Day 10 - GnG | Economics | CH 2 | Indian economy 1950-90 | Class 12

Summary

In this educational video, the host continues the 21-day revision series, focusing on day 10. They cover topics from macroeconomics and Indian economy, specifically starting chapter 2. The host addresses students from state boards by providing a microeconomics playlist and announcing a revision series. The lecture delves into India's economic recovery post-independence, the adoption of a mixed economic system, and the significance of economic planning. It outlines the Planning Commission's role and the goals of India's 5-year plans, emphasizing growth, equity, modernization, and self-reliance. The host encourages students to revise and prepare for upcoming exams, promising comprehensive coverage of policies in future sessions.

Takeaways

• 📅 The video is part of a 21-day revision series, and this is day 10.
• 📖 Macro topics covered so far include national income and money and banking.
• 📘 Indian economy, chapter 1 is completed, and chapter 2 is starting, focusing on India's economic recovery post-independence (1950-1990).
• 🏢 Explanation of three economic systems: capitalist (private sector-driven), socialist (government-controlled), and mixed (combination of both, which India follows).
• 📊 India adopted a mixed economy due to the influence of leaders like Jawaharlal Nehru, combining capitalist and socialist features.
• 📈 Economic planning in India was necessary for development, leading to the creation of the Planning Commission in 1950, chaired by the Prime Minister.
• 🏭 Heavy reliance on the public sector was a major feature of early planning to rebuild the economy after colonial exploitation.
• 🔄 Goals of India's five-year plans included growth (GDP), equity (equal development), modernization, and self-reliance.
• 💼 Focus on protecting small-scale industries, import substitution (self-reliance), and restricting foreign capital to prevent foreign control of Indian markets.
• 📚 Students are assigned homework to revise topics from national income, money and banking, and Indian economy to reinforce the day's learning.

Q & A

What is the main focus of the 21-day revision series mentioned in the script?

The main focus of the 21-day revision series is to cover and revise macroeconomics, Indian economics, and microeconomics topics in preparation for exams, with specific attention to national income, money and banking, and the Indian economy post-independence.

Why did the instructor create a separate playlist for microeconomics?

The instructor created a separate playlist for microeconomics to cater to the needs of students from state boards who do not have Indian economics in their syllabus but have microeconomics instead.

What is the significance of the date February 1st mentioned in the script?

The date February 1st is significant because it is when the instructor plans to start the microeconomics revision series, which will end by February 15th, to help students whose exams are before that date.

What are the three types of economic systems discussed in the script?

The three types of economic systems discussed are capitalist, socialist, and mixed. Each system has a different approach to ownership, operation, and control of the means of production, with varying priorities between profit maximization and social welfare.

Why did India adopt a mixed economic system after independence?

India adopted a mixed economic system after independence because the leaders, including Jawaharlal Nehru, were unsure of which economic system to adopt and chose one that incorporated the merits of both socialist and capitalist systems.

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

The Planning Commission in India plays a crucial role in economic planning by assessing the country's human and physical resources and preparing plans for their effective use. It was established in 1950 with the Prime Minister as the chairman.

Who is often considered the first chairman of the Planning Commission, and why?

Professor Mahalanobis is often considered the first chairman of the Planning Commission because he played a significant role in planning alongside Jawaharlal Nehru, although the official chairman is the Prime Minister.

What are the major features of India's economic planning as discussed in the script?

The major features of India's economic planning include heavy reliance on the public sector, regulated development of the private sector, protection of small-scale industries, focus on savings and investment, protection from foreign competition, import substitution, and restriction on foreign capital.

What are the four basic goals of India's 5-year plans mentioned in the script?

The four basic goals of India's 5-year plans are growth, equity, modernization, and self-reliance. These goals aim to increase the country's production capacity, ensure equal development across sectors, adopt modern technology and practices, and make the economy self-reliant.

What is the homework assigned to the students at the end of the script?

The homework assigned includes revising topics from National Income, money banking, and Indian economics, as well as preparing for the upcoming microeconomics revision series for state board students whose exams are after February 15th.

Outlines

00:00

📚 Day 10: Introduction to Chapter 2 of Indian Economy

The speaker welcomes the audience to day 10 of a 21-day revision series, focusing on the Indian economy. They address students from state boards who are studying microeconomics and assure them of a dedicated playlist for their studies. The speaker announces a revision schedule for microeconomics from February 1st to 15th. The chapter to be covered in today's session discusses how the Indian economy recovered post-independence, focusing on the agricultural, industrial, and foreign sectors. The speaker emphasizes the importance of learning and remembering economic concepts and introduces the three types of economic systems: capitalist, socialist, and mixed. They explain that India adopted a mixed economic system, influenced by leaders like Jawaharlal Nehru, to incorporate the best features of both socialist and capitalist models. The session aims to cover the chapter in two classes, today and tomorrow, and encourages students to mark their attendance and note their progress.

05:08

🛠 Economic Planning and the Planning Commission

This paragraph delves into the concept of economic planning, which is essential for the development of an exploited economy. The speaker explains that India's economic planning involved making major economic decisions, such as what to produce, how, and for whom. The Planning Commission was established in 1950, with the Prime Minister as its chairman, to oversee economic planning. The commission's purpose was to assess India's human and physical resources and prepare plans for their effective use. The speaker outlines the major features of India's economic planning, including a heavy reliance on the public sector, regulated development of the private sector, protection of small-scale industries, focus on savings and investment, protection from foreign competition, import substitution, and restrictions on foreign capital. These policies were designed to help India recover and grow economically after independence.

10:08

🎯 Goals of the Five-Year Plans

The speaker discusses the goals of India's five-year plans, emphasizing that they are of utmost importance and often appear in examinations. There are four primary goals: growth, equity, modernization, and self-reliance. Growth refers to increasing the country's GDP and production capacity. Equity aims for equal development across all sectors and regions, without discrimination. Modernization involves adopting new technology and changing mindsets to work with a modern outlook. Self-reliance means becoming independent of external resources and services. The speaker concludes by outlining the homework for the day, which includes revising previously studied topics and preparing for upcoming lessons. They also remind students to comment on their readiness and understanding of the material covered so far.

15:09

📅 Homework and Upcoming Sessions

In the final paragraph, the speaker provides guidance on the homework for the day, which involves a comprehensive review of the topics covered in the series so far. They advise students to focus on revising national income, money banking, and the Indian economy chapters. For students whose exams are after February 15th, the speaker reassures that a microeconomics revision series will be conducted from February 1st to 15th. They encourage students to use the available playlist for self-study. The speaker concludes by thanking the audience for their participation and looks forward to continuing the series with new and improved content in the next session.

Keywords

💡Macroeconomics

Macroeconomics is the branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. In the context of the video, the speaker mentions that the audience has completed macroeconomic topics such as national income and money and banking, indicating that these are foundational areas within macroeconomics that are crucial for understanding broader economic trends and policies.

💡Indian Economy

The Indian Economy refers to the economic structure and performance of India. The video script discusses the progression from chapter 1 to chapter 2 of the Indian economy, suggesting a sequential study of the country's economic development, including post-independence recovery and growth.

💡Microeconomics

Microeconomics is the study of individual economic units, such as households and firms, and their interactions in markets. The script mentions that students from state boards who are studying microeconomics have a separate playlist for their studies, highlighting the distinction between micro and macroeconomic studies within the curriculum.

💡Economic Systems

Economic systems refer to the mechanisms by which resources are allocated and distributed within an economy. The video script outlines three types: capitalist, socialist, and mixed economies. The speaker explains that India adopted a mixed economic system, which combines elements of both capitalism and socialism, to leverage the strengths of both systems for economic development.

💡Economic Planning

Economic planning is a process where a country's economic goals are set and strategies are formulated to achieve those goals. The script mentions that India's economic planning was necessary to recover from exploitation and to chart a path of development post-independence, emphasizing the importance of planning in guiding the economy's trajectory.

💡Planning Commission

The Planning Commission of India was a central body in India that formulated the economic plans for the country. Established in 1950, as mentioned in the script, it was responsible for assessing resources and preparing five-year plans to guide India's economic development, with the Prime Minister serving as its chairman.

💡Public Sector

The public sector refers to the part of the economy that is owned and controlled by the state. In the video, the speaker discusses the heavy reliance on the public sector in India's economic planning, highlighting its role in leading the country's development and providing essential services.

💡Private Sector

The private sector consists of economic activities carried out by individuals and companies, without government control. The script mentions the regulated development of the private sector in India, indicating that while the public sector played a major role, there was also a focus on guiding and controlling the growth of private businesses.

💡Import Substitution

Import substitution is an economic strategy where a country aims to produce its own goods and services, replacing the need to import them. The video script explains that India focused on import substitution to become self-reliant and to promote domestic industries, reducing dependence on foreign products.

💡Five-Year Plans

Five-Year Plans are medium-term strategic plans that set out the goals and framework for India's economic and social development. The script refers to the goals of these plans, which include growth, equity, modernization, and self-reliance, illustrating the comprehensive nature of India's economic planning approach.

Highlights

Welcome to day 10 of the 21 days revision series, focusing on macroeconomics and Indian economy.

Introduction to chapter 2 of Indian economy, discussing post-independence economic recovery.

Announcement of a microeconomics playlist for state board students.

Microeconomics revision series starting from February 1st to 15th for state board exams.

Explanation of the three types of economic systems: capitalist, socialist, and mixed.

India's adoption of a mixed economic system influenced by leaders like Jawaharlal Nehru.

Introduction to economic planning and its necessity for a recovering economy.

Establishment of the Planning Commission in 1950 to oversee economic planning.

Role of Professor Mahalanobis in the early planning process alongside Jawaharlal Nehru.

The Planning Commission's purpose to assess resources and prepare effective plans.

Major features of India's economic planning, including public sector reliance and private sector regulation.

Emphasis on protecting small scale industries and promoting import substitution.

Goals of the 5-year plans: growth, equity, modernization, and self-reliance.

Importance of growth in GDP and production for the Indian economy.

Equity as a goal for equal development across sectors and regions.

Modernization through the adoption of new technology and mindset changes.

Self-reliance as a strategy to reduce dependence on foreign goods and services.

Homework assignment for students to revise and prepare for upcoming topics.

Encouragement for students to comment on their progress and preparation.

Transcripts

What's up everyone, welcome back to the channel.

This is day 10 of our 21 days revision series.

And you have finished in macro, what?

You have finished in macro, one is national income, one is money and banking.

You have completed chapter number 1 in Indian eco.

Today I am going to start chapter number 2.

Some kids are from our state boards, who were saying that sir, we don't have Indian eco, we have micro economics.

So kids, micro economics playlist is made, you can follow it.

Along with that, from 1st of Feb, I am starting micro economics revision which will end by 15th of Feb.

So if your exam is before 15th of Feb, then please start your revision from the playlist.

The whole playlist is made.

And in case your syllabus or exam is after 15th of Feb, then I will make the whole micro revised, all the kids from state board who have micro, don't take

tension, I will make micro revised by 15th of Feb.

So the kids who have micro, their micro will be revised.

Those who have macro or Indian eco, their macro or Indian eco is also going on.

Everything will be done very well.

So let's start today quickly.

This chapter will be in two classes, today and tomorrow.

You go and put attendance in your comment section.

And quickly write Sir, Day 10 done, just 11 more days to go.

Let's begin.

Now Sir, what is there in this chapter?

See, first of all you read that how Britishers exploited our three sectors before independence.

Agricultural sector, industrial sector, foreign sector.

Now here we will read Indian economy 1950 to 1990.

It means after independence, how our economy recovered things, how we got better, how we came out of what they exploited.

You are going to read all those things in this particular chapter.

So we will read it very carefully.

Indian eco is little boring, I try to tell the best story.

But still you have to learn, nothing will happen by just understanding.

This is the subject of learning only, you have to learn.

So don't forget to write, don't forget to remember.

First of all, how many types of economic systems do we have?

So guys, we have three types of economic systems.

Capitalist, Socialist, Mixed.

What is capitalist economy?

Where all the production is owned, operated, controlled by the private sector.

Where private sector is playing a major role.

All the work is in their hands.

Their focus is on profit maximization.

Social welfare is their secondary role.

Their first purpose is profit maximization.

What is socialist economy?

Where means of production is completely owned, controlled, operated by the government.

The government does everything.

So what is socialist economy?

In which all means of production are owned, controlled, managed by the government.

Social welfare is their priority here.

Their second objective is profit maximization.

Third is mixed economy.

When you are not able to understand that you will give a role to the private sector.

Or the government itself wants to do everything.

In that case, make a combination of both.

Take the merits of both.

Make an economy together which is called mixed economy.

So what happens in mixed economy?

Both the public as well as private sectors are allotted their respective roles.

And both solve the problems of the economy together.

So this is how our Indian economy also works.

Our country is a country with mixed economy.

Where public sector is also doing its work.

Private sector is also doing its work.

Both are competing with each other.

Who is getting the benefit?

The public.

After this, what did India adopt?

India adopted the mixed economic system because of the following reasons.

Because our leaders like Jawaharlal Nehru ji, who was our first leader after independence.

They were confused about which economic system to adopt.

So they went for the one where both the merits are there.

So as a result, a mixed economy with the best features of both socialist as well as capitalist was adopted by the Indian economy.

Next comes, what is economic planning?

What is economic planning?

Whenever you want to achieve any goal, you need planning.

A goal cannot be achieved without planning.

Our aim was to complete the revision in 21 days.

So I did its proper planning.

Only if you do the planning, you can achieve the goal.

Otherwise, it cannot be achieved.

So what happens in economic planning?

You have to keep in mind that an economy which is badly stuck in problems, which has been badly exploited, to

get out of it was a challenge in itself.

So to get rid of that challenge, all the things we did, all the policies we made, all of them were called planning.

So what is planning?

For the development of economy, it was necessary for the government to plan the economy.

Which was called economic planning.

Economic planning is defined as major economic decisions.

In this, we take major economic decisions.

What, how, for whom to produce?

What will be the production of?

Who will do it?

For whom will it be made?

By the conscious decision of authority based on a comprehensive survey of the economy.

Which we do a survey of the entire economy, based on that.

To make economic planning effective, to make economic planning better, the government of India set up a body.

Now, someone will do planning for the country.

It is not that anyone will plan anything.

So a proper body was set up, which was named Planning Commission.

When was it set up?

Remember the date, 1950.

In which the chairman we consider, we consider the Prime Minister.

Okay, who do we consider as chairman?

We consider the Prime Minister.

And in our country, in the Prime Minister, along with Shri Jawaharlal Nehru, along with him, a major role that was played in planning, was played by

Professor Mahalanobis.

So, in many places it has also been written that the first chairman is Professor Mahalanobis.

Okay, but the actual chairman that is considered, in a general sense, who will be the chairman of the Planning Commission?

So, he is called the Prime Minister.

But for the first time, since Professor Mahalanobis played a major role with Jawaharlal Nehru, so in many places, in many books, he has also been called the first chairman

of the Planning Commission.

Okay, but you keep this thing in mind that who is the chairman?

He is the Prime Minister.

Okay, what is coming after that?

The purpose of the commission was to be carefully assess the human and physical resources.

What is the purpose of this commission?

It will assess human and physical resources well.

And to prepare the plans for effective use of the resources.

And will make a plan so that resources can be used well.

That is, first of all, we will check which resource we have and how much is there.

Okay, after seeing that, then we will do planning in the economy, that which resource can we utilize in which best way.

Right, so this comes on the whole economic planning.

Now see what major features we were, whatever planning we did, what were the major features of that whole planning.

So when we talk about major features, then the first thing that comes is heavy reliance on public sector.

See, a country has been completely exploited, you are bringing it out of the problem.

So someone or the other will have to play a major role.

Now the private sector did not have so much money, it is a poor country.

So what should be done?

In that scenario, the major role was played by the public sector.

That is, the major focus was placed on the public sector.

Regulated development of private sector.

The development of the private sector happened with a lot of rules and regulations.

Which rules and regulations are there, we will learn now.

Protection of small scale industries and regulation of large scale industries.

The focus was made that we can save our small scale industries.

Because all the businessmen in our country, all the industries were small scale industries.

So the focus was that we can protect our small scale industries from any kind of intense competition.

We need protection from small scale, protection of small scale industry from foreign competition.

After that focus on saving and investment.

A lot of focus was put on savings and a lot of focus was put on investment.

Because only by saving, business cannot grow.

You will have to invest that money in infrastructure, in good projects.

Only then the economy will grow.

So the focus was put on saving and investment.

Then protection from foreign competition.

We were avoiding in every way that we have to save ourselves from foreign competition.

Otherwise, our newly established small scale industries, small businesses will be closed.

So we will make such policies, so that we can save our domestic particular businesses from foreign competition.

Focus on import substitution.

What does import substitution mean, children?

Becoming self-reliant.

We will not import, we will substitute it with domestic production.

See if we import, then we become dependent on foreign countries for all things.

That if they will make things for us, then we will be able to grow the business.

But this should not happen.

So we will not import.

What we will do is we will make all the things in our country.

If we make in our country, then our country's businesses will grow, progress and our money will be saved.

Foreign exchange will not go out.

After that there is restriction on foreign capital.

We were trying in every way that foreign capital should not come in our country.

Otherwise, we have been free from them with great difficulty in 200 years.

So if they will not control in that way, then they will control our markets by investing money.

They will become the owner.

So we were trying that foreign capital should not come to us.

Next comes the most important topic, which is the goals of 5 year plans.

Children, write most important in Southern India, it comes in the paper.

So how many goals are there of 5 year plans?

The basic goals were 4 that is gems.

There are many goals like this.

But the major goals were 4.

The first is growth.

Sir, what kind of growth?

Children GDP growth.

You have studied national income.

Production increases, then everything increases from it.

More production will be there, more sale will be there, more revenue will be there, employment opportunities will be there, growth will come in the country.

So we were focusing on growth in every way.

It aims to increase country's capacity to produce goods.

The more production, the more employment, the more supply will increase, the more we will be able to catch up with demand, the economy will grow overall.

So the first focus was on GDP growth.

Second, equity.

E means equity.

Equal development.

There should be no discrimination in any way.

On the basis of any caste, religion, color, gender, sex.

There should be no differentiation on any urban, rural basis.

There should be no such thing that one sector has grown and the other sector has not grown.

We need equity. Our focus was on equal development.

So our goal was also that there should be proper development and equal development of every sector.

So growth happened, equity happened, modernization.

Sir, what is modernization?

Modernization means being modern.

Sir, how will we be modern? When we will use new technology, new machines, use good things.

So when does modernization come?

When you change people's behavior, people's mindset in such a way that yes, now we are working with a modern outlook.

Fourth thing is self-reliance.

Being self-reliant, the same thing.

We will make everything ourselves.

We will not be dependent on anything, any resource, any good, any service outside.

Our focus was only that we will make everything ourselves.

We need to be self-reliant.

We want to be self-reliant.

It aims to make the economy self-reliant.

And what do we say in self-reliance?

That brother, we should be self-reliant in every way.

We should focus on our goals in every way.

We should work on our own development in every way.

So we want to be self-reliant.

We will be able to focus, grow and move forward.

So this comes to us in self-reliance.

So there were four major goals, children, on which to focus.

Growth, equity, modernization, self-reliance.

After this, ladies and gentlemen, our major chapter will start.

In which we will study all the policies of agriculture, industry, foreign trade.

But first you read up to here, once to the basics.

You are getting free from time today.

Today you will be free by 8.15-8.30. So what homework do you have today?

Children, the first homework is that you have to put up a sitting till 10 o'clock today.

Sir, what should I do in the sitting till 10 o'clock?

In the sitting till 10 o'clock, children, the first thing to do is revision today.

Sir, what should I do for revision?

See, is there any topic left in National Income that you do not remember?

Revise all the formulas once.

Revise the basic chapter 1, 2.

Revise the theory of chapter 4.

Check whether you remember money banking or not.

You should remember money banking very well.

Check whether you remember chapter 1 of Indian or not.

And you should remember as much as you have studied chapter 2 today.

Alongside reading from your book.

So you have to apply reading from the book.

You have to do learning.

Those children from the state board whose micro economics is coming.

If your exam is after 15th Feb, then I will get you to do all the revision.

Till then, do revision once at your level.

So what do you have to do in micro?

Our revision of micro economics is starting from 1st Feb.

I have announced the series yesterday.

So I will do all the revision of micro from 1st Feb to 15th Feb.

But before that, if you want to do it, then the playlist is made.

Revise unit 1.

Unit 1 is basic introduction of micro economics.

Do revision of it.

Check the demand once so that there is no problem in it.

So all the children from our state board where micro is there.

Prepare the unit of micro instead of Indian eco.

So today you have to sit till 10 o'clock and do so much work in eco.

And after doing all this, then you have to comment that yes sir.

We are all prepared.

As much as we have studied in 10 days.

Everything is revised.

Everything is learn.

Whatever you don't remember, you have done it today.

Right.

So thank you so much guys for joining in.

See you tomorrow.

Will do some new things.

Will do something better.

And will move the series forward.

Thank you so much everyone.