Important Questions for CBSE Class 12 Indian Economic Development Examination in 2024
UNIT 1(part1)
Q.1 Name some notable economists who estimated India's national and per capita income during colonial power.
Ans: The notable estimators - Dadabhai Naoroji, William Digby, Findlay Shirras, V.K.R.V. Rao and R.C. Desai. Among them, Rao's estimates were considered very significant.
Q2. What was the state of India's foreign trade under British rule?
Ans: (a)Britain maintained a monopoly control over India's exports and imports.
(b)The protection and promotion of the economic interests of their home country than with the development of the Indian economy transformed India into a net supplier of raw materials and consumer of finished industrial products from Britain.
(c)More than half of India's foreign trade was restricted to Britain while the rest allowed with few countries like China,Ceylon(Sri Lanka) and Persia(Iran) that too not result in any flow of income to India but to Britain.
Q3: State the two-fold motive behind the systematic de-industrialisation by the colonial government in India.
Ans: The two-fold motive were:
(a) To reduce India to the status of a mere exporter of important raw materials for the upcoming modern industries in Britain.
(b) To turn India into a sprawling market for the finished products of those industries so that their continued expansion could be ensured to the maximum advantage of their home country Britain.
Q4. Write a note on the state of industrial sector on the eve of independence.
Ans: (a) Like agriculture, India could not develop a sound industrial base under the colonial rule.
(b) The decline of world famous indigenous handicraft industries and the lack of modern industrial replacement created not only massive unemployment but also a new demand market deprived of locally made goods.
(c)Lack of Capital goods industry further slowed the growth.
Q5. What is Capital goods industry?
Ans: Capital goods industry means industries which can produce machine tools which are, in turn, used for producing articles for current consumption.
Q6. The real motive behind infrastructural development in india was not to provide basic amenities to the people but to subserve various colonial interests. Do you agree? Give reasons.
Ans: Yes, I do agree that under the colonial regime, basic infrastructure such as railways, ports, water transport, posts and telegraphs did develop but all to exploit indians and subseve colonial interests.
With the introduction of railways in India by British in 1850, the volume of export trade increased but its benefits rarely reach indians.
The development of roads, inland waterways and the introduction of expensive system of electric telegraph all remained inadequate for Indian people.
Q7. The Traditional handicraft industries were ruined during British rule. Do you agree? Give reasons in supporting your answer.
Ans: Yes, I do agree that the colonial government's two fold motive of de-industrialising India destroyed the India's world famous handicraft industries with no corresponding modern base industrial replacement.
Q8. What was the cause of agricultural stagnation on the eve of independance?
Ans: The stagnation in the agricultural sector was caused mainly because of the various systems of land settlement and the revenue settlement introduced by the colonial government esp. the Zamindari system.
Besides this, low levels of technology, lack of irrigation facilities and negligible use of fertilisers caused stagnation.
Instead of food crops, farmers were producing cash crops to benefit British.
Q9. When was India's first official census operation undertaken?
Ans: Various details about the population of British India were first collected through a census in 1881.
UNIT 1(part2)
Q1. When was the first Industrial policy resolution in independent India introduced?
Ans: The first Industrial policy resolution in independent India was introduced in 1948.
Q2. Which economic outlook is reflected by the Industrial Policy Resolution of 1948 and the Directive Principles of the Indian Constitution?
Ans: The leaders of Independent India had to decide the type of economic system most suitable for India, for which, they found an alternative to both extreme capitalism and socialism.
They found an economic system that combined the best features of socialism without its drawbacks and the inclusion of both public and private sectors for a planned effort.
This outlook is reflected in the Directive Principles and in the resolution of 1948.
Q3. What do you mean by (a) Plan and (b)Perspective Plan?
Ans: A Plan can be defined as a document which describes how the resources of a nation should be put to use to achieve general as well as specific goals.
Perspective Plan means long-term plan for e.g., 20years plan.
Q4. Mention the features of capitalist economy.
Ans: The features of Capitalist Economy:
(a) In a Capitalist Economy, also called Market Economy, only those consumer goods will be produced that are in demand.
(b) If labour is cheaper than capital, more labour-intensive methods of production will be used and vice-versa.
(c)The produce are distributed among people not on the basis of what people need but on the basis of what people can afford and are willing to purchase.
Q5. Mention the features of Socialist Economy.
Ans: The features of Socialist Economy:
(a) The government decides what and how goods are to be produced and distributed in accordance with the need of people of the country.
(b) Distribution is based on what people need and not on what they can afford to purchase.
(c) Strict socialist economy has no private property, everything is owned by the state.
Q6. Mention the features of Mixed Economy.
Ans: The features of Mixed Economy:
(a) The question of what to produce, how to produce and how to distribute what is produced are decided by both the government and the market together.
(b) The market will produce whatever goods and services it can produce well.
(c) The government will provide essential goods and services which the market fails to do.
Q7. Does modernization as a planning objective create contradiction in the light of Employment generation? Explain.
Ans: It creates contradiction as the goal of introducing modern technology may be in conflict with the goal of increasing employment if the technology reduces the need for labour.
Q8. When was Planning Commission of India constitute?
Ans: In 1950, the Planning Commission was set up with the PM as its chairperson (the era of 5 year plans began).
Q9. What were the goals of the five-year plans?
Ans: The goals of the five-year plans were: growth, modernisation, self-reliance and equity.
Q10. Explain the growth and equity goals of Indian five-year plans.
Ans: Growth: The growth goal mainly refers to the steady increase in the GDP i.e., increase in the country's capacity to produce goods and services either in the form of increase in the efficiency of larger stock of productive capital and services, or a larger size of supporting services like transport and banking.
Equity: Along with growth, modernisation and self-reliance, it is important to ensure that the benefits of economic prosperity reach every section of the society which is known as Equity i.e., every Indian should be able to meet the basic needs of food, decent shelter, health care, education and the reduced inequality in the distribution of wealth.
Q11. Name a good indicator of economic growth.
Ans: Gross Domestic Product (GDP).
Q12. Explain the modernisation and self-reliance goals of Indian five-year plans.
Modernisation: Adoption of new technology to increase the production of goods and services, and the changes in the social outlook such as the recognition of women's rights for employment resulting in a more civilised and prosperous society is called modernisation.
Self-reliance: Self-reliance means avoiding imports of those goods which could be produced in India itself thereby reducing the dependence on outsiders and the vulnerability of foreign interference in India's sovereignty. The first seven five-year plans gave importance to self-reliance.
Q13. What is Structural Compositon of an economy?
Ans: The contribution made by the different sectors such as agricultural, industrial and service sectors of an economy makes up the Structural Composition of an economy.
Q14. What is GDP?
Ans: The GDP is the market value of all the goods and services produced in the country during a year derived from the structural composition of the economy.