Fill in the blanks with suitable words:
Planning Commission was established in the year ____________ .
1950
India got independence in 1947 and 1st prime minister of India pt. Jawaharlal Nehru established a planning commission for creating policies for development and study impact of policies.
It has been replaced by NITI (National Institute for Transforming India) Ayog in 2015.
Fill in the blanks with suitable words:
The twelfth five year plan is implemented during the years ________ .
2012-2017-
The twelfth five-year plan was implemented in between 2012-17 as the goal of this plan was faster sustainable and more inclusive growth.
Fill in the blanks with suitable words:
India is among the ____________ largest country in the world in terms of GDP.
6th/3rd
India is 6th largest economy according to nominal GDP and third largest according to PPP.
As per the World Bank
Fill in the blanks with suitable words:
The current rate of poverty in India is about ____________ per cent.
22%
India has a second highest population below poverty line, Nigeria has a maximum number of peoples below the poverty line( according to book old data India has the highest population below poverty line). India has improved its position in that area. India was facing extreme poverty when we got freedom in 1947.
As per government reports from the year 2012 now only 22% peoples are below poverty line in India.
Fill in the blanks with suitable words:
For many years India’s economic policy was __________ oriented.
Inward-looking
In the past countries like India and China have used inward-looking trade policies. In that process, countries try to build domestic industries. The policies were not export-oriented
Define planning.
Planning refers to setting goals, having strategies to achieve those goals, providing resources and developing action plans to achieve those goals and then monitoring the outcome and performance is known as planning.
List the prominent objectives of planning in India.
Following are the objectives:
a. Increasing the growth rate of economic development
b. Modernization and adaption of new technology
c. Self-reliance, i.e. removal of dependence on other countries to meet our requirements of goods and services.
d. Reducing inequality in wealth and income and providing basic facilities such as clean drinking water and electricity to all
e. Development of financial sectors as to make funds available for smooth growth in the country
f. Balanced and all-inclusive growth of all the regions in the country. So, that each region can have socio-economic prosperity
g. Promoting Private sector to boost economic development
What are the major failures of Indian planning?
Following are the major failures:
a. The slow growth rate in various sector and minimal development. The growth rates have been lower than those projected.
b. Slow growth in production but the high rise in population has increased demand and hence the prices of goods and services have increased.
c. The economic policies were inward-looking and did not focus on export growth, and hence the export sector is still struggling to earn foreign exchange.
d. The poverty has been the major problem combined with inequality in wealth and income distribution.
e. Inadequate development of infrastructure such as transportation, irrigation, power, health facilities etc, have caused hindrance in development.
f. Poor bureaucratic structure of the government combined with dishonesty, corruption, and red tape has been a major obstacle for growth.
Describe India’s economic situation during 1990-91.
India was facing an economic crisis in 1991. The roots of the economic crisis of 1991 are in 1985 when India facing balance of payment problems and import swelled. At that time India was facing twin deficit (twin deficit means current account deficit and fiscal deficit)-
a. the performance of the public sector was dissatisfactory
b. The huge deficit in the trade balance
c. Falling reserves of foreign exchange
d. High inflation
e. High budget deficit
List the major initiatives under the economic reform measures.
Following are the initiatives:
a. Liberalisation- In that process state lift restriction on some individual economic activities.
b. Privatisation- Transfer of business, industry or service from the public to a private ownership or control.
c. Globalisation- The process by which a business or other organization starts developing international influence or operating on an international scale.
Make a chart of various currently ongoing programmes of development and discuss with your friends about them
Following are the programs:
1. General Development
1.1. Digital India
This will ensure that government services are available electronically.
2. Agricultural and Rural Development
2.1 Pradhan Mantri Faisal Bima Yojna
It aims to provide crop insurance to the farmers
2.2 Pradhan Mantri Krishyi Sinchayi Yojna
Developing irrigation facility to optimally utilize water for agriculture
2.3 Mahatma Gandhi National Rural Employment Scheme
It ensures guaranteed 100 days of employment in the rural areas or the compensation if the employment is not provided for 100 days
3. Industrial Development
3.1 Startup India Standup India
To support small entrepreneurship endeavors
3.2 Make in India
To encourage production of goods and services in India
3.3 Pradhan Mantri MUDRA Yojna
Provide loan facilities to develop start-ups and businesses in 3 categories
4. Social Sector
4.1 Swach Bharat Abhiyan
To bring in cleanliness and hygiene in India
4.2 Skill India
By providing monetary incentives to youth to develop their skill in an employable manner so that the can be employed in various sectors
4.3 Pradhan Mantri Jan Dhan Yojana:
National Mission for Financial Inclusion
4.4 Atal Pension Yojana
To provide monthly
5. Urban Development
5.1 AMRUT
Urban Planning and development
5.2 Pradhan Mantri Awas Yojana
To provide shelter to the weaker section of the society
5.3 Smart City Mission
To develop 100 cities which are sustainable and citizen-centric
Gather information about development and welfare programmes being implemented by the government of Karnataka?
Following is the list of programs:
a. Free bus pass to all students
b. Universal health coverage
c. Free education to girls
d. Pushing for smoke-free kitchen
e. Providing identity to unorganized workers
f. Expansion of metro network
g. Helping dry land farmers
h. Suburban rail for Bangalore
i. Industrial development and women empowerment
Prepare a report of 1000-1500 words indicating the progress of Indian economy since economic reforms.
India needed a push to come out of inertia of under-development and slow economic growth of India prior to 1991, and the “LPG” policy adopted by the government in 1991 did just that.
● The huge deficit in the trade balance
● the performance of the public sector was dissatisfactory
● Falling reserves of foreign exchange
● High inflation
● The high budget deficit was because of these following reasons there was a need for economic reforms:
Where “LPG” stands for:
a. Liberalization is the removal of unnecessary restriction, regulations, and policies, to encourage the private sector into core industries with the public sector, it is a movement towards the free market economy. (Lassies-Faire)
b. Privatization refers to setting up the private sector in public sector utilities (telecommunication). It refers to transforming economic activities from public sector to private sector.
c. Globalization refers to the linkage of markets of various nations to undertake economic activities. It means that the goods and services produced in an economy can be purchased or sold in any other economy. It is a movement of the different economy towards each other to increase trade and commerce activities.
The progress of Indian economy since economic reforms:
1. Industrial Licensing was abolished.
2. Monopolistic and Restrictive Trade Practices were abolished.
3. The government started focusing on Disinvestment.
4. Public-Private Partnership was initiated to develop various infrastructure in India.
5. Public sector units were given more autonomy and professional management was set up.
6. Private industries were welcomed in areas which were earlier reserved for public sector enterprise only.
7. The rupee was devalued to reduce the gap between the real and nominal rate to control inflation in the country. The rupee was devalued by around 20%.
8. FDI in many industries has been granted up to 51% as to encourage foreign businesses to setup in India.
9. Export focus policies, incentives, and subsidies were created to boost exports and earn foreign exchange.
10. The Government also permitted the setting up of trading houses with 51 percent foreign equity for the purpose of promoting exports.
11. Quantitative restrictions and unnecessary tariffs were removed from both imports and exports.
12. Liberalization of bank branch licensing policy in order to rationalize the existing branch network
13. Banks were given permission to open new branches wherever they desired.
14. Greater competition among public sector, the private sector and foreign banks and elimination of administrative constraints.
15. Interest Rate Liberalisation.
16. SEBI was given Statutory recognition to develop and monitor the growth of the equity market and trading in India.
17. New guidelines were setup to encourage the development and upbringing of private sector banks.
18. One of the most prominent developments during the last two decades is the spectacular growth of foreign direct investment in the global economic scenario.
19. Earlier only the agricultural products were exported but post LPG, export of coffee, cocoa, bauxite, gypsum etc. has also increased and also, non-traditional products like bakery products, dairy products; alcoholic, non-alcoholic beverages, limestone, furniture, and mineral fuels also constitute a major part of exports from India.
20. Dependence on foreign imports has gone down significantly and we now only depend on petroleum and its related products from other countries. Other imports include capital goods, raw materials, intermediates, and chemicals to meet growing industrial demand.
21. The rate of savings and capital formation increased with the inflow of foreign direct investment in the Indian economy.
22. FDI helped in to fill the gap between domestic savings and capital requirement for development
23. Apart from capital, foreign investments also introduce technical expertise, machinery, capital goods which are scarce but essential for the economic growth of developing economies.
24. The overall wage rate has increased with an increase in the investment in the industries and their expansion.
25. the overall imports and exports have both grown post liberalization, thus improving international trade, the economic development, and capital formation in India.
26. For 1991, India’s GDP has quadrupled, its foreign capital reserves have grown from $5.8 billion to $279 billion, and exports from $18 billion to $178 billion.
27. The number of people below poverty line has not decreased but in contrast, has been increasing and hence it can be said that the benefit of reforms have not completely reached to the poorest in India and there is still a disparity in income and wealth amongst poor and rich.
28. The overall employment has increased with an increase in a number of industries and the development of the service sector, these have resulted in the growth of earnings and savings of people and hence create a consumption economy. These, however, have been a slow growth, and now the industrial growth is one with no significant growth in the employment rate. I.e. the rate of employment is not increasing.
29. Economic reforms so far had an adverse effect on labor welfare, because there is no social security welfare system in place to monitor the challenges of laborers.
30. The agricultural sector was somewhat neglected in the reform with no significant development in the sector, the output has remained stagnant causing high prices of food grains.
31. There is an inadequate investment in the development of the agricultural sector, leading to low growth in the sector which provides employment to the 2/3 citizens of India.
32. Public sector enterprise has seen a growth in the last 10 years.
These major reforms have created a stable economic environment for the future. Various policies and programs have helped to build competition amongst various players. This in return would be beneficial for the customers, as India is slowly started to become a consumption economy, healthy completion amongst the produces will result in better quality of goods and products. The role of government has shifted from a regulatory body to a watch dog where they must ensure a smooth functioning of the economic variables. There is still a long way to go for India as we are still considered to be a developing country, this is mainly due to lack of inclusive growth, red tape, corruption, and bureaucratic structure. The government must upheld the law and ensure that such variables do not hinder the overall economic growth of the country which would ultimately result in socio-economic development.