INDIAN ECONOMY 1950 to 1990 class 12 ONE SHOT | GAURAV JAIN

Summary

This script narrates India's economic journey post-independence, highlighting the pivotal role of the first Prime Minister, Pandit Jawaharlal Nehru, and the Planning Commission in shaping the nation's economic policies. It explores the adoption of a mixed economy model, the implementation of five-year plans focusing on agriculture and industrial development, and the transformative Green Revolution. The script also delves into the challenges faced and the strategic decisions made to reduce foreign dependence and boost domestic production, setting the stage for India's economic growth and self-reliance.

Takeaways

• 😀 India gained independence from 190 years of British rule and was ready to embark on a new journey of progress post-1947.
• 🏛️ The first challenge for independent India was to establish a robust economic system, considering the slow economy due to colonial rule and the need for modernization.
• 🌐 India had three economic models to choose from: Market Economy, Centrally Planned Economy, and Mixed Economy, which combines elements of both.
• 🔄 The Mixed Economy was chosen as it allowed for a balance between government control and private sector freedom, which was deemed suitable for a newly independent nation.
• 📈 The Planning Commission was established in 1950 to guide India's economic development through progressive five-year plans.
• 🌾 The first five-year plan focused on agricultural development, aiming to improve India's food security and agricultural productivity.
• 💧 The Green Revolution was a significant initiative that increased agricultural productivity through the use of high-yielding varieties of seeds, chemical fertilizers, and modern farming techniques.
• 🚜 Land reforms were introduced to improve land ownership, irrigation facilities, and financial support for farmers, aiming to reduce dependency on monsoons.
• 🏭 The second five-year plan shifted focus towards industrial development, recognizing the importance of industry for economic growth and employment.
• ⚖️ The Industrial Policy Resolution of 1956 aimed to regulate the industrial sector, promoting both public and private sectors with a focus on reducing foreign dependence.
• 🌟 Despite the Green Revolution's success in making India self-sufficient in food, it also led to environmental challenges like water scarcity and soil degradation.

Q & A

What significant event happened on 15th August 1947 in India?

On 15th August 1947, India gained independence from 190 years of colonial rule, and Pandit Jawaharlal Nehru took the oath as the first Prime Minister of free India.

What were the three economic models considered by India post-independence?

The three economic models considered were Market Economy or Capitalist Economy, Centrally Planned Economy or Socialist Economy, and Mixed Economy or Mixed Economy.

What is the role of Planning Commission in India's economic development?

The Planning Commission, established in 1950, played a pivotal role in India's economic development by formulating progressive economic plans, which were initially Five Year Plans, to guide the country's growth and transformation.

What were the two types of goals set by the Indian government in the Five Year Plans?

The two types of goals set by the Indian government were Short Term Goals, which were to be achieved every five years based on the economy's needs, and Long Term Goals, which were objectives that would take several decades to fulfill.

What were the five long-term objectives of India's economic planning?

The five long-term objectives were Economic Growth, Modernization, Full Employment, Equity, and Self-reliance.

What were the key agricultural reforms introduced in India's first Five Year Plan?

The key agricultural reforms included Land Reforms, General Reforms related to irrigation facilities, and the Green Revolution, which was a set of technical reforms aimed at increasing agricultural productivity.

How did the Green Revolution impact the agricultural sector in India?

The Green Revolution led to a significant increase in agricultural productivity, particularly in crops like wheat and rice, through the use of high-yielding varieties of seeds, chemical fertilizers, and modern farming techniques. This resulted in India becoming self-sufficient in food production.

What were the limitations of the Green Revolution in India?

The limitations of the Green Revolution included over-dependence on water-intensive crops, leading to water scarcity and soil degradation. It also led to increased costs due to the need for seeds and modern technology, which benefited larger farmers more than smaller ones, and it was not uniformly successful across all regions of India.

What was the Industrial Policy Resolution of 1956, and how did it affect India's industrial sector?

The Industrial Policy Resolution of 1956 aimed to regulate the industrial sector by categorizing industries into three schedules based on government control, implementing industrial licensing, and providing incentives for industrial development in backward areas. It aimed to promote domestic production and reduce foreign dependence.

How did India's import substitution policy influence its economic growth?

India's import substitution policy protected domestic industries from foreign competition by imposing high tariffs on imported goods and restricting the quantity of imports through a quota system. This policy encouraged the growth of local industries but also led to a degree of economic isolation and inefficiencies.