Economics Class 11 Chapter 2 Notes PDF for FREE Download
FAQs on Indian Economy 1950 - 1990 Class 11 Notes: CBSE Economics (Indian Economic Development) Chapter 2
1. What is the main focus of the Class 11 Economics chapter on the Indian Economy from 1950 to 1990?
This chapter provides a summary of India's economic journey after independence until 1990. Key concepts for revision include the adoption of a mixed economic system, the goals and structure of the Five-Year Plans, major reforms in agriculture like the Green Revolution, the development of the industrial sector under state control, and the 'inward-looking' trade policy of import substitution.
2. What are the key features of the mixed economic system adopted by India?
In the mixed economy model, both the public sector (government-owned enterprises) and the private sector (privately owned businesses) coexist. The government controlled key industries to guide economic development and ensure social welfare, while the private sector operated in other areas, primarily for profit. This system aimed to balance the goals of growth and equity.
3. Why did India choose a mixed economy instead of a purely capitalist or socialist model after 1947?
India's leaders opted for a mixed economy to get the best of both systems while avoiding their extremes. They wanted to avoid the high inequality of capitalism and the lack of consumer choice and private property in socialism. The goal was to use state-led planning for rapid industrialisation and poverty reduction (a socialist objective) while still allowing private enterprise and democracy to flourish (a capitalist feature).
4. What were the four main goals of the Five-Year Plans in India?
The Five-Year Plans were built around four primary objectives:
- Growth: Increasing the country's capacity to produce goods and services, measured by a rise in GDP.
- Modernisation: Adopting new technology and changing social outlooks, such as empowering women.
- Self-reliance: Reducing dependence on foreign countries, especially for food and critical industrial goods.
- Equity: Ensuring the benefits of economic growth reach all sections of society, reducing poverty and wealth inequality.
5. What was a major criticism of the Mahalanobis strategy adopted in the Second Five-Year Plan?
A major criticism was its strong emphasis on developing capital-intensive heavy industries at the expense of agriculture and consumer goods. Critics argued that this strategy did not create enough employment to absorb India's vast labour force and led to shortages of food grains and other essential commodities, which had to be imported.
6. How did land reforms aim to improve Indian agriculture after independence?
Land reforms were institutional changes aimed at promoting equity and productivity in agriculture. The main steps included:
- The abolition of intermediaries like zamindars, which brought cultivators into direct contact with the government.
- The implementation of a land ceiling, which set a maximum limit on the amount of land an individual or family could own, to redistribute surplus land to the landless.
7. What was the core difference between land reforms and the Green Revolution as solutions for agriculture?
The core difference lies in their approach. Land reforms were an institutional solution focused on changing land ownership patterns to ensure social justice and remove exploitation. In contrast, the Green Revolution was a technological solution focused on rapidly increasing crop production using High-Yielding Variety (HYV) seeds, fertilisers, and irrigation.
8. What is a quick summary of the Green Revolution's impact on the Indian economy?
The Green Revolution refers to the large increase in the production of food grains, especially wheat and rice, from the late 1960s. By using High-Yielding Variety (HYV) seeds, chemical fertilisers, and irrigation, India achieved self-sufficiency in food grains and ended its dependence on imports. However, its benefits were initially limited to certain regions and wealthier farmers.
9. How did the Industrial Policy Resolution of 1956 shape India's industrial development?
The IPR 1956 became the foundation of India's industrial policy for decades. It classified industries into three categories, giving the public sector a dominant and strategic role in developing heavy industries and infrastructure. The private sector was given a secondary role and was controlled through a system of industrial licensing.
10. For revision, what is the best way to understand the 'Permit Licence Raj'?
The 'Permit Licence Raj' is a term used to summarise the complex system of licences, regulations, and permits required to start, operate, or expand an industry in India between 1950 and 1990. It was an outcome of the industrial licensing policy under IPR 1956. While intended to promote planned development, it often led to delays, corruption, and reduced competition, hindering industrial efficiency.
11. What was the 'import substitution' policy and how was it implemented?
Import substitution was India's primary trade strategy during this period, also known as an 'inward-looking' trade strategy. The main idea was to protect domestic industries from foreign competition by encouraging the production of goods at home that were previously imported. This was implemented mainly through two tools:
- Tariffs: Taxes on imported goods to make them more expensive.
- Quotas: Quantitative limits on the amount of goods that could be imported.











