Ramesh Singh Test: Evolution Of The Indian Economy - UPSC MCQ

While both statements are factually correct, Statement-II does not directly explain or relate to Statement-I. Statement-I discusses the suitability of agriculture as the prime moving force based on India's natural resources and historical context. Statement-II, however, discusses how the economic trajectory of independent India was influenced by Jawaharlal Nehru, leading to a focus on industrialization. Although both statements are accurate, they address different aspects and do not necessarily provide a causal relationship or explanation for each other.

India's economy at Independence was deeply troubled, having primarily served the interests of the United Kingdom during colonial rule. The economy faced structural issues in both agriculture and industry, with minimal state involvement. This period also saw neglect in social sectors like education, leading to a predominantly illiterate population with low life expectancy. Industrialization was hindered, and the economy showed near stagnation with minimal growth in production or productivity. Post-Independence, India had to navigate these challenges to steer its economic growth in a new direction.

Statement-I accurately reflects the evolution of India's economic model from a mixed economy concept in the 1950s towards a more market-oriented approach by the 1990s. This transition is well-documented in India's economic history.

However, Statement-II is incorrect. While the Great Depression of 1929 had a global impact, including influencing economic policies worldwide, it did not play a direct role in shaping India's decision to adopt a planned economy. India's move towards economic planning was primarily influenced by factors such as the need to address regional disparities, poverty, and the success of planned economies in other regions, as mentioned in the provided text.

Therefore, the correct answer is that Statement-I is correct, but Statement-II is incorrect.

Statement 1: Correct. India's choice for a planned economy was indeed influenced by the Great Depression of 1929, which highlighted the failures of unregulated markets.

Statement 2: Incorrect. The initial plans by Indian planners did not aim at minimizing the state's role in the economy. Instead, they emphasized a significant role for the state in the economy to address socio-economic challenges effectively.

Statement 3: Correct. The Atmanirbhar Bharat Abhiyan focuses on achieving self-reliance through five key pillars: Economy, Infrastructure, System, Vibrant Demography, and Demand.

Thus, the correct statements are 1 and 3 only.

1. During colonial rule, India's economy primarily served the interests of the United Kingdom: This statement is correct. During British colonial rule, India's economy was structured to benefit the UK, focusing on the export of primary products and the import of British goods, which led to the neglect of India's own economic development.

2. Post-Independence, there was a consensus on the importance of heavy industry promotion and state responsibility for development: This statement is correct. After gaining independence, Indian political leaders and industrialists widely agreed on the need for the state to take a significant role in development, including the promotion of heavy industries and economic planning.

3. Repeated famines and epidemics during British rule were due to socio-economic neglect by the British government: This statement is correct. The British colonial administration's neglect of socio-economic development led to frequent famines and epidemics, evidencing their indifference to the welfare of the Indian population.

All three statements are accurate based on the historical context provided, hence the correct answer is Option D.

Statement-I correctly highlights the structural issues in agriculture and industry with minimal state involvement during India's pre-Independence era. Statement-II accurately describes the post-Independence consensus on state responsibility for development, public sector importance, heavy industry promotion, and economic planning. However, while both statements are individually correct, they address different periods and aspects of India's economic history. Statement-II does not directly explain the situation described in Statement-I, making option (b) the most appropriate choice.

1. PSUs were essential for developing basic infrastructure like power, transportation, and communication due to the private sector's inability to manage such large-scale investments post-independence.
Correct. At the time of India's independence, the private sector lacked the necessary capital, technology, skilled manpower, and ability to create markets for essential infrastructure development. This necessitated significant government intervention to build and manage these sectors.

2. PSUs were primarily aimed at generating high profits to reinvest in the social sector and public goods like education and healthcare.
Incorrect. While PSUs aimed to contribute to the social sector, many struggled to generate sufficient profits due to various challenges, which impacted the development of public goods. The primary focus was often on asset creation and ensuring essential services rather than solely on profit generation.

3. The rise of the private sector in India was supported by the foundational infrastructure development undertaken by the PSUs.
Correct. The foundational work done by PSUs in developing critical infrastructure and basic industries provided a platform for the private sector to grow, marking a significant shift in the industrial landscape of India.

Thus, the correct answer is Option C: 1 and 3 Only.

India's focus on industrialization post-independence primarily aimed to address key economic challenges, one of which was ensuring food security. By increasing agricultural production and creating a surplus that could be exported, India aimed to secure its food needs and benefit in the global economy. This strategy aligned with the need to alleviate poverty, create employment opportunities, and build a more diversified and resilient economy.

1. Economy: Revitalizing and transforming the economic landscape to ensure robust and sustainable growth. Correct. This pair correctly matches the objective of the economic pillar of the Atmanirbhar Bharat Abhiyan.

2. Infrastructure: Ensuring self-reliance in manufacturing and production. Incorrect. The correct objective of the Infrastructure pillar is developing modern infrastructure that meets current needs and anticipates future demands. Ensuring self-reliance in manufacturing and production is not the primary focus of this pillar.

3. System: Implementing a technology-driven system to enhance efficiency and productivity. Correct. This pair correctly matches the objective of the System pillar of the Atmanirbhar Bharat Abhiyan.

4. Vibrant Demography: Leveraging India’s demographic advantage to fuel economic development. Correct. This pair correctly matches the objective of the Vibrant Demography pillar of the Atmanirbhar Bharat Abhiyan.

Thus, three pairs are correctly matched.

1. Agriculture and Industry at Independence - Faced structural issues with minimal state involvement

This is correctly matched. At the time of Independence, both agriculture and industry faced significant structural issues, and there was minimal involvement from the state in economic matters.

2. British Colonial Rule - Focused on developing India's industrial infrastructure

This is incorrectly matched. During British Colonial Rule, the focus was on exporting primary products from India and importing British goods, rather than developing India's industrial infrastructure.

3. Social Sectors under British Rule - Predominantly illiterate population with low life expectancy

This is correctly matched. The social sectors, including education, were largely neglected under British rule, leading to a predominantly illiterate population with low life expectancy.

4. Economic Vision at Independence - Consensus on promoting heavy industry and economic planning

This is correctly matched. Post-Independence, there was a consensus among political leaders and industrialists on the importance of promoting heavy industry and economic planning.

Thus, three out of the four pairs are correctly matched.