Indian Economic Policies Post-1967

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Questions and Answers

What was one major impact of the period from 1967 onwards on private industry in India?

Elimination of all private businesses

Increased investments in private sector

Introduction of free market policies

Nationalisation of fourteen private banks (correct)

India's economy grew at a rate of 5% per annum between 1950 and 1980.

False

What were the three major objectives of Nehru’s foreign policy?

Preserve sovereignty, protect territorial integrity, and promote economic development.

The policy of _________ aimed to keep India away from military alliances led by the US and the Soviet Union.

non-alignment Signup and view all the answers

Which of the following events did Nehru convene in March 1947?

Asian Relations Conference Signup and view all the answers

Nehru's foreign policy was heavily influenced by the US during his leadership.

False Signup and view all the answers

Match the following concepts with their descriptions:

Non-Alignment = Policy to avoid military alliances Decolonisation = Process of gaining independence from colonial rule Afro-Asian Unity = Establishment of ties with newly independent nations Corruption = Inefficiency in governmental processes Signup and view all the answers

How did India's independent stand during the 1950s affect its relations with the USA?

It caused considerable unease in Indo-US relations due to India's growing ties with the USSR. Signup and view all the answers

Which significant agreement was signed between India and China in 1954 to promote peaceful coexistence?

Panchsheel Agreement Signup and view all the answers

The Bandung Conference established the Non-Aligned Movement (NAM).

True Signup and view all the answers

What was the main issue that caused tension between India and China during the early years of their relationship?

Tibet Signup and view all the answers

The first summit of the NAM was held in ______ in 1961.

Belgrade Signup and view all the answers

Match the following events with their descriptions:

Bandung Conference = Establishment of the NAM Indus Waters Treaty = Agreement between India and Pakistan Tashkent Agreement = Ceasefire agreement after the Indo-Pak war Sino-Indian War = China's invasion in 1962 Signup and view all the answers

What factor worsened relations between India and China after the Panchsheel Agreement?

Asylum provided to Dalai Lama Signup and view all the answers

The India-Pakistan Indus Waters Treaty was signed after the Bangladesh War.

False Signup and view all the answers

In which year did China invade India, leading to significant conflict?

1962 Signup and view all the answers

Study Notes

Economic Developments Post-1967

Nationalization of 14 private banks marked a shift towards increased state control over the economy.
Economic growth from 1950 to 1980 averaged a sluggish 3 to 3.5% annually.
Issues like inefficiency and corruption led to a decline in public faith in the economic system.

Non-Alignment Policy

The Cold War era characterized by rivalry between superpowers, the US and USSR.
Nehru's leadership aimed to safeguard India's sovereignty and promote economic development through non-alignment.
Despite internal political pressures, Nehru sought to maintain an independent foreign policy.

Distance from US and USSR

India avoided military alliances with either superpower, prioritizing its own national interests.
India's independent stance resulted in receiving aid from both blocs despite US discontent over India’s relations with the USSR.
Growing Indo-US tensions during the 1950s due to India’s close relationship with the USSR.

Afro-Asian Unity

Nehru facilitated connections with newly independent Asian and African states.
The Asian Relations Conference in 1947 promoted solidarity among nations.
India actively supported decolonization efforts and stood against apartheid, illustrated by participation in the 1955 Bandung Conference.

Relations with China

Initially friendly relations as India was among the first to recognize China's communist government.
Concerns over Chinese aggression existed among Indian leaders, though Nehru downplayed threats.
The Panchsheel Agreement in 1954 underscored principles of peaceful coexistence between India and China.

Tibet Issue

Tensions grew over Tibet after the 1954 Panchsheel Agreement, where India accepted China's claim.
The Dalai Lama sought asylum in India in 1959, worsening India-China relations.

Sino-Indian Conflict

China's annexation of Tibet in 1950 eliminated the buffer between India and China.
In 1962, China launched an invasion claiming the Aksai Chin and Arunachal Pradesh regions.
The conflict damaged India's international image and led to divisions within the Communist Party of India (CPI).

Indo-Pakistan Relations

Conflicts began immediately after Indian independence over Kashmir.
The Indus Waters Treaty, signed in 1960, established a framework for water sharing amid ongoing tensions.
Armed skirmishes in 1965 culminated in the Tashkent Agreement, which was mediated by the USSR.

Bangladesh War, 1971

Political turmoil and refusal to acknowledge the democratic process by Pakistani leaders led to significant refugee influx into India.
India's involvement in the conflict ultimately contributed to the independence of Bangladesh.

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Description

This quiz explores the economic policies of India from 1967 onwards, focusing on nationalization and the impact of inefficiencies and corruption on the economy. Delve into the significance of the Non-Alignment Policy during the Cold War era and its implications. Test your knowledge on how these events shaped India's economic landscape.