Why was the public sector given a leading role in industrial development during the planning period?
At the time of independence, Indian economic conditions were very poor and weak. There were neither sufficient foreign reserves nor did India have international investment credibility. In the face of such poor economic conditions it was only the public sectors that needed to take the initiative. The following are the reason that explains the driving role of the public sector in the industrial development:
1. Need of Heavy Investment: There was a need for heavy investment for industrial development. It was very difficult for the private sector to invest such a big amount. Further, the risks involved in these projects were also very high and also these projects had a long gestation period. Thus, the government played the leading role to provide the basic framework of heavy industries.
2. Low Level of Demand: At the time of independence, the majority of the population was poor and had low levels of income. Consequently, there was low level of demand and so there was no impetus for any private sector to undertake investment in order to fulfill these demands. Thus, India was trapped into a vicious circle of low demand. The only way to encourage demand was by public sector investments.
Match the following:
1. Prime Minister 3. Quota 4. Land Reforms 5. HYV Seeds 6. Subsidy |
A. Seeds that give large proportion of output C. Chairperson of the planning commission D. The money value of all the final goods and services produced within the economy in one year. E. Improvements in the field of agriculture to increase its productivity F. The monetary assistance given by government for production activities. |
What is marketable surplus?
What is the Green Revolution? Why was it implemented and how did Does it benefit the farmers? Explain in brief.
Explain ‘growth with equity’ as a planning objective.
Why was it necessary for a developing country like India to follow self-reliance as a planning objective?
Why and how was the private sector regulated under the IPR 1956?
Why should plans have goals?
Define a plan?
Why did India opt for planning?
Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.
What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?
What are the two major sources of human capital in a country?
What do you mean by rural development? Bring out the key issues in rural development.
Who is a worker?
Explain the term ‘infrastructure’.
What is meant by environment?
Why are regional and economic groupings formed?
Why were reforms introduced in India?
Why calorie-based norm is not adequate to identify the poor?
Name some notable economists who estimated India’s per capita income during the colonial period?
Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators.
Name some modern industries which were in operation in our country at the time of independence?
Do you think the navaratna policy of the government helps in improving the performance of public sector undertakings in India? How?
Highlight the salient features of India’s pre-independence occupational structure.
Why are regional and economic groupings formed?
Mention the various indicators of human development.
Trace the relationship between human capital and economic growth.
Distinguish between ‘Green Revolution’ and ‘Golden Revolution’.
What are the two major sources of human capital in a country?
Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.