All Exams  >   UPSC  >   Post Independence History for UPSC Mains  >   All Questions

All questions of Economic Development for UPSC CSE Exam

What was the rationale behind the abolition of Privy Purse in India?
  • a)
    To increase revenue for the government
  • b)
    To strengthen the power of the rulers
  • c)
    To promote equality and social justice
  • d)
    To support foreign investment
Correct answer is option 'C'. Can you explain this answer?

Arun Khatri answered
The abolition of Privy Purse in India was based on the rationale to promote equality and social justice, as it was seen as a privilege that contradicted these principles laid down in the Indian Constitution.
1 Crore+ students have signed up on EduRev. Have you? Download the App

What was the main objective of the Indian Parliament when it accepted 'the socialist pattern of society' in December 1954?
  • a)
    To promote a purely capitalist economic system
  • b)
    To encourage foreign investment in India
  • c)
    To establish a mixed economy
  • d)
    To abolish private sector businesses
Correct answer is option 'C'. Can you explain this answer?

Deepa Iyer answered
The Indian Parliament accepted 'the socialist pattern of society' with the objective of establishing a mixed economy, where both the public and private sectors coexisted and complemented each other within the broad framework of national planning.

What was the primary objective of the National Development Council in India?
  • a)
    To prepare the annual budget
  • b)
    To approve the state budgets
  • c)
    To make decisions on foreign policy
  • d)
    To provide final approval to the 5-year plan
Correct answer is option 'D'. Can you explain this answer?

The primary objective of the National Development Council in India was to provide final approval to the 5-year plans. Let's delve into the details to understand this better.

1. National Development Council (NDC):
The National Development Council was established in India in 1952 as a non-statutory body to promote and coordinate the development activities of the country. It served as a platform for deliberations between the central and state governments on matters of national importance.

2. Five-Year Plans:
The concept of Five-Year Plans was introduced in India in 1951 with the aim of achieving rapid economic development and reducing socio-economic inequalities. These plans outlined the development goals and strategies for a period of five years.

3. Planning Commission:
The planning process in India was initially the responsibility of the Planning Commission. It was a statutory body established in 1950 to formulate and implement the Five-Year Plans. The Planning Commission prepared the draft plan proposals, which were then discussed and finalized by the National Development Council.

4. Role of the National Development Council:
The National Development Council played a crucial role in the planning process by providing final approval to the Five-Year Plans. It reviewed and discussed the draft plan proposals prepared by the Planning Commission, taking into account the inputs and suggestions from the central and state governments.

5. Deliberations and Coordination:
During the meetings of the National Development Council, the central and state governments participated in discussions on various aspects of the plans, including resource allocation, sectoral priorities, and policy frameworks. This allowed for better coordination and collaboration between the different levels of government.

6. Approval and Implementation:
Once the National Development Council approved the Five-Year Plans, they were implemented by the central and state governments. The plans guided the allocation of resources, implementation of development projects, and monitoring of progress towards the set targets.

Conclusion:
In conclusion, the National Development Council in India played a pivotal role in the planning and development process. Its primary objective was to provide final approval to the Five-Year Plans, ensuring coordination and cooperation between the central and state governments in achieving the country's development goals.

Which industry category in the Industrial Policy of 1956 was designated as "Key Industries" or "Basic Industries"?
  • a)
    Strategic Industries (Public Sector)
  • b)
    Important Industries (Controlled Private Sector)
  • c)
    Other Industries (Private and Cooperative Sector)
  • d)
    Basic/Key Industries (Public-cum-Private Sector)
Correct answer is option 'D'. Can you explain this answer?

The correct answer is option 'D' - Basic/Key Industries (Public-cum-Private Sector).

Explanation:
The Industrial Policy of 1956 was formulated by the Government of India with the aim of promoting industrial development and economic growth in the country. This policy categorized industries into different groups based on their importance and role in the country's economy.

The category designated as "Key Industries" or "Basic Industries" was considered crucial for the overall industrial development of the country. These industries were given special attention and priority in terms of government support, investment, and regulation.

Key Industries (Public-cum-Private Sector):
Under the Industrial Policy of 1956, the Basic/Key Industries category included industries that were considered strategically important for the nation's economic growth. These industries were characterized by significant capital requirements, long gestation periods, and high social returns. They were deemed essential for the development of other industries and had a multiplier effect on the economy.

Examples of Basic/Key Industries included steel, coal, iron, petroleum, and heavy machinery. These industries were crucial for infrastructural development and provided inputs to various other sectors. The government recognized that the private sector alone may not be able to adequately invest in and develop these industries due to their capital-intensive nature and long-term gestation periods. Therefore, the policy allowed for a combination of public and private sector participation in these industries.

By designating these industries as Basic/Key Industries, the government aimed to ensure their sustained growth and development by providing financial support, infrastructure, and regulatory frameworks. This approach was intended to create a strong industrial base in the country, promote self-sufficiency, and reduce dependence on imports.

The Industrial Policy of 1956 played a significant role in shaping India's industrial landscape and laid the foundation for the country's industrial development in subsequent years. The categorization of industries into Basic/Key Industries highlighted the government's commitment to promoting economic growth and achieving industrialization through a planned and regulated approach.

Which element of India's economic development strategy focused on reducing the concentration of wealth and promoting equity?
  • a)
    Emphasis on heavy industry
  • b)
    Growth with equity
  • c)
    Capitalism
  • d)
    Import substitution
Correct answer is option 'B'. Can you explain this answer?

Vikram Verma answered
The element of India's economic development strategy that focused on reducing the concentration of wealth and promoting equity was "Growth with equity," which aimed for a fair distribution of economic prosperity.

Which economic model emphasized the importance of cottage and small-scale industries in India's economic development?
  • a)
    Capitalism
  • b)
    Socialism
  • c)
    Mixed Economy
  • d)
    Communism
Correct answer is option 'B'. Can you explain this answer?

Kavita Shah answered
Socialism emphasized the importance of cottage and small-scale industries in India's economic development as they provided local resources and employment opportunities.

What were the key challenges faced by the Indian economy at the time of independence?
  • a)
    Lack of financial resources
  • b)
    High levels of literacy
  • c)
    Balanced trade with other countries
  • d)
    Strong industrial base
Correct answer is option 'A'. Can you explain this answer?

Lack of financial resources:
The Indian economy faced several key challenges at the time of independence, and one of the most significant was the lack of financial resources. This can be attributed to various factors:

1. British Exploitation:
During the colonial period, India's wealth was systematically drained by the British through policies such as heavy taxation, trade imbalances, and exploitative economic practices. This severely depleted the country's financial resources.

2. Disruption due to Partition:
The partition of India in 1947 resulted in significant economic turmoil, as large-scale migration, communal violence, and the displacement of people disrupted trade, agriculture, and industrial production. The newly formed Indian government had to allocate substantial resources for relief and rehabilitation efforts.

3. Infrastructure Deficiencies:
At the time of independence, India had a limited infrastructure, with inadequate transportation, communication, and power networks. This hindered economic development and required significant investments to improve infrastructure facilities.

4. Lack of Industrialization:
India's economy was primarily agrarian, with a limited industrial base. The country heavily relied on imports for manufactured goods, resulting in a trade deficit. The lack of a strong industrial sector meant that India was unable to generate sufficient employment opportunities and increase productivity.

5. Inefficient Financial Institutions:
The financial institutions in India were underdeveloped and lacked the necessary expertise and resources to support economic growth. The banking system was largely controlled by foreign banks, which further limited access to credit and capital for domestic industries and businesses.

6. Scarce Foreign Exchange Reserves:
India had meager foreign exchange reserves at the time of independence, making it difficult to meet the requirements of imports and foreign debt repayments. This posed a significant challenge in terms of managing trade deficits and maintaining economic stability.

Overall, the lack of financial resources presented a major challenge to the Indian economy at the time of independence. The government had to prioritize resource allocation and make strategic investments to address these challenges and lay the foundation for economic growth and development.

Why did the Indian government opt for a mixed economy after independence?
  • a)
    Capitalism was more profit-centered.
  • b)
    Socialism advocated for equality.
  • c)
    India wanted to emulate the U.S. economic model.
  • d)
    India wanted to adopt a purely communist system.
Correct answer is option 'B'. Can you explain this answer?

Sanjay Rana answered
The Indian government chose a mixed economy because socialism advocated for equality, which was seen as necessary for the welfare and sustained growth of the country. It aimed to balance profit-driven capitalism with socialist principles.

What was the objective of India's Fourth Five-Year Plan (1969-74)?
  • a)
    Achieving self-reliance in industry
  • b)
    Poverty eradication
  • c)
    Self-sufficiency in food production
  • d)
    Reducing foreign aid dependency
Correct answer is option 'C'. Can you explain this answer?

Suresh Reddy answered
The objective of India's Fourth Five-Year Plan (1969-74) was to achieve self-sufficiency in food production. It aimed at improving domestic food production and reducing reliance on food imports.

During which period did India experience the "Plan Holiday"?
  • a)
    First Five-Year Plan
  • b)
    Second Five-Year Plan
  • c)
    Third Five-Year Plan
  • d)
    Annual plans of 1966-67, 1967-68, and 1968-69
Correct answer is option 'D'. Can you explain this answer?

India experienced the "Plan Holiday" during the annual plans of 1966-67, 1967-68, and 1968-69. These plans were primarily focused on agriculture due to the prevailing food crisis.

What was the primary slogan of Indira Gandhi's campaign during the 1971 elections?
  • a)
    "Indira Hatao"
  • b)
    "Remove Poverty"
  • c)
    "Garibi Hatao Desh Bachao"
  • d)
    "Remove Privy Purse"
Correct answer is option 'C'. Can you explain this answer?

Arun Khatri answered
The primary slogan of Indira Gandhi's campaign during the 1971 elections was "Garibi Hatao Desh Bachao," which translates to "Remove Poverty, Save the Nation." It was aimed at reaching out to the poor and marginalized sections of society.

Which Five-Year Plan is also known as the "Mahalanobis Plan"?
  • a)
    First Plan (1951-56)
  • b)
    Second Plan (1956-61)
  • c)
    Third Plan (1961-66)
  • d)
    Fourth Plan (1969-74)
Correct answer is option 'B'. Can you explain this answer?

The Second Five-Year Plan (1956-61) is also known as the "Mahalanobis Plan." This plan focused on rapid industrialization and laid emphasis on heavy and basic industries.

What was the main focus of the New Economic Policy introduced in 1991?
  • a)
    Encouraging foreign aid dependency
  • b)
    Reducing government expenditure
  • c)
    Liberalization, privatization, and globalization
  • d)
    Expanding the public sector
Correct answer is option 'C'. Can you explain this answer?

Arun Khatri answered
The New Economic Policy introduced in 1991 focused on liberalization, privatization, and globalization (LPG) to open up the Indian economy, reduce government intervention, and promote economic growth.

What did the abbreviation "PL-480" stand for in the context of India's economic history?
  • a)
    Public Law 480
  • b)
    Plan for Land Reform 480
  • c)
    Poverty Level 480
  • d)
    Plan for Industrialization 480
Correct answer is option 'A'. Can you explain this answer?

Arun Khatri answered
In the context of India's economic history, "PL-480" stands for Public Law 480, also known as 'Food for Peace.' It was a U.S. funding program for providing food aid to countries.

What was the primary focus of India's First Five-Year Plan (1951-56)?
  • a)
    Industrialization
  • b)
    Agriculture, price stability, and infrastructure
  • c)
    Poverty eradication
  • d)
    Foreign aid reduction
Correct answer is option 'B'. Can you explain this answer?

The primary focus of India's First Five-Year Plan (1951-56) was on agriculture, price stability, and infrastructure. This plan aimed to boost agricultural productivity, stabilize prices, and develop essential infrastructure for economic growth.

Chapter doubts & questions for Economic Development - Post Independence History for UPSC Mains 2024 is part of UPSC CSE exam preparation. The chapters have been prepared according to the UPSC CSE exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for UPSC CSE 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.

Chapter doubts & questions of Economic Development - Post Independence History for UPSC Mains in English & Hindi are available as part of UPSC CSE exam. Download more important topics, notes, lectures and mock test series for UPSC CSE Exam by signing up for free.

Signup to see your scores go up within 7 days!

Study with 1000+ FREE Docs, Videos & Tests
10M+ students study on EduRev