Chapter 4 - Economic Development
1. (A) Choose the correct option from the given options and complete the statements.
(1) On 19th July 1969 ________ major banks in India were nationalised.
(a) 12
(b) 14
(c) 16
(d) 18
Ans: Option (b) – 14
(2) ________ declared a 20 point programme.
(a) Pandit Nehru
(b) Lal Bahadur Shastri
(c) Indira Gandhi
(d) P. V. Narsimha Rao
Ans: Option (c) – Indira Gandhi
(B) Identify and write the wrong pair.
(1) Kavasaji Davar – Iron and Steel factory
(2) Dr Datta Samant – Leadership of mill workers
(3) N. M. Lokhande – Holiday for mill workers
(4) Narayan Survey – Depiction of lives of workers through poems
Ans: The wrong pair is Kavasaji Davar – Iron and Steel factory
Reason: Kavasaji Davar built the First Textile Mill in Mumbai.
2. Complete the activity as per given instruction.
(A) Complete the following chart.
| Five year plan | Duration | Purposes |
|---|---|---|
First | ________ | Agriculture, Social development |
Second | 1956-1961 | Industrialisation |
Third | ________ | Elimination of inequality, increasing the opportunities for employment, increase in national income. |
________ | 1969-1974 | Scientific research, health and family planning |
Fifth | ________ | ________ |
Ans:
| Five year plan | Duration | Purposes |
|---|---|---|
First | 1951 – 1956 | Agriculture, Social development |
Second | 1956-1961 | Industrialisation |
Third | 1961 – 1966 | Elimination of inequality, increasing the opportunities for employment, increase in national income. |
Fourth | 1969-1974 | Scientific research, health and family planning |
Fifth | 1974 – 1979 | Making India economically self-sufficient by alleviating poverty. |
(B) Write short notes on-
(1) Mixed Economy
Ans:
(i) In a capitalist system, the means of production are privately owned. In a socialist economy, the means of production are owned by the State in the name of society.
(ii) A mixed economy works both in the private and public sectors.
(iii) In order to achieve the economic development of modern India, we gave preference to a model of ‘mixed economy’. We can see three parts to this kind of economy:
(a) Public Sector: The industries in this sector are completely under the control and management of the government.
For example, production of defense equipment.
(b) Private Sector: The industries in this sector are owned by private industrialists. Of course, the government supervises and controls them too.
For example, consumer goods.
(c) Joint Sector: In this sector, some industries are owned by private industrialists, while others are run under government management.
(iv) For a mixed economy to run smoothly, there is a need for coordination between the private sector and the public sector.
(v) This system aims at maximizing production and popular participation on a large scale.
(vi) An effort has been made in this system to bring together the good aspects of both the capitalist and the socialist systems.
(vii) A mixed economy cannot ignore the profit motive, entrepreneurship, discipline, time-bound planning, etc.
(2) 20-point Programme
Ans: 20-Point Programme: Prime Minister Indira Gandhi announced the 20-Point Programme on July 1, 1975, and resolved to make efforts towards rapidly becoming a developed nation. The main provisions of the 20-point program are as follows:
(i) Land ceiling for cities and agricultural land; equal division of wealth; minimum wages for workers; increase in water conservation schemes
(ii) Workers’ participation in industry, national training scheme, freeing bonded labour.
(iii) Prevention of tax evasion, economic crimes, and smuggling
(iv) Regulation of prices of basic necessities and improvement in the public distribution system
(v) Improvement in the textile industry by developing the handloom sector, waiving loans for weaker sections, housing, communication facilities, and making educational equipment available to schools
3. (A) Explain the following statements with reasons.
(1) Independent India opted for a mixed economy.
Ans:
(i) Our Prime Minister, Pandit Nehru, adopted the middle path rather than taking recourse to any extremes. Some countries had adopted Capitalism, while others had adopted Socialism. Each type of economy has its own advantages.
(ii) In a capitalist system, the means of production are privately owned. In a socialist economy, the means of production are owned by the State in the name of society.
(iii) A mixed economy works both in the private and public sectors. In order to achieve the economic development of modern India, we gave preference to a model of ‘mixed economy’.
(2) Banks were nationalized in 1969.
Ans:
(i) During the tenure of Prime Ministers Pandit Nehru and Lal Bahadur Shastri, banking was a monopoly of the private sector.
(ii) These banks represented different industrial groups. The Directors of these banks were working towards developing the industrial sector and increasing its profit.
(iii) In order to stop this, the government nationalized the ‘Imperial Bank’ in 1955, and it got converted into the State Bank of India.
(iv) This Bank opened several branches all over the country in a short time and played a major role in development.
(v) India adopted a mixed economy after independence. Nationalization of banks was essential to cover deficits if they occurred while implementing different schemes.
(vi) Also, the profits of these banks would come into the government treasury once they were nationalized. Prime Minister Indira Gandhi nationalized 14 banks on July 19, 1969.
(3) Mill workers went on strike.
Ans:
(i) During Diwali 1981, the workers expected to get a bonus of 20%.
(ii) The Rashtriya Mill Mazdoor Sangh, which was negotiating with the employers, agreed upon an 8 to 17% bonus without taking the workers into confidence.
(iii) The cut in the bonus proved to be the cause of unrest. Some workers went to Dr. Datta Samant.
(iv) They asked him to accept their leadership. Workers from 65 mills came together, and Dr. Datta Samant led the strike. On January 18, 1982, two and a half lakh workers went on strike.
(B) Answer the following questions in detail.
(1) Which programmes were started in the 8th five-year plan?
Ans:
The following programs were started in the Eighth Five-Year Plan:
(i) Pradhanmantri Rozgar Yojana
(ii) Mahila Samriddhi Yojana
(iii) Rashtriya Samajik, Arthik Sahayya Yojana
(iv) Midday Meal Scheme
(v) Indira Mahila Scheme
(vi) Ganga Kalyan Scheme
(2) Which projects were started in the 2nd five-year plan?
Ans:
(i) Iron and steel industries at Durgapur, Bhilai, and Rourkela; Chemical fertilizer plants at Sindri; a rail engine factory at Chittaranjan; a factory of railway bogies at Perambur; a shipbuilding factory at Visakhapatnam; and other heavy industries were set up in the Public Sector.
(ii) Huge dams like Bhakra-Nangal, Damodar, etc. were built to make water available for agriculture.