Worksheet Solutions: Indian Economy 1950-1990 - 1 | Economics Class 12 - Commerce PDF Download

Multiple Choice Questions 

Q1: What was the primary objective of India's economic policy during 1950-1990?
(a) Achieving rapid industrialization
(b) Focusing on agricultural growth
(c) Ensuring social justice and equitable distribution of wealth
(d) Promoting foreign investments
Ans: (c) Ensuring social justice and equitable distribution of wealth

Q2: Which of the following sectors saw significant reforms in the 1990s liberalization era?
(a) Agriculture
(b) Manufacturing
(c) Services
(d) All of the above
Ans: (d) All of the above

Q3: Who was the first Prime Minister of India to introduce economic planning?
(a) Jawaharlal Nehru
(b) Indira Gandhi
(c) Rajiv Gandhi
(d) Lal Bahadur Shastri
Ans: (a) Jawaharlal Nehru

Q4: Which economic policy in the 1980s aimed at promoting decentralization and local self-sufficiency?
(a) Green Revolution
(b) New Economic Policy
(c) Panchayati Raj
(d) Make in India
Ans: (c) Panchayati Raj

Q5: What was the major factor that led to the balance of payments crisis in India during the 1980s?
(a) Excessive government spending
(b) Decline in export competitiveness
(c) Increase in foreign aid
(d) Stable global oil prices
Ans: (b) Decline in export competitiveness

True and False

Q1: The Indian economy during 1950-1990 was primarily agrarian.
Ans: True

Q2: The Green Revolution in the 1960s contributed significantly to agricultural productivity.
Ans: True

Q3: India's economic policies during this period emphasized self-reliance and import substitution.
Ans: True

Q4: The Industrial Policy of 1956 aimed at promoting the private sector in key industries.
Ans: False

Q5: Economic reforms in the 1990s were triggered by a balance of payments crisis.
Ans: True

Match the Following

Q: Match the economic policy/tool with its objective.

Ans: 

Very Short Answers

Q1: What is the significance of the Green Revolution in Indian agriculture?
Ans: The Green Revolution in Indian agriculture significantly increased agricultural productivity by introducing high-yielding crop varieties, modern agricultural techniques, and improved irrigation methods.

Q2: Name one major economic challenge faced by India in the 1980s.
Ans: Balance of payments crisis.

Q3: Define import substitution industrialization.
Ans: Import substitution industrialization refers to a trade and economic policy that advocates replacing foreign imports with domestic production to stimulate the domestic economy.

Q4: Why was the policy of liberalization introduced in India in 1991?
Ans: Liberalization was introduced in India in 1991 to open up the economy, promote foreign investments, and enhance global trade, addressing the balance of payments crisis and economic stagnation.

Q5: Briefly explain the concept of Five-Year Plans in India's economic planning.
Ans: Five-Year Plans are comprehensive economic development blueprints that outline specific targets and goals for various sectors of the economy over a five-year period.

Short Answers

Q1: Discuss the impact of the Industrial Policy of 1956 on the Indian economy.
Ans: The Industrial Policy of 1956 aimed to promote industrialization in India by dividing industries into three categories: the public sector, the private sector, and the joint sector. It led to the establishment of key industries and contributed to economic growth.

Q2: Explain the role of the public sector in India's economic development during 1950-1990.
Ans: The public sector played a crucial role in infrastructure development, establishing key industries, and ensuring equitable distribution of resources. However, inefficiency and bureaucracy sometimes hindered its effectiveness.

Q3: How did the Green Revolution transform Indian agriculture and rural economy?
Ans: The Green Revolution transformed Indian agriculture by introducing high-yielding crop varieties, modern irrigation techniques, and chemical fertilizers. It significantly increased agricultural productivity, reduced dependence on food imports, and improved rural livelihoods.

Q4: Analyze the reasons behind the balance of payments crisis in India during the 1980s.
Ans: The balance of payments crisis in the 1980s was primarily caused by a growing trade deficit, declining export competitiveness, rising oil prices, and excessive government spending, leading to a depletion of foreign exchange reserves.

Q5: Describe the objectives and outcomes of the New Economic Policy of 1991.
Ans: The New Economic Policy of 1991 aimed at liberalizing the Indian economy, removing trade barriers, encouraging foreign investments, privatizing public sector enterprises, and promoting export-oriented growth. It led to economic revitalization and global integration.

Long Answers

Q1: Economic Policies During 1950-1990: Discuss the major economic policies adopted by the Indian government during 1950-1990, emphasizing their objectives and impact on the economy.
Ans:  Economic Policies During 1950-1990: India's economic policies during this period were characterized by mixed economy principles, emphasizing self-reliance, import substitution, and planned development through Five-Year Plans. The government focused on key sectors such as agriculture, industry, and services. Land reforms, nationalization of industries, and poverty alleviation programs were initiated to ensure social justice. However, bureaucratic inefficiencies and license-permit raj hindered rapid economic growth.

Q2: Impact of Liberalization: Evaluate the impact of economic liberalization on various sectors of the Indian economy, highlighting its positive and negative consequences.
Ans: Impact of Liberalization: Economic liberalization in 1991 ushered in an era of globalization, market-oriented reforms, and increased foreign investments. It led to significant GDP growth, industrial expansion, technological advancements, and improved infrastructure. However, it also brought challenges such as rising income inequality, environmental degradation, and regional disparities.

Q3: Role of Agriculture: Analyze the role of agriculture in India's economic development during the period 1950-1990, considering the Green Revolution and its socio-economic impact.
Ans: Role of Agriculture: Agriculture was the backbone of India's economy during 1950-1990. The Green Revolution of the 1960s and 1970s revolutionized agricultural practices, increasing crop yields and ensuring food security. It also led to the mechanization of farming and improved rural infrastructure, transforming the socio-economic landscape in rural areas.

Q4: Challenges and Reforms: Identify the key challenges faced by the Indian economy in the 1980s. Discuss the economic reforms initiated in response to these challenges, focusing on their effectiveness and outcomes.
Ans: Challenges and Reforms: The 1980s faced challenges like a widening trade deficit, inflation, and inefficient public sector enterprises. Economic reforms in 1991 aimed at liberalization, privatization, and globalization, addressing these challenges. Market-oriented policies attracted foreign investments, improved export competitiveness, and accelerated economic growth. However, challenges like unemployment and social disparities persisted.

Q5: Comparative Analysis: Compare and contrast India's economic policies and performance during 1950-1990 with another developing country of your choice, highlighting similarities, differences, and lessons that can be learned.
Ans:  Comparative Analysis: Comparing India's economic policies with Brazil, India emphasized self-reliance and import substitution, focusing on public sector enterprises. In contrast, Brazil's policies were more export-oriented, emphasizing privatization and global trade. Both countries faced challenges in the 1980s, leading to economic reforms in the 1990s. While India focused on services and software industries, Brazil emphasized agriculture and natural resources. Lessons from these experiences highlight the importance of balanced economic policies tailored to national strengths.