INDIAN ECONOMICS

battle of buxar

1764

muslin is from

bengal, finest variety was called malmal/malmal shahi

some ppl tried to calculate per capita income

dadabhai naoroji, william digby, findlay shirras, Dr. VKRV. Rao and RC desai out of these bkrv rao’s findings were considered significant. He found that aggregate real output [GDP] was less than 2% and growth per capita income was 0.5%

zamindari system aka permanent settlement system was introduced by

lord cornwallis in 1793

the two fold policy of de industrialisation that lead to decline in handicrafts was

1. to get raw material from india for cheap for upcoming british industries

2. to sell british made finished goods for high prices in indian market

cotton textile was in maharashtra and gujrat owned by indians

jute industry was in bengal owned by britishers

first census was conducted by Lord Mayo in 1872

official census was under lord rippon in 1881

what is suez canal?

an artificial waterway running from south to north across the Isthmus of Suez in north eastern Egypt - opened in 1869 and reduced distance by 5,100 miles b/w india and britain

the year of great divide was 1921

before that was the first stage of demographic transition w/ very high birth and death rates and after 1921 the second stage of demographic transaction had high birth and low death rates

India’s first passenger train was from bombay to thane

a distance of 34km on 16th april 1853

Dadabhai naoroji who gave the drain theory of wealth calculated national income for the first time in 1876 and at the time of independence there were only two iron and steel industries

one in bihar jamshedpur by tata and other in kolkata

Indian policy revolution of 1948 and directive principles of the indian constitution assignmed leading role to

the public sector and the govt set up the planning commission in 1950 under chairmanship of then PM pandit jawaharlal nehru at that time india wasa

the first five year plan was launched on 1st april 1951 ending 31st march 1956

the 12th five year plan from 2012 to 2017 was india’s last five year plan

the concept of five year plans was borrowed from soviet union

on 1st january 2015 the planning commission became NITI Aayog [National Institution for Transforming India]

20 years plan is called

perspective plan and 5 year plan is the basis of it

implies larger stock of productive capital or supporting services or increase in GDP or increase in efficiency

GROWTH

Who is Mahalanobis?

he is regarded as the architecture of indian planning as he gave massive contribution to the 2nd plan

mahalanobis was born in

1893 in calcutta and in 1945 he became a fellow of britain’s royal society HE ESTABLISHED ISI [INDIAN STATISTICAL INSTITUTE] IN CALCUTTA

LAND REFORMS WERE SUCCESSFUL IN

Land reforms were largely successful in the states of West Bengal and Kerala because of the political will of the left-wing governments to implement them efficiently.

Refers to large increase in production of food grains due to use of HYV seeds/miracle seeds especially wheat and rice

GREEN REVOLUTION [adopted in 3rd plan during khariff season in 1966 and in 1967-68 production increased by 28.8%]

who is the father of green revolution?

Dr. Norman E. Borlaug an american scientist is the father of green revolution and won nobel peace prize in 1970 for it - In india it was mainly found by M.S. Swaminathan

Industrial Policy Resolution in 1956 was the basis of second plan which classified industries into 3:

1. schedule A: 17 industries exclusively owned by govt

2. schedule B: 12 industries which were mainly handled by public sector but private sector could supplement the efforts of public sector

3. schedule C: remaining industries to be under private sector under Industries Act 1951 [this act required any private industry to get govt license for diversification, expansion, increasing production etc. but easier to get license if opening unit in backward areas]

SSI committee aka Karve Committee identified use of SSI to promote rural development

as SSI are labour intensive they generate employment and since they cannot compete with big firms they were given reservation and various concessions. KARVE COMMITTEE WAS SET UP IN 1955

in the first 7 plans trade was characterized by

an inward looking trade strategy as indias share in total world trade was 1.78%

what were the two objectives of import substitution?

1. saving foreign exchange

2. achieveing self reliance

refers to heavy taxes on imports to reduce their use

TARIFFS

Non tariff barriers that limit the quantity of import

QUOTAS

IN 1991 india availed 7 billion dollar loan then the finance minister was dr. manmohan singh

india borrowed long term loans from IBRD [International Bank for Reconstruction and Development] now known as World bank and short term loan from IMF to solve BOP deficit

The New Economic Policy was announced in 1991 having two kinds of measures:

1. Stabilisation measures: short term measures to correct BOP, maintaining for ex reserves and controlling inflation

2. Structural reform measures: long term measures to improve efficiency of economy and improving international competency [LPG POLICY]

Industrial sector reforms were announced in

24th July 1991

the MRTP [Monopolies and Restrictive Trade Practices] Act was passed in 1969 was abolished and replaced by

Competition Act 2002

Tax reforms are called

Fiscal Policy

what were the foreign exchange reforms?

1. the rupee was devalues against foreign currency to increase inflow of for ex

2. govt allowed rupee to fluctuate from market forces

as on 2024 there are how many maharatnas, navratnas and miniratnas?

• maharatna: 13

• navratna: 16

• miniratna: 74

EXPLAIN WTO

World Trade Organisation was founded in 1995 as the successor of GATT [General Agreement on Trade and Tariff] which was established in 1948 w/ 23 countries. Currently WTO has 164 members including India

Who described Bengal in 17th century as “richer than egypt“ ?

BERNIER

The ____________ famine affected almost 30 million people in India and occured during dual governance of Bengal

THE GREAT BENGAL FAMINE 1770

TATA airlines a sub division of Tata and Sons was established in the year __________

1932

1: Since 1991, public investment in agriculture sector especially in infrastructure, which includes irrigation, power, roads, market linkages and research and extension (which played a crucial role in the Green Revolution), has fallen

2: Further, the partial removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and marginal farmers.

STATE TRUE OR FALSE

BOTH STATEMENTS ARE TRUE

A state of being unable to fulfill basic necessities of life

POVERTY

Which programme has been restructured as NRLM? [National Rural Livelihood Mission] AKA AJEEVIKA

SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY): This programme was launched in April, 1999. it promotes micro enterprises and brings assisted poor families above poverty line by organising them into self help groups

while NSSO collects data on poverty

the planning commission makes it available to the public

on what basis proxy does govt define and identify the poor?

on the basis of Monthly Per Capita Expenditure

who was the first to define poverty line on basis of jail cost of living?

Dadabhai Naoroji

when did planning commission form a study group?

1962 and a task force on projections of minimum needs and effective consumption demand was formed in 1979

define chruning poor

those who regularly move in and out of poverty

define occassionally poor

those who are rich most of the time but due to bad phase of life may remain below poverty line

in 2012 ____ % of people lived BPL

22% as compared to 55% in 1973-74

in 2012 india a person who spent 816rs in rural area and _____ in urban area per month is considered poor

1000 rs in urban areas

capital deficiency is one of the causes of poverty true or false?

TRUE

What were the 3 dimensions of government approach?

1. growth-oriented approach initiated in 1st five-year plan: it was based on that increase in GDP/economic growth would spread to all sections of society

2. poverty alleviation programmes: initiated in 3rd five-year plan and has 2 parts - (i) self-employment programmes and (ii) wage employment programmes

3. minimum needs programmes initiated in 5th five-year plan and it has 3 major programmes: (I) public distribution system (ii) integrated child development scheme (iii) PM Poshan Scheme

why was growth oriented approach not successful?

due to following reasons:

1. population growth [low per capita income]

2. green revolution [regional disparities]

3. unwillingness to redistribute land

4. benefits of economic growth did not reach to the poor

what is PDS?

indian food security system of management of scarcity and distribution of essential commodities at affordable prices - comes under central and state govt - central govt manages it through FCI for supply and storage

what is PM Garib Kalyan Anna Yojana?

launched during covid crisis under which eligible beneficiaries receive 5kg of food grains and 1kg gram free per month

the world’s largest mid day meal scheme for primary and upper primary kids on working days is called

PM Poshan Scheme

Integrated Child Development Scheme was launched in

2nd October 1975 and is one of worls’s largest and unique programme for 0 to 6 year olds, pregnant women and feeding mothers - under this scheme ‘ANGANWADI‘ child care centres are operating

Rural Employment Generation Programme [REGP] was launched by

KHADI AND VILLAGE INDUSTRIES COMMISSIOM under which one could get financial support to set up industries in rural areas and small towns

PM Rozgar Yojana [PMRY] [started in 1993]

financial help to educated unemployed from low income families of urban and rural areas and generate employment by setting up 7 lakh micro enterprises during 8th plan and by 2003-04 3 million got employment

govt merged REGP and PMRY to get

PMEGP [PM Employment Generation Programme] on 1st April 2008

what is Swarna Jayanti Shahri Rozgar Yojana?

• aimed towards urban wage and self employment

• launched on 1st December 1997

• encourages self employment ventures and provision of wage employment

• funded on 75:25 basis b/w centre and state

National Food for Work programme is now part of

MGNREGA

MGNREGA was passed on

passed on 23rd august 2005 and was implemented and came into force on February 2, 2006.

which states have worked really well to reduce poverty levels?

TAMIL NADU AND WEST BENGAL

differentiate b/w human capital and human development

• HUMAN CAPITAL: education and health as means to increase productivity, NARROW CONCEPT, treats humans as means to achieve productivity and investment is useless if it does not enhance output

• HUMAN DEVELOPMENT: education and health are considered as integral as only literacy and long life can help one make valuable choices. BROADER CONCEPT, considers humans as ends themselves and implies right to education and health even if it does not increase output

education and health both exist in private as well as public sector because

education and health both create private and social benefits

National Council of Educational Research and Training [NCERT]

was set up in 1961 for qualitative improvement in school education

University Grants Commission [UGC]

came on 28th December 1953 and became statutory in 1956 to maintain standard of uni edu

AICTE stands for

All India Council of Technical Education set up in november 1945

________ is the apex body for bio medical research in India and one of the oldest medical research body in the world

ICMR - Indian Council for Medical Research

education commission has recommended atleast _____ of GDP to be spent on education

6% [in 2024 6% of GDP is being spent on education]

The Tapas Majumdar Committee was set up in ________, estimated an expenditure of around Rs 1.37 lakh crore over 10 years and govt is also levying a _________________ on all union taxes to be spent on elementary education and beti bachao beti padhao campaign was launched in _________ and education commission estimated a _______ of GDP to be used on education

The Tapas Majumdar Committee was set up in 1998, estimated an expenditure of around Rs 1.37 lakh crore over 10 years and govt is also levying a 2% education cess on all union taxes to be spent on elementary education and beti bachao beti padhao campaign was launched in 2015 and education commission estimated a 6% of GDP to be used on education

credit contributes to agricultural production as ____________________________

farmers need strong credit due to gestation period and initial investment for resources

__________ provide credit to peasants on mortgage of crops at high interest on condition that they will sell the produce to them at low prices

Traders and commission agents

they have high share of farm credit exploit peasants and manipulate their accounts

MONEY LENDERS

Charge high interest, exploit peasants small farmers and tenants

RICH LANDLORDS

transfer of private sector assets to the government

nationalisation of banks in 1969: 14 banks were nationalised in 1969 and further 8 more in 1980

provide credit at low rates to liberate indian peasantry from clutches of money lenders

co-operative credit

government loan to farmers are called

TACCAVI LOANS DURING EMERGENCY OR DISTRESS AND INT IS AS LOW AS 6%

NABARD stands for

National Bank for Agricultural and Rural Development- it is the apex bank for rural credit and was established on 12th July 1982

__________ is a women oriented poverty reduction programme which started in 1995 as a thrift and credit society in Kerala

KUDUMBASHREE

a major micro credit programme in India

SELF HELP GROUPS

TANWA is

Tamil Nadu Women in Agriculture: a project initiated in late 1980s to train women with latest agriculture techniques and organic farming

movement of farm produce from producer to consumer through various activities in an efficient manner is called

AGRICULTURAL MARKETING

Problems faced by farmers in agricultural marketing

• lack of storage

• lack of market information

• manipulation by traders

after independence what were the measures adopted by the government?

• regulated markets [orderly and transparent marketing conditions]

• infrastructure facilities

• cooperative marketing [farmers would pool marketable surplus and distribute sale proceeds in basis of each individual share]

what is operation flood?

aka white revolution was started by National Dairy Development Board In 1970 led by Verghese Kurien - under this farmers pool their milk according to grades and process it to urban centres - successful in gujrat

What were the benefits of cooperative marketing?

• advantage of collective bargaining

• help in meeting immediate cash requirement

• usually has storage facilities and so farmers can wait for better prices

• benefits of bulk transportation

What were the set backs of cooperative marketing?

• inadequate coverage of farmer members

• lack of link b/w marketing and processing cooperatives

• inefficient financial management

government fixes the minimum offer price at which govt is willing to but agricultural products

MSP [Minimum Selling Price]

PDS

ration shops and fair price shops where essential commodities are sold at price below market price to poor people

_________ contributes to 1/3 of value of agriculture output and 6% to GDP

HORTICULTURE

What is golden revolution?

period in which there was tremendous growth in horticulture products and honey [1991 TO 2003] FATHER OF GOLDEN REVOLUTION IS NIRPAKH TUTEJ

October 2014 govt introduced ___________________ under which members of parliament need to develop one village from their constituency but it cant be their or their spouse’s own village.

Saansad Adarsh Gram Yojana

at present what industries are preserved for public sector?

AS OF 2023 ONLY ATOMIC AND NUCLEAR INDUSTRY AND RAILWAYS INDUSTRY IS RESERVED FOR PUBLIC SECTOR

'Make in India' initiative was launched globally in _____________ as a part of India's renewed focus on Manufacturing. The objective of the Initiative is to promote India as the most preferred global manufacturing destination.

September 2014

which five year plan recognised importance of human capital growth for economic growth?

7th five year plan

in the year ________ indian govt made education free and compulsory for all children between 6 to 14 year olds

IN 2009

The major share of the total education expenditure goes to the ______________ rather than the tertiary or higher education, i.e., the least.

elementary education,

The _________ was a harbinger of major changes in the credit system as it led to the diversification of the portfolio of rural credit towards productionoriented lending.

Green Revolution

Lack of agricultural marketing infrastructure often forces the farmers to sell their produce at low prices for fear of spoilage or to pay off an imminent debt. This is termed as ____________

distress sale.