Indian Economy: Pre-Independence (1850-1947)
66 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the earliest known treatise on ancient Indian economic philosophy?

Arthashastra

What was the main source of livelihood for the majority of people in India during the pre-British period?

Agriculture

The Arthashastra emphasizes the importance of a robust agricultural sector for the overall prosperity of the kingdom.

True

What is the term used to describe the transition in India's agricultural policies that emphasized technical progress and increased food grain production, leading to greater self-sufficiency?

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

What is the economic model that India adopted after independence, which supported social and economic redistribution and industrialization, directed by the state?

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

What are the two main economic philosophies that guided India's policies in the 1950s?

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

What was the main reason for the decline in India's economic performance during the period of 1965-81?

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

What was the objective of the 'New Economic Policy' introduced in 1991?

<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

What were the three main areas covered by the early reforms of the 1980s?

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

What replaced the Planning Commission of India in 2015?

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

What is the term used to describe the shift in India's agricultural policies that emphasized technical progress and increased food grain production, leading to greater self-sufficiency?

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

The 'New Industrial Policy' announced in 1991 sought to end what?

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

What year did India introduce goods and services tax (GST)?

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

Which policy aimed at promoting the manufacturing of electric and hybrid vehicles in India?

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

What does the National Single Window System aim to achieve?

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

In 2022, which organization recognized India's improved ranking in the Global Innovation Index (GII)?

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

Which initiative aims to provide a comprehensive policy framework for the logistics sector in India?

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

What was the primary source of livelihood for the majority of people in pre-British India?

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

What was the name of the earliest known treatise on ancient Indian economic philosophy?

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

Kautilya's 'Arthashastra' emphasizes the importance of robust agricultural initiatives for an abundant harvest.

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

What was the primary focus of Kautilya's 'Arthashastra'?

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

The period of British rule in India can be divided into two sub periods. Which of the following are those periods?

<p>British Government in India from 1858 to 1947</p> Signup and view all the answers

The onset of the Industrial Revolution in the latter half of the 18th century led to significant changes in India's foreign trade. What was the primary change?

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

The destructive impact of the British on the Indian manufacturing sector had several consequences. What is the most significant consequence?

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

The damage done to the long-established production structure in India had far-reaching economic and social consequences. What was one of the most significant consequences?

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

The onset of the Industrial Revolution in Britain led to significant changes in India's foreign trade. What is the most significant consequence?

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

At the time of independence, India's literacy rate was just above 18 percent. What was the primary consequence of this low literacy rate?

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

The Nehruvian model for economic development in India was based on several key principles. Which of the following is NOT a principle of the Nehruvian model?

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

The Industrial Policy Resolution of 1956 aimed to support enormous expansion of a specific sector. Which sector was favored by this policy?

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

The economic performance of India during the period of 1965-81 was considered to be the worst in the country's independent history. Which of the following factors contributed significantly to this dismal economic performance?

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

The early reforms in India during the 1980s, often referred to as 'early liberalization,' were aimed at changing what?

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

The 'New Economic Policy', introduced in India in 1991, was aimed at reorienting the economy. Where did the policy seek to shift the focus?

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

The 'New Economic Policy' of 1991 led to significant changes in the economic philosophy of India, with two primary objectives. What were these objectives?

<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

The 'New Industrial Policy' of India, introduced in 1991, aimed to achieve several key objectives. Which of the following was NOT an objective of this policy?

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

The 'New Industrial Policy' of India, introduced in 1991, completely eliminated licensing restrictions for all industries.

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

The 'New Economic Policy' of 1991 included reforms in various sectors. Which of the following sectors did NOT undergo reforms during this period?

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

The 'New Economic Policy' of 1991 aimed to achieve several economic objectives. Which of the following was NOT an objective of this policy?

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

What was the primary goal of the fiscal reforms introduced in India in 1991?

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

The monetary and financial sector reforms in India during the 1990s were focused on achieving several key objectives. What was one of the most important objectives?

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

The 'New Industrial Policy' of 1991 aimed at reducing the 'License Raj' in India. What is the 'License Raj'?

<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

The 'New Industrial Policy' of India, introduced in 1991, focused exclusively on reducing the role of the public sector and increasing the role of the private sector.

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

The 'New Economic Policy' ushered in a period of economic liberalization in India. What is economic liberalization?

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

The economic reforms in India during the 1990s led to several significant outcomes. Which of the following was NOT a major outcome of these reforms?

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

The 'New Economic Policy' in 1991 was a major turning point in India's economic history. What was the primary reason behind this drastic change?

<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

The 'New Economic Policy' of 1991 was primarily focused on addressing India's fiscal deficit, with little attention paid to structural reforms.

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

The 'New Economic Policy' of 1991 aimed to create a more market-friendly economy in India. What was one of the key aspects of this shift towards a market-based system?

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

The 'New Economic Policy' of 1991 resulted in significant changes to the banking sector in India. Which of the following was NOT a major change introduced in this sector?

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

The 'New Economic Policy' of 1991 had a significant impact on the Indian economy, leading to several changes. Which of the following was NOT a major change introduced by these reforms?

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

The 'New Economic Policy' of 1991 aimed to shift the Indian economy away from a centrally directed and controlled system to a more market-friendly system. What is the term used to describe this shift away from government control?

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

The Planning Commission, which played a central role in India's economic development for several decades, was replaced in 2015. What was this new organization?

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

NITI Aayog, which replaced the Planning Commission in 2015, focuses on several key areas, including 'cooperative federalism'. What is 'cooperative federalism'?

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

The agricultural sector is the largest source of livelihood for people in India. What is the term used to describe the program that revolutionized Indian agriculture, starting in the 1960s?

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

The Green Revolution in India focused solely on technological advancements in agriculture, with no focus on improving the social and economic conditions of farmers.

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

The Green Revolution in India successfully addressed all the challenges faced by the agricultural sector, leading to a flourishing and prosperous farming community.

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

The agricultural sector in India faces many challenges. What is one of the most significant challenges faced by small and medium farmers in India?

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

The industrial sector in India contributes a significant portion of the country's Gross Value Added (GVA). Which of the following is NOT a major challenge faced by the Indian industrial sector?

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

The Indian economy has shown a remarkable shift in its growth trajectory. Which sector currently plays the largest role in driving economic growth and generating employment in India?

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

The Indian services sector is the least significant recipient of Foreign Direct Investment (FDI) in India, as the focus of global investors is on the manufacturing sector.

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

The Indian economy faces several challenges. What is the most important challenge faced by India as it strives to achieve sustainable and inclusive economic growth?

<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

The Indian economy faces several challenges that hinder its progress towards sustainable and inclusive growth. One of the most significant challenges is the low level of inflation in India.

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

The Indian economy has achieved remarkable growth in recent years. How does the World Bank assess the overall resilience of the Indian economy in the face of global uncertainties and challenges?

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

The economic performance of Indian industry during the colonial period was hampered by various factors. Which of these factors was NOT a significant obstacle to industrial growth?

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

The economic development strategy adopted by the Indian government after independence was primarily based on free market principles, with minimal government intervention.

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

The 'Industrial Policy Resolution' of 1956 sought to expand the role of the private sector in India's industrial development, allowing for greater competition and market forces.

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

India's economic performance during the period of 1965-81 was considered to be the worst in the country's independent history. Which of the following was NOT a major factor contributing to this poor economic performance?

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

The 'New Economic Policy' of 1991 led to several major changes in the economic landscape of India. What was NOT a key outcome of these reforms?

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

Study Notes

Indian Economy: Pre-Independence Period (1850-1947)

  • India held the largest economy in the ancient and medieval world, believed to have controlled a significant portion of global wealth.
  • The economy was comprised of self-sufficient villages and major commerce centers.
  • The earliest known treatise on ancient Indian economic philosophy is Arthashastra, attributed to Kautilya, a handbook for rulers.
  • Kautilya's work emphasized both material prosperity (artha) and land as vital aspects of subsistence.
  • Taxes were crucial in filling the state's treasury and were intended to be fair and understandable to the King's subjects.
  • Kautilya's work touched on various aspects of governance such as political science, economic policies, military strategies and diplomacy.
  • The British East India Company gained prominence in India from 1757 to 1858, which marked a turning point.
  • The subsequent British rule (1858-1947) significantly impacted the Indian economy, reversing its nature from a manufacturer to a raw materials exporter.
  • The Indian exports faced high tariffs, while imports were heavily subsidized, impacting their competitiveness on the global market.
  • This led to the decline of Indian handicrafts and manufactures, creating substantial unemployment and poverty.
  • The shift towards a dependence on exporting raw materials and importing manufactured goods caused significant economic and social problems within India.

Indian Economy: Post-Independence (1947-1991)

  • At independence, India was overwhelmingly rural, impoverished and significantly illiterate.
  • The prevalent economic models favored a highly centralized state-led system with the public sector playing a major role.
  • The initial economic policies followed a Nehruvian model for industrialization.
  • The Industrial Policy Resolution (1948) and 1956 emphasized the public sector's prominent role in strategic sectors, while licensing controlled private sector expansion.
  • Economic policies in the 1950s largely favored the public sector over the private sector and emphasized the development of heavy industry.
  • India's initial five-year plans aimed at rapid industrialization, focusing primarily on creating self-reliance and reducing reliance on imported materials for specific goods.
  • The 'green revolution' introduced crucial changes in agricultural practices and technologies like high-yielding variety seeds, increasing agricultural productivity and food production.
  • Despite initial successes in particular sectors, the economy experienced challenges such as slow growth, deficits in the balance of payments, and limited industrial diversification.
  • The 1960's and 1970's witnessed economic crises, including droughts and external shocks and India struggled to develop its economy.

The Era of Reforms (1991-Present)

  • The 1991 economic reforms marked a significant shift in India's economic policies towards a more outward-oriented, market-driven approach.
  • The reforms aimed at reducing economic imbalances and addressing the crucial needs of a developing economy.
  • The emphasis on reforms, like deregulation, liberalization, privatization and globalisation aimed at boosting economic growth.
  • Reforms in the early 1980s involved a gradual shift in policies toward greater market liberalization and fewer controls on the private sector.
  • Reforms further accelerated during the 1990s, marked by decreased trade protection and further liberalization and deregulation of markets.
  • In these initial reforms, efforts focused on increasing equity, restoring macroeconomic stability, and boosting productivity.
  • The reforms involved measures such as interest rate liberalization, reductions in controls on banks, reduction in reserve requirements and liberalizing import restrictions and the elimination of licensing policy distortions.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Indian Economy PDF

Description

Explore the transformation of India's economy from ancient prosperity to the British colonial period. This quiz covers key economic philosophies, the role of self-sufficient villages, and the impact of the British East India Company. Test your knowledge on Kautilya's Arthashastra and its relevance during this significant era.

More Like This

Exploring the Sectors of the Indian Economy
3 questions

Exploring the Sectors of the Indian Economy

ExpansiveEnlightenment avatar
ExpansiveEnlightenment
Indian Economy Quiz
10 questions

Indian Economy Quiz

RomanticEpiphany avatar
RomanticEpiphany
Indian Economy Quiz
3 questions

Indian Economy Quiz

FuturisticSanctuary avatar
FuturisticSanctuary
Indian Economy After Independence Quiz
4 questions

India After Independence Quiz & Flashcards

ReplaceableZircon avatar
ReplaceableZircon
Use Quizgecko on...
Browser
Open
Browser
Browser