Introduction to Indian Economy
Indian Economy 1950-1990 class 12 is a very interesting chapter that provides the students with an insight into how the economy of the country has developed over the years. Indian economy 1950-1990 spans over four-decade and leads to the establishment and working of the Five-Year Plans. There have been many milestone changes in agriculture, industry, trade, and the various sectors of the economy. India has managed to overcome the status of an agricultural economy and become an industrial mixed economy system. We will start the discussion of the Indian economy 1950-1990 class 12 chapter with the different types of economic systems.
Types of Economic System
Before learning about the Indian economy from 1950 to 1990, we have first to understand what the different types of economies are. An economy that relies primarily on agriculture is agrarian. The one that relies on industries is an industrial economy. The classification can be further broadened to include command economy. In a command economy, the government is the only producer and takes all decisions regarding the economy. The decision regarding the goods to be produced and the price is all determined by the centralized authority of the government. The market economy, on the other hand, focuses on minimal intervention in the free working of the forces of demand and supply. It is the market that determines the production and price of various goods. The only alternative to these two types of economies is a mixed economy where there are characteristics of both command and free-market economies. Thus, the economy is free from intervention but subject to certain regulations by the government. India has adopted the system of a mixed economy.
Five Year Planning
The first phase of Indian economic development from 1950 to 1990 began with planning, where we adopted the system of planning to build our country from the ground up. An economic plan is in which there is an allocation of various resources to attain certain goals of the country in a particular period. These plans are present for a short period and a shorter version of perspective plans which embody the long-term goals of the country. The planning commission of the country was set up in 1950 and had been making plans on a five-year basis. The basic objectives of the five-year plans were to attain growth, modernization, self-reliance, and equity. The country not only needed to grow in terms of GDP but also adopt modern technology while achieving self-reliance and reducing inequalities at the same time. The five plans were made to attain all these goals.
Land Reforms
Independent India had to introduce many reforms to undo the damage caused by two centuries of colonial rule. One of the major problems at the time was the Zamindari system which needed to be abolished. The British regulations had caused the land tillers to lose ownership over their land, and the owners were intermediaries such as the jagirdars and zamindars. The objective of the land reform was to bring about a drastic change in the way the agrarian economy is structured and abolish the feudal landlordism of the country. With these reforms, the government sought to bring equity into the system and prevent the farmers from being exploited. The most important goal perhaps was to motivate the farmers to increase their agricultural produce. The reforms also helped to consolidate holdings and lead to the promotion of cooperative farming in the country. The Indian economy from 1950 to 1990 experienced a boom In agriculture for this.
Industrial and Trade Policies
Industrial development was very important for the country during this period. The main industries during that period were cotton and jute, and there was a need for modernization in industry and trade. The industrial policy resolution 1956 divided the industries into three categories depending on whether they were owned by the state or the private sector. There was also protection for small-scale industries in the county to help them grow. The government played an active role in the development of the country’s infrastructure. The state followed an inward-looking trade policy and adopted import substitution.
Did You Know?
The green revolution began in 1965 with the introduction of the HYV or the High Yield Variety seeds which gave better yields than normal seeds. As the sources needed more water, there was a major emphasis on the development of infrastructure and irrigation, which led to an increase in crop yields in the country.
Solved Example
1. Who started the Bhoodan Movement in India?
Ans: A. Vinoba Bhava started the Bhoodan movement in 1951. It was also known as the land gift movement.
Indian economy refers to the economy of the People's Republic of India which is one of the emerging and developing economies. The Indian economy has shown great strides in recent years, however, it still remains a developing country with many infrastructural gaps compared to developed countries like the US or China.
One can study the Indian economy by getting involved in various projects run by government agencies as well as non-profit organizations working towards improving this sector. There are several international organizations that constantly work on human development issues such as poverty reduction, education, health care, etc., where you can contribute your time and efforts for helping people from economically backward sections of society improve their living standards.
Importance of Studying Indian Economy
It is important to study the Indian economy because it is the world's second-most populous country with a population of over. There are many reasons why one should study the Indian economy.
Some of Them are:
The Indian economy is the world's second-most populous country with a population of over.
This makes India an important player in global economic affairs. The growth rate of the Indian economy has been impressive in recent years and it is expected to continue this trend in the future as well. India is also one of the fastest-growing economies in the world.
The size of the Indian economy presents opportunities for businesses from all around the globe. With a GDP (gross domestic product) of $US.
One can find tremendous scope for entrepreneurship in India as its large consumer base offers ample opportunities for businesses to grow. The growth of the middle class in India is also attracting foreign investors who wish to capitalize on this opportunity. The Indian economy is currently undergoing a transition from being a primarily agricultural-based economy to an industrial and services-oriented economy. This presents immense opportunities for students and professionals alike who want to make a career in various sectors of the Indian economy.
Here are 13 Best Ways to Study Indian Economy
Read up on Macroeconomics: Understanding the basics of economics and its relevance for society will provide a good base for understanding Indian economics.
Understand Economic History: Studying economic history can help you understand how economies develop over time, as well as why they behave the way they do today. It's also important to know what happened in other countries so we can better understand what might happen here in India.
Watch TV News Channels: Watching television news channels like NDTV, Times Now or CNBC Awaaz is a great way to get an understanding of current economic events in India.
Follow Indian Newspapers: Newspapers like The Hindu, Mint or Economic Times will give you insights into what is happening in the world of business and economics in India.
Follow Indian Economists on Twitter: A lot of economists in India are very active on Twitter. Following them can give you insights into their thinking and how they view the current state of the economy. Some notable examples are Pranab Bardhan, Raghuram Rajan, and Amartya Sen.
Follow Indian Business Journals: Business journals like The Economic Times, Business Standard, or The Hindu Business Line are a great way to read about the latest news and views on the business world in India.
Subscribe to Economic Journals: There are many Indian and international magazines dedicated to the analysis of current affairs in economics. Some good ones include The Economist, Foreign Affairs, or Finance & Development (IMF).
Subscribe to Newsletters: There are many economic newsletters out there that provide a daily or weekly overview of the state of Indian economics. Some examples include Business Standard's Economic Times, Mint Money, and The Hindu's First Post.
Follow Indian and International Think Tanks: Following and interacting with organizations like the World Bank, IDFC Institute or Reserve Bank of India gives you a great insight into what is happening in Indian economics.
Subscribe to An Email List: There are many economic lists out there where experts share their thoughts on different issues concerning the economy. Some examples include FICCI's monthly policy roundup email series (in association with Mint), The Hindu Business Line's Econ Eye newsletter, and several newsletters from the Centre for Civil Society.
Read Books: Reading books provides more detailed insights than news articles often can do! It also helps if these authors come from either within India or outside it, which makes their view less biassed by local interests
Attend Economic Events: There are many economic events happening in India all the time. Attending these events is a great way to learn more about what's going on and meet people who are interested in economics too.
Join an Online Forum or Discussion Group: There are many online forums and groups where people discuss various aspects of the Indian economy. Joining one of these groups can be a great way to learn more and connect with other people who share your interest in this topic.
The Indian economy is one of the fastest-growing economies in the world. It has been consistently growing at a rate of 6-7% for over two decades now. Its rise has also been accompanied by many questions about its stability and sustainability, which are answered below with 11 FAQs that will help you understand more about India's economic growth.
FAQs on Indian Economy (1950-1990): Growth and Challenges
1. India is a developing economy. What are the challenges faced by the Indian economy?
The Indian economy faces many different types of economic and environmental challenges, but some of them include increasing unemployment rates among youth, women's rights in society, increasing income inequalities across classes and castes as well as gender inequality at home and workplaces. In order to keep the economy growing, India has to continue its focus on providing better social and economic opportunities for all citizens.
2. Which sector gives a boost to the Indian economy?
A majority of Indians work in agricultural fields or related sectors, while about 25-30% are employed by small industries such as textiles, handicrafts and leather goods. Only a very small percentage works within the formal sector which includes government jobs and private companies that have been registered with appropriate authorities. In order to increase more employment opportunities across different types of skills & expertise, there needs to be a focus on the formal sector and its growth.
3. What are the Impacts of Demonetization on the Indian economy?
The demonetization of high-value currency notes in November 2016 had a short-term impact on the Indian economy. The main objectives of this policy move were to curb black money, reduce corruption and promote digital transactions. However, the sudden withdrawal of 86% of India's currency caused a cash crunch which impacted businesses, jobs and economic growth. In the long run, it is hoped that these negative impacts will be outweighed by the positive effects of reduced corruption and an increased focus on digital payments.
4. What are some areas where India has made significant progress?
Some areas where India has shown significant progress include reducing poverty levels (from over 60% in 1990 to about 22% today), increasing life expectancy rates (from 58 years in 1990 to about 70 years today) and improving access to education and healthcare. India has also made great strides in terms of economic growth, with the GDP growing at an average rate of about %. These successes are a testimony to the country's resilience and its ability to overcome various challenges.
5. What sectors is India focusing on for future growth?
Some sectors that India is focusing on for future growth include agriculture, renewable energy, information technology, pharmaceuticals, automobiles and aerospace. By investing in these areas, India aims to create more jobs and ensure sustainable long-term growth for the economy.
6. Describe the industrial policy followed by India.
Industries of the country create employment and lead to development. After Independence, the contribution of industries to the GDP of the country was very low at about 11.8 per cent. The state-controlled the industrial development during this period since the private players did not have enough capital to invest in heavy industries. The industrial policy resolution of 1956 divided the industries based on ownership. The first category was owned by the state. The second was owned partly by both the private sector and state while the third category was for the private sector. There was also protection provided to the small-scale industries.
7. Write a brief note on the five-year plans.
Post-independence the first task before India was to decide an appropriate economic model for the country. Our prime minister Jawaharlal Nehru decided to follow the mixed model of economic development with centralised planning. The state and private sector would continue to play an important part in this form of economy. The planning commission was set up in 1950 and made plans to allocate resources to attain certain goals for the economy. The main goal was to bring about a growth in the GDP of the country. To do this, there also needed to be a consequent adoption of modern technology. The five-year plans wanted to mitigate inequality and attain self-reliance for the country.
