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Chapter 2 – Indian Economy 1950-1990 Interview Questions Answers

Question 1 : Define a plan.

Answer 1 : Plan is a document showing detailed scheme, program and strategy worked out in advance for fulfilling an objective.

Question 2 : Why did India opt for planning?

Answer 2 : India achieved independence in 1947. The colonial government left India in a poor, backward and stagnant situation. From that time efforts have been made to solve people’s problems in a sovereign Indian republic through a system of federal parliamentary democracy. Political independence has no meaning without economic prosperity. Planning was undertaken to sustain political independence and generate economic prosperity.

Question 3 : Why should plans have goals?

Answer 3 : Plans should have goals or objectives which the country wants to achieve in a specific time period. Without goals, the planners would not know which sector of the economy should be developed on a priority’basis.

Question 4 : What are miracle seeds?

Answer 4 : Miracle seeds are the high yielding variety of seeds which combined with assured water supply, fertilizer, insecticides, etc. would result in high production levels.

Question 5 : What is marketable surplus?

Answer 5 : It is that part of the agricultural produce which is sold in the market by the farmer.

Question 6 : Explain the need and type of land reforms implemented in the agriculture sector.

Answer 6 :

 In India, there existed a large army of middlemen like zamindars, mahalwars and ryotwars, who collected rent from the actual cultivators and deposited a part of it to the government as land revenue. They treated cultivators as slaves. The measure of abolition of intermediaries was adopted to make direct link between actual tillers and government, and to pass forests, wasteland, etc. to state government.
Tenancy Reforms are concerned with:
(a) Regulation of Rent
(b) Security of Tenure
(c) Ownership Rights for Tenants.
Reorganisation of Agriculture is concerned with:
(a) Redistribution of Land
(b) Consolidation of Holdings
(c) Co-operative Farming.

Question 7 : What is Green Revolution? Why was it implemented and how did it benefit the farmers? Explain in brief.

Answer 7 :

Green Revolution. This strategy, which was launched in October 1965, has been given different names such as, New Agricultural Strategy (NAS), or Seed-Fertilizers Water Technology.
Before adopting the New Agricultural Strategy (NAS), the state of Indian agriculture was as follows:
(a) there was low and erratic growth,
(b) there was extreme regional unevenness and growing interclass inequality,
(c) there were serious droughts for two consecutive years
(d) there was a war with Pakistan
(e) USA denied India PL 480 imports.
India decided to get rid of this dependence on foreign aid in such a vital matter as food supply.
And that was the genesis of our Green Revolution, i.e., biochemical technology to step up output per acre by using scientifically inclined techniques and methods of production.
Benefits of Green Revolution.
(i) Increase in Income. Since the Green Revolution was limited to wheat and rice for a number of years, its benefits were enjoyed by wheat and rice growing areas of Punjab, Haryana, Western Uttar Pradesh and Andhra Pradesh. The income of farmers in these States grew sharply. Green Revolution succeeded in removing rural poverty in these States.
(ii) Impact on Social Revolution. Along with economic revolution there was a social revolution. The old social beliefs and customs were destroyed and people were willing to accept changes in technology, seeds and fertilizers.’ The traditional methods of farming were transformed into modern methods of farming.
(iii) Increase in Employment. Green Revolution solved the problem of seasonal unemployment to a great extent because with the possibility of growing more than one crop on a piece of land, more working hands were needed throughout the year. Also, package inputs reqired better irrigation facilities which raised the employment rate.

Question 8 : Explain ‘growth with equity’ as a planning objective.

Answer 8 : Economic Growth is an increase in the aggregate output of goods and services in a country in a given period of time. Equity refers to reduction in inequality of income or wealth, uplifting weaker sections of the society and equal distribution of economic power. Higher levels of growth and social justice are two main objectives of India’s economic planning. When these two objectives are clubbed together, it is called development with social justice.

Question 9 : Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.

Answer 9 : Modernisation as a planning objective implies use of advanced technology. Advanced technology requires less labour per unit of output. Thus, modernisation creates unemployment.

Question 10 :
Why was it necessary for a developing country like India to follow self-reliance as a planning

Answer 10 :

On the eve of independence, India was poor, stagnant and backward. There were heavy imports of foodgrains. It was important to be self-reliance.
Features of Self reliance are:
(a) Self-sufficiency in foodgrains.
(b) Fall in foreign aid and reduced dependence on imports which is possible when there is growth in domestic production.
(c) Rise in exports.
(d) Rise in contribution of industries in grass domestic product.



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