I Puc Economics (Ied Full Q.a)

TRINITY COLLEGE, MYSURU INDIAN ECONOMICS DEVELOPMENT
CHAPTER-1
INDIAN ECONOMY AND THE EVE OF INDEPENDENCE
I Choose the correct answers (Each question carries one mark)

1. Whose estimate of per capita income of India during colonial period wasconsidered very
significant.
a) Dadabai Naoroji b) V.K R.V.Rao c) William Digby d) R.C. Desai
2. Railway transport introduced in India in the year.
a) 1835 b) 1776 c) 1850 d) 1853
3. During British rule more than half of India’s foreign trade was restricted to.
a) Britain b) Iran c) China d) Srilanka
4. In India census is carried out once in.
a) 5 years b) 10 years c) 1 year d) 2 years
II Fill in the blank (Each question carries one mark)

1. Before Independence the India’s Jute industries concentrated in Eastern (Bengal)
part of the country.
2. Under colonial rule the cotton textile industries dominated by Indians.
3. 1921 is year of second stage of demographic transition of India.
4. Railway transport is considered as the most important contribution of British rule.
III Answer the following question in a word/sentence (Each question carries on

mark)
1. Name the important Revenue Settlement System’ during British rule.
Zamindari system was the important revenue settlement system during BritishRule.
2. TISCO- Expand.
Tata Iron and Steel Company.
3. What is ‘Capital Goods Industries’?
The industries which produce machine tools, which are in turn used to produceother commodities for
further consumption are called Capital industries.
4. When was the official census carried out in India?
1881
5. Why the colonial Government banned canal transport?
The colonial Government banned canal transport because the measures taken fordevelopment of inland
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trade and sea lanes were unsatisfactory. The inland waterways proved uneconomical and failed to compete
with railways.
IV Answer the following question in four sentences each. (Each question carries
two marks)
1. What was the objective of the economic policies pursued by the colonial govt. in India?
The economic policies pursued by the colonial government in India were concerned more with the
protection and promotion of the economic interests of their home country than with the development
of the Indian economy. These policies transformed India into supplier of raw materials and consumer of
finishedindustrial products of Britain.
2. List out the important export goods of India before Independence.
1. Raw silk
2. Cotton
3. Wool
4. sugar
3. Name the modern industries which were in operation in our country at the timeof
Independence.
1. Tata Iron and Steel Company.
2. Cotton Textile Industry
3. Jute Industry
4. Sugar Industry
5. Cement Industry
6. Paper Industry. Etc.
4 What are the infrastructural facilities developed during colonial rule?
The main infrastructural facilities developed during colonial rule were railways,ports, water transport,
post and telegraphs. The real motive behind these developments was to sub-serve their own interest.
V Answer the following question in twelve sentences each. (Each question carries
four marks)
1 The traditional handicraft industries were ruined under British rule. “Justify this statement.
The traditional handicrafts industries were ruined under British rule. The decline of the indigenous
handicrafts industries created not only massive unemployment in India but also a new demand in the
Indian consumer market.
The British imposed heavy duties on Indian handicrafts so that they become more expensive than British
woollen and silk manufacturers. They followed a policy of duty free export of raw materials and import of
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finished goods from Britain.

India could not develop a sound industrial base under colonial rule. The intension of British was to reduce
India to the status of a mere exporter of raw materials for the upcoming modern industries of Britain and
turn India into a market for their
finished products.
2 Indicate the volume and direction of trade at the time of Independence.
The volume of foreign trade refers to the quantities of goods and services which were being exported and
imported. The direction of foreign trade refers to the countries which were involved in trade during British
rule. The volume and direction of India’s foreign trade at the time of Independence is as follows:
During the regime of colonial government, India became an exporter of primary goods like raw silk, cotton,
wool, sugar, raw jute etc., and an importer of finished consumer goods like cotton, silk and woollen clothes
and capital goods like light machineries produced by the factories at Britain.
Britain had maintained monopoly over India’s exports and imports. As a result more than half of India’s
foreign trade was restricted to Britain while the rest was allowed with a few other countries like China,
Srilanks, Iran etc. The opening up
suez canal further intensified British control over India’s foreign trade.
3 What do you understand by the ‘drain of Indian wealth’ during colonial period?
The most important feature of India’s foreign trade during British rule was thegeneration of a large
export surplus. That means India’s exports exceeded itsimports. It was resulted in disadvantageous to the
country’s economy.
The essential commodities were not made available to Indians as they wereexported to Britain in large
quantities ignoring domestic needs.
The export surplus was used to make payments for the expenses incurred by anoffice set up by the
colonial government in Britain, expenses on war and the
import of invisible items. This is known as drain of Indian wealth.
VI Answer the following questions in twenty sentences each. (Each question carries
six marks)
1. Explain the status of India’s agriculture during British rule.
Under British rule 85% of Indians lived mostly in villages and derived livelihooddirectly or indirectly
from agriculture. But the agriculture sector continued to experience stagnation.
Even though the area of cultivation expanded the agricultural productivity was very low. The main reason
was the land settlement system introduced by the colonial government. Under Zamindari system,
introduced by Bengal presidency the profit accruing out of the agriculture sector went to the Zamindars
instead of cultivators. A considerable number of zamindars and colonial government did not improve the
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condition of agriculture. The main interest of zamimdars was only to collect rent regardless of the economic
condition of cultivators.
The terms of revenue settlement with Zamindars made the Zamindars to be strict in collecting land revenue
from the actual cultivators even at the time of drought. This was mainly because, the Zamindars were given
dates for depositing specified sums of revenue, failing which the zamindars were to lose their rights.
Apart from these, low levels of technology, lack of irrigation facilities and negligible use of fertilizers
were also equally responsible for bad status of agriculture during British rule.
2. ‘India could not develop a sound industrial sector under colonial rule’ Justify the statement.
India could not develop a sound industrial sector under colonial rule. The intension of British was to reduce
India to the status of a mere exporter of important raw materials for the upcoming modern industries in
Britain and turn India into a market for their finished products.
During the second half of the 19th century, modern industry began to take root in India but its progress
remained very slow. Initially, this development was confined to the setting up of cotton and jute textile
mills. A few other industries in the field of sugar, cement, paper etc. came up after the 1945.
There were very few capital goods industries to help industrialization in India. The establishment of a few
manufacturing units here and there was substitute to the near wholesale displacement of the country’s
traditional handicraft industries.
Another drawback of the new industrial sector was the very limited area of operation of the public sector.
This sector remained confined only to the railways, power generation, communications, ports and some
other departmental undertakings.
3. Were there any positive contributions made by British in India? Discuss.
Yes. Though British rule in India was with selfish motive, there were some positive contributions towards
India’s latter economic growth. The major positivecontributions were as follows:
a) Introduction of Railways: Introduction of railways by the British is considered as one of the most
important contributions to India. The railways affected the structure of the Indian economy. It
enabled people to undertake long distance travel which broke geographical and cultural barriers. It
also led to commercialisation of Indian agriculture.
b) Infrastructural development: Under the colonial regime, apart from railways, ports, water
transport, post and telegraphs were developed. These indirectly helped many Indians to make use
of the same for their routine activities.
c) Change in occupational structure: During colonial period, the occupational structure of India i.e,
the distribution of working population across different sectors showed little sign of change.
d) Industrialization: During the second half of the nineteenth century, modern industry began to
take root in India. The Tata Iron and Steel
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Company was incorporated in 1907. Other industries in the field of sugar,cement, paper etc., also came
up. This intensified the policy of industrialisation after independence.
The structure of India’s present day economy is not just of current making, it has its roots steeped in
history, particularly in the period when India was under British Rule. The present systems of
administration, judicial procedure, defence etc., are the gifts of British to the Government of India. In
fact, many laws made by the British are being followed till now.
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CHAPTER-2
INDIAN ECONOMY- 1950-1990
I Choose the correct answers (Each question carries one mark)

1. Which is not the goal of Five Year Plans
a) Growth b) Modernization c) Self-efficiency d) Self-reliance
2. First phase of Green Revolution achieved approximately
a) Mid-1960-1970 b) 1950-1960 c) Mid 1970-1980 d) 1970-1980
II Fill in the blanks (Each question carries one mark)

1. Chairperson of planning commission Prime Minister
2. Small scale industries use more of Labour than large scale industries.
3. Regional equality was the main purpose of Industrial Policy of 1956.
III Match the following. (Each question carries ONE marks)
1. Prime Minister - Chair person of the planning commission

2. Quota - Quantity of Imported Goods
3. Land: Reforms - Improvements in the field of agriculture
4. HYV seeds - Seeds that give large proposition of output
5. Subsidy - The monetary assistance given by the governments
IV Answer the following question in a word/sentence (Each question carries on mark)

1. Define Planning
Planning is an economic action which guides us how the resources of a nation shouldbe put to use.
Planning should have some general goals and specific objectives which are to be achieved within a
specified period of time.
2. What do you mean by Land Reforms?
Land reform refers to change in the ownership of land holdings. For example: Abolition of intermediaries
and making the tillers owners of the land and Ceiling on land holdings etc.
3. What is Marketed Surplus?
Marketed Surplus is that portion of agricultural produce which is sold in the market by
the farmers after keeping for domestic consumption.
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4. Give the meaning of Land Ceiling?

Land Ceiling refers to fixation of maximum size of land which could be owned by anindividual.
5. Mention any one public sector industry?
HAL- Hindustan Aeronautics Limited.
6. Give the meaning of Gross Domestic Product.
GDP- Gross Domestic Product is the total money value of all final goods and services
produced within the country during a year.
V Answer the following questions in four sentences each. (Each question carries TWO
marks)
1. What are the goals of Five year Plans?
The main goals of the Five year plans are:
a) Growth b) Modernization c) Self-reliance d) Equity.
2. Write the two advantages of Small scale Industries.
The two advantages of Small Scale Industries:
a) Small scale industries are labour intensive i.e they use more labour than thelarge scale industries.
b) They create employment
c) They require less capital.
3. Why the State had to play an extensive role in promoting industrial sector?
At the state of independence, Indian industrialists did not have the capital to undertake investment in
industrial ventures required for the development of our economy. There was no market base to
encourage industrialists to undertake majorprojects even if they had the capital to do so.
4 Give the meaning of tariffs and quotas.
Tariffs refer to a tax on imported goods imposed by the Government. The tariffs makeimported goods more
costly and discourage their usage.
Quotas refer to quantitative restrictions imposed by the Government by specifying
the quantity of goods which can be imported during a specified time.
VI Answer the following question in twelve sentences each. (Each question carries four
marks)
1. Write a short note on land reforms in India.
The land reforms refer to change on the ownership of land holdings. At the time of independence the land
tenure system was characterized by intermediaries like zamindars, jagirdars etc., They were just indulged in
collecting rent from the actual cultivators without contributing towards improvements on agricultural land.
The lowproductivity of the agricultural sector forced India to import food from USA. At this juncture, the
land reforms were introduced.
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After introduction of land reforms, steps were taken to abolish intermediaries and tomake the tillers the
owners of land. The idea behind this move was that ownership ofland would give incentives to the tillers to
invest in making improvements provided sufficient capital was made available to them. Abolition of
Zamindari system and ceiling on land holdings were the major land reforms introduced immediately after
independence.
2. Write a short not on Green Revolution.
Green Revolution refers to a spectacular increase in the agricultural production during1960s. There was a
large scale production of food grains resulting from the use of highyielding variety seeds especially wheat
and rice. The use of these seeds required the use of fertilizer and pesticides in the correct quantities and
regular water supply in correct proportions.
The farmers who could benefit from HYV seeds required reliable irrigation facilities as well as the financial
support to purchase chemical fertilizer and pesticides. As a result,in the first phase of the green revolution
during 1960s and 1970, the use of HYV seedswas restricted to the more rich states such as Punjab, Andhra
Pradesh and Tamil Nadu.
Further, the use of high yielding variety seeds primarily benefited the wheat growing regions only. During
mid 197o’s to mid 1980’s, the HYV technology spread to larger number of states and benefited more variety
of crops. The spread of green revolution
technology enabled India to achieve self-sufficiency in foods grains. We need notdepend on other countries
for meeting our nation’s food requirement.
3. Write the economic justification of the policy of Subsidies.
Subsidies refer to the monetary assistance given by the Government for productionactivities. The economic
justification of subsidies in agriculture is highly a debatableissue. It is generally agreed that it was necessary
to use subsidies to provide an incentive for adoption of the new HYV technology by farmers in general and
small farmers in particular.
Any new technology will be looked upon as being risky by farmers. Subsidies were therefore needed
to encourage farmers to test the new technology. Some economistsbelieve that once the technology is
found profitable and is widely adopted, subsidies should be phased out since their purpose has been served.
Subsidies are meant to benefit the farmers but a substantial amount of fertilizer subsidy also benefits
the fertilizer industry and among farmers, the subsidy largelybenefits the farmers in the more
prosperous regions. It does not benefit the targetgroup and it is a huge burden on the government’s
finances.
The experts argue that, if subsidies are largely benefiting the fertilizer industries andthe rich farmers, the
correct policy is not to abolish subsidies but to take steps to ensure that only the poor farmers enjoy the
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benefits.
4. Briefly explain the goals of Five Year Plans.
The main goals of the five year plans are Growth, Modernization, Self-reliance and equity. They can be
illustrated as follows:
a) Growth: It refers to increase in the Gross Domestic Product. It also implies that the increase in the
country’s capacity to produce the output of goods and services within the country. It includes larger
stock of productive capital or a larger size of supporting services like transport and banking or an
increase in the efficiency of productive capital land services. The GDP of a country is derived from
the different sectors of the economy, namely agricultural sector, the industrial sector and the
service sector.
b) Modernization:Adoption of new technology is called as modernization. To increase the production
of goods and services the producers have to adopt new technology. For example, a farmer can
increase the output on the firm by usingnew seed varieties instead of using the old ones. Similarly, a
factory can increase output by using a new type of machineries.
Modernization does not refer only to the use of new technology but also to changes in social outlook
such as the recognition that women should have thesame rights as men.
c) Self-reliance: Self- reliance refers to avoiding imports of those goods which could be
produced in India itself. This policy was considered a necessity in order to reduce our dependence
on foreign countries, especially for food. It is well known fact that, people who were recently freed
from foreign domination should give importance to self reliance.
d) Equity: Growth with equity is one of the objectives of planning. A country can have high
economic - growth, the most modern technology developed in the country itself and also have
most of its people living in poverty. It is important to ensure that the benefits of economic
prosperity reach the poor sections as well instead of being enjoyed only by the rich. So, inaddition in
growth, modernization and self reliance, equity is also important. Every India should able to meet
his or her basic need such as food, a decent house, education and health care and inequality in the
distribution of wealth should be reduced.
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CHAPTER-3
LIBERALISATION, PRIVATISATION AND GLOBALISATION
I Fill in the blanks. (Each question carries one mark)

1) Reforms were introduced during 1991.
2) RBI regulates Financial Sector.
3) WTO was founded in 1995.
4) Taxes on incomes of individuals is called Direct tax.
II Answer the following question in a word/sentence each. (Each question carries one
mark)
1) What is Liberalisation?
Liberalisation refers to removal of restrictions and opening up of various sectors of the
economy by giving freedom to invest.
2) Give the meaning of Privatisation?
Privatisation refers to transferring of the ownership or management of a governmentowned enterprise
to private entrepreneurs.
3) What is Globalisation?
Globalisation refers to integration of the economy of the country with the worldeconomy.
4) Expand IBRD.
International Bank for Reconstruction and Development.
5) Expand GATT.
General Agreement on Trade and Tariff.
6) Give the meaning of Direct tax.
Direct Tax is the tax where the tax burden cannot be transferred to other person.
Example: Income tax.
7) What do you mean by Out Sourcing?
Out Sourcing is the process where a company hires regular service from external sources, mainly from other
countries, which was previously provided internally or from
within the country.
III Answer the following questions in four sentences each. (Each question carries two
marks)
1) Give the meaning of Industrial Licensing
Industrial Licensing is a system in which every entrepreneur had to get permission from government
officials to start a firm, closedown a firm or to decide the amount of goods they could be produced.
2) Mention four objectives of Trade Policy?
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The four objectives of trade policy are-

 To dismantle quantitative restrictions on imports and exports.
 To reduce tariff rates.
 Removal of licensing procedures for imports.
 Removal of export duties.
3) What is Fiscal Policy?
Fiscal Policy is the policy of the government in respect of taxation and public expenditure. Tax reforms are
concerned with the reforms in government’s taxation which we term generally public revenue which also
includes non-tax revenue. Fiscal Policy includes Public Revenue and Public Expenditure.
4) What are the Services of out sourcing?
The major services of out sourcing are: legal advice, computer service, advertisement ,medical service,
teacher service etc.
5) What do you mean by Disinvestment?
Disinvestment refers to the sale of part of equity shares of public sector enterprise tothe private
people (private entrepreneurs). The main purpose of disinvestment is to
improve financial conditions and facilitate modernisation.
6) Give Example for Direct Tax and Indirect Tax.
Example for Direct Tax: Income tax.
Example for Indirect Tax: Sales tax.
IV Answer the following question in twelve sentences each. (Each question carries four
marks)
1) Briefly explain the back ground of Economic Reforms in India.
There was a financial crisis in India since 1980. The various developmental policies required huge amount of
money. But there were no enough funds with Indian government to spend for those developmental
policies. Government expenditure exceeded its income.
At this situation India approached the International Bank of Reconstruction and Development and
International Monetary Fund for loans. To avail the loans these international institutions expected India to
liberalise and open up the economy by removing restrictions on private sector, reduce the role of
government in many areas and remove trade restriction between India and other countries. India had to
agree to these conditions of IBRD and IMF and announced the New Economic Policy which
included Liberalisation, Privatisation and Globalization.
2) Write a note on WTO.

The World trade Organization (WTO) was founded in 1995 as the successor organization to the
General Agreement on Trade and Tariff (GATT) which was established in 1948.
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The main objectives of WTO are as follows:

* To establish a rule based trading system in which nations cannot place arbitrary restrictions on trade.
* To enlarge production and trade services.
* To ensure optimum utilisation of world resources
* To protect the environment.
India being the founder member of WTO, kept its commitments towards Liberalization of trade, made in
WTO by removing quantitative restrictions on imports and reducing tariff rates.
Some economists argue that the usefulness of WTO TO India is not much when compared to developed
countries. The major portions of the benefits are enjoyed by
the rich countries.
3) Briefly explain the financial sector reforms.
The financial sector consists of financial institutions like commercial banks, investment banks, stock
exchange operations and foreign exchange market. The financial sector in India is regulated by the Reserve
Bank of India.
The major objective of financial sector reforms is to reduce the role of RBI. Thatmeans, the financial sector
may be allowed to take decisions on many matters independent of RBI.
The financial sector reform policies led to the establishment of private sector banks both Indian and
Foreign. Foreign investment limit in banks was raised to around 50 percent. The banks are given freedom
to set up new branches without the approval of the RBI after fulfilling certain conditions. Foreign
institutional investors (FII) like merchant bankers, mutual funds and pension funds and pension funds are
now allowed to invest in Indian financial markets.
4) Write a short note on outsourcing.
Outsourcing is a process in which a company hires regular service from external sources, usually from other
countries. It includes legal service, computer service, advertisement, security etc.
Many services like voice-based business processes, record keeping, accountancy, banking services, music
recording, film editing, clinical advice or even teaching are being outsourced by companies in developed
countries to India. Most of the Multi- National corporations and small companies are outsourcing their
services to Indiawhere they can be availed at cheaper cost. The low wage rates and availability of
skilled labour in India have made it a destination for global outsourcing.
V Answer the following question in twenty sentences each. (Each question carries six
marks
1) Briefly explain the important areas of Liberalisation.
Liberalisation is one of the reforms of New Economic Policy of 1991. It was introduced to put an end to the
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restrictions and open up various sectors of the economy. The following are the important areas of
liberalisation.
 Deregulation of Industrial sector.
 Financial sector reforms.
 Tax reforms
 Foreign Exchange Reforms
 Trade and Investment Policy reforms
Deregulation of Industrial Sector: The liberalisation policy removed many restrictions enforced on
industrial sector. Industrial licensing was abolished for almost all products except products like alcohol,
cigarettes, hazardous chemicals, industrial explosives, pharmaceuticals etc. The only industries which are
reserved for government are defence equipments, atomic energy generation and railway transport.
Financial sector Reforms: The financial sector consists of financial institutions like commercial banks,
investment banks, stock exchange operations and foreign exchangemarket.
The financial sector in India is regulated by Reserve Bank of India. The major objective of financial sector
reforms is to reduce the role of RBI. That means the financial sector may be allowed to take decisions on
many matters independent of RBI. The financial reforms policies led to the establishment of private sector
banks both Indian and Foreign.
Tax Reforms: These are the reforms which are concerned with Government’s taxation and public
expenditure policies. They are called as fiscal policy of the government. There are 2 types of taxes- direct
taxes and indirect taxes. Since 1991, there has been a continuous reduction in the taxes on individual
incomes. It is now widely accepted that moderate rates of income tax encourage savings and voluntary
disclosure of income. The rate of corporation tax has been gradually reduced. A new tax called GST (Goods
and Service Tax) has been introduced from 01-07-2017.
Foreign Exchange Reforms: During 1991, the government took a immediate measure to resolve the
balance of payments crisis, the rupee was developed against foreign currencies. This led to an increase in
the inflow of foreign exchange. This led to the free determination of rupee value in the foreign exchange
market. At present, the market forces i.e demand and supply determine exchange rates.
Trade and Investment Policy reforms: A new trade and investment policy under liberalization strategy was
made to increase international competitiveness of industrial production and a foreign investments and
technology into the economy. To protect Indian industries, the government was following quantitative
restrictions on imports
which encouraged tight control over imports.
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The main objectives of Trade and Investment policy were-

 To remove quantitative restrictions on imports.
 To reduce quantitative restrictions in exports.
 Reducing tariff rates.
 Removal of licensing system.
A process of disinvestment was also initiated by selling of part of equity shares ofPublic Sector
Enterprises to the public.
2) Briefly explain the effects of reforms on Agricultural Sector.

The economic reforms of 1991 have not been able to benefit agriculture, where the growth rate is not up
to the expected level.
The public sector investment in agriculture sector, like irrigation, power, roads, market linkages and
research has fall in the reform period.
The removal of fertilizer subsidy has led to increase in the cost of production, which has severely affected
the small and marginal farmers.
This sector has been experiencing a number of policy changes, such as reduction in import duties on
agricultural products, removal of minimum support price and lifting of quantitative restrictions on
agricultural products.
These have adversely affected Indian farmers as they now have to face increased international competition.
Further, due to export -oriented policy strategies in agriculture, there has been a shift from production for
the domestic market towards production for the export market focusing on cash crops in the place of
production of food grains. This has resulted in
increase in prices of food grains.
VI Project-Oriented Question (Five marks)

1 Identify the following banks as agriculture, industry, nationalised, private and foreignbank.
ICCI, Canara Bank, HSBC, NABARD, IDBI
ICICI- Private Bank
Canara Bank – Nationalised Bank
HSBC- Foreign bank
NABARD- Agriculture Bank
IDBI- Industrial Bank
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CHAPTER-4
POVERTY
I Choose the correct answer. (Each question carries one mark)
1 Poverty Line separates
a) Poor and Non-Poor b) Rich and non-rich c) Poor and Weak d) None of the above
2 In pre-independent India, he was the first to discuss the concept of poverty line.
a) Dadabhai Naoroji b) Gopalakrishna Gokhale c) Vinobhabave d) Vinoda Bai
3 Some are rich most of the time but may sometime have a patch of bad luck, they are called
a) Occasionally Poor b) Usually Poor c) Always Poor d) None of the above
4 The act provides guaranteed wage employment to every poor household for minimum of 100
days in a year is called.
a) PMRY b) SJSRY C) MGNREGA d) SGSY
II Fill in the blanks. (Each question carries four marks).
1. The causes of poverty lie in the institutional and social factors that mark the life of the poor.
2. Most poverty alleviation programmes implemented are based on the perspective of the Five
Year Plans.
3 British Raj impoverished millions of the people in India.
4 Economists identify the poor on the basis of their occupation and Ownership of assets.
III Answer the following question in a word / sentence each. (Each question carries one mark)
1 Give the meaning of poverty.
Poverty is a state of living where the people are unable to get basic necessities of life likefood, clothing,
shelter, education etc.
2 Why the poor are physically weak?
Poor are physically weak because of Malnutrition, ill health and disability.
3. Who are the Churning Poor?
Churning poor the people who regularly move in and out of poverty. Ex: Small farmers andseasonal
workers.
4. Define poverty line as per planning commission.
According to Planning Commission of India, the Poverty line is measured on the basis of minimum
malnutrition calories required for rural and urban population. It is estimated thata person is said to be
poor if he is unable to consume 2400 calories per day in rural areas and 2100 calories per day in urban
areas.
5 What is ‘Head Count Ratio’?
When the number of poor is estimated as the proportion of people below the poverty line, it is called “Head
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Count Ratio”.
6 What program has the government adopted to help the elderly people and poor anddestitute
women?
National Social Assistance Program.
IV Answer the following question in four sentences each. (Each question carries two marks)
1 Answer the features of poorest households.
Features of poorest households:
 Starvation and hunger.
 Do not possess any assets.
 Live in slums and some sleep in public places.
 In rural areas they are landless labourers.
 Many of them do not get even two meals for a day.
 Lack of basic literacy rate.
 Limited economic opportunities
2 Who are the urban poor? Give examples.

Urban poor are those who live in cities and towns without basic needs. Example: push cart
vendors, street cobblers, women who string flowers, rag pickers, vendors and beggars.
3 Who are the rural poor? Give examples.

Rural poor are those people who live in villages without basic needs. Example: landless labourers. Even if
some have land, it is only dry or waste land. Many do not get even two meals a day. They borrow from
money lenders or land lords who charge high rate of interestthat lead to rural indebtedness.
4 What are the social factors that trigger and perpetuate the poverty?
The social factors that trigger and perpetuate the poverty are:
 Illiteracy
 Ill health
 Lack of access to resources and
 Discrimination or lack of civil and political freedom.
5 Name the self –employment generation programmes of the government for the poor.
The self employment generation programmes of the government for the poor are:
 Rural Employment Generation Programme.
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 Prime Minister’s RozgarYojana.

 SwarnaJayanthi Shahari Rozgar Yojana.
6 List the programmes that aim at improving the food and nutritional status of the poor.
There are three major programmes that aim at improving the food and nutritional status ofpoor. They are:
 Public Distribution System
 Integrated Child Development Scheme
 Mid-day Meals scheme.
7 List the factors that prevent the successful implementation of poverty alleviationprogrammes.
According to some eminent scholars the factors that prevent the successful implementationof poverty
alleviation programmes are:
 The benefits of the poverty alleviation programmes have been appropriated by thenon-poor.
 The amount of resources allocated for poverty alleviation programmes is notsufficient.
 The resources are inefficiently used and wasted.
 There is also non participation of local level institutions in programmeimplementation.
V Answer the following question in twelve sentences each. (Each question carries four
marks)
1 What do you mean by growth oriented approach to poverty reduction? Why it is not successful in
India?
The growth oriented approach is based on the expectation that the effects of economic growth i.e, rapid
increase in Gross Domestic Product and Per capita income, would spread to all sections of society and will
trickle down to the poor sections also.
The growth oriented approach to reduce poverty was not successful in India because of the following
reasons:
 It was felt that the rapid industrialization and green revolution would benefit the underdeveloped
regions and the more backward sections of the community. But the overall growth and growth of
agriculture and industry have not been impressive.
 Population growth has resulted in a very low growth in per capita income.
 The gap between poor and rich has actually widened.
 The green revolution increased the disparities regionally and between large and
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small farmers.
 There was unwillingness and inability to redistribute land.
 Economists say that the benefits of economic growth have not trickled down to thepoor.
2 Explain the employment generation programmes of poverty alleviation in India.

The income and employment generation approach was started during third five year plan. It is based on
specific poverty alleviation and employment generation aspects. This includes the following:
Self- Employment Programmes:
The major Self Employment Programmes are:
 Swarnajayanthi Gram SwarozgarYojana (SGSY): This programme aims at providing financial
assistance to Self Help Groups which then decide whom the loan is to be given to for self-
employment activities among the members.
 SwarnajayanthiShahariRozgarYojana (SJSRY): It aims at creating employment opportunities both
self- employment and wage employment opportunities in urban areas. Under this scheme financial
assistance was given to the families or individuals.
 PradhanManthriRozgarYojana (PMRY): The educated unemployed from low income families in
rural and urban areas can get financial help to set up any kind of enterprise that generates
employment under this scheme.
Wage Employment Programmes:
The major national programmes to generate wage employment are as follows:
 National Food For Work Programme (NFWP)
 SampoornaGrameenaRozgarYojana (SGRY)
 Mahanthma Gandhi National Rural Employment Guarantee Programme (MGNREGP)- It provides
guaranteed wage employment to every household whose adult volunteer will get unskilled labour
for a minimum of 100 days in a year.
3 Critically assess the poverty alleviation programmes of the government.

Though the policy towards poverty alleviation has evolved in a progressive manner, over the last 6 decades,
it has not undergone any remarkable transformation. Eminent Scholars, while assessing the poverty
alleviation and employment generation programmes, have given their opinion that there are three major
areas of concern which prevent their successful implementation. They are as follows:
 The unequal distribution of land and other assets have made misappropriation ofbenefits of
poverty alleviation programmes by the non-poor.
 The resources allocated to each poverty alleviation programme are not sufficient tomeet its
requirements.
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 The resources are inefficiently used and wasted due to corruption prone andvulnerable to
pressure from a variety of local people.
 Lack of interest and non-participation of local bodies in implementation of povertyalleviation
programmes .
 Failure on the part of the Government to identify the vast majority of vulnerablesections of the
people who are living on or just above the poverty line.
To conclude, we can state that the poverty and unemployment can be solved through a process of
social mobilization, encouraging poor people to participate. It is also necessary to identify poverty
affected areas and steps should be taken to provide the basic amenities like roads, schools, power
etc., and decentralization of economic activities.
VI Answer the following question in twenty sentences each. (Each question carries six marks)
1. Explain the causes of poverty.
The major causes of poverty in India are:
a) Unemployment
b) Inflation
c) Unequal distribution of income and wealth
d) Negative impact of British rule Indian economy
e) Lack of skills and knowledge
f) Excess Population
g) Other causes
Unemployment: Poverty is closely related to nature of employment, unemployment and under

employment. A large section of urban and rural poor are unable to get proper income generating
employment opportunities. The industrialization has failed to absorb the unemployed youths in India.
Casual labourers are most vulnerable as they do not have job security.
Inflation: A continuous rise in the price of food grains and other essential commodities has intensified the
poverty of the poor. The purchasing power of poor people is deteriorating due to inflationary situation in
the country.
Unequal distribution of Income and Wealth: There is a large scale unequal distribution of income and
wealth in India. The wealth is concentrated in the hands of few individuals. Though the Government tried
to redistribute land among landless agricultural labourers to reduce the magnitude of poverty, it was not
completely successful.
Negative impact of British Rule on Indian economy: During British rule there was deindustrialization. The
import of cotton textiles displaced many Indian producers. More than 70% of Indians engaged in
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Agriculture throughout British period. As the British made India as a market for their finished products,
Indian merchants incurred huge losses due to their inability to complete with low priced products of Britain
imported to India. Our natural resources were over exploited by the British and food grains were exported.
Many Indians died due to famine and hunger. So this continued even after independence.
Lack of skills and knowledge: Most of the people who belong to backward communities are not able to
participate in the emerging employment opportunities in different sectors of urban and rural economy due
to their ignorance and illiteracy. Many of the Scheduled Caste and Scheduled tribe people do not have
necessary knowledge and skills in their regard.
Excess Population: The excess population in India is also one of the causes for poverty. The supply of
labourers is more than demand for labour. The employment generation is in short of growth rate of
population in India. The Government is struggling hard to provide basic amenities due to rapid growth of
population in India.
Other causes for poverty are:
 Social and political inequality.
 Social exclusion.
 Indebtedness.
 Low capital formulation.
 Lack of infrastructure.
 Lack of effective demand.
 Inefficient and corrupt administration.
2 Explain briefly the three dimensional programmes adopted by the government to eradicate the
poverty in India.
The government’s approach to poverty reduction was of three dimensions. They are as follows:
 Growth oriented approach
 Income and employment generation approach
 Providing minimum basic amenities to the people.
Growth Oriented Approach: It is based on the expectation that the effects of economic growth viz., rapid
increase in gross domestic product and per-capita income would spread to all sections of society and
improve the standard of living of poor people also.
Income and Employment generation Approach: The income and employment generation approach was
started during third five year plan. It is based on specific poverty alleviation and employment generation
aspects. This includes the following:
1. Self -Employment Programmes: The major self- employment programmes are:
• Swarnajayanthi Gram SwarozgarYojana (SGSY): This programme aims at providing financial
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assistance to Self Help Groups which then decide whom the loan is to be given to for self- employment
activities among the members.
• Swarnajayanthi ShahariRozgarYojana (SJSRY): It aims at creating employment opportunities both
self- employment and wage employment opportunities in urban areas. Under this scheme financial
assistance was given to the families or individuals.
• PradhanManthri RozgarYojana (PMRY): The educated unemployed from low income families in
rural and urban areas can get financial help to set up any kind of enterprise that generates employment
under this scheme.
2. Wage Employment Programmes:
• National Food For Work Programme (NFWP)
• SampoornaGrameenaRozgarYojana (SGRY)
• Mahanthma Gandhi National Rural Employment Guarantee Programme (MGNREGP)- It provides
guaranteed wage employment to every household whose adult volunteer will get unskilled labour for a
minimum of 100 days in a year.
Providing minimum basic amenities to the people approach: This dimension aims to tackle poverty by
providing minimum basic facilities to the poor people. The government of India is trying to provide social
consumption needs like food grains, education, health, sanitation, water, electricity at subsidized rates to
improve the standard of living of poor. The major programmes in this regard are follows:
There are three programmes introduced by the Government to improve the food and nutritional status of
poor. They are as follows:
 Public Distribution System (PDS)
 Integrated Child Development Scheme (ICDS).
 Mid –Day Meals Scheme.
The programmes introduced to provide basic infrastructure in rural area are:
 PradhanManthri Gram SadakYojana- construction of roads to every village.
 Indira AwasYojana- rural housing scheme to poorest among the poor.
 ValmukiAmbedkarAwasYojana- housing scheme for urban poor of slum areas.
 BasavaVasanthiYojana (Karnataka)
VII Project Oriented Question (Five Marks)

1 Write the Chart of Povety line
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CHART OF POVERTY LINE
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CHAPTER-5
HUMAN CAPITAL FORMATION IN INDIA
I Choose the correct answer. (Each question carries one mark)

1 Who can work better in the following:
a)A sick personb) An unhealthy labour c) A person with sound health d) None of the above
2 What percent GDP as estimated by Tapas Majumdar Committee should spend for education
b) 4% b) 6% c)8% c) 5%
3 Education for all,
a) Still not a dream b) Still a distant dream c) Dream Only d) None of the above
II Fill in the blanks. (Each question carries four marks).
1. Investment on education is considered as one of the main sources of Human Capital.
2. Government of India has also started levying 2 percent of Education Cess on all Union taxes.
3 The revenue from education cess has been ear marked for spending on Elementary education.
4 The contribution of the educated person to economic growth is more than that of an Illiterate
(un educated) person.
III Match the following: (Each question carries one mark)
1. More contribution to national Skilled labour

income
2. Deutsche Bank Global growth centers
3. World bank India and the knowledge economy
4. Educational Achievements Literary Rate
5. Better gender equality A positive development
IV Answer the following question in a word/ sentences each. (Each question carries one marks)
1. Expand NCERT.
National Council of Education, Research and Training.
2 State the reasons for migration.
People migrate in search of jobs that bring them higher income than what they get in their
native place.
3. Expand UGC.
University Grant Commission.
4 Expand ICMR
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Indian Council for Medical Research.
V Answer the following question in four sentences each. (Each question carries two marks)
1 State the need of investment on human capital.
There is a need to undertake investment on Human capital. It is necessary to invest on human resources to
make them into more innovative, productive and useful by investing on theireducation, health and training.
The government is taking many steps to educate, train and protect the health of population to make it
qualitative for economic development.
2 Why individuals spend money on education?
Investment in education is considered as one of the main sources of human capital formation. Spending on
education by individuals is similar to spending on capital goods by companies to increase their profits in
future. Similarly individuals invest in education in order to increase their earnings in the form of money
income
3 What are the two major sources of human capital in a country?

The major sources of Human Capital Formation are as follows:
 Investment on Education
 Investment in Health care facilities.
4 What are the indicators of educational achievement in a country?
The indicators of educational achievements are:
 Adult literacy rate.
 Primary education completion rate
 Youth literacy rate.
5 What factors contribute to human capital formation?
The factors which contribute to human capital formation are:
 Expenditure on Education.
 Expenditure on health.
 Expenditure on training
 Expenditure on information.
 Migration.
6 What are the various forms of health expenditures?
The various forms of health expenditure are:
 Preventive medicine (vaccination)
 Curative medicine (medical intervention during illness).
 Social medicine (spread of health awareness).
 Provision of clean drinking water and good sanitation.
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VI Answer the following question in twelve sentence each .(Each question carries four marks.)
1 Education is considered to be an important input for the development of the nation. How?
The contribution of the educated persons to economic growth is more than that of illiterate persons.
Education provides knowledge to understand changes in society and scientific advancements and facilitate
invention and innovation. Further, the availability of educated labour force facilitates adaptation to new
technologies.
To sum up , the education is considered as important input for the development of a nation in following
ways :
 It gives a person a capacity to earn higher revenue.
 It provides knowledge to understand the changes taking place in society.
 It encourages innovations.
 It facilitates development and adoption of new techniques of production.
2 How does investment in human capital contribute to growth?
Economic growth refers to increase in real national income of a country over a period of time. Human
capital refers to skills and knowledge imbibed in human beings.
We know that the labour skill of an educated person is more than that of an illiterate person. The
contribution of the educated person to economic growth is more than that of an uneducated person.
Health is also an important factor for economic growth. An healthy person could provideuninterrupted
labour supply for a long period of time.
The human capital contributes substantially not only towards increasing labour productivity butalso
stimulates innovations and creates ability to absorb new technologies.
Therefore, a higher rate of Human Capital formation definitely contributes towards economicgrowth.
3 Bring out the need for on-the-job-training for a person

On-the –job-training is nothing but an arrangement of training in which the laborers’ are given an
opportunity to obtain skills while working. It includes the following:
 Providing training to workers in the industry itself.
 Arranging training facilities outside the industry i.e, off campus training.
 Providing on-line training arranging satellite programme.
 Arranging excursion to industrially advanced regions and providing training.
The On-line-job training facility helps human capital formation in following ways:
 The employees cum trainees get ample time for learning new methods of productionunder the
supervision of skilled workers.
 The employees get extra technical skill without incurring any expenditure.
 The employees will get adjusted to technical advancement and get promotion in theirjobs.
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 It helps in undertaking innovations.
4 Discuss the need for promoting women’s education in India.

The differences in literacy rates between males and females are narrowing signifying a positive
development in gender equality. There is need to promote women’s education in India for the following
reasons:
 Education improves the economic independence of women.
 Education increases the social status of women in the society.
 Education makes a favourable impact on fertility rate. (it reduces the birth rate).
 Education leads to better health care for both women and children.
VII Answer the following question in twenty sentences each. (each question carries six marks)
1 Discuss the following as a source of human capital formation.
(1) Health Infrastructure (2) Expenditure on migration.
Health Infrastructure: The various forms of health expenditures are as follows.
 Preventive medicine- vaccinations to prevent deadly diseases.
 Curative medicine- obtaining medical treatment during illness.
 Social medicine- spread of awareness about keeping good health and its importance.
 Provision of clean drinking water and sanitization.
The healthy individuals are source of human capital as they directly contribute for regular and
higher productivity of labour. A sick labourer without access to medical facilities has to remain
absent from work. This leads to loss of productivity. Hence, expenditure on health is an important
source of human capital formation.
Expenditure on Migration: People migrate from their native place in search of jobs which bring
higher salaries. Unemployment is the only reason for rural-urban migration in India. Technically
qualified persons like engineers and doctors migrate to other countries to earn better income.
Hence expenditure on migration is also a source of human capital formation.
2 Examine the role of education in the development of a nation.

The education plays a predominant role in economic development of India in following ways:
(1) It modernizes the attitude and behaviour of the people:Education brings favourable changes in
the attitude and behaviour of people. It gives inputs like what is right and what is wrong and
contributes for sound and valuable judgement.
(2) Promotes science and technology:Education always provides the knowledge about the latest
technology to the people who know reading and writing. It explains the new methods of production
through innovations in various sectors of the economy.
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(3) Increases mobility of labour: Education helps the labourers to search best rewarding employment
opportunities all over the world. It makes him to move from country to country or state to state as
and when required.
(4) Creates national and developmental consciousness: Education creates civic, national and
developmental consciousness among the literates. It makes the people to develop a sense of
patriotism and helps them to adopt strategies of progress in the life of people.
(5) Contributes to skilled and trained workers: Educationgenerates skilled and trained
labour force needed for the development of the country. Education includes both general and
technical education. This contributes for the supply of skilled labour for overall development of the
country.
(6) Act as source of knowledge: Education is house of knowledge for all the purposes. Anything to
know we need to be literate. It makes people to take decisions on the basis of their knowledge
gained in different stages while undergoing studies.
(7) Develops moral values: As education provides number of stories and incidents of people’s life,
people can definitely develop moral values. The moral values are included in their daily life.
(8) Creates awareness about culture and politics: Education always provide complete information
about cultural heritage of any nation. It explains how they are constructed with the investment of
money and human capital. Education helps to get day to day information about politics.
3 Trace the relationship between human capital and economic growth.

There is a direct relationship between Human capital and economic growth in every country.
The term economic growth refers to increase in real national income of a country. The contribution of the
educated person to economic growth is more than that of an uneducated person. As the economic growth
includes the overall development of an economy in all the sectors, it is the education which plays an
eminent role in bringing transition from low productivity to higher productivity in any economy.
As the education increases the efficiency of labour, it results in innovations and improvements inapplication
of science and technology in agriculture, industry and service sectors of the country. The Government of
India has recognized the importance of human capital in economic growthlong ago. The 7th Five Year Plan
says that the human resource development has a key role in anydevelopment strategies, particularly in a
large populated country.
The IBRD (International Bank for Reconstruction and Development) also known as World Bank, in its recent
report- “India and the Knowledge Economy- leveraging strengths and opportunities’ states that India should
make a transition to the knowledge economy and if it uses its knowledge
the per capita income of India will increase from 1000 US dollars to 3000 US dollars by 2020.
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CHAPTER-6
RURAL DEVELOPMENT
I Choose the correct answer (Each question carries one mark)
1 Most of the agricultural labourers are
a) Rich b) middle class c) poor d) upper class
2 Leather industry and tourism are
a) Non -farm sector b) Farm sector c) other sectors d) Productive activities
3 The increased milk production can be mainly attributed to the successful implementation of
a) Operation food b) operation flood c) operation blue d) operation fruit
4 It is an agricultural allied activity
a) Poultry b) Cottage industry c) small industry d) tourism
1 The growth of real India is possible only from the development of Villages.
2 At the time of independence Money lenders and traders exploited the small and marginal
farmers.
3 Organic Farming is free from Chemicals.
4 The fishing community regards the water body as Mother.
III Match the following. (Each question carries on mark)
1. NABARD - Institutional source

2. Money lender - Non-Institutional Source
3. Green Revolution - Food production
4. Golden Revolution - Fruit production
5.White Revolution - Milk production
IV Answer the following questions in a word / sentence each. (Each question carries one mark)
1 What is rural credit?
Rural Development means improvement of socio-economic life of rural people by providing basic
infrastructures which make to engage in productive activities.
2 Give the meaning of agricultural marketing?
It refers to process of assembling, storing, processing, grading, packing and distributing theagricultural
products throughout the country.
3 What is organic farming?
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It is the farming which relies on crop rotation, green manure, compost and biological pest forgrowing
crops. It is the system of farming that restores, maintains and enhances the ecological
balance.
4 Expand PDS.
Public Distribution System.
V Answer the following question in four sentences each. (Each question carries Two mark)
1 Name the areas which are challenging and need fresh initiatives’ for rural development.
The areas which are challenging and need fresh initiatives’ for rural development are:
 Development of human resources.
 Land reforms.
 Development of the productive resources of each locality.
 Infrastructure development.
 Special measures for alleviation of poverty.
2 Give the meaning of Rural Development.
Rural development means improvement of socio- economic life of rural people by providing basic
infrastructures which make to engage in productive activities. In simple words, the term rural development
refers to the overall development of the rural economy.
3 How money lenders exploited the rural farmers.
Money lenders and traders exploited small and marginal farmers and land less labourers by-
 Charging very high rate of interest.
 Manipulating the accounts to keep them in debt trap.
 Trespassing the agricultural land by misusing their illiteracy.
 Making debtors into Bonded Labourers.
4 Name the institutional sources of rural credit.
The institutional sources of rural credit are as follows:
 Commercial Banks,
 Regional Rural Banks (RRBs),
 Cooperative societies and
 Land Development Banks.
5 Give two examples for alternative market.
The examples for alternative market are :
 Rythara santhe in Karnataka,
 Rythu Bazzar in Andhra Pradesh,
 Apni Mandi in Punjab, Haryana and Rajasthan
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6 Name the two life-giving sources of fishing community.

The major life giving sources for fishing community are rivers, lakes, oceans, natural and aquaticponds.
7 Mention the benefits of organic farming.
The main benefits of organic farming are:
 It offers a means to substitute costlier agricultural inputs (chemical fertilizers, pesticides)with
cheaper ones.
 It generates income through exports.
 It contributes to ecological balance.
 Provides healthy and chemical free food.
VI Answer the following question in twenty sentences each. (Each question carries four marks)
1 List out the major problems of rural development.
The major problems which need fresh initiatives for development in rural India are:
a) Development of Human resources: The development of human resources includes promotion of literacy
particularly female literacy, education and skill development, providing health care by addressing both
sanitation and public health.
b)Land Reforms: The land reforms include ceiling on land holdings, prevention of fragmentation and
subdivision of land and making the tiller as the owner of the land.
c) Infrastructure Development: The development of infrastructure like provision of electricity, irrigation,
banking, marketing, transportation, agricultural research centres, information etc.
d) Poverty alleviation measures: Special measures for poverty alleviation and bringing progress among
weaker sections of the population and giving importance to productive employment opportunities also part
of major issues of rural economy.
2 Explain the drawbacks of agricultural market.
Agricultural marketing is a process that involves the assembling, storage, processing,
transportation, packaging, grading and distribution of different agricultural commodities acrossthe
country.
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The major drawbacks of agriculture marketing in India are as follows:

 Long chain of middlemen taking away the profit of farmers.
 No proper storage facilities to protect the agricultural products.
 Faulty methods of weighing/measuring agricultural products.
 Manipulation of accounts.
 Farmers are forced to sell their products at low prices due to lack of information.
3 Write a short note on alternative markets.
The examples for emerging alternative marketing channels are as follows:
 Farmers directly sell their agricultural produce to consumers. Example: Apni Mandi in Punjab,
Haryana and Rajasthan, Rythu Bazzar- vegetables and fruits markets in Andhra Pradesh, Uzhavzr
Sandies – a farmers market in Tamil Nadu.
 Agricultural contracts- several domestic and multinational companies entering agreements with
Indian farmers in which farmers are encouraged to grow farm products of desired quality by
providing them with not only seeds and other inputs but also assured procurement of the produce
at pre-decided prices.
The main benefits of alternative Agricultural Marketing channels are:
 The farmers get seeds and other agricultural inputs.
 Farmers are assured of procurement of agricultural products at pre-decided prices.
 Help in reducing price risk of farmers.
 Expansion of markets for farm products in India and abroad.
VII Answer the following question in twenty sentences each. (Each question carries six marks)
1 Explain the measures taken by the government to improve the Agricultural Marketing System.
The Government of India has undertaken the following steps to improve agricultural market in India. They
are as follows:
a) Establishment of Regulated Market: The regulated markets are those markets which are controlled and
managed by the Government to provide orderly and transparent marketing conditions like better storage
facilities, fair prices, removing middlemen etc. This has benefited the farmers and consumers.
b) Provision of infrastructural facilities: The provision of physical infrastructural facilities like roads,
railways, warehouses, godowns, cold storages and processing units will make agricultural sector a
commercial and profit oriented sector in India.
c) Establishment of cooperative marketing societies: These societies are encouraged by the government
to realize fair prices for agricultural products and ensure better income to the farmers. The success of milk
cooperative societies in transforming the social and economic conditions of Gujarat is worth mentioning.
d) The other measures are:
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 Assurance of minimum support prices (MSP) for agricultural products to protect the farmers from
loss.
 Maintenance of Buffer stocks of wheat and rice by Food Corporation of India.
 Distribution of essential commodities like wheat, rice, sugar and kerosene under Public Distribution
System (PDS).
2 Write a short note on the following.
a) Horticulture b) Fisheries
a) Horticulture:It is one of the types of farming in which cultivation of land is undertaken to grow crops like
fruits, vegetables, flower, medicinal plants, spices and plantation crops. India is the second largest producer
of fruits and vegetables. The economic condition of many farmers engaged in horticulture has improved
and Horticulture has become a means of improving livelihood for many poor families of rural India.
Flower harvesting, nursery maintenance, hybrid seed production and tissue culture, propagation
of fruits and flowers and food processing are highly remunerative employment for women
labourers in India.
b) Fisheries: The fishing community regards the water body as mother. The major sources of life for fishing
community are rivers, lakes, oceans, natural and aquatic ponds. In India after progressive increase in
budget allocation we can see development of fisheries. About 49% of fish production comes from inland
sources and remaining from ocean and sea. Among the states Kerala, Gujarat, Maharashtra, and Tamil
Nadu are the major producers of marine products.
3 Write a note on animal husbandry.

The animal husbandry i.e, livestock rearing includes cattle breeding, goats, fowl rearing etc. Livestock
production provides stable income, food security, fuel and nutrition for the family in rural areas. In India,
more than 70 million small and marginal farmers have got alternative livelihood options from Animal
Husbandry.
If the distribution of livestock rearing is taken into consideration, the poultry accounts for the largest share.
The other animals which include camels, asses, horses, etc., also found remunerative. In India, we have
about 28.7crores of cattle including 9crores of buffaloes.
The performance of Indian diary sector has been remarkable from past few decades. This is mainly because
of implementation of “operation flood”. It is a system whereby all the farmers can pool their milk produced
according to different grading and the same is processed and marketed to urban centres. In this farmers are
assured of fair price and minimum income from the supply of milk to urban areas.
The animal husbandry is undertaken to develop organic farming by developing green manure and the
animal waste is being used to produce gobar gas in rural areas.
Meat, eggs, wool and other by-products are also emerging as important productive sectors in animal
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husbandry.
4 List out the benefits of organic farming.

Organic farming is that farming which relies on crop rotation, green manure, compost andbiological pest
for growing crops.
The main benefits of organic farming are as follows:
i) It offers a means to substitute costlier agricultural inputs with cheaper ones.
ii) It generates income through exports.
iii) I t contributes to ecological balance.
iv) Provides healthy and chemical free food.
v) The organic farming contributes to higher production and productivity.
vi) It enhances quality and quantity of agricultural products.
vii) Provides alternative employment opportunities to rural people.
viii)Helps in prevention of deterioration in fertility and conservation of soil.
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CHAPTER -7
EMPLOYMENT: GROWTH, INFORMATION AND OTHER ISSUES
I Choose the correct answer (each question carries one mark)

1 GDP stands for
a) Gross Domestic Product b) Gross Domestic Price c) none of the above
d) Gross dollar Price
2 Which of the following activity is not considered as productive work
a) House hold activities b) Agricultural activities c) Service Sector d) Industrial activities
3 Workers who own and operate an enterprise to earn their livelihood is called
a) Ministers b) Public Servant c) Self Employees d) Government doctor
4 Urban people are mainly engaged in the
a) Primary Sector b) Service Sector c) Mining d) Agriculture
5 Those who are working in the formal sector enjoy
a) Economic benefits b) Social security benefits c) Educational advantages d) Culturalbenefits
1 Mahatma Gandhi insisted upon education and training through variety of works including
craft.
2 Majority of workforce reside in Rural Area in our country.
3 The construction workers are known as Casual wage labourers .
4 Primary Sector is the main source of employment for majority of workers in India.
5 The government protects the rights of workers through Labour Laws.
6 In India disguised unemployment can be seen more in agricultural sector.
III Answer the following questions in a word/sentence each. (Each question carries one mark)
1 Give the meaning of work force?
All those who are engaged in economic activities are workers or workforce.
2 Define jobless growth?
Producing more goods and services without generating employment is called jobless growth.
3 What is seasonal unemployment?
Seasonal unemployment is a situation where the people get employment only during a particular season.
For example, in agriculture there is job only for some months of the year (rainy season).
4 Expand ILO.
International Labour Organisation.
5 What do you mean by informal sector establishment?
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It is the sector where less than 10 workers employed without job security, provident fund,ESI, etc.
Example: Agricultural labourerers.
IV Answer the following question in four sentences each. (Each question carries two marks)
1 Why are regular salaried employees more in urban areas than in rural areas?
In regular salaried employment, men are found to be engaged in greater proportion. They form 20%
whereas women form only 13%. The main reason is skill requirement. Since regular salaried jobs require
skills and higher level of literacy, more employees can be seen
from urban areas than rural areas.
2 Name any four kinds of unemployment.
The four kinds of unemployment are:
 Open unemployment
 Disguised unemployment
 Seasonal unemployment
 Frictional unemployment
 Under unemployment
 Technical Unemployment
3 Who are self -employed? Give two examples.

The self -employed are those workers who own and operate an enterprise themselves toearn their
livelihood. The best examples for self –employment are-
 People running petty shops
 People having their own transport enterprise
4 Name the types of rural unemployment

The main types of rural unemployment are:
 Technological unemployment
5 Name the three sectors of the economy.

The three sectors of the economy are:
i) Primary sector: It includes agriculture, mining, fishing, forestry etc.
ii) Secondary sector: It includes all manufacturing industries.
iii)Service sector: It includes transport, communication, banking, insurance, health,education, ware housing
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etc.
6 Distinguish between formal and informal sector labourers.
Formal sector labour

1 It includes all the public sector establishments and those private sector establishments which employ
10 or morehired workers.
2 The example for formal sector workers are: workers in public sector industries like HMT, HAL, BHEL,
KSRTC etc.
3 They get social security measures like pension, gratuity, bonus, maternity benefits.
Employment is regular and permanent.
Informal sector labour
1 The informal sector is that sector where we see less than 10 workers employed in different
establishments.
2 The example for informal sector are – Agricultural labourers, owners of small enterprises, non-farm
casual wage labourers who work for more than one employer like construction workers.
3 They may not get social security measureslike pension, bonus, and maternity benefits.
4 Employment is seasonal and temporary.
7 What is unemployment according to NSSO?

According to NSSO (National Sample Survey Organisation), ‘unemployment is a situation in which all those
who, owing to lack of work, are not working but either seek work through employment exchanges,
intermediaries, friends or relatives or by making applications to prospective employers or express their
willingness or availability for work under the prevailing condition of work and remuneration’.
V Answer the following questions in twelve sentences each. (Each carries four marks)
1 Write a note on Informal sector.
Informal sector is that sector where less than 10 workers employed without job security, provident fund,
ESI, etc. For example agricultural labourers, owners of small enterprises, non-farm casual wage labourers
who work for more than one employer are considered as informal workers, because they do not enjoy any
such social security benefits. Nature of their work is seasonal and temporary. The workers working in
informal sector face various problems.
The following are major problems faced by workers in informal sector:
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 Do not ensure job security

 Workers and enterprises do not get regular income.
 The workers do not have any protection of regulation from the Government.
 Workers are dismissed without any compensation.
 Technology used is outdated.
 They do not maintain any accounts.
 Workers in this sector live in slums and are squatters.
 Poor working conditions
 Do not ensure social security measures like pension, bonus and maternity benefits.
 Employment became seasonal and temporary.
2 List out the economic activities in different sectors.

Generally economic activities are categorised broadly into three sectors. They are:
a) Primary sector
b) Secondary sector and
c) Tertiary/Service sector
Primary sector includes-
i) Agriculture
ii) Mining and Quarrying
Secondary Sector includes-
i) Manufacturing industries
ii) Electricity, Gas and Water supply
iii) Construction industry
Tertiary / Service sector includes-
i) Trade- both internal and externalii)Transport
and Storage
iii) Services
3 Write short note on Self-Employed and Hired Workers.

Self –Employed are the Workers who own and operate an enterprise to earn their livelihood are known as
Self-Employed. For example owner of Cement shop is self-employed. About 52% workforce in India belongs
to this category.
Hired workers are the workers who are employed by others and receive wage/salary.
Casual wage labourers are the workers who are casually work for others and get remuneration for the work
done. We can give the example of construction workers and agricultural labourers for casual wage
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labourers. Casual wage labourers account for 30% of Indian work force.
When a worker is engaged by someone or an enterprise and paid wages on a regular basis he or she is
known as regular salaried employee.
Self employment is the major source of livelihood for both men and women as this category accounts for
more than 50% of the work force. Casual wage work is the second major source for both men and women
and this category accounts for more than 30% of the work force. When it comes to regular salaried
employment, 20% of men and 13% of women are found to be engaged in such work. Since regular salaried
jobs require skills and a higher level of literacy, women might not have been engaged in regular salaried
employment.
When we compare the distribution of workforce in rural and urban areas we can notice that the self
employed and casual wage labourers are found more in rural areas and regular
salaries employees are found more in urban areas.
4 Explain the types of unemployment.

Unemployment as a situation where individuals who are employable and seeking a job but
are unable to find a job.
Types of unemployment are as follows:
 Frictional unemployment
 Under unemployment
 Technological Unemployment
Open unemployment: Open unemployment is a situation where the people are not able to get
employment for even one hour in half a day.
Disguised unemployment: It is the type of unemployment where we can see excess number of workers
engaged in the same work but actually less number of workers required. In agriculture we can see disguised
unemployment.
Seasonal unemployment: It is that unemployment where the rural people get employment only during a
particular season. We have noticed that many people migrate to urban areas, pick up a job and stay there
for some time, and come back to their villages as soon as the rainy season begins. This is because work in
agriculture is seasonal.
Frictional unemployment: Frictional unemployment is the result of voluntary employment transitions
within an economy. It means workers choosing to leave their jobs in search of new jobs. Ex: Someone who
leaves their current job to look for another job, they are temporarily unemployed.
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Under employment: Under employment is a situation where the person does not work for full time or
takes a job that does not suits for his qualification. Example: An individual with an engineering degree
working as a sales person is considered to be underemployed.
Technological unemployment: Technological unemployment occurs when developments takes place in
technology and some workers lose their jobs. Example: If new technology is used in a production firm, the
unskilled workers will be thrown out from the jobs, which may create unemployment.
1 What role does the government play in generating employment opportunities in India?
Government is making efforts to generate employment opportunities to unemployedpersons through
two categories i.e., i) direct and ii) indirect
In the first category, Government is directly providing job opportunities by employing people in various
departments for administrative purposes, industries, hotels, transport corporations.
In the second category, the Government has introduces New Economic Policy in 1991 in the form of LPG i.e
Liberalisation, Privatisation, Globalisation which have provided ample opportunities to the private
entrepreneurs to start their own production centre which are creating employment opportunities to
millions of people in India.
Further, when output of goods and services from government enterprises increase, then private enterprises
which receive raw materials from government enterprises will also raise their output and hence increase
the employment opportunities in the economy.
Government has implemented many programmes for poverty alleviation and employment generation. They
are as follows:
Self Employment Programmes: The major self employment programmes are:
 SwarnaJayanthi Gram Swarozgar Yojana (SGSY): The programme aim at providing financial
assistance to Self-Help Groupswhich then decide whom the loan is to be given for self employment.
 Swarnajayanthi Shahari Rozgar Yojana(SJSRY): It aims at creating both self employment and wage
employment opportunities in urban area. Under self employment programmes, financial
assistance was given to families or individuals. Now the programmes are encouraging to
form Self Help Groups.
 Pradhan Manthri Rozgar Yojana (PMRY): The educated unemployed from low income families in
rural and urban area can get financial help to set up any kind of enterprise that generate
employment under this scheme. Wage employment programmes.
Wage employment programmes:
 National Food for Work Programme( NFWP)
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 Sampoorna Grameena Rozgar Yojana (SGRY)

 Mahatma Gandhi National Rural Employment Guarantee Programme(MGNREGP)- it provides
guaranteed wage employment to every household whose adult volunteer will get unskilled labour
for a minimum of 100 days in a year.
All these programmes aim at providing not only employment but also services in areas such as primary
health, primary education, rural drinking water, nutrition, assistance for people to buy income and
employment generating assets, development of community assets,
assistance for constructing houses, roads and development of wastelands etc,.
2 Discuss the informalisation of Indian work force.

Informalisation of work force is the process where the companies or employers are trying to take the
workers without assuring the job security, provident fund, gratuity ESI. Periodical pay hike etc. Some well
established firms are converting the structure of employment from formal to informal to avoid risk of
labour laws. This is known as informalisation of work force. The following is live incident of informalisation
which happened in Ahmedabad during 1980s. Like Bengaluru, Ahmedabad is a well developed city with
more than 65 cotton textile mills having more than 1,60,000 workers. These workers, had job security with
a living wage and also all the workers are covered by social security schemes protecting their health and old
age. There was a strong labour union to resolve disputes and to provide welfare measures to the mill
workers.
During 1980’s textile mills all over the country began to close down. In some places, likeMumbai, the
mills closed rapidly. In Ahmeadabad, the process of closure was long drawn outand spread over 10 years.
Over this period, about 80,000 permanent workers and about50,000 casual workers lost their jobs and
were driven to the informal sector. The cityexperienced an economic recession and public disturbances,
especially communal riots. Awhole class of workers was thrown back from thrown back into poverty.
There waswidespread alcoholism and suicides, children were withdrawn from school and sent to work. The
following are major problems faced by workers in informal sector:
 Do not ensure job security
 Workers and enterprises do not get regular income.
 The workers do not have any protection of regulation from the Government.
 Workers are dismissed without any compensation.
 Technology used is outdated.
 They do not maintain any accounts.
 Workers in this sector live in slums and are squatters.
 Poor working conditions
 Do not ensure social security measures like pension, bonus and maternity benefits.
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 Employment became seasonal and temporary.
VII Project –Oriented Question (Five marks)

1 Identify the formal and informal workers in the following list.
1. A petty shop owner
2. Hand loom weaver
3. SBI Cashier
4. A street vendor
5. Government Hospital nurse
6. Government Primary School teacher
7. Tailor
8. Revenue Inspector
9. Police
10. 10.Agricultural labourers
Formal worker
1. SBI Cashier
2. Government Hospital Nurse
3. Government Primary School teacher
4. Revenue Inspector
Police Informal worker
1. Petty shop owner
2. Hand loom weaver
3. A street vendor
4. Tailor
5. Agricultural labourers
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CHAPTER -8
INFRASTRUCTURE
I Choose the correct answer (Each question carries one mark)
1 Which state in India is popularly known as “Gods’s Own Country”.
a) Kerala b) Kashmir c) Goa d) Himachal Pradesh
2 Which state has achieved Excellency in information technology?
a) Rajasthan b) West Bengal c) Tamilnadu d) Karnataka
1 Infrastructure facilities can be classified into two types.
2 Indian System of Medicine includes six systems.
III Answer the following question in a word/sentence each. (each question carries one mark)
1 Mention the states achieved prosperity in agriculture and horticulture.
The states which have achieved prosperity in Agriculture and Horticulture are Punjab, Haryanaand
Himachal Pradesh.
2 Identify the state which has achieved Excellency in Literacy.
Kerala has achieved Excellency in education.
3 Write any one industrially most advanced state in India.
Maharashtra is industrially most advanced state in India.
4 Why Bengaluru city attracts many multinational companies?
Bengaluru city attracts many multinational companies because they provide world-classcommunication
facilities.
5 What is infrastructure?
Infrastructure is a network of physical facilities and public services which act as important basefor economic
and social development of the country.
6 What is the meaning of Health?
Health refers to absence of disease and the ability to realize one’s potential. It is a yardstick ofone’s well
being.
IV Answer the following question in four sentences each. (Each question carries two marks.)
1 Which are the Economic Infrastructures?
The economic infrastructures are those which directly contribute towards economic development. The
main economic infrastructures are energy, transportation, communication, banking, insurance, warehouse
etc.,
2 Which are the Social Infrastructures?
The social infrastructures are those which indirectly contribute for economic development. Thesocial
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infrastructural facilities are education, health, housing, sanitisation, drinking water,

library, which indirectly contribute for economic development.
3 What is the meaning of Global Burden of diseases?

The Global Burden of Diseases is an indicator used by experts to gauge the number of people dying
prematurely because of particular disease and the number of years spent by the peoplein a state of
disability owing to the disease, during a given period of time.
4 Which are the health indicators?

The main health indicators are as follows:
 Infant mortality rate
 Maternal mortality rate
 Life expectancy level
 Nutrition level
 Incidence of communicable and non- communicable diseases.
5 Which are the components of Indian systems of Medicine?

The components of Indian System of Medicine (AYUSH) are as follows:
 Ayurveda
 Unani
 Naturopathy
 Yoga
 Siddha
 Homeopathy
V Answer the following question in twelve sentences each. (Each question carries four marks)
1 Explain the role of Infrastructure in the development of modern economy?
The infrastructure helps the modern economy as follows:
 It supports the system for efficient working of industrial sector.
 It encourages speedy development of Agricultural sector.
The agriculture and industry largely depend on infrastructure. Transportation of seeds, pesticides, fertilizers
and the produce using modern roadways, railways and shipping facilities help in development of agriculture
which leads to development of an economy.
 Infrastructure contributes to economic development of a country both by increasing the
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productivity of the factors of production and improving the quality of life of its people.
 Improvements in water supply and sanitation have a large impact on reducing morbidity i.e., prone
to illness, from major waterborne diseases and reducing the severity of disease when it occurs.
 The transport and communication also influence the health care facilities.
2 Briefly explain the state of Infrastructure in rural India.

Traditionally, the government has been solely responsible for developing the country’s infrastructure. But it
was found that the government’s investment in infrastructure was inadequate. Today, the private sector by
itself and also in joint partnership with the public sector has started playing a very important role in
infrastructure development.
Majority of people in India live in rural areas. In spite of so much of technological progress in the world,
rural women are still using bio-fuels like agricultural waste, dried dung and fire wood to meet their energy
requirement. They have to walk a long distance to bring fuel, water and other basic needs.
According to latest estimates, in rural India only 56% of households have an electricity connection and 43%
still use kerosene. About 90% of the rural households use bio-fuels for cooking. Tap water availability is
limited to only 24% rural households. About 76% of the population drinks water from open sources like
wells, tanks, ponds, lakes, rivers, canals etc.
Access to improved sanitation in rural areas was only 20%.
3 Write the modal of using commercial energy in 1990-91 and 2014-15.

In India, commercial energy consumption makes up about 65% of the total energy consumed. The coal
consumption in India is 55%, which is the largest one. The consumption of petroleum products is 31%,
natural gas is 11% and hydro electricity is 3%.
The non-commercial energy sources consisting of firewood, cow dung and agricultural wastes account for
30% of total energy consumption.
In the sectoral pattern of consumption of commercial energy, the transport sector was the largest
consumer of commercial energy. But now, there is a fall in the share of transport sector and rise in the
share of industrial sector. The share of petroleum and Natural gas is the highest among all commercial
energy consumption.
4 Write a note on private health infrastructure in India.
In recent years private sector is playing a dominant role in medical education and training,medical
technology and diagnostics, manufacture and sale of pharmaceuticals, hospital
construction and the provision of medical services. The role played by private healthinfrastructure in
India are as follows:
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 More than 70% of the hospitals in India are run by the private sector.
 The private sector control nearly two-fifth of beds available in hospitals.
 Nearly 60% of dispensaries are run by the private sector.
 The private sector provide healthcare for 80% of outpatients and 46% of in-patients.
 Due to liberalisation policy of the government many non-resident Indians and Industrialand
pharmaceutical companies have set up state of art super speciality hospitals to attract India’s
rich people and medical tourists.
VI Answer the following question in twenty sentences each. (each question carries six marks)
1 Write a note on energy.
Energy is one of the basic infrastructures which are very essential for economic development of a
country. It is indispensable for all the large scale industries, agriculture related industries like
production and transportation of fertilizers, pesticides and farm equipments. It is required in houses
for cooking, household lighting and heating.
The sources of energy can be classified as follows:
 Commercial sources of energy
 Non-commercial sources of energy
The commercial sources of energy are the energy sources which are bought and sold. Example coal,
petroleum and electricity.
The non-commercial sources of energy are the sources which are freely available in nature or forest.
Example. Firewood, agricultural waste and dried dung.
Conventional and Non-Conventional Energy sources: The conventional sources of energy used from
long period of time. They consist of coal, petroleum, electricity, firewood, agricultural waste etc.
The non-conventional sources of energy are modern sources of energy which include solar energy,
wind energy and tidal power. Being a tropical country, India the potentiality for producing these types
of energy.
Consumption pattern of Commercial Energy: In India, commercial energy consumption makes up
about 65% of the total energy consumed. The coal consumption in India is 55%, which is the largest
one. The consumption of petroleum products is 31%, natural gas is 11% and hydro electricity is 3%.
The non-commercial energy sources consisting of firewood, cow dung and agricultural wastes account
for 30% of total energy consumption.
In the sectoral pattern of consumption of commercial energy, the transport sector was the largest
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consumer of commercial energy. But now, there is a fall in the share of transport sector and rise in the
share of industrial sector. The share of petroleum and Natural gas is the highest among all commercial
energy consumption.
2 Write an appraisal on the indicators of health and health infrastructure.

The health status of a country can be assessed through indicators such as Infant Mortality Rate and
Maternal Mortality Rates, Life Expectancy and nutritional levels along with the incidence of
communicable and non-communicable diseases.
Some scholars argue that there is greater scope for the role of government in the health sector. For
instance, the expenditure on health sector is just 4.7% of total Gross Domestic Product. This is very low
when compared to other countries.
India has about 17% of world’s population but has 20% of Global Burden of Diseases. The Global
burden of diseases indicate that the number of people dying prematurely due to particular disease
and the number of years spent by them in a state of disability because of thatdisease.
In India more than 50% of Global burden of disease is accounted for by communicable diseases like
diarrhoea, malaria and tuberculosis. Every year around five lakh children die because of water born
diseases. The danger of AIDS is also looming large.
Malnutrition and inadequate supply of vaccines lead to the death of 2.2 million children every year.
Since the public health facilities are not up to the mark, less than 20% of the population utilizethese
facilities.
The status of rural and urban health infrastructure is as follows:
 About 70% of India’s population lives in rural areas but only 1/5th of hospitals located inrural
areas.
 The people living in rural areas do not have sufficient medical infrastructure.
 The primary health centres located in rural areas do not have X-ray or blood testing
facilities.
 In rural areas, about 24% of people do not have access to proper health care.
 There is severe shortage of doctors in rural areas.
 The poorest 20% of Indians living in both urban and rural areas spend 12% of their
income on health care.
In India, there is a division between the urban and rural healthcare infrastructure. If it is
ignored, there will be risk of destabilizing the socio-economic system of our country.
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3 Write a note on women health.

Women constitute about 50% of the total population in India. They suffer from many disadvantages as
compared to men in the areas of education, participation in economic activities and health care.
The deterioration in the child sex ratio in the country from 927 in 2001 to 914 in 2011 points to the
growing incidence of female foeticide. Close to 3,00,000 girls aged below 15 years are not only
married but have already borne children at least once. More than 50% of married women in the age
group of 15-49 years have anaemia and nutritional anaemia caused by iron deficiency, which has
contributed to 19% of maternal deaths. Abortions are also a major cause
of maternal morbidity (disease) and mortality in India.
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CHAPTER-9
ENVIRONMENT AND SUSTAINABLE DEVELOPMENT
I Fill in the blanks (Each question carries ONE mark)

1. India supports approximately 17% of the world’s population on a mere 2.5 percent of the
world’s geographical area.
2. Forests are renewableresources.
3. Thermal power plants emit large quantities of Carbon Dioxide.
II Match the following (Each question carries ONE mark)
A B
1) Non renewable resource a) sustainable development (2)
2) Bio pest control b) air pollution (4)
3) Encroachment into forest c) water resource (5)
4) Industrialisation d) land degradation (3)
5) Renewable resource e) LPG (1)
III Answer the following question in a word/sentence each. (Each question carries ONE
mark)
1. What is meant by environment?
Environment refers to physical surroundings, conditions, circumstances, etc., in which a person
lives.
2. Give the meaning of non-renewable resources.
Non-renewable resources are those resources which get exhausted with extraction and
use. Example: mineral resources like petrol, coal, iron ore etc.
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3. Give the meaning of renewable resources.

Renewable resources are those resources that can be used again and again. There will be a
continuous supply of resources. Example: water, forest. Land etc.,
4. What is meant by absorptive capacity of environment?
Absorptive capacity of environment refers to the ability of the environment to absorb
degradation.
5. What is sustainable development?
According to Brundtland Commission, Sustainable Development is a “process of
development which meets the needs of the present generation without compromising the ability of
future generation to meet their own needs”.
6. Expand CNG.
Compressed Natural Gas.
IV Answer the following question in four sentences each. (Each question carries TWO marks)
1. Mention any four functions of environment.
The four functions of environment are:
1. The environment supplies both renewable and non-renewable resources.
2. The environment absorbs the solid and liquid wastes created by human and other living
being.
3. The environment sustains the life on earth by providing genetic and bio-diversity.
4. Environment provides-beautiful scenery of forest land, water falls, mountains like Himalaya
ranges, lagoons, glaciers, valleys etc.

2. Name the renewable and non-renewable resources.
Renewable resources: Water, forest, land, sunlight etc.
Non Renewable resources: petrol, coal, iron ore etc.
3. What do you mean by carrying capacity of the environment?
Carrying capacity of environment implies that the resource extraction is not above the rate of
regeneration of the resource and the wastes generated are within the assimilating
capacity of the environment.
4. Write any two threats to environment in our country.
The major threats to environment in our country are:
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1) Threat of poverty induced environmental degradation.
2) Threat of pollution from rapidly growing industrial sector, air pollution, water
contamination, soil erosion, deforestation and wild life extinction.
5. Name the types of medical systems included in AYUSH.
The types of medical systems included in AYUSH are:
Ayurveda, Yoga, Unani, Siddha, homeopathy and Naturopathy.
V Answer the following questions in twelve sentences each. (Each question carries four
marks)
1. Explain the functions of environment.
Environment refers to physical surroundings, conditions, circumstances etc., in which a person
lives.
The major functions of environment are:
1) The environment supplies both renewable and non renewable resources. Renewable
resources are those resources that can be used again and again. There will be a continuous
supply of resources. Example: water, forest, land etc.,
Non renewable resources are those which get exhausted with extraction and use. Example
mineral resources like petrol, coal, iron ore etc.
2) The environment assimilates waste. That means the environment absorbs the solid and
liquid wastes created by human and other living beings.

3) The environment sustains the life on earth by providing genetic and bio-diversity.
4) Environment also provides aesthetic services like- beautiful scenery of forest land,
water falls, mountains like Himalaya ranges, lagoons, glaciers, valley etc.
2. Explain the supply –demand reversal of environment.
The environment can perform its functions without any interruption as long as the demand for
environment resources is less than its supply. When the demand is more than the supply, it results in
an environment crisis. This is known as supply demand reversal of environmental resources.
In the words, when the demand for resources, both production and consumption goes beyond
the rate of regeneration of this resource leading to an increase in pressure on absorptive capacity,
it is called supply demand reversal of environmental resources.
That means, we are now faced with increased demand for environmental resources and service
but their supply is limited due to over use and misuse of resources.
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The major causes are:

 The rising population of developing country.
 Affluent consumption and production standards of the developed countries.
 Intensive and extensive extraction of both renewable and non renewable resources.
3. Explain the suggestions given by Herman Daly to achieve sustainable development.
Herman Daly, an environmental economist has given the following suggestions to achieve
sustainable development:
 Limiting the population to a level within the carrying capacity of the Environment. If the
population is not controlled, human scale grows beyond the carrying capacity of the earth
and deviates from sustainable development.
 Technological progress should be environment friendly.
 Use of renewable resources should not supersede their availability.
 There should be optimum utilization of non-renewable resources, i.e., rate of extraction
of these should not exceed substitute resources.
 The adverse effects of pollution should be corrected immediately.
4. Write a note on Eco-friendly traditional knowledge and practices of our country.

During ancient period, the people in India were living very close to environment. They were a part
and parcel of environmental system and they did not try to control the environmental factors.
Their economic and social activities like agriculture, healthcare, housing, transport etc, were
environment friendly. Recently we have drifted away from the traditional systems and caused
large scale damage to the environment and also our rural heritage. Now, it is time to go back, the
apt examples are:
i) Healthcare:
a) India is very much previlised to have about 15000 species of plants which have medicinal
properties
b) Our traditional healthcare systems such as AYUSH,TIBETAN,FOLK TRADITION etc., are in great
demand again for treating chronic health problems.
c) Now a days every cosmetic produce- hair oil, tooth paste, body lotion, face cream is herbal in
composition. These products are not only environment friendly, they are relatively free from side
effects.
ii) Organic Farming:
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The traditional system of agriculture performed with green manure and eco friendly
instruments. Still this system have the great demand in rural heritage.
iii). Transport System:
Earlier the travelling on food and bullock cars not adversely affected the environment,
1. How do the following factors contribute to the environmental crisis in India? What
problem do they pose for the government?
a) Rising population b) Air pollution
b) Water contamination d) urbanization
e) Deforestation.
a) Rising Population:The rising population has resulted in increase in demand for natural resources
while supply of natural resources in constant. It has created excess demand and exerts beyond the
carrying capacity leading to environmental degradation. They pose a threat to environment.
b) Air Pollution:The pollution caused by the industrialization and vehicular emissions have created
diseases like asthama, lung cancer, tuberculosis and many air borne diseases and posing a problem
for the environment in the form of increased expenditure of Government on health.
C) Water contamination: The water pollution out of industrialization and urbanization has lead to
many diseases like cholera, malaria, diarrhoea and many water borne dieaseases. This has also
resulted in increase in the expenditure of Government on health.
d) Urbanization: The development of large cities and towns i.e ., urbanization has increased the
demand for natural resources while supply of natural resources is constant. It has created excess
demand over the supply. There is over extraction of resources beyond the carrying capacity also.
There is problem that the rich wasting the food and other resources and poor struggling to get the
same.
e) Deforestation: A reckless cutting down of trees has lead to deforestation. It is causing for
increase in carbon dioxide in the environment. The increased carbon dioxide has added to global
warming. This has resulted in increase in expenditure of Government on Health
and increasing the financial commitments of Government even for future.
2. India has abundant natural resources. Substantiate the statement.

India is favourably located in north eastern hemisphere with abundant natural resources in terms
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of rich quality of soil, many rivers, vast forest area, plenty of mineral resources, ranges of
mountains, oceans etc. The richness of India in many resources can be listed as follows:
 The black of Deccan Plateau in best suitable for cotton and the same has encouraged the
concentration of textile industries.
 The northern plains are highly fertile contributing maximum towards employment generation
and agricultural production.
 India has about 69 million hectares of forest area covering majority of population and
wildlife.
 India has large deposits of iron ore and natural gas.
Bauxite, diamonds, gold, lead, manganese, zinc, uranium etc. Are also available.
3. Explain any six strategies for sustainable development.

According to Brundtland Commission, Sustainable development is a “process of
development which meets the needs of the present generation without compromising the ability of
future generation to meet their own needs”.
The strategies for sustainable development are as follows:
i. Utilization of non-conventional sources of energy.
ii. Use of Liquefied Petroleum Gas and Gobar Gas in rural areas.
iii. Use of Compressed Natural Gas (CNG) in public transport.
iv. Use of Solar Energy.
v. Practice of traditional knowledge in healthcare and other fields.
i. Utilization of Non-conventional sources of energy:In India, thermal power plants produce

maximum electricity to meet the demands of economy. The thermal power plants emit large
quantities of carbon dioxide which is a green house gas. Even hydro-electric projects inundate
forest and interfere with the natural flow of water. So, alternative sources should be made
available like wind power and solar energy as non-conventional sources to meet the increasing
demand for power.
a) Wind Power: The wind mills can provide electricity without any adverse impact on
environment. In areas where speed of wind is usually high, wind mills play an important role in
combating energy crisis.
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b) Solar Energy:Solar energy can be converted into electricity with the help of photovoltaic cells. The
photovoltaic cells are special form of materials used to capture solar energy and then convert the
energy into electricity. This technique does not damage environment.
ii. Mini-hydel power plants: These can be constructed and produced in small streams to move
turbines. The electricity generated from such small turbines can be used in local areas. These Mini-
hydel power plants are environment friendly as they do not change the land use pattern of India.
iii. Bio-Composting: It is a process of converting organic matter into compost naturally.
Earthworms can convert organic matter into compost faster than the normal composting process.
iv. Bio-pest control: Bio-Pest control is a method of using pesticides made out of plant products
and spreading awareness about how various animals and birds which help in controlling pests. Ex:
1. Neem trees seeds oil used to control pests. 2. Mixed cropping.
3. Snakes are one of the important groups of animals which eat rats. 4. Birds like owl and peacocks
eat insects etc.
Sustainable development has become a catch phrase today. It is ‘indeed’ a paradigm shift in
development thinking. Though it has been interpreted in a number of ways, going in this path
ensures lasting development and non-declining welfare of all.
VII Answer the following assignment and project oriented questions. Question carries 5
marks.
1. Prepare a list of causes of land degradation in India.
Causes of land degradation in India:
 Deforestation – reckless cutting down of trees resulting in loss of vegetation.
 Indiscriminate and over exploitation of forest products as fuel wood and over grazing.
 Conversion of forest land into agricultural land.
 Forest fire and faulty methods of cultivation.
 Excessive application of pesticides and insecticides.
 Disproportionate and excessive use of chemical fertilizers in Indian Agriculture.
 The irrigation systems in India are not properly planned and managed.
 Over exploitation of ground water for various competing utilities like human settlement,
industrialisation, etc.
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 No proper introduction of crop rotation techniques and organic farming.

 Illiteracy and ignorance of rural population in respect of causes and effects of land
degradation.
Land is indispensable for human settlement. If the proper care is not taken for its conservation it
will result in scarcity of water and natural resources. So save the land save the nation.
************
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CHAPTER-10
DEVELOPMENT EXPERIENCE OF INDIA A COMPARISION WITH

NEIGHBORS
I Fill in the blanks (Each question carries on e mark)

1. The Great Leap Forward campaign was initiated in the year 1958.
2. India has the largest work force in agriculture.
3. Life expectancy at birth (years) is highest in China.
II Answer the following questions in a word/sentence each. (each question carries one mark)
1. When were reforms introduced in all the three economies- India, China and Pakistan?
China in 1978, Pakistan in 1988 and India in 1991.
2. Give the meaning of Infant Mortality Rate?
Infant Mortality Rate is the death babies per thousand live births.
3. Who introduced the Great Proletarian Cultural Revolution?
Mao in China introduced the Great Proletarian Cultural Revolution.
4. Mention the major reason for the low population growth in China.
The major reason for the low population growth in China is introduction of one child norm.
5. Name the campaign initiated in China with the aim of industrialisation.
The Great Leap Forward campaign initiated in 1958 with the aim of industrialization.
III Answer the following question in four sentences each. (Each question carries two marks)
1. Why are regional and economic grouping formed?
The major reasons for forming regional and economic grouping were as follows:
* Nations have been primarily trying to adopt various means which will strengthen their own
domestic economies.
* There is increasing eagerness on the parts of various nations to try and understand the
developmental processes pursued by their neighbouring nations.

* To comprehend their own strengths and weakness with neighbouring countries.
* Understanding of the other economies in our neighbourhood is also required as all major
common economic activities in the region impinge on overall human development in a shared
environment.
2. What is a Commune system?

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Under communal system, all individual ownership of land was done in favour of communal ownership,
people collectively cultivated lands. People were encouraged to set up industries in
their backyards. Communes were started in villages.
3. Give the meaning of Liberty indicator.

Liberty indicator is defined as the measure of extent of demographic participation in social and political
decision making. Examples:
a) Measures taken towards constitutional Protection Rights.
b) Extent of protection of independence of Judiciary.
4. Write two implications of the ‘one child norm’ in China.

The important implications of one child norm for China are as follows:
* It has successfully reduced the growth rate of population.
* After a few decades in China there will be more elderly people in proportion to young people.
* This will force China to take steps tp provide social security measures with fewer workers.
IV. Answer the following question in four sentences each. (Each question carries four marks)
1. What are the various indicators of Human Development.
The various indicators of Human development are as follows:
a) Human Development Index: It consists of standard of living index, life expectancy at birth and
educational attainment.
b) Life expectancy at birth: It is the average number of years a person can live. In other words, it is
longitivity of life.
c) Adult Literacy rate: It is the average number of persons who have reading and writing skills with
basic local knowledge. It is expressed in percentages. The high literacy rate shows high human
development.
d) GDP Per capita: The gross domestic product per head is also one of the indicators of human
development.
e) Infant Mortality Rate: It means the death of babies per thousand live births. If the IMR is high it
shows low human development.

f) Maternal Mortality Rate: it shows the death of mothers per one lakh live births. If MMR is low it
indicates better human development.
g) Population using improved sanitation: If the percentage of population using improved
sanitation is more, it is a good indicator of human development.
h) Population with sustainable access to improved water source: if the percentage of population using
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sustainable access to improved water source, it is good indicator of human development.

i) People living Below Poverty Line: If less people are living below the poverty line, then it is a good
indicator of human development.
j) Percentage of children undernourished: If the number of undernourished children is
diminishing, then it is a good indicator of human development.
2. Compare and contrast the development of India and China with respect to some salient human
development indicators.
The development of India, china and Pakistan in respect of salient human development indicators can be
explained with the help of the following table.
Indicators India China Pak
* Human development Index 0.6 0.7 0.5
* Rank (based on HDI) 130 90 147
* Life Expectancy at birth (years) 68.2 45.8 66.2
* Adult literacy rate (%) 72 96.4 56.4
* GDP per capita (US dollars) 5730 13572 4706
* People below poverty line 58 32 44
* Infant Mortality Rate (per 1000) 38 9 66
* Maternal Mortality Rate (per lakh) 174 27 178
* Population using improved sanitation (%) 40 77 64
* Population with sustainable access to improved water
source. 94 96 91
* Percentage of children undernourished 15 9 22
It is clear from the above table that China is moving ahead of India and Pakistan. This is true for many
indicators viz., income indicator such as GDP per capita or proportion of population below poverty line
or health indicators such as mortality rates, access to sanitation, literacy, life expectancy or
malnourishment.
Pakistan is ahead of India in reducing proportion of people below the poverty line and also its
performance in sanitation.
But neither of China nor Pakistan is able to save women from maternal mortality. In China , for one lakh
births, only 27 women die whereas in India and Pakistan, about 178 and 174 women die
respectively. All the three countries provide improved water source for most of its population.
Under commune system, people collectively cultivated lands. In 1958, there were 26,000 communes
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covering almost all the farm population.

The great Leap forward campaign met with many problems. A severe drought caused havoc in China killing
about 30 million people. When Russia had conflicts with China, it withdrew its professionals
who had earlier been sent to China to help in the industrialization process.
3.Give reasons for the slow growth and re-emergence of the poverty in Pakistan?
The proportion of poor in Pakistan during 1960 was more than 40% which reduced to 25% in 1980 and
started rising again in 1990. The main reason for growth and re-emergence of poverty in Pakistan are
as follows:
* In Pakistan Agricultural growth and food supply situation were based not on an institutionalized
process of technical change.

* In Pakistan, maximum foreign exchange earnings came from Pakistani workers in Middle East and
export of highly volatile agricultural products.
* There was also growing dependence on foreign loans and increasing difficulties in their repayment.
V. Answer the following question in twenty sentences each. (Each question carries six marks)
1. China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree?
Elucidate.
To some extent, China’s rapid industrial growth cannot be traced back to its reforms in 1978. The
leadership at that time in China was not happy. Under the Maoist rule there was slow growth and lack
of modernization in the China. Maoist vision of economic development based on decentralization, self-
sufficiency and shunning of foreign technology, goods and capital had failed. Despite extensive land
reforms, collectivization, the Great Leap Forward and other initiatives, the per capita grain output in
1978 was the same as it was in mid 1950’s. The following points prove that the China’s rapid industrial
growth can be traced back to its reforms in 1978.
*.China introduced reforms in phases. In the initial phase, reforms were initiated in agriculture,
foreign trade and investment sectors. In agriculture, commune lands were divided into small plots
which were allocated to individual households. They were allowed to keep all income from the land after
paying stipulated taxes.
* In later phase, reforms were initiated in the industrial sector. Private sector firms and the
enterprises which were owned and operated by local collectives, in particular, were allowed to
produce goods. Public sector enterprises were made to face competition.
* They practiced dual pricing system. This means fixing the prices in two – ways. Farmers and
industrial units were required to buy and sell fixed quantities of inputs and outputs on the basis of
prices fixed by Government and rest were purchased and sold at market prices.
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2. What are the various factors that led to the rapid growth in economic development in China?
China’s economic growth can be attributed to two factors. Viz.,
 Large scale investments financed by domestic savings and foreign investment.
 A rapid growth in productivity.
The economic reforms have increased economic efficiency and the capacity to acquire resources
necessary for the growth in agricultural and industrial output.
The major factors which led to rapid growth in economic development of China are as follows:
1) Structural changes: The republic of China shifted from being an agricultural country into a highly
productive industrial economy and a significant exporter.

2) Foreign capital: Technological innovation developed abroad was brought by importing
industrial equipment and from foreign direct investment.
3) Dual Pricing: China adopted price equalization mechanism i.e. Dual pricing. This means fixing
the prices in two ways- farmers and industrial units were required to buy and sell fixed
quantities of inputs and outputs on the basis of prices fixed by the Government and others
purchased and sold goods and services at market prices.
4) Over the years production and transactions were increased. In order to attract foreign
investors, special economic zones were established.

5) It was found that establishment of infrastructure in the areas of health and education, land
reforms, decentralized planning, existence of small enterprises had helped positively in

improving the social and income indicators in the post reform period
6) Through commune systems there was equitable distribution of food grains.
7) The experimentation under decentralized government enabled to assess the economic, social and
political costs of success or failure.
3. Compare and contrast India and China’s sectoral contribution towards GDP in 2013. What does it
indicate?
The sectoral contribution towards GDP in India and China during 2013, can be explained with the help
of the following table.
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Sectoral Share of GDP (%) (2014-2015)

Sector India China
Agriculture 17 9
Industry 30 43
Services 53 48
Total 100 100
From the above table, we can conclude as follows:

 In India, agriculture contributes more towards GDP when compared to China.
 Agricultural contribution to GDP of China is very low when compared other sectors like
Industry and Services.
 The contribution of Industrial Sector to GDP in China is more than that of India.
 The contribution of Services to GDP in India is more than that of China.
 But, the contribution of Industry and Services to GDP in both India and China are almost similar.
VI. PROJECT ORIENTED QUESTION:
1. Group the following features pertaining to the economics of India, China,Pakistan
a) Single child norm low literacy b) Low fertility rate c) High Rate of urbanisation
d) Mixed Economy e) High fertility g) High Density of population
h) Growth due to manufacturing sector i) Growth due to service
ANS:
INDIA CHINA PAKISTAN
Mixed economy Single child norm Mixed Economy
High density of population High rate of urbanization High rate of urbanization
Growth due to service Large population Growth due to service
Growth due to service Low fertility sale High fertility rate
Low literacy rate Growth due to manufacturing
sector
I PUC Page 61 of 61

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TRINITY COLLEGE, MYSURU INDIAN ECONOMICS DEVELOPMENT

I Choose the correct answers (Each question carries one mark)

II Fill in the blank (Each question carries one mark)

III Answer the following question in a word/sentence (Each question carries on

finished goods from Britain.

I Choose the correct answers (Each question carries one mark)

II Fill in the blanks (Each question carries one mark)

1. Prime Minister - Chair person of the planning commission

IV Answer the following question in a word/sentence (Each question carries on mark)

4. Give the meaning of Land Ceiling?

I Fill in the blanks. (Each question carries one mark)

The four objectives of trade policy are-

2) Write a note on WTO.

The main objectives of WTO are as follows:

The main objectives of Trade and Investment policy were-

2) Briefly explain the effects of reforms on Agricultural Sector.

VI Project-Oriented Question (Five marks)

2 Who are the urban poor? Give examples.

3 Who are the rural poor? Give examples.

 Prime Minister’s RozgarYojana.

2 Explain the employment generation programmes of poverty alleviation in India.

3 Critically assess the poverty alleviation programmes of the government.

Unemployment: Poverty is closely related to nature of employment, unemployment and under

VII Project Oriented Question (Five Marks)

CHART OF POVERTY LINE

HUMAN CAPITAL FORMATION IN INDIA

I Choose the correct answer. (Each question carries one mark)

1. More contribution to national Skilled labour

Indian Council for Medical Research.

3 What are the two major sources of human capital in a country?

3 Bring out the need for on-the-job-training for a person

 It helps in undertaking innovations.

4 Discuss the need for promoting women’s education in India.

2 Examine the role of education in the development of a nation.

3 Trace the relationship between human capital and economic growth.

III Match the following. (Each question carries on mark)

1. NABARD - Institutional source

6 Name the two life-giving sources of fishing community.

The major drawbacks of agriculture marketing in India are as follows:

3 Write a note on animal husbandry.

4 List out the benefits of organic farming.

EMPLOYMENT: GROWTH, INFORMATION AND OTHER ISSUES

I Choose the correct answer (each question carries one mark)

3 Who are self -employed? Give two examples.

4 Name the types of rural unemployment

5 Name the three sectors of the economy.

Formal sector labour

7 What is unemployment according to NSSO?

 Do not ensure job security

2 List out the economic activities in different sectors.

3 Write short note on Self-Employed and Hired Workers.

4 Explain the types of unemployment.

 Sampoorna Grameena Rozgar Yojana (SGRY)

2 Discuss the informalisation of Indian work force.

 Employment became seasonal and temporary.

VII Project –Oriented Question (Five marks)

infrastructural facilities are education, health, housing, sanitisation, drinking water,