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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 1950-1990, 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 the 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 1950-1990 begins 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.
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. Indian economy from 1950-1990 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.
1. Who Started the Bhoodan Movement in India?
Answer: A. Vinoba Bhava started the Bhoodan movement in 1951. It was also known as the land gift movement.