Why was the public sector given a leading role in industrial development during the planning period?
At the time of independence, Indian economic conditions were very poor and weak. There were neither sufficient foreign reserves nor did India have international investment credibility. In the face of such poor economic conditions it was only the public sectors that needed to take the initiative. The following are the reason that explains the driving role of the public sector in the industrial development:
1. Need of Heavy Investment: There was a need for heavy investment for industrial development. It was very difficult for the private sector to invest such a big amount. Further, the risks involved in these projects were also very high and also these projects had a long gestation period. Thus, the government played the leading role to provide the basic framework of heavy industries.
2. Low Level of Demand: At the time of independence, the majority of the population was poor and had low levels of income. Consequently, there was low level of demand and so there was no impetus for any private sector to undertake investment in order to fulfill these demands. Thus, India was trapped into a vicious circle of low demand. The only way to encourage demand was by public sector investments.
Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators.
How is RBI controlling the commercial banks?
Explain the steps taken by the government in developing rural markets.
What are the functions of the environment?
Distinguish between the following
(i) Strategic and Minority sale
(ii) Bilateral and Multi-lateral trade
(iii) Tariff and Non-tariff barriers.
Match the following:
1. Prime Minister 3. Quota 4. Land Reforms 5. HYV Seeds 6. Subsidy |
A. Seeds that give large proportion of output C. Chairperson of the planning commission D. The money value of all the final goods and services produced within the economy in one year. E. Improvements in the field of agriculture to increase its productivity F. The monetary assistance given by government for production activities. |
Infrastructure contributes to the economic development of a country. Do you agree? Explain.
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Why were reforms introduced in India?
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Highlight any two serious adverse environmental consequences of development in India. India’s environmental problems pose a dichotomy — they are poverty induced and, at the same time, due to affluence in living standards — is this true?
Explain the need and type of land reforms implemented in the agriculture sector.
Who is a casual wage labourer?
What are the main problems of human capital formation in India?
Analyse the recent trends in sectoral distribution of workforce in India.
Why is agricultural diversification essential for sustainable livelihoods?