Why has the industrial sector performed poorly in the reform period?
Similar to the agricultural sector, industrial sector's performance was also poor. The poor performance of industrial sector may be attributable to the following reasons:
1. Cheaper Imports: The demand for industrial output reduced due to the cheaper imports. The imports from the developed countries were cheaper due to the removal of import tariffs. These cheaper and quality foreign imports led to the fall in the demand of domestic goods.
2. Lack of Investment: Due to the lack of investment in infrastructure facilities (including power supply) the domestic firms could not compete with their developed foreign counterparts in terms of cost of production and quality of goods. The inadequate infrastructural investment pushed up the cost of production of the domestic producers and, consequently, led to the non-feasibility of their growth prospectus.
3. High Non-tariffs Barriers by the Developed Countries: It was very difficult to access the developed countries market due to high non-tariff barriers maintained by the developed countries. For instance, US did not remove quota restrictions on imports of textiles from India and China.
4. Vulnerable and Infant Domestic Industries: During the pre-liberalised period, the domestic industries were provided a protective environment to grow and expand. But at the time of liberalisation, the domestic industries were still not developed up to the extent it was thought and consequently, they could not compete with the multi-national companies. The dependence of domestic industries on traditional technologies which were neither cost effective nor quality effective was an important reason for their poor growth. Thus, the domestic industries were adversely affected by liberalisation.
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.
Why was the public sector given a leading role in industrial development during the planning period?
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.
Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in Mother Dairy (iv) a tuition master (v) transport operator (vi) construction worker.
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?
How does investment in human capital contribute to growth?
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. |
How is RBI controlling the commercial banks?
How will you know whether a worker is working in the informal sector?
What are the various means by which countries are trying to strengthen their own domestic economies?
Why was the public sector given a leading role in industrial development during the planning period?
Why were reforms introduced in India?
Define worker-population ratio.
What is the meaning of quantitative restrictions?
State any four pressing environmental concerns of India. Correction for environmental damages involves opportunity costs — explain.