Why and how was the private sector regulated under the IPR 1956?
IPR 1956 was adopted in order to accomplish the aim of state controlling the commanding heights of the economy. This policy was aligned with the Indian economy's inclination towards socialist pattern of the Soviet Union. According to this resolution, industries were classified into following three categories:
Category 1: Those industries that are established and owned exclusively by the public sector.
Category 2: Those industries in which the public sector will perform the primary role while the private sector will play the secondary role. That is, the private sector supplements the public sector in these industries.
Category 3: Those industries that are not included in Category 1 and Category 2 are left to the private sector. These industries that were left to the private sector, the government owns an indirect control by the way of license. In order to initiate a new industry, private entrepreneurs should obtain a license (or permit) from the government. By a licensing system, tax holidays and subsidies allow the government to promote industries in a backward region that will ,in turn, promote the welfare and development of that region. This was supposed to reduce regional disparities. Further, in order to expand the scale of production, the private sector needs to obtain a license from the government. This was supposed to keep a check on the production of goods that are socially undesirable and unwanted. Hence, the state fully controlled the private sector either directly or indirectly.
Why was the public sector given a leading role in industrial development during the planning period?
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 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?
Those public sector undertakings which are making profits should be privatised. Do you agree with this view? Why?
Explain the two categories into which infrastructure is divided. How are both interdependent?
The following table shows distribution of workforce in India for the year 1972-73. Analyse it and give reasons for the nature of workforce distribution. You will notice that the data is pertaining to the situation in India 30 years ago!
Place of Residence | Workforce (in millions) | ||
Male | Female | Total | |
Rural Urban |
125 32 |
69 7 |
195 39 |
Explain the relevance of intergenerational equity in the definition of sustainable development.
Why are tariffs imposed?
What do you understand by devaluation of rupee?
Explain the Great Leap Forward campaign of China as initiated in 1958.
What is a ‘global burden of disease’?
Critically evaluate the role of the rural banking system in the process of rural development in India.
Suppose you are a resident of a village, suggest a few measures to tackle the problem of poverty.