Passage Based Questions: Politics of Planned Development | Political Science Class 12 - Humanities/Arts PDF Download

Passage - 1

Q. 1. Read the passage below and answer the following questions:

“In the early years of Independence, two contradictory tendencies were already well advanced inside the Congress Party. On the one hand, the national party executive endorsed socialist principles of state ownership, regulation, and control over key sectors of the economy in order to improve productivity and at the same time curb economic concentration. On the other hand, the national Congress government pursued liberal economic policies and incentives to private investment that was justified in terms of the sole criterion of achieving maximum increase in production.” - Francine Frankel

(i) What development model was ultimately adopted by India?
Ans: The author is discussing the contradiction between adopting either socialist or capitalist development models. The political implications of this contradiction could lead to differences among party members and result in the government issuing licenses and permits in a more complicated manner. [1]

(ii) Which principles were endorsed by the national party to enhance productivity?
Ans: The Congress pursued this policy as the sole criterion for achieving the maximum increase in production. Yes, it was related to the nature of opposition parties, which favored liberal economic policies and incentives for private investment. [2]

(iii) Do you think there was a contradiction between the Congress Party’s central leadership and its state-level leaders? Justify your response.
Ans: No, there was no contradiction between the central leadership of the Congress Party and its state-level leaders. The state emphasized state ownership and regulation to improve productivity in key sectors, while the central leadership pursued liberal economic policies and provided incentives for private investment. [2]

Passage - 2

Q. 2. Read the passage below and respond to the following questions:

"India did not follow any of the two known paths to development. Elements from both these models were taken and mixed together in India. That is why the Indian economy was described as a ‘mixed economy’."

(i) Identify the two development models/paths mentioned.
Ans: The two development models/paths were the liberal capitalist model used in much of Europe and the socialist model used in the USSR. 

(ii) Why did India not fully adopt either of these models? Provide at least one major reason for each.
Ans:
(a) Many in India were opposed to the US system because there was a consensus that development could not be left to the private sector alone.
(b) The government needed to design a plan for development and poverty alleviation.
(c) The socialist model was also not fully acceptable as India was a developing nation, and industrialists would have resisted it.
(d) Foreign aid was required for development.
(e) Non-Aligned India wanted to balance relations with both the USA and USSR. [2]

(iii) Highlight any two features of India’s mixed economy based on the above-mentioned models.
Ans:
(a) Large industries were under government control.
(b) Small industries were allowed in the private sector.
(c) There was a public, private, and joint sector.
(d) Railways, airlines, steel, and other heavy industries were under the public sector, while agriculture, trade, and smaller industries were in the private sector. (Any Two) [2]

Passage - 3

Direction: Read the following Passage and Answer the Questions.

The first decade after Independence witnessed a lot of debate around this question. It was common then, as it is even now, for people to refer to the ‘West’ as the standard for measuring development. ‘Development’ was about becoming more ‘modern’ and modern was about becoming more like the industrialised countries of the West. This is how common people as well as the experts thought. It was believed that every country would go through the process of modernisation as in the West, which involved the breakdown of traditional social structures and the rise of capitalism and liberalism. Modernisation was also associated with the ideas of growth, material progress and scientific rationality.

Q1: What was the prevailing perception of "development" and "modernity" in the first decade after India's Independence?
Ans:

• In the first decade after Independence, "development" and "modernity" were often measured against the standards set by Western industrialized countries.
• "Modernization" was considered a process that involved emulating the Western model, characterized by the breakdown of traditional social structures and the promotion of capitalism and liberalism.
• Modernization was closely associated with the ideas of growth, material progress, and scientific rationality.

Q2: What was the common belief regarding the trajectory of development for every country during that time?
Ans:

• It was commonly believed that every country would follow a path of modernization similar to that of Western countries, which included the transformation of traditional social structures and the adoption of capitalist and liberal values.

Q3: What standards and benchmarks did people use to assess development and modernity in the post-Independence era?
Ans:

• People assessed development and modernity by comparing them to the industrialized Western countries and their achievements.
• The criteria included the breakdown of traditional societal norms, the rise of capitalism, and the promotion of material progress and scientific rationality as hallmarks of development and modernity.

Passage - 4

Direction: Read the following Passage and Answer the Questions.

Thus the Planning Commission was not a sudden invention. In fact, it has a very interesting history. We commonly assume that private investors, such as industrialists and big business entrepreneurs, are averse to ideas of planning: they seek an open economy without any state control in the flow of capital. That was not what happened here. Rather, a section of the big industrialists got together in 1944 and drafted a joint proposal for setting up a planned economy in the country. It was called the Bombay Plan.

Q1: What was the origin of the Planning Commission in India, and why is it noteworthy?
Ans:

• The Planning Commission in India did not emerge suddenly; it has a significant historical background.
• A group of major industrialists came together in 1944 to draft a joint proposal advocating the establishment of a planned economy in India.
• This proposal, known as the "Bombay Plan," was created by these industrialists and played a pivotal role in shaping the concept of planning in India.

Q2: What was the common assumption regarding private investors and planning in India, and how did it differ from reality?
Ans:

• The common assumption was that private investors, including industrialists and business entrepreneurs, preferred an open economy with minimal state intervention in capital flow.
• In contrast to this assumption, a section of prominent industrialists in India actively supported and proposed the idea of a planned economy through the Bombay Plan.

Q3: Can you explain the significance of the Bombay Plan in the context of India's economic planning?
Ans:

• The Bombay Plan was a proposal by a group of influential industrialists, and it laid the groundwork for India's economic planning.
• It marked a significant departure from the assumption that private investors were against planning and state intervention, highlighting their proactive role in advocating for a planned economy in the country.

Passage - 5

Direction: Read the following Passage and Answer the Questions.

The draft of the First Five Year Plan and then the actual Plan Document, released in December 1951, generated a lot of excitement in the country. People from all walks of life – academics, journalists, government and private sector employees, industrialists, farmers, politicians etc. – discussed and debated the documents extensively. The excitement with planning reached its peak with the launching of the Second Five Year Plan in 1956 and continued somewhat till the Third Five Year Plan in 1961. The Fourth Plan was due to start in 1966.

Q1: How did the release of the First Five Year Plan document impact India in the early 1950s?
Ans:

• The release of the First Five Year Plan document in the early 1950s generated significant excitement and interest across the country.
• People from diverse backgrounds, including academics, journalists, government and private sector employees, industrialists, farmers, and politicians, engaged in extensive discussions and debates about the plan.
• This marked a period of widespread engagement and enthusiasm with the concept of economic planning in India.

Q2: What marked the peak of enthusiasm for economic planning in India, and when did it occur?
Ans:

• The peak of enthusiasm for economic planning in India was marked by the launching of the Second Five Year Plan in 1956.
• During this period, excitement and discussions about planning were at their highest.

Q3: When was the Fourth Five Year Plan scheduled to begin?
Ans:

• The Fourth Five Year Plan was scheduled to commence in 1966.

Passage - 6

Direction: Read the following Passage and Answer the Questions.

One of the basic aims of the planners was to raise the level of national income, which could be possible only if the people saved more money than they spent. As the basic level of spending was very low in the 1950s, it could not be reduced any more. So the planners sought to push savings up. That too was difficult as the total capital stock in the country was rather low compared to the total number of employable people. Nevertheless, people’s savings did rise in the first phase of the planned process until the end of the Third Five Year Plan.

Q1: What was one of the fundamental objectives of India's planners regarding national income in the early years of planning?
Ans:

• One of the key aims of the planners was to increase the level of national income.

Q2: Why was it challenging to raise national savings in India during the 1950s?
Ans:

• Increasing national savings was difficult because the basic level of spending was already low in the 1950s.
• The country faced limitations in boosting savings further, primarily due to the relatively low total capital stock in comparison to the number of employable people.

Q3: Until when did people's savings increase during the initial phase of India's planned development?
Ans:

• People's savings continued to rise until the end of the Third Five Year Plan.

Passage - 7

Direction: Read the following Passage and Answer the Questions.

This was reflected in the Second Plan. The government imposed substantial tariffs on imports in order to protect domestic industries. Such protected environment helped both public and private sector industries to grow. As savings and investment were growing in this period, a bulk of these industries like electricity, railways, steel, machineries and communication could be developed in the public sector. Indeed, such a push for industrialisation marked a turning point in India’s development.

Q1: How did the Indian government protect domestic industries during the implementation of the Second Five Year Plan?
Ans:

• The government imposed substantial tariffs on imports to shield domestic industries from foreign competition.

Q2: What were the key sectors that benefited from the growing savings and investments during this period?
Ans:

• Industries like electricity, railways, steel, machinery, and communication saw significant development in the public sector, thanks to the increase in savings and investment.

Q3: What impact did the push for industrialization have on India's development during this period?
Ans:

• The emphasis on industrialization marked a crucial turning point in India's development, contributing to the growth and diversification of various sectors in the economy.

Passage - 8

Direction: Read the following Passage and Answer the Questions.
The Indian planners found balancing industry and agriculture really difficult. The Third Plan was not significantly different from the Second. Critics pointed out that the plan strategies from this time around displayed an unmistakable “urban bias”. Others thought that industry was wrongly given priority over agriculture.

Q1: What challenges did Indian planners face in attempting to balance industry and agriculture during the Third Five Year Plan?
Ans:

• Balancing the development of industry and agriculture was a significant challenge for Indian planners during the Third Plan.

Q2: What criticism did the Third Plan face, and why was it considered to have an "urban bias"?
Ans:

• Critics argued that the Third Plan displayed an "urban bias" in its strategies, meaning that it favored urban development over rural areas.

Q3: Why did some people believe that industry was wrongly prioritized over agriculture during this period?
Ans:

• Some individuals thought that the Third Plan should have given greater priority to agriculture, as it was considered vital for the overall economic development of the country.