Indian Economy: Pre-Independence (1850-1947)

Arthashastra

Agriculture

True (A)

<p>Green Revolution</p> Signup and view all the answers

<p>Nehruvian model</p> Signup and view all the answers

<p>Nehruvian model and Gandhian philosophy (B)</p> Signup and view all the answers

<p>Decline in productivity</p> Signup and view all the answers

<p>To reorient the economy from a centrally directed and highly controlled one to a 'market friendly' or market-oriented economy.</p> Signup and view all the answers

<p>Industry, trade, and taxation.</p> Signup and view all the answers

<p>NITI Aayog</p> Signup and view all the answers

<p>Green Revolution</p> Signup and view all the answers

<p>The License Raj</p> Signup and view all the answers

<p>2017</p> Signup and view all the answers

<p>FAME-India (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) Scheme</p> Signup and view all the answers

<p>It aims to provide a one-stop-shop for investors to obtain approvals and services</p> Signup and view all the answers

<p>The World Bank</p> Signup and view all the answers

<p>The National Logistics Policy (NLP)</p> Signup and view all the answers

<p>Agriculture</p> Signup and view all the answers

<p>Arthashastra</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Maintaining and using land fruitfully.</p> Signup and view all the answers

<p>British Government in India from 1858 to 1947 (A), The rule of East India Company from 1757 to 1858 (D)</p> Signup and view all the answers

<p>India transitioned from an exporter of finished goods to an exporter of raw materials. (A)</p> Signup and view all the answers

<p>The destruction of Indian manufactures led to a shift in patterns of demand, with domestic consumers favoring foreign goods. (B)</p> Signup and view all the answers

<p>Large-scale unemployment and the absence of alternative sources of employment, forcing many people to rely on agriculture. (C)</p> Signup and view all the answers

<p>India transitioned from an exporter of finished goods to an exporter of raw materials. (A)</p> Signup and view all the answers

<p>India faced a shortage of skilled labor, which hindered its industrial development. (C)</p> Signup and view all the answers

<p>Emphasis on free market principles and minimal government intervention. (C)</p> Signup and view all the answers

<p>The public sector, supporting state-led industrialization and large-scale projects. (D)</p> Signup and view all the answers

<p>The 'license-raj', autarchic policies, external shocks such as wars and droughts, and the oil shocks of the 1970s combined to impede economic growth. (A)</p> Signup and view all the answers

<p>The prevailing thrust on inward-oriented trade and investment practices.</p> Signup and view all the answers

<p>From a centrally directed and highly controlled economy to a market-friendly economy. (B)</p> Signup and view all the answers

<ol> <li>Reorientation of the economy from a centrally directed and highly controlled one to a market-friendly economy; 2. Macroeconomic stabilization by substantial reduction in the fiscal deficit.</li> </ol> Signup and view all the answers

<p>To strengthen the public sector, which was considered essential for industrial growth. (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>The educational sector. (B)</p> Signup and view all the answers

<p>To increase government control over the economy, specifically through price controls on essential goods. (D)</p> Signup and view all the answers

<p>To reduce the fiscal deficit.</p> Signup and view all the answers

<p>To make the financial system more efficient and transparent.</p> Signup and view all the answers

<p>The 'License Raj' was a system of strict government controls and regulations on businesses, requiring licenses and permits for even the most basic activities.</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>A process of reducing government intervention in the economy, particularly in sectors like trade, investment, and industry. (A)</p> Signup and view all the answers

<p>A significant increase in the number of monopolies and restrictions in the economy. (B)</p> Signup and view all the answers

<p>India was facing a severe economic crisis in 1991, with a declining foreign exchange reserve, high fiscal deficit, and a mounting external debt.</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Reducing the fiscal deficit, by encouraging greater private investment and reducing government spending. (C)</p> Signup and view all the answers

<p>Nationalization of private banks, increasing the government's control over the financial sector. (C)</p> Signup and view all the answers

<p>A complete transition from a socialist economic model to a pure capitalist model, with the government playing a minimal role in the economy. (A)</p> Signup and view all the answers

<p>Liberalization.</p> Signup and view all the answers

<p>The National Institution for Transforming India (NITI) Aayog, emphasizing a more collaborative and participatory approach to development. (A)</p> Signup and view all the answers

<p>A system where central and state governments work together collaboratively to achieve common goals. (B)</p> Signup and view all the answers

<p>The Green Revolution.</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Small and fragmented landholdings, leading to low farm productivity and limited marketable surplus.</p> Signup and view all the answers

<p>A highly developed and efficient public education system, providing a highly skilled workforce for the industrial sector. (C)</p> Signup and view all the answers

<p>The services sector, reflecting a significant shift towards knowledge-based industries and a growing demand for services. (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>The need to address a high level of economic inequality and the concentration of wealth in the hands of a few.</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>The World Bank has stated that India's economy is exceptionally resilient to global spillovers and is less exposed to international trade flows, due to its large domestic market. (B)</p> Signup and view all the answers

<p>The high level of competition from domestic industries, leading to a decline in the profitability of Indian businesses. (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>The Green Revolution, which while significantly increasing agricultural productivity, also had negative consequences for the economy. (D)</p> Signup and view all the answers

<p>A complete transition from a socialist economic model to a purely capitalist economic model, with the government playing a minimal role in the economy. (A)</p> Signup and view all the answers

The Indian economy before British rule (1850-1947), characterized by self-sufficient villages and thriving cities with diverse occupations.

A period of British rule in India from 1757 to 1947. It significantly altered India's economy by transitioning it from manufacturer to raw material exporter.

The Industrial Revolution in Britain led to increased demand for raw materials and markets for finished goods, impacting India's economic structure

British policies imposing higher tariffs on Indian finished goods and lower tariffs on British imports, making Indian exports less competitive.

Competition from machine-made goods from Britain led to the decline and destruction of India's traditional handicrafts and manufacturing industries.

A British land tenure system that created a class focused on maintaining British rule in India, often at the expense of farmers.

Limited industrial growth during the colonial era, primarily due to British policies that favored their own industries.

Post-independence economic policy emphasizing social and economic redistribution and state-directed industrialization.

The apex policy-making body responsible for India's five-year plans.

A policy that emphasized public sector dominance in India's industrial development.

A low average annual GDP growth rate (3.5%) in India's first three decades after independence.

A significant increase in agricultural productivity in India, driven by new technologies like high-yielding seeds, which helped solve the country's food crisis.

Policies implemented in India to move the economy toward market orientation, external openness, and macroeconomic stabilization after facing a severe economic crisis.

Measures aimed at reducing fiscal deficit through tax reforms, expenditure control and disinvestment.

Measures taken to make India's financial system more efficient and transparent, including interest rate liberalization and reduced controls on banks.

Steps taken to improve the transparency and efficiency of India's capital markets, including giving the Securities and Exchange Board of India (SEBI) statutory recognition.

Liberalization allowed for increased foreign direct investment to boost industry, with many restrictions removed.

A national institution established to support cooperative federalism and provide strategic direction to India's economic development.

Growth in India's agricultural production, driven by technological advancements and policy support.

Manufacturing sector's role and contribution towards overall GDP and employment in India's economic development.

The leading role of the services sector in generating India's economic growth.

The trend in India's GDP growth rate following the 1991 economic reforms.

India's economy before British rule, characterized by self-sufficient villages, bustling cities, and skilled artisans producing high-quality goods.

The British rule (1757-1947) transformed India's economy from a manufacturer to a raw material exporter, devastating domestic industries.

Competition from cheap machine-made goods from Britain led to the decline and destruction of India's traditional handicrafts and manufacturing industries.

The apex policy-making body in India, responsible for formulating and implementing the five-year plans for economic development.

During British rule, Indian agriculture suffered from numerous challenges, including fragmentation of land, high indebtedness, and low productivity due to factors like the Zamindari system.

The 1956 resolution prioritized public sector dominance in industries, potentially hindering private enterprise and investment. It emphasized state control over industrial development.

The 1991 reforms aimed to move India's economy towards a market-oriented system, with a focus on liberalization, privatization, and globalization. Key measures included reducing the fiscal deficit, deregulating industries, and opening up to foreign investment

India's industries face challenges such as infrastructure constraints, labor-management issues, global competition, and high fuel prices. The need for innovation and global competitiveness remains a key challenge.

The services sector is the largest sector in India and is the fastest-growing, contributing significantly to GDP and employment. It includes sectors like IT, finance, tourism, and healthcare.

Modern agriculture faces problems like small and fragmented landholdings, low productivity, dependence on monsoons, and lack of adequate infrastructure. These factors hinder overall agricultural growth.

NITI Aayog, replacing the Planning Commission, promotes collaborative federalism by working with states and providing strategic direction to India's economic development.