
e

ecosyat n
•Ihn other words, It refers to '\ ,1o1' em. I life In the wa0d e
cutting ' clearing and removal an - o1·
r
of rainforest VVhe I importan pr-.
t role . .-... a
•·
. . '"' - '" • ti
e rna th
r h P.' ;ve•s;w P•rt;cu
o
ec oonverte loss cetera to - l"
. " Pro -•Wheth
d •o a non- 11oss o ·. ion f n
-
foce••u••· ies ina c
. 'l
.
One of the main priority is'"9 of envfronment "defo••""'on. lndustnes \\
;- 1

o
I•''
u
t spec· ·
t
the extinct·
p
lliea
"""'of [Link] by pcoviding va1i•!Y of good<'nd,ecvlO•'b"' on e ot e
e1hand it •· " . II"' •ltam httb r
. ...... M
•moll o<la<Q• i
whole ecological system ' as industrialization leads to [Link] and
urbanizat·•oISntlJrb". n
'
g
-•--·
ant or animal\ -·· h
q
mo o" amoun• of /and
fwhioh ' "•' e

-
uJtima•elY Jead• •o
deto"stauon. Moce and w1 e,ondel >h•
mo "a d
- g e

evelopment v

of e
\
 Here, careful use refers to the pace of
opment consumpt onin wh\c'
, Carefuluse of renewable resources
future shout not exceeds the regeneration
rest are for the purpose of file [Link] is known as [Link]
development of cities and development'Jtni llefQQ:) r
towns ·
OIJt ·
Chipko Movement ener . motive of sustainable
development is to ensu•
/ Chipko andolen - at1theopresent generation
basic . .
• The chipko movement
movement
hug the tree
(in north)
(in south)was or appiko
a fore51:.i
--·
fil0e Id g1.v es a •
·nextgeneration
what
nt
quality of hfe to the
the prese wh [Link]\ess than ' .:i .'J> r-
,,_.. .. ..
sglel nuerat1.0 n inherits a:tbcai \
conservation
movement inIndia. .
• It was begun in 1970.
• In early
•t iaeq ••. .
1970s,when the
felling of trees by
the authorities has
started-in sil'Si

district, 160 men,

women and children
hugged the trees

and forced the

woodcutters to
leave.

2. Land Degradation on
It refers to the decrease/ decline in
sib
the productive capacity of the land.
In other words, It refers to a decline le
in the overall quality of soil, water for
and vegetatioa la
con nd
ditio de
n gr
com ad
monl ati
y on
caus Deforestation
ed • Forest fires
by Improper crop rotation
hum
• Indeterminate use of fertilizers and
an
pesticides
activ and irrigation
• Improper planning
ities
systems
Non adoption of adequate soil
.
conservation measures
Fact
ors
resp
 IS.
,-,vvr,ui i;coNO"cs vsVEL()PJ\'f llNT - THll GAURAV
ll\IN
INDIAN l!CONor.,1es ll"'-
- [Link].,
·-' ;Ifi,,......-
l tl!. 1"v 1iu,.

• Pol/urlon control . oflution. it includes all

type of Pollutio (1r1'ent friendly culture o·
Here pollution does not only means arr
P_ ve sustainable development, the di
I)'•11
/1roiS 8 need to developlndi
land, air, water sound). In order to
ahre pacitY of ' the environment.
•cti, ..\ .1,.,splB -[Link]
(Ayuv_edlc
-..
ptron ca '' r" f'·-·
lnd1a
·
pollution should be limited
.. .'..- . " •
to the absor

v'81f11ent
8
• Input efficient y which is input
techno og
efficient a
l"ld 0111 ,..1c farm0
technology ing
d •
0
There is. a need of pro
same · .ucing food n1
f
such production · n l"lot.'llt..
1 • . 8 p,
.n
[Link] .
amount of resources
input
co ."'I ,,ds ri1.!
ns
11e1yi1neldthrnegvtraerniedtyo
um
ing _of f soeredsla
;.e. 9
mo
re
am
ou
nt
of
pr
od
uct
ro
1

Strategies for sustainable development

dopted tor sustainable develo

1 cr des which ultimate y Q&n c f1

8 · . · that can be
r P Pille
11c• .
,. U·
ere 1s the list of various strategies
l"lt
,.1,S
i.1r111 rocess increasesth . •
1
H 8
ement of waste
8g
I•n pUl

..
p,oduce pollution , fo'
asceeofocf le•amnoekr
efueemlsitting luel• life coal exomple -Liquefied be
and pwoleum ,uch fuel• arn ''"'-.
to
ILPG!
g"' (CNGI
a<Oa>
P•"oleetc
·
, Comp,med natu'"I
, goW•"'in
"' .
,u,al
con,,de,.tlon which do., not
 f,481'1 ·
• to control w,ater_ nolli der e
• r
o J d
r
T 1
h s
. '" bB done. 1s waste s'"':.!l
h
o
u
s
e '""'1 [Link] t .. -
,,, 3ged· wastage of; o
an . .
111 nic farming
or93
• Useof non-conventional sources of energy b
The sources of energy which rJlini· hydel plants
comesinto existence in the recent ' efers to the plants which are"'[Link] e
past are know 11 as
conventional sources of energy . nlli\ It r
U89G t0
a
In other words, it refers to the sources of water.
energy which has been discovered just here are plenty of small rivers a d 1 n stream
becalJ be e
installed
modern technology ( usedjust from past in. n
few years ) those
Se areas v
through
For example - winds power, solar energy i
etc [Link]
Use of such energy is beneficial tor inlmoun,t r
environment as well as for human -a• plants o
beings as th.. are
environm n
sources of energy are termed as green ent
sources i.e. t!ieY does not pollute friendly m
and are
environm -""' e
can also be treated as the substitute of capabee
conventional sources of energy cotrficit n
ent a Y t

• Public means of transport f

In order to reduce the consumption of
petrol and to decrease the amount of air r
Poll . i
public transport must be taken into e
consideration. Asit reduces the amount of
n
traffi;8111 consumption of petrol which
d
reduces sound and air pollution
l
For example - metroin Delhi
y
• Traditional knowledge andpractice
In c
dia o
is u
n
co
t
nsi
r
der
y. n
Fro
m e
anci
n
ent
v
peri
i
od
the r
peo o
ple n
Ind m
ia e
are n
ver t
y
clos f
e to r
the i
en e
vir n
on d
me l
nt, y
our .
agr While shifting from our tradition system to the western system we
ignore the·pridu
icul
tur
e
syst
em, '::;.o y-
r--- -L -;a-
tran
-- -
spo
1W••· . ,
rt,
,_-_,_- .
hou
seh
old
ha
w
bee
 '2'"""£ 11urnans etc
.d plants,
". . · s - b1r ' r land etc
Biotic elements - Uvmg beln9 _ air, wate '
. . elements
• Abiotic elements - non l1vm9
• Functions of environment
• Suppl es resources Environment assimilates waste
• Sustains life
C
• Enhance the quality of life
Carrying capacity of environment
Absorption capacity of environment
• Environment crises
• Increase in population
• Industrial revolution
• Extraction of resources
• Affluent consumption
• Pollution
• Global Warming
• Effects of global warming
• Ozone depletion
Ef fects of ozone depletion
• Challenges of Indian Environment
• Deforestation or Degradation of land
• Land Degradation
• Soil erosion
• Biodiversity loss
• Air pollution
• Management of fresh water
• Sustainable development
• Strategies for sustainable development

.- 5::-h +
Ans (cl both (a) and (b)

Ans (d) All of these

Ans (b) economic development

 INDW'J i;coNO·cs og\lfiLOpt¢• THB GAURAV ll\IN

""'"m'""highli9h"oh•"·'"·'r'"'"""ot. <h o •ov;

J8oJIav "".ov•• pdvo<ioO
""'" lofe
'°'
(•·J W"ohHicoh'of th•lo/lowiog
fbl "'""°"'" qv•l"Y ollole
cdlA" ol<ti•••
'Oo
'"<1

Ans (d} All of these

. onment are:
9. Thebasic problems related to the envrr
(a} problem of pollution . . f natural
°
resources (bJ problem of excessive explo1tat1on
(c} problem of degeneration
(d} both (a} and (b}
Ans (d} both (a} and (b} . ?
. ute to air pollution.
10. Whichof the following factors contr1b
(a) Smoke emitted by industries 0
f hernical treatment of the mater"1 1
(b} Poisonous gases emitted in the process c as
(c) Emission of gases by motor vehicles
(d) All of these

Ans (d) All of these

Very short questions

01. What s encompassed within the term "environment" ?

2. Whatare the contributing factors to air pollution in urban areas?

3. In what ways has the supply-demand relationship contributed to enviro

degradation? nrnenta1

4. What factors have caused the depletion of the ozone layer?

05. Define biodiversity.

6. How do the high opportunity costs relate to negative environmental impacts?

7. Define non-renewable resources.

8. Explain renewable resources.

9. Define biotic elements.

10. What constitutes land degradation?

'.# - , ."T
&_ rJ. -·--••....
r peveloplll 151
e$perience Ofl e t
with neighbo ll d1a:A. compar·
In this chapter Vve . Ur s 1son
countries (India p ill study b
. . • akist a out a
I
po 1cies after independ an and China) comparative study between the 3
ence. and look after the outcomes ot their
• All the 3 countries
. started th .
and Pak1stan got ind· e1r Path f d
commonly known endence in velopment at the9same
4 time,
India as h1na) Vvas est b .
whereas the republic of china l
. a hshed in 1949
• India and Pakistan ha
'Statism' (Publ' s adopted mixed
IC sector is assig d economy w hereas China has adopted
ne a key role in all the 3 economies)
Statism refe s 8 'I
centra1izell oi'rft teal ystem in which the state has substantia\
6c1al and economic affairs \a\so known as
centralplanned economy)

Deve\o pment s trategies

China .
er the establ ishment of rep,u nc of ChWa in 1949, China adopted these
strategies to
inthe path of development
ace ed
 _..,,_opM'i;tff - Tl-IE GJ\UH/W 1
,,.'fl(/J'J c0NO"''cs oJ>v--
6
1\1111

<o"ri•wn
mm"oi•'port o«hin • h•• inJ•••uc o'1•'°"",. .

n '965. Mro•o
"•rt
'" " " '" " " ' ° '"'I
n g < h o< h • i •m 1
D"oJ<h• "'° o g1am,·
• G'6•<p .,••""'""'I .-Judon
prol•<••i•n 1 00 '•" ' •' •di

A1 '"''"' ' "'°'"''°" P .761·

n•<• · w"""
"' JO
'
wo k " I'"
" "" '••a.
o,[Link]•enfwe"a.
to <ho ::8" . 11

966 1
" I" oO oo "oO" -..-I ·-th
"·
..:.: :' ';,; .:;,: : ;: nd 1h• "''' proble ; '"',," ' ;o P ublidc inestrnent sudden
ond<oh I
•polices
Refo•m • Phin
1
o p °'" ""io<he ""ofd ""'opm•"'
0 " •
'"o ' •;.•'"
,ol• •"'"nt
'"
i Pok ., '""•
.
, ulnco
.
u
".....,
'''°"=•• ,
T '"' 1 1 P' d oodenoe p . ' .... ' •od
he government of
In in ··
c'-' .. . d d reto<"'';n 2
"'n•" """' vc•
diff•""'
-
ph""·
·
' I ;o oP ' ak"ton . . '' ·'" -
JI' o•""'eoonom '""""
' ..._n •
,...,."'"
I<
e1 '°'"1'1"o"w'e"d ' o n d inavlle<'hlem,"'''•t
JO k e e p to tho
includeo"•lloo·o'1o°n''"''w"e'<'•°ignie'1n
• ' io;,,,, w"h"D"w' pIdjs't'a•r'i d.1rsi1o1oodnu. ced .[Link]

substit , . .v, rous Poil ci "to ..._ th

· •co"'•'•'· ,,•"" · .••t•·oo
.-. . n. ·. d
<he lond oh"[Link] cortoin
minimum'""
n the later .. U
... -d • •ed't
"'°'. _. · •· o·m...eost-·c
· · I t h" ' a"
n
'er h " '" • · 0

. '"""·"fo<ms w"'initioted '"'"du"'" ,ec "· "t "·p 1;v • of pnvat• secto. ' •.·•" . ... •O o'' ......_'· . .,....,
villoge en< · ate
f1
fl''' - ' · """' •_,.,_
goods. are allowed toproduce
erpnses " "' '"" 'be-.
""' rrri8 • 19c8o7n'oPrnaYkiasntadnbree
al"z . ..at or·
"
nn • --· • .,..,.• •ctur\ onsumer
11
I
• Dual_ pnc1ngsystem
. ·• . . . .. • Ot•"denat;onali,ed andneee tn·• 1•9J\1·\M!1}la;·Ute'"aveJ:t&r "I' A
cco1d 1ng ,.
·
o ""
·
ncouo n."1 1!• " '
·••""! !'4! !· 0 0 .. · •· ...th d
b
oxe is system, the farmers and the industrial units are obliged t ·
I q ' ! !
· ·.......;: ""' 1\1...,;.:: """""""<ol ·
quant'f
sold
A
' ' 'of '" ""ond outpu" at the p,Jco fi>Od bY tbe govemment Uy ano
and pu11c0b11 '"mDlk•t p<ice.
, support . . ...,,...._,,
and ""°l'le1, 10 t'h'e m"[Link]'bl
,,,co• 8 evetopmenJ
' ·•Jhe Uvust .,•.,
oosPtPtohret gfrroomwWtheosftern na·t o•ns and
1 .. . .the conolT\'fl remittances from [Link]
fi d 0

· These zones
• Special economic zones (SEZs) are set-up with the aim to increase'foreign investment. TQ n1
In order to attract foreign investors, special economic zones were set up.
It refers to a region that has economic laws different f rom countries economic
laws Example - cheap labour, lower rate of tax, subsidized rate of electricity etc
 , population .
graphicIndicators China is regarded as the country with highest popuat on nthe
1. peo to the structure of the
population) 1Relat1n9
izwhereas Pakistan is far behind both ofthem.
[Link] . 1947 the pathway of development 01
India and Pakistan both getsitsIndependence m ' · , I Population growth rate
1

Pakistan after independenceis as follows - ll Population growth rate is highestin Pakistan l2% per year) fo\\owed,

• Mixed economy
As like Indian economy, .
also adopted the concept of m
.
1xed econom for
Y the path
C I
China ( 0.6%)
hina has the lowest population growth rate [Link] an(H>ak(st:
.d
norm (One
.
d . . .
was
. , 'h·; mw o' m 1 Q J 1 _
in c i in \
Single )
Pakista chil chil pohcy whic introduced na
of n h
development
It is a type of economy in which both private and public sector are participating iq, Sex ratio
productive activities. The allocation of resources is made by the government for removi It refers to the ratio of males to femalesin a populat on
the central problem of economy with the help of private sector. Since, Private sector a In other words, Number offemales over 100 males ' . .
. . h" h " i\lf."11'0''fl'
Allof the countries ratio w 1c represents tne son pr
1
guided for maximizing their profit.
has low
sex
(
 • 11'1D"E co""'""'"-
/ ,;
-- 52;n
9
economy. . ctiina and
It s estimated to be 940in India, g50 in uallY quoted per squar
• Population density 't of area, us e kilol'I\ '
It refers to the number of people per un•
square mile
. densitY of china is
the popufat1on k ) and Pak· very lo
Gt"
3 1
Due to huge area and single child n_or persons per sq. rn istan (19
58 ltv 1
V· ono">e r
P•"°"'•Q. kmJ in compa,;,on <o ··-
, · .,
rnd" I
per sq. km)

2. Gross Domestic product and [Link]·rsabout 9·5 % which w·as4h1igoh' est in all the .,. co
• The average growth rate of .china·is· 5 8 o/o and pakista·n is · · lO· h llritn....
whereas the rate of growth in Jnd1a is · . product in china wit 37 % of it . ""·

populatio .
engagement whereas in fnd1a agric .
. . · 1 % with en9
Afterindependence china has been shiftin9
agernent of 45 % of
n .
PIJl t "'
9flClJk
111. ·
Agriculture contributes 9 o/o [Link]·duofmtueresticcontributes 19% with 56% Ofs plr0vlo.rfOt11.

engagement andin Pakistan 1t 1s 0 • • ernpfoyrnent and output from a . ..,· ""

2

manufacwing and <hen <o ,,rvic."· . tlY to ,ervice ••cto' ,- 'I

In Indra and Pakistan,the shift is taking pface direc

3. Human Development nd cators

• Human development Index (HDIJ - higher is better .
·It di.s a statistic composite index of life expectancy·, eduf chation adnd per cap·ital in
rn .cato,,, which a'e u•ed to ,ank counUieSinto tou"'""o uman evelopme ""'
The HDI of china i• o.752 whe,ea• India and Paki•tan i• estimated to be 0.6:/t, 1 ·.
" pectiveJy 1f1uHt>l'JQOQ "'-r'T tu .· .•n'd\,0,..561
JtUIOUlta

• Infant mortality rate -lower isbetter

Infant mortality rate refers to the number of infants dying before the age of 1 year Iler
thousand live births annually.
The /MR is lowest in China with 11.8 per thousand, followed by India with 37.S
thousand and Pakistan with 50.4 per thousand Pei
1'I
• Sanitation
In context of sanitation, China has the best performance among all with 7%
1 'of
population has access toimproved sanitation compared with
ldi
39.6% in
&a :63.i
percentin Pakistan ·

• Undernourished population - lower is better

An undernourished personis one who consumes less than the required minimum) amounH4
nu tritious foods necessary for heath and development.
 Development strategies
China
• Pakistan
India p kistan and China
C omparative study of /nd1a ,
a
Demographic Indicators '1
Population
Population growth rate
Sex ratio
Gross Domestic
Population product and sectors
density
Human Development indicators
h1. her is
Human development Index (HD/) - 9
better
Infant mortality rate - lower is better
Sanitation
Undernourished population - lower is better

7. The public sector was assigned a l<.ey fole \'{W 1m>cesS.'

Pakistan because
(a) both the economies neede 'big pushof .i . _\W 'o
the partition of the country had renderedbothof themragg:
both (a) and (b)
 -n::IPPJ\«5t•fl - •• -
,.,.wlJOJ'I i;Col'l01'fl Jl•- --- -- •• "UN
CS D

Id) none of these

Ans le) both (a) and (b}

:; Conwn;ng 'S<a<i•m' "'mod•I of g,ow•h,doP"d bV China, choo,e 0
a<emen<. the
(lbrao// dOThwenpenvah<•'Pe of•c"<o,t wo8u'«<h•,d,o.
'• •c:i
<,iddinw9i<hu<<hh<oti•V tc•on«'".'"" what to P•od
(c/ Th
uce and f °'whom •o
0 t e, h
pcodu<" U
(Pd/ Noe "a<e was'° main<ain <h•poP"'"ion ·1
0 O'T1
neofthe,. •
wnership of all resources vested with the state
Ans (a) 0
Pakisra vse a compaca<iv• perlo•m'"<' of the economie< of Ind'
(9a·l CThoina'nawal hoch ofthe following ;,.he coccect? ia• Ch;n
(bl w;th thchoeved a bceakthcough in GDP gcowth In the eadY 198Ds '""
GDPgcowt: New Economic Policy (NEPI inJ'face. Indla expetienced a ,.
(c) Economict f . . . .
(d) All ofthes otms m [Link] wec8'1most simolar to that in Ind l('
bouno.
fa v •n ;

..... • ,....... k

Ans (d} All of

these
10. Which of the following observations highlights the common success story
and Pakistan? Of
lno;,
07 . Enumerate the various f actors that have ·pr&[Link].i !I
(a} Both have succeeded in more than doublingtheir per capita incomes
(b) Food production has failed to keep pace with the risein population China. - .tr.
(c) Food sufficiency has been accompanied by improved nutritional status

(d) Both (a) and © • I ,...._., ,. •, f -' .. II ,, • I I I"- ··-- IU'- 1(_ ''' ,u . J r. I

1
Ans (d) Both (a) and (c) ' ' · , • ' J 6

Longquestions
Veryshort questions . .. _ - - · ·"'""' ...I

"n"
Q [Link] the common feature in the development strategy of India, China,and
Pakistan during 1950-1990.
03. Who prepares the Human Development Index annually?
[Link] is the name of the program implemented in China to control
population
growth?
 04. Can you create a comparat ve table illustrat ngk'li
Q3. Why do societies, including thosein \ndia,1Ct\lo:
preference for male childrenover female onesr..u\Woft;1
 .1. ...-.- --

e c o no m i e s? approaches countries are employing to

0 7 . W ha t
are some

In where China holds a competitive advantage overIndia.

08. List five areas . c. u
 J fIOV RS
,le: f; rNSTRUCTIONS:
'. ;. . M.M.-so
. question paper
contain ·
f secti on A - s two .
'/.5 Macro ·
. Econo Se. ctions .
Section B - Indian E Illies
. conomic D
1 ffliS paper contams ta. 20 Multiple C . evelopnient
, . . paper con 4 Short A ho1ce Q
f ' ms nswe Q uestion
J. . 11 50 to 80 [Link]
r questions
· ty uesttons of 1 mark each
rn • pc questions f 3 ·
6""his paper contams 6 Short Ans o marks each to be answ d
1 1 Wer Q . ere
· 1.n gO to I 00 word. s. Uesttons type [Link] of 4 mark
""his paper contains 4 Long A s each to be answered
, 1 nswer Q .
1· .in J OO to 1 50
. ucstions type [Link] of 6 marks each to be answered
.words.

SECTION A
. -MACRO ECONOMICS MARKS
Read the followmg statements carefully:
statement .1: Th. e consumption curve t.s an upward
8 l ..
direct rclat1onsh1p between income d oping straight line curve due to
the
. . an consumption and th .
Marginal Propens1ty to Consume. c surnpt1dn of constant
Statement 2: Aggregate Demand curve and c .
In the light of the given statements chooth onsurnptio C fitCfrP,lll.1l11e1 to each
other.
a) Statement I is true and statment is c: ect alt atiale-from the following: l
b) Statement I is false and statement 2 ·s we
c) Both statements l and 2 are true:----+----
d) Both statements I and 2 are fal e

'Owing to the Russia-Ukraine crisis, the

wor supply-side issues.'
Identify the most likely impact on the..Balimce [Link]}'.D,l
from the following:
a) Production of cars in India will rii.... ---lili!!
b) Production and sale of cycles in India
c) Inflow of US Dollars Wdia will rise.
d) Outflow of US Dollars from-lo · ·

a) Commercial Banks
c) Reserve Bank of India
 INDIAN ECONOMJ CS DEVELOPMENT - THE GAURAV JAIN

4
Read the rollowing slalements carerully : rded on credit side of
current Statement I : Export of financial services by India will be reco
Saccount.
d d on credits·ide of capital
tatcment 2: Foreign Direct Investments.m1 nd'1a wi'll be recor e
account. ·
In the light of the given statements, choose.t h c correel alternative:
a) Statement I is true and sta tement 2 1s false
b) S1ate111en1 I is false and statement 2 is true
c) Both slalements I and 2 are true
d) Both statements I and 2 are false

1
5 Read lhe following stalements carefully: I r
Statement I - Net investment is a stock concept.
Statement 2 - Capital is a flow concept. . ti th r 11 · •
In the [Link] of the given statements, choose lh e correc t alternati ve rom e 10 owmg.
a) Statement I is true and statement 2 is false
b) Statement I is false and statement 2 is true
c) Both statements 1 and 2 are true
d) Both statements 1 and 2 are false
OR

Read the following figure carefully and choose the correct pair from the alternatives given
below:

• II
NATIONAL_(l

NATIONAL EXPENDITURE

_(ll)_ PHASE

Alternatives:
a) Output, Production
b) Value added, Production
c) Output, Disposition
d) Wealth, Development
6

'
'If
1 /
·11 /
- ,
...,..,.
c-JO<il 75 Y
7
W:I
#} c-J0-0- 5Y b) C: (-)J.2S· Y--
-!!!!!!!!;;;;;;;_, ---.
c} . d)C-10-0.2sv ' '
in aJ1onal Income is cq OR
tf - I . uat lo illeri
t.o ease in eon . .
Sav
e:
propensity
,, ' fquaJ to unity
•dcntiLy lhc value of
SUmption,

s) r.,ess than one b) Gl'Catcr than

c} zc e dJ l!.qUal lo

I. \ RCSCfVC Bank ofTndfa(RBI) in·

the co .aJ expa
nd
-===-;;::=--------l
S11J7PIY in India may increaseif.
CCls fllorc mo
----JChootc lhc
. correct allematic)
ba
n circulation
z.
mmerCJ ks
th · . ncy in
cir Credit on.-.:_ _
taX rateS are reduced by the Central -...-·cauun
J. D k f I dia · Government
4. Reserve an o n increases the Dank Rate
,ovcs:
1;i. and 3 are correct
b) 2 and 4 are correct
c) I and 4 are correct
d) I;i. and 4 are correct

.......nnse, following data is J)TeSented, for an i oinary ecnnnnn ..

vpr- ·-i:.· - -_.. .
Year c.a1rigsnsin1'·oooen:..c)
Visible Exports
Visible Imports
.
20IO 280 :.
240 Ii

2020 580 460 l

.
riJeotify, which of the peno 2010to2020 [Link]?
statement about the d
a) Improvement in
balance oftrade
b) Jncrease in trade
deficit
c) Improvement in balance in invist"bles itemS
\
d) Deterioration of baJanceof trade
OR

V
i
s
i
b
 le Expo
Visible
Imports
1
Invisible
Exports

I
n
v
is
i
b
l
e
I
m
p
o
rt
s
N
et
c
ur
re
nt
tr
a
n
sf
er
&
il
a
n
c
e
 SDEVELOPMENT - THE GAURAV JAIN
INDlAN ECONOMIC

of " thousand Crore.

Balance on current account will be-----
a) deficit. IO
surplus.5
c) deficit. 5
d) surplus. I 0
. d Reason (R). Choose one of the correct
9 Read the following statement -Assertion (A) an
[Link] given below·· I ed Investments; whereas ex-ante
Assertion (A): Ex-post Investments represent V ann

fnvestments represen t act ual level of and Ex-ante Investments are always
investm ents . Reason. .(R):. At eqmhbrmm level,
s ·
Ex-ante avmgs
equal.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A). .
b) Both Assertion (A) and Reason (R) are tme and Reason (R) is not the correct
explanation of Assertion (A). J

c) Assertion (A) is true but Reason (R) is false.

d) Assertion (A) is false but Reason (R) is true.

IO Read the following statement -Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
ssertion (A): Saving curve makes a nea 1ve mlercept on the vertical axis at zero level of
mcome.
Reason (R): Saving function rffcrs to t), nctionalrelationship between saving and income.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).

b) Both Assertion (A) and R 9r Wfie an? Reason (R) is not the
correct explanation of Assertion '.A: •
c) Assertion (A) is true but R
d) Assertion (A) is false bu

11 o Firms A and B, Firm A sold goods

I I 1 [Link] B exported goods fot I
I2,50 sti-c-Product at market price
,
if

12

bistinguish between
sactions in Balance of
au
Payments
Accounts.
 2
,,c0no • . . . • ncon,c byr
my pl ans toincrease iLs ;
:;=: !! Lr----,
ii'' ,.is·n75%.
·1"1C"'''"
Ustunate the tnere•se in . ,Ooo c"'"' nnd l hc Mn,.·r I
incom•e.
.
•nvcsimcn1 '<!quJ.,_'d I h" g1na ropcns1ty to
' ,.,casehe' fo/lowmg news Published . .,... 0 •c •eve lhc '"'llclcd
,.e( t f f d. h IO Ihe
r:CQ
4
flsr- c Bank o n •a •SSold govern noonic lioncs on 26''Dcccnibc 202 1.
Jary mark c over t e last four Weck
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d t/Je following text carefully, discuss bricn
.Jicat · '
f lc8 tlcyd R. eserve Bank of India
1 fl Y the relevant !Unction ofthe Ccn"al llank
(RRJ) co d UeJcd a •tatutory '·"'J>Cct·•on •or supcrv•·so<y
'•""'1 ·atua
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P" t h e Central Bank, the i nsl'Cc•retiognu18 < 0ry
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nattt c s, .
codmpliances a.n

d,Airsepceti_rons [Link] by RBI ' 0n thc "•o11owi.ngVefrao1cntsn:on-compliances vis-a-vis different

• • . ATM Card
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Ensuring mtegnty and quality of data
iiiii.. Loans to small bon-owcrs

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3
 [Link]
SECTION B-lNDl/\N ECONOMIC D ' ,
. t of British rule in lndia.
18rdentify, which of the following indicates the adverse · pac
Introduction of communication networks in India
b) Change in composition oflndia's foreign trade_ d.
c) Introduction of modem administrative system '" In ia
d) Introduction of railways in India
d romotion of small scale
19 committee was set up for the development an P
industries in Jndia.
a) Karve b) Tapas Majumdar
c) Mahalanobis d) TRYSEM
. Or d. announced in the year
Firsl Industrial Policy Resolution oflndependent In ia was . ) ----'--
(Fill in the blank with the correct altematwe
a) 1947 b) 1948 c) 1951 d) 1956

20 and are the reasons for the slowdown of the Pakistan economy
since independence.
r. political instability
11. over-dependence on remittances from abroad
111. stable performanceof agriculture sectdt
growth of service sector
AJternatives:
a) Iand II c)Illand IV
(Choose the

21

22

!
u

iii

1V
 atives :
;.11err1 ;- A
.. B
b) !.- c
c) "'-
d) iv - D

d the following llemcnt.s cnrcfully.

,..., ·ca. l [Link]-clhees.-1ob![Link] help lo bridge a gap belw•"Cn 1hcore1icol [Link]• un1I
',, S " ' " '

:fieldic. menl [Link] the.-Job lroinings UJ>dale thecn1ploycc,,with 1he laleSIchongc• intheirworl!
the fight o l e &len Slaleinenr.s, ch00se the correct alternative:
tn 8) sraremenr 1 is fllTue and s1a1emen1 2 is false
b) Statement I is alse and s1a1einen1 2 is lrue
c) Both statements I and 2 are lTue
d) Both slatements I and 2 are false

ead the following statements carefully.

;I :[Link].l I:Both India and Pakistan initialed their economic rcfonns without any external

:·n1gemtheen1E2x:pPoartkiPsrtoanmhoatisoSnUPc<c>eliscsyruny implemented the SEZ policy and reaped its benefits

r:he light of the given statements, clioo.e the correct alten:M1ve:
• a) Statement I is trueand •latement 2 is fillse
b) Statement I is false and statement 2 is true
c) Both statements Iand2 are true
d) Both statements 1 and 2 are false

15 ------ is not a cause for

a) Waste management
b) Deforestation
1 c) Global warming
d) Guarding green cover

is not the strategy for S

1

26
 INDJAN ECONOMICS DEVELOPMENT - TH \:iAUKJ\V }J\IN

a) IJoLh J\ssenion (/\) and Reason (R) arc true and Reason (R) is Lhc correct cxplana1ion of
Assenion (J\). .
b) Bo1h Assenion (A) and Reason (R) are true and Reason (R) rs not the
correct explanafion of Assertion (A).
c) J\ssenion (A) is true but Reason (R) is false.
d) Assertion (A) is false bur Reason (R) is true.
27
Read the following
alternativesgiven slatcment -Assenion (A) and Reason (R). Choose one of the correct
below:

Assertion (A): In the lare 1970s, China's population growth rale had sharply declined.
Rcason(R) :China has witnessed an increase in the proportion of elderly people owing to
slringent family planning programmes.
Alternatives:

a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
b) Both Assertion (A) and Reason (R) arc true and Reason (R) is not the
correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is'false.
d) Assertion (t\) is false but Reason IBJi is true.
3
28
Interpret the given picture on account of current environmental challenges.
3

3
 '
Exports from India (in Crorc) I mports to I ndi a (in Crore)

Annual rate of 2004- 2018-19 Annual rate 2004-05 2018-19

05 of growth growth (%)
(%)
5.1 pakistan 2,341 14,426 3.7 427 3,476
4
10.3 China 25,232 1,17,289 2.6 31,892 4,92,079

Name any one Maharatana company. 1

'Land ceiling promotes equity.' Support the given statement with valid explanation . 3
OR
Discuss briefly, how institutional reforms (land reforms) have played a significant role in
transfonning Indian agriculture. 4

State whether the following statements arc true/false, wih valid arguments:
J2 Human Development are one and the same thing
Human Capital and 2
b) nda has a poor stock of technical manpower. 2

3
Define agricultural marketing. 2
Discuss briefly the importance of micro-credit programmes in rural development. 2
Enlist any two problems faced by farmers in the initial years of organic farming. 2

OR
a) "India has failed t<;> implement the of Education Commission of
recommend&ti ·en statement. 3
1964 -66." Give valid arguments in support ent in rural India '.Defend or
of 3
b) 'Casual wage work is the major source of
refute the given statement with valid reason.

34 Read the following text carefuJJy and ns on the basis of the same
answer and common understanding:
The Green Revolution in India began in th transition from
agriculture in India to high-yieldingvarietie& traditional iated modem
3 techniques. The need for introduction of agricu\tura\ a arose due
of food-grains in the post- to a shortage
[Link].r1
The government in the post-inde ependence in tcnns
3 food-grain production. Such effortS of of high -
varieties of seeds of wheat devel yielding is associates
These seeds also necessitated chan in Mexico. h as the
fertilizers, pesticides and better i addition of
•eties of seeds were
first introduced in fndia in the s
estem Uttar Pradesh.
 rn the early period of the green revolution in India, the focus was to acclimatise he new
s' ystem wi"th th e more resource-intensi ve agricultural metho ds.'f h e argumenl for
rntroducin g the new crop vari·eti·es was to increase agricultural producti·on m· te.......n. s
of higher crop yields T he seeds · tr d d. · .
· . m o uce durm g the early pen od of the green revo
I t. ·n runiab were not high-
u ion 1 . .
yielding by themselves. These high yields were possi ble due to the seeds bcmg highly
responsive lo certain inputs such as irrigation waler and fertil izers. 3
The green revolution in India, th us, necessitated a resource-intensive process whereby, those
who could make significant capital investments could benefi t, whereas, those others became 3
more marginalized in regions affected by practices of the green revolution in India. On one
and, the results derived from the green revol ution helped fanners to increase their yield
and
- income and on the other hand, it helped the government to procure and preserve more food
grains through agencies like Food Corporation of India. These food grain reserves were
helpful in creation of buffer stocks in India, which helped in the situations of adversities.

a) Why was Green revolution implemented and how did it benefi t the farmers?
b) Justify the following statement with valid explanation:
'Green revolution enabled the government to procure sufficient food grains to
build its stocks that could be used during time of shortage .