Question 1

Q1: Define a plan.

Accepted Answer

Based on the information in the chapter, a plan is a document that specifies how the resources of a nation should be utilised. It contains general goals and specific objectives that are intended to be achieved within a designated period. In India, these plans were typically for five years and were k...

Question 2

Q10: Why was it necessary for a developing country like India to follow self-reliance as a planning objective?

Accepted Answer

It was necessary for a developing country like India to follow self-reliance as a planning objective for several key reasons: 1.  To Reduce Dependence on Foreign Countries: After nearly two hundred years of British rule, the leaders of independent India wanted to ensure that the country was not depe...

Question 3

Q11: What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.

Accepted Answer

Sectoral Composition of an Economy: The sectoral composition of an economy refers to the contribution made by its different sectors to the Gross Domestic Product (GDP). The economy is broadly divided into three sectors: 1.  Agricultural Sector: Includes agriculture and allied activities. 2.  Industr...

Question 4

Q12: Why was public sector given a leading role in industrial development during the planning period?

Accepted Answer

The public sector was given a leading role in industrial development during the planning period (1950-1990) for the following reasons: 1.  Lack of Capital with the Private Sector: At the time of independence, Indian industrialists did not have the large amounts of capital required to undertake major...

Question 5

Q13: Explain the statement that green revolution enabled the government to procure sufficient food grains to build its stocks that could be used during tim...

Accepted Answer

The Green Revolution led to a massive increase in the production of food grains, particularly wheat and rice. This increase in output was so substantial that farmers were able to produce much more than what they needed for their own consumption. The excess produce, known as the 'marketed surplus', w...

Question 6

Q14: While subsidies encourage farmers to use new technology, they are a huge burden on government finances. Discuss the usefulness of subsidies in the lig...

Accepted Answer

The usefulness of agricultural subsidies is a highly debated topic, with strong arguments both for and against their continuation. Arguments for the Usefulness of Subsidies:    Incentive for New Technology: Subsidies were essential to encourage farmers, especially small and poor ones, to adopt the n...

Question 7

Q15: Why, despite the implementation of green revolution, 65 per cent of India's population continued to be engaged in the agriculture sector till 1990?

Accepted Answer

Despite the success of the Green Revolution in increasing food production, a large proportion of India's population (around 65 percent) remained engaged in the agriculture sector up to 1990. This was because the industrial and service sectors did not grow fast enough to absorb the surplus labour fro...

Question 8

Q16: Though public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy's resources. D...

Accepted Answer

The role and performance of Public Sector Undertakings (PSUs) present a mixed picture, involving both significant contributions and major drawbacks. Usefulness of Public Sector Undertakings:    Building Industrial Base: In the initial decades after independence, the public sector was essential for b...

Question 9

Q17: Explain how import substitution can protect domestic industry.

Accepted Answer

Import substitution is a trade policy that aims to protect domestic industries by replacing or substituting foreign imports with domestic production. It shields nascent industries from foreign competition through two main instruments: 1.  Tariffs: These are taxes imposed on imported goods. By making...

Question 10

Q18: Why and how was private sector regulated under the IPR 1956?

Accepted Answer

The private sector was regulated under the Industrial Policy Resolution (IPR) of 1956 to ensure that its activities were aligned with the broader objectives of the five-year plans and the goal of establishing a socialist pattern of society. Why it was regulated:    To complement the Public Sector: T...

Question 11

Q19: Match the following: | | | |---|---| | 1. Prime Minister | A. Seeds that give large proportion of output | | 2. Gross Domestic Product | B. Quantity o...

Accepted Answer

The correct matches are as follows:    1. Prime Minister — C. Chairperson of the planning commission    2. Gross Domestic Product — D. The money value of all the final goods and services produced within the economy in one year    3. Quota — B. Quantity of goods that can be imported    4. Land Reform...

Question 12

Q2: Why did India opt for planning?

Accepted Answer

After independence in 1947, India's leaders had to choose an economic system that would promote the welfare of all citizens, not just a few. They were inspired by socialist ideals but did not want to adopt the extreme form of socialism seen in the Soviet Union, where the state owned all property. Th...

Question 13

Q3: Why should plans have goals?

Accepted Answer

Plans should have clearly specified goals because goals provide direction and a clear purpose to the development process. They serve as guiding principles for formulating policies and allocating resources. The goals of India's five-year plans—growth, modernisation, self-reliance, and equity—ensured...

Question 14

Q4: What are High Yielding Variety (HYV) seeds?

Accepted Answer

High Yielding Variety (HYV) seeds are seeds that, under the right conditions, produce a much larger output of crops compared to traditional seeds. The use of HYV seeds, particularly for wheat and rice, was a cornerstone of the Green Revolution in India. These seeds require specific inputs to be effe...

Question 15

Q5: What is marketable surplus?

Accepted Answer

Marketable surplus is the portion of agricultural produce that is sold in the market by farmers after meeting their own consumption needs. A higher marketable surplus is important for the economy as a whole because it makes more food available for the non-agricultural population. During the Green Re...

Question 16

Q6: Explain the need and type of land reforms implemented in the agriculture sector.

Accepted Answer

Land reforms were implemented in the agricultural sector to address the issues of low productivity and inequity that existed at the time of independence. Need for Land Reforms:    Inequitable Land Tenure System: The system was dominated by intermediaries like zamindars and jagirdars, who collected r...

Question 17

Q7: What is Green Revolution? Why was it implemented and how did it benefit the farmers? Explain in brief.

Accepted Answer

What is Green Revolution? The Green Revolution refers to the large increase in the production of food grains, especially wheat and rice, that resulted from the use of High Yielding Variety (HYV) seeds, fertilisers, pesticides, and better irrigation facilities. Why was it implemented? At independence...

Question 18

Q8: Explain 'growth with equity' as a planning objective.

Accepted Answer

'Growth with equity' is a key objective of India's five-year plans, signifying that economic development should not only focus on increasing the overall output of goods and services but also on ensuring its fair distribution among the population.    Growth: This refers to an increase in the country'...

Question 19

Q9: Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.

Accepted Answer

Yes, modernisation as a planning objective can create a contradiction with the goal of employment generation.  Modernisation involves the adoption of new technology to increase the production of goods and services. For example, a factory might use a new, more efficient machine to increase its output...


1. Prime Minister	A. Seeds that give large proportion of output
2. Gross Domestic Product	B. Quantity of goods that can be imported
3. Quota	C. Chairperson of the planning commission
4. Land Reforms	D. The money value of all the final goods and services produced within the economy in one year
5. HYV Seeds	E. Improvements in the field of agriculture to increase its productivity
6. Subsidy	F. The monetary assistance given by government for production activities.

NCERT Solutions