Indian Economic Development: Indian Economy 1950–1990

Topics in this chapter

• Planning and Mixed Economy
• Industrialisation and Public Sector
• Agricultural Development and Land Reforms
• Food Security and Price Support
• Rural Credit and Development
• Trade Policy and Self-Reliance
• Growth, Equity and Economic Performance

Cheat sheet

Practice questions

1. Question 1Q-77B8DB

   Which set correctly identifies the major goals of economic planning in India during 1950–1990?

   1. A.Growth, modernisation, self-reliance and equity
   2. B.Privatisation, globalisation, deregulation and profit maximisation
   3. C.Import dependence, regional concentration, monopoly and inequality
   4. D.Only rapid industrialisation and expansion of foreign trade
   See the answer and solution
2. Question 2Q-0BEDB8

   What did the policy of import substitution primarily seek to achieve in India during 1950–1990?

   1. A.Replace imported goods with domestically produced goods by protecting domestic industries
   2. B.Encourage consumers to purchase more luxury goods from foreign countries
   3. C.Remove all restrictions on imports and expose Indian firms to unrestricted competition
   4. D.Reduce domestic production and depend on foreign aid for essential goods
   See the answer and solution
3. Question 3Q-865EDE

   Which statement best describes an important outcome of the Green Revolution in India?

   1. A.It increased food-grain production, but its benefits were concentrated mainly in regions with irrigation and among relatively prosperous farmers
   2. B.It completely eliminated rural poverty and removed all regional disparities in agriculture
   3. C.It reduced the use of modern inputs because it depended mainly on traditional seeds and rain-fed farming
   4. D.It focused exclusively on export crops and caused food-grain production to decline
   See the answer and solution
4. Question 4Q-882466

   Why was the public sector given a leading role in India's development strategy after independence? State one limitation that became evident by 1990.

   See the answer and solution
5. Question 5Q-0D1237

   Under the Industrial Policy Resolution of 1956, which category of industries was reserved exclusively for the public sector?

   1. A.Schedule A industries
   2. B.Schedule B industries
   3. C.Schedule C industries
   4. D.All consumer-goods industries
   See the answer and solution