Passage Based Questions: Politics of Planned Development - 2 | Political Science Class 12 - Humanities/Arts PDF Download

After independence, India had two primary models of economic development to consider: the liberal-capitalist model followed by Western countries like the United States and Europe, and the socialist model adopted by the Soviet Union (USSR). Many Indian leaders, including Jawaharlal Nehru, were influenced by the Soviet model, which emphasized state-controlled planning and rapid industrialization. However, some leaders and industrialists supported a more market-driven approach similar to the West. This debate shaped India's economic policies in the early years.

i. Which two global models of economic development influenced India after independence? (1 Mark)
(a) Capitalist model of the USA and socialist model of the USSR
(b) Gandhian model and Chinese communist model
(c) European feudalism and Indian self-sufficiency
(d) Industrialization and traditional agriculture
ii. What were the key differences between the capitalist and socialist models?  (2 Marks)
iii. Why did India adopt elements of the socialist model in its economic planning?  (1 Mark)

Ans: 
i. (a) Capitalist model of the USA and socialist model of the USSR
ii. Key differences between the models:

• The capitalist model focuses on free markets and private businesses.
• The socialist model advocates for state-controlled planning and public sector industries.

iii. India adopted elements of the socialist model to:

• Promote self-sufficiency.
• Encourage industrialisation.
• Reduce economic inequalities.

Q2: Read the Passage below and answer the questions that follow:

India’s economic planning was guided by the Planning Commission, established in 1950 by a government resolution, not by the Constitution. It played a key role in formulating Five-Year Plans to allocate resources and set development goals. The first Five-Year Plan focused on agriculture and rural development, while later plans prioritized industrialization. Over time, criticisms emerged regarding the centralized nature of planning, leading to the replacement of the Planning Commission with NITI Aayog in 2015.

i. When was the Planning Commission of India established?  (1 Mark)
(a) 1947
(b) 1950
(c) 1955
(d) 1961
ii. What were the primary functions of the Planning Commission? (2 Marks)
iii. Why was the Planning Commission replaced by NITI Aayog in 2015?  (1 Mark)

Ans: 
i. (b) 1950
ii. The main roles of the Planning Commission included:

• Formulating Five-Year Plans to allocate resources.
• Setting economic goals for development.
• Balancing growth between agriculture and industry.

iii. The Planning Commission was replaced by NITI Aayog in 2015 because:

• Critics believed that the centralised planning system lacked flexibility.
• There was a need for greater participation from states in the planning process.

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Q3: Read the Passage below and answer the questions that follow:

India’s First Five-Year Plan (1951-56) aimed to address poverty and agricultural growth. Since agriculture was severely impacted by Partition, the government focused on building irrigation projects like Bhakra Nangal Dam and improving food production. The plan followed a conservative approach, emphasizing slow and steady development rather than rapid industrialization. However, as India’s needs grew, later Five-Year Plans shifted towards heavy industries and urban development.

i. What was the primary focus of the First Five-Year Plan (1951-56)?  (1 Mark)
(a) Rapid industrialization
(b) Agriculture and irrigation
(c) Space research
(d) Privatization of industries
ii. Why did the First Five-Year Plan prioritize agriculture? (2 Marks)
iii. How did later Five-Year Plans differ from the First Plan?  (1 Mark)

Ans: 
i. (b) Agriculture and irrigation
ii. 

• Partition had severely impacted food production, requiring urgent recovery.
• Irrigation projects like Bhakra Nangal Dam were essential for long-term agricultural growth.

iii. Later plans focused more on heavy industries and economic self-sufficiency.

Q4: Read the Passage below and answer the questions that follow:

The Second Five-Year Plan (1956-61), led by economist P.C. Mahalanobis, focused on rapid industrialization to achieve economic self-sufficiency. It prioritized heavy industries, steel production, and infrastructure development. The government imposed high tariffs on imports to protect Indian industries. However, challenges arose as agriculture received less attention, leading to food shortages and economic imbalance.

i. Who was the chief architect of India’s Second Five-Year Plan?  (1 Mark)
(a) Jawaharlal Nehru
(b) B.R. Ambedkar
(c) P.C. Mahalanobis
(d) Sardar Patel
ii. What were the key features of the Second Five-Year Plan? (2 Marks)
iii. What was a major drawback of the Second Five-Year Plan?  (1 Mark)

Ans:
i. (c) P.C. Mahalanobis
ii. 

• Emphasis on heavy industries like steel, power, and infrastructure.
• High import tariffs to protect Indian industries.

iii. Neglect of the agricultural sector led to food shortages and economic stress.

Q5: Read the Passage below and answer the questions that follow:

In 1944, leading Indian industrialists proposed the Bombay Plan, which emphasized state-led economic planning. Unlike Western capitalist economies, Indian business leaders supported government control over industries to ensure balanced development. This contradicted the usual belief that industrialists preferred free-market policies. The Bombay Plan influenced India’s approach to planned development post-independence.

i. What was the Bombay Plan of 1944?  (1 Mark)
(a) A government policy on agriculture
(b) A proposal by industrialists for state-led economic planning
(c) A foreign investment strategy
(d) A United Nations economic agreement
ii. Why was the Bombay Plan significant? (2 Marks)
iii. Why was the Bombay Plan different from usual capitalist approaches?  (1 Mark)

Ans:
i. (b) A proposal by industrialists for state-led economic planning
ii.

• It showed that even private industrialists supported government-led development.
• It influenced India’s adoption of planning as a key economic strategy.

iii. Unlike traditional capitalist economies, it supported government control over industries.

Q6: Read the Passage below and answer the questions that follow:

The Green Revolution in India, introduced in the 1960s, aimed to achieve self-sufficiency in food production. It promoted the use of high-yield variety (HYV) seeds, chemical fertilizers, and improved irrigation techniques. The revolution was most successful in Punjab, Haryana, and western Uttar Pradesh. While it increased food production, it also led to economic disparities and environmental concerns, such as soil degradation and excessive water usage.

i. Which regions in India benefited the most from the Green Revolution?  (1 Mark)
(a) Kerala and Tamil Nadu
(b) Punjab, Haryana, and western Uttar Pradesh
(c) Bihar and Odisha
(d) Rajasthan and Gujarat
ii. What were the key features of the Green Revolution? (2 Marks)
iii. What was one negative impact of the Green Revolution?  (1 Mark)

Ans:
i. (b) Punjab, Haryana, and western Uttar Pradesh
ii. 

• Use of high-yield variety (HYV) seeds and chemical fertilizers.
• Expansion of irrigation and mechanized farming techniques.

iii. It led to environmental issues like soil degradation and excessive groundwater depletion.

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Q7: Read the Passage below and answer the questions that follow:

In 1991, India introduced economic liberalization policies to address a severe financial crisis. The reforms, led by Finance Minister Manmohan Singh, focused on privatization, deregulation, and opening up the economy to foreign investment. The government reduced import tariffs, encouraged private sector participation, and attracted foreign direct investment (FDI). While these reforms boosted economic growth, critics argue that they widened income inequality and led to job insecurity in some sectors.

i. Who was the Finance Minister responsible for India’s 1991 economic reforms?  (1 Mark)
(a) P. Chidambaram
(b) Raghuram Rajan
(c) Manmohan Singh
(d) Nirmala Sitharaman
ii. What were the major changes introduced in the 1991 economic reforms? (2 Marks)
iii. Why were the 1991 reforms necessary?  (1 Mark)

Ans:
i. (c) Manmohan Singh
ii.

• Privatization of government-owned industries and reduction in import tariffs.
• Increased foreign investment and deregulation of industries.

iii. India was facing a financial crisis with low foreign exchange reserves.

Q8: Read the Passage below and answer the questions that follow:

In 1969, Prime Minister Indira Gandhi announced the nationalization of 14 major banks to bring the banking sector under government control. The aim was to ensure that banking services reached rural areas and weaker sections of society. This move helped in the expansion of credit to farmers and small industries, but critics argued that government control led to inefficiency and corruption in the banking system.

i. Why did Indira Gandhi nationalize banks in 1969?  (1 Mark)
(a) To encourage foreign investment
(b) To bring banking services to rural areas and support economic development
(c) To allow private companies to control banks
(d) To increase government profits
ii. What were the key objectives of bank nationalization? (2 Marks)
iii. What was one criticism of bank nationalization?  (1 Mark)

Ans:
i. (b) To bring banking services to rural areas and support economic development
ii.

• Expanding financial services to rural areas and weaker sections.
• Providing credit to farmers, small businesses, and industries.

iii. It led to inefficiency and corruption due to excessive government control.

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Q9: Read the Passage below and answer the questions that follow:

The White Revolution, led by Verghese Kurien, transformed India into the largest producer of milk in the world. The establishment of Operation Flood (1970) improved dairy farming by introducing modern technology, crossbreeding of cattle, and rural dairy cooperatives. The revolution not only increased milk production but also enhanced nutrition levels and rural employment. However, challenges like fluctuating milk prices and over-reliance on crossbred cows emerged over time.

i. Who is known as the Father of the White Revolution in India?  (1 Mark)
(a) M.S. Swaminathan
(b) Verghese Kurien
(c) P.C. Mahalanobis
(d) Lal Bahadur Shastri
ii. What were the major achievements of the White Revolution? (2 Marks)
iii. What was one challenge faced during the White Revolution?  (1 Mark)

Ans:
i. (b) Verghese Kurien
ii. 

• India became the largest producer of milk in the world.
• Operation Flood increased dairy farming efficiency and rural employment.

iii. Over-reliance on crossbred cows led to concerns about sustainability.

Q10: Read the Passage below and answer the questions that follow:

On November 8, 2016, the Indian government announced demonetization, banning ₹500 and ₹1,000 currency notes to curb black money, counterfeit currency, and corruption. The move forced people to deposit their old notes in banks, leading to a temporary cash shortage. While the policy aimed at increasing digital payments and tax compliance, critics argued that it caused economic disruption, job losses, and slow GDP growth in the short term.

i. Which currency denominations were demonetized in 2016?  (1 Mark)
(a) ₹200 and ₹500 
(b) ₹500 and ₹1,000
(c) ₹100 and ₹2,000
(d) ₹50 and ₹100
ii. What were the objectives of demonetization? (2 Marks)
iii. Why did demonetization face criticism?  (1 Mark)

Ans:
i. (b) ₹500 and ₹1,000
ii. 

• To eliminate black money and reduce counterfeit currency.
• To promote digital transactions and improve tax compliance.

iii. It led to economic disruption, cash shortages, and a slowdown in economic growth.