CHAPTER – 1

INDIAN ECONOMY ON THE EVE OF INDEPENDENCE

I. Choose the correct answers (one mark):

1. Whose estimate of per capita income of India during colonial
period was considered very significant.
(a) Dadahol Naoroji (b) V.K.R.V. Rao
(c) William Digby (d) R.C. Desai

Answer: (c) V.K.R.V Rao

2. Railway transport introduced in India in the year _______

(a) 1835 (b) 1776

(c) 1850(d) 1853

Answer: (c) 1850

3. The present ‘Life expectancy’ of India is _____

(a) 32.4 years (b) 63.6 years

(c) 64.8 years (d) 66.9 years

Answer: (d) 66.9 years

4. During British rule, more than half of India’s foreign trade was
restricted to ______
(a) Britain. (b) Iran.

(c) China. (d) Sri Lanka.

Answer: (a) Britain.

 5. In India census is carried out once in
(a) 5 years. (b) 10 years.

(c) 1 years. (d) 2 years.

Answer: (b) 10 years.

II. Fill in the blanks (one mark):

1. The share of workforce remained in agriculture during British

rule was 85%.

2. Before Independence the India’s Jute industries concentrated in

East Pakistan or Bengal or Bangladesh part of the country.

3. Under Colonial rule the cotton textile industries were dominated

by Indians.

4. After 1921 is the year of second stage of demographic transition

of India.

Railways transport is considered as the most important contribution of

British rule.

One mark questions:

1. Name theimportant revenue settlement system during british

rule.

A. Zamindari system.

2. TISCO – Expand

A. Tata Iron & Steel Company

3. What are capital goods industries?

A. Capital goods industry are those industries which can produce

machine tools (capital goods) which are in turn, used for producing
articles for current consumption (consumer goods). Eg: machines,
buildings, equipments etc.

4. When was the official census carried out in India?

A. In the year 1881 the official census was carried out in India.

5. Why did the colonial government banned canal transport?

A. The cost of construction was high; it proved to be uneconomical, to

the government exchequer. It failed to compete with railways.

6) What were the main reasons of British rulers behind the

beginning of railways in India?
i) To have effective control and administration over the vast
country. In view of this Britisher tried to link important
administrative and military centers through railway.
ii) Earning profit

IV. Answer the following question in four sentences each (2 marks)

1. What was the objective of the economic policies pursued by the

colonial government in India?

A. The sole objectives of British colonial rule in India was to reduce

the country (India) to being a raw material supplier for Great Brittan’s
own rapidly expanding modern industrial base.

2. List out the important export goods of India before

Independence.
A. India became an exporter of primary products such as raw silk,
cotton, wool, sugar, indigo, jute, etc.

3. What were the main causes of India’s agricultural stagnation

during the colonial period?

A. The economy which grows at a very low rate is called stagnant

economy. The factors which were responsible for agricultural
stagnation were:

a. Adoption of various systems of Land Settlement especially Jamindari

System.

b. Low Level of technology.

c. Lack of irrigation facilities.

d. Less use of fertilizers.

Same answer for 5 marks is as follows:

The main cause of the stagnation of agricultural sector were as

follows:-
i) The new land tenure that was introduced by British rulers in
India. This land tenure system had three forms: Zamindari,
Mahalwari and Ryotwari system. This gave birth to two classes –
the landlords and the landless cultivators. Especially under the
zamindari system the zamindars used to exploit the cultivators to
the maximum. They used to charge a very high rate of land
revenue from the agriculturalists as a result the surplus left with
the cultivators was insufficient even for their barest minimum
sustenance.

ii) The British rulers did not give much of attention to increase
irrigation facilities and technological up gradation in India.
iii) British rulers initiated commercialisation of agriculture in
which they encouraged the production of cash crops. As a result
Britisher transformed Indian agriculture into a raw material
activity to England .As a result of reduction in the production of
food crops and lack of proper policies the country had to suffer
from frequent occurrence of famines.

iv) The partition of the country had also adversely affected the
India’s agricultural production. It created a serious problem of
shortage of raw material for jute mills of Calcutta and textile
mills of Bombay and Ahmedabad.Also, rich food producing areas of
the west Punjab and Sindh went to Pakistan which created food
crises in the country.
4. Name the modern industries which were in operation in our
country at the time of Independence?

A. Some of the modern industries are:

a. Handicraft Industries.

b. Tata Iron and Steel Company (TISCO)

c. Cotton and Jute Textile Mills

d. Cement Industry

e. Paper Industry

5. State the features of India’s pre- Independence occupational

structure.

A. There were three main sectors during the British rule occupation i.e.
Primary (agriculture), Secondary (manufacturing), and the Tertiary
(services) sector.
About 70% to 75% workforce was engaged in agricultural sector, 10%
in manufacturing and 15% to 20% in service sector.

In this way the agriculture occupied the dominant position in all the
sectors. It proves that the progress in the occupational sector of
India was not identical.

6. Mention the economic activities confined to public sector in pre-

Independent India.

7. What were the infrastructure facilities developed during colonial

rule?

A. The basic infrastructure like roads, railways, ports, water transport,

post and telegraphs were developed during the colonial rule.

v. Answer the following questions in twelve sentences each (4

mark).

1. “The traditional handicraft industries were ruined under British

rule” Justify this statement.

A. India could not develop a sound industrial base under the colonial
rule. The traditional handicraft industries were famous in the world.
These indigenous industries declined resulting in unemployment. A new
consumer demand in the Indian Consumer market was created.

This demand was met by importing cheap manufactured goods from

Britain. In this way in place of indigenous handicraft industries, modern
industrial base was developed for the benefit of the British
government. In this way traditional handicraft industries were ruined
under the British rule.
2. Indicate the volume and direction of trade at the time of
Independence.

A. 1. Volume: At the time of Independence the volume of India’s trade

increased tremendously. Exports were more than imports.

a. It’s exports were wheat, rice, sugar, precious stones, etc.

b. It’s exports were wool, steel, pearls, copper, paper, perfumes, etc.

2. Direction: With respect to direction more than half of India’s

foreign trade was made with Britain. The rest was allowed with other
countries like China, Persia (Iran) and Ceylon (Sri Lanka).

3. Explain the demographic profile of India during the colonial

period.

A. The first official census operation was exercised in 1881. Every

ten years such census operations were carried out. The main
demographic features of India’s population growth were as under:

a. Both the birth and the death rate were very high.

b. As a result the population growth was very low. It was called the
first stage of demographic transition before 1921. The second stage of
demographic transition began after 1921.

c. The overall literacy level was less than 16% & female literacy level
was just 7%.

d. Water & air borne diseases were rampant.

e. Life expectancy was also very low- 44 years in contrast to the

present 66 years.

4. What do you understand by the ‘drain of Indian wealth’ during

colonial period?
A. Economic drain means transfer of wealth from one country to
other. During the colonial period Indian wealth was remitted to
England. In lieu of it India received nothing. For example, excess
exports were made to meet the deficit on current account in England
but India gained nothing.

VI. Answer the following question in twenty sentences each (6

marks).

1. Explain the status of India’s agriculture during the British

rule.

A. Though agriculture was the main occupation of India, it did not

find any major improvements during the British rule. They made
India as a platform for self development at the cost of India

a. Low level of agricultural productivity: Agricultural productivity

became very low and this stagnation in agricultural sector was mainly
due to the system of land settlement that were introduced by the
British government.

A. Existence of zamindari system: The profit accruing out of

agriculture went to zamindars instead of the cultivators.This
lead to discouragement amongst the cultivators to produce.

c. High dependence on Monsoon: Agriculture sector was mainly

dependent on monsoon. No effort was ever made under the British rule
to develop permanent means of irrigation.

d. Low level of technology: agriculture sector did not witness any kind
of technological application in the process of production.

e. Lack of proper irrigation facilities: lack of irrigation facilities and

negligible use of fertilizers, added to aggravate the plight of the
farmers and contributed to the dismal level of agricultural
productivity.
f. Lack of proper input: in the process of agricultural cultivation lead to
low agricultural productivity.

This was the condition of India’s agriculture during British rule.

2. India could not develop a sound industrial sector under colonial

rule’ Justify the statement.

A. India could not develop a sound industrial sector under colonial rule
this can be justified on the following points.

a. Discriminatory Tariff policy: The British Government allowed tariff

export of raw materials from India and tariff free import of British
industrial products into India. But a heavy duty on the export of Indian
handicraft products. It lead to decay of handicraft industry in India.

b. Technological advancement: Industrial revolution in Britain gave a

stiff competition to the handicraft industries in India. Due to low cost
and better quality product produced by machines in Britain. This
forced the India craftsmen to shut down the handicraft industry in
India.

c. New patterns of demand: Owning to British rule in India, a new

class of consumers emerged in India against the Indian products and in
favour of British products. As a result, the Indian Industry tended to
perish.

d. More market for British goods: An introduction of railways

facilitated the transportation of the British products to different
parts of the country. As a result, the size of the market for the low
cost British products expanded, while the market for high cost Indian
product started shrinking. This lead to decay of industry in India.

e. Stiff competition from foreign industries: Imported materials

(goods & services) from Britain with better quality and low price posed
a stiff competition to domestic industries.
f. Lack of capital goods industry: in Indian economy to promote
further industrialization.

g. Restriction of public sector operation: Confinement of public

sector to only few areas such as railways, power, ports, communication,
etc. led to negligence of industrial sector.

3. Write a note on development of infrastructure in India during

the colonial period.

A. There were some infrastructural development during the British, in

the area of transport and communication; they are:

a. Inland water transport was developed but it proved to be

uneconomical.

b. Roads: Served the interests of Britishers in mobilizing the army and

shifting raw materials.

c. Railways: The most important contribution of the British was to

introduce railways in India 1850. This step affected the structure of
Indian economy.

d. Water transport: Inland and oceanic waterways were also developed

during the British rule. But the Inland waterways proved uneconomical
at that time.

e. Posts: The postal services were inadequate during the British rule.

f. Telegraph: The British Government introduced expensive system of

electric telegraph in India. This system was useful for maintaining law
and orders.

It shows that the main objective was to develop infrastructure

facilities to serve different colonial interests.

4. Were there any positive contributions made by the British in

India? Discuss.
A. Yes there were many positive contributions made by Britishers in
India. The various developments made by Britishers for self help
indirectly supported Indian economy in aspects. The state of
infrastructure facilities especially in the field of transport,
communication and energy was very poor in India during the
British rule in India. However some efforts were made to develop
basic infrastructure like roads, railways, ports, water transport,
and post by the Britishers
2) The British rulers introduced railways in 1850 and Indian
railways begun operations in 1853.
3) The development and the construction of railways by the
British rulers had affected the Indian economy in the following
ways:-
i)It provided cheap and rapid transport system especially for
distant travel.
ii)It broke geographical barriers and thus promoted national unity
and understanding
iii)It created new employment opportunities
iv)It helped in controlling famines
v)It promoted foreign trade but benefited British more than
Indians
vi)It encouraged the process of industrialization

*************************************************************
 ECONOMICS

INDIAN ECONOMIC
DEVELOPMENT
NOTES-from chapter 3 to 10.
 Chapter -3

NEW ECONOMIC POLICY-1991

I. Fill in the blanks

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?
Ans. Liberation refers to removal of restrictions and the government controls on
economic activity, and opening up various sectors of the economy by giving freedom
to invest.
2. Give meaning of privatization?
Ans. Privatization implies transfer of ownership or management of a government
owned enterprises to the general public. Here government companies are converted
into private companies.
3. What is Globalization?
Ans. Globalization refers to integration of the domestic economy with the world
economy. It is an outcome of the set of various policies that are aimed at transforming
the world towards greater interdependence and integration.
4. Expand IBRD.
Ans. International Bank for Reconstruction and Development.
5. Expand GATT.
Ans. General Agreement On Trade And Tariff.
6. Give the meaning of Direct Tax.
Ans. Direct tax is the tax where the impact and incidence of taxation falls on the same
person. The burden of tax cannot be transferred. Ex: Income Tax, Wealth Tax etc.
7. What do you mean by outsourcing?
Ans. Outsourcing is a process where a company hires regular services from external
sources, mostly from other countries, which was previously provided internally or
from within the country.
8. Who regulates the financial sector?
Ans. In India financial sector is regulated by Reserve Bank Of India(RBI)

2
III. Answer the following question in four sentences each. (Each question carries
two marks)
1. Give the meaning of industrial licensing.
Ans. Industrial Licensing is a system in which every entrepreneur had to get
permission from government officials to start a firm, close a firm or to decide the
amount of goods that could be produced.
2. Mention four objectives of trade Policy.
Ans. 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?
Ans. Fiscal Policy is the policy of government in respect of public revenue and
expenditure. The tax revenue consists of direct and indirect tax.
4. What are the services of Outsourcing?
Ans. The major services of outsourcing are: -
Legal advice, computer services, advertisement, teacher service, voice-based business
processing (BPO’s, call centres), banking services etc.
5. What do you mean by Disinvestment?
Ans. Disinvestment refers to the sale of part of government equity shares to the
general public. In other words, Privatization of public sector enterprises by selling of
part of the equity shares of public sector undertakings to the general public is called
Disinvestment.
It’s main purpose is to improve financial condition and facilitate modernization.

IV. Answer the following question in twelve sentences each. (Each question carries
four marks)
1. Briefly explain the background of new economic reforms in India.
Ans. Economic reforms in India mean all those policy measures undertaken by
government of India since 1991 to promote productivity, profitability and efficiency of
the economy and to make it globally competitive. Its basic pillars are liberalization,
privatization and globalization.
 Background/needs for Economic Reforms:
In the mid of 1991, need for major economic reforms was felt in the country.
They are as follows:
 Excessive fiscal Deficit

3
 It was being experienced by Indian Economy due to huge non-developmental
expenditure. It increased from 5% of GDP to 8.5% in 1991. To solve this problem
Indian government requested IBRD and IMF to extend the help of 7 billion dollars.
IMF sanctioned “conditional loan” subject to the introduction of New Economic
Reforms.
 Balance of payment deficit (BOP)
It refers to when foreign payments (imports) are in excess of foreign receipts
(exports). During 1990’s India was facing BOP deficit which has increased from
Rs.2,214crores to 17,367crores in 1991.
 High rate/level of inflation
The rate of inflation rose from 6.7% p.a in 1980 to 16.7% p.a in 1990-91.
 Reduction in Foreign exchange Reserves
During 1990-91 foreign exchange reserves fell to the lowest level of
Rs.2,400crores, which was just enough for the payment of three weeks of imports.
 Poor performance of the public sector units
The sick PSU’s added on an extra burden on govt. Budget.
 Excessive control of govt.
It had tightened the control over the private enterprises which hampered industrial
growth rate and resulted into BOP crises.

2. Write a note of WTO (World Trade Organisation)

Ans. WTO was founded on 1995. It was replaced by General Agreement on Trade
and Tariff (GATT). GATT was established in 1948 with 23 countries as the global
trade organisation but WTO is a rule-based trade regime.
WTO is pursuing the policy of free trade in the world economy. It promotes fair
competition of international level and removes all types of tariff and non-tariff
barriers. WTO helps in the promotion of exchange of expert services and patent goods
in the world economy.
Objectives of WTO
 To ensure the reduction of tariffs and other barriers on trades.
 To enlarge production and trade services.
 To ensure optimum utilization of world resources.
 To provide greater market access to all the member countries.
 To protect environment.
India and WTO
As an important member of WTO, India is following the global rules and
regulations. It has removed quantitative restrictions on imports and reduced tariff

4
 rates. It is also committed to liberalise its trade regime in case of other reforms that
are being discussed in WTO.

3. Write a note on Trade and Investment policy.

Ans. A new trade and investment policy under liberalization strategy was made to
increase international competitiveness of industrial production and foreign
investments and technology into the economy. The aim was also to promote the
efficiency of the local industries and the adoption of modern technologies.
To protect Indian industries, the govt. was following quantitative restrictions
on imports which encouraged tight control over imports. At the same time Tariffs
were very high. These policies reduced efficiency and competitiveness which led to
slow growth of manufacturing sector.

The main objectives of trade and investment policies are: -

 To remove quantitative restrictions on imports.
 To reduce quantitative restrictions on exports.
 Reducing tariff rates.
 Removal of licensing system.

A process of disinvestment was also initiated by selling a part of equity shares of

public sector enterprises to the general public.

4. Briefly explain the financial sector reforms.

Ans. 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 Reserve Bank of India. The
RBI decides the amount of money that the bank can keep with themselves. Fixes
interest rates, nature of lending to various sectors etc.
The major objectives of Financial Sector Reforms: -
 To reduce the role of RBI from regulator to facilitator of financial sector.
 This means the financial sector maybe allowed to take the decision on many
matters independently.
 It led to the establishment of private sector banks both in India and foreign.
 Foreign investment limits in banks was raised around 50%.
 The banks were given freedom to set up new branches without the approval of RBI.
 Foreign institutional investors(FII) like merchant banks, mutual funds and pension
funds are now allowed to invest in Indian financial market.

5
5. Write a short note on outsourcing.
Ans. Outsourcing is a process in which a company hires regular services from
external sector, usually from other countries which was previously provided internally.
It includes legal advice, computer service, teacher service etc. As a form of
economic activity, outsourcing has intensified in recent times due to fast mode of
communication network.
Many services like voice-based Business processing. (BPO), record keeping,
banking services, accountancy etc are being outsourced by companies in developed
countries to India.
The modern telecommunication links like internet, the text, voice and visual
data, in respect to these services is digitalized and transmitted throughout the world.
Most of the MNC’s and small-scale companies are outsourcing their services to
India because of the raw wage rates and availability of skilled labour, because of this
India has made it a destination of global outsourcing.

V. Answer the following question in twenty sentences each. (Each question

carries four marks)
1. Briefly explain the important areas of liberalization.
Ans. Liberalization means liberty or freedom of taking action. Liberalization of
economy refers to removal of unnecessary controls from private trade and industry
imposed by govt.

Steps taken for liberalization of economy are as follows: -

 Deregulation of industrial sector: -
In India during 1991 almost all the industries exempted from licensing and
regulations. Any businessman can initiate any venture without any cumbersome
procedure. However following industries which are of national harm nature need to
obtain prior permission of the Govt.
 Alcoholic drink
 Cigarettes
 Defence equipment
 Industrial explosives
 Drugs and pharmaceuticals
 Hazardous chemicals

Except these import licensing was abolished on all other items.

 Freedom of expansion of industries

6
 Now enterprises can expand its industries according to market conditions. Freedom
of production, relaxation from monopolies act, increase in the investment limit of
small industries, freedom to import machineries and raw materials, all these were
liberalized under the policy of liberalization.
 Financial sector reforms: -
Financial institutions like banks are free to determine their interest rates for lending
and deposits. Foreign institutional investors (FII), merchant bankers, mutual funds
and pension funds are now allowed to invest in Indian Financial market. It will help
in rising their business and profitability. The role of RBI reduced from regulator to
facilitator of financial sector.
 Tax reforms:-
There are reforms in govt. taxation policy of public and public expenditure policy.
After the economic reforms the direct tax rates have been moderated so as to
induce more and more people under the tax net. Govt. has also removed the
indirect taxes by reducing the rate of tax on different commodities.
 Foreign exchange reforms:-
An important reform was made in the foreign exchange market. In 1991, rupee was
devaluated to solve the problem of balance of payments. It resulted into the
increase in the flow of foreign exchange in India.
 Trade and investment policy reforms:-
Quantitative restrictions on imports and exports were removed.
 Imports and exports.
Dismantling of quantitative restriction on imports and exports.
 Reduction of foreign trades.
 Removal of licensing procedure for imports.

2. Briefly explain the effects of reforms on agricultural sector.

Ans. 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 agricultural sector, particularly infrastructural
development like irrigation, power, roads, market linkages, research and expansion
has fallen in the reform period.
 The removal of fertilizers subsidy has led to increase in the cost of production,
which has severely affected the small and marginal farmers.
 The sector has been experiencing number of policy changes such as reduction in
import duties on agricultural produced, removal of minimum support price and
lifting of quantitative restrictions on agricultural products. These have adversely
7
 affected Indian farmers as they now have to face increased international
competition.
 Further, due to export-oriented policies strategies in agriculture, there has been a
shift from production for domestic markets towards production for export market
focusing on cash crops, in lieu of production of food grains. This has resulted in
increase in prices of food grains.

VI. Project - Oriented Question (Five Marks)

1. Give appropriate examples for the following.

Nature of ProductName of Foreign Company

Biscuits Cadbury
Shoes Nike
Computers Apple
Cars Toyota, Samsung
Stationery G.M Pens, Staedtler

Now find out if these companies which are mentioned above existed in India
before 1991 or came after the new economic policy.

The above companies have come to India after 1991 NEP.

8
 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.
Ans. Poor and non-poor.
2. Pre-Independent India, he was the first to discuss the concept of poverty line:-
a) Dadabhai Naoraji.
b) Gopala Krishna Gokhale.
c) Vinobha Bhave.
d) Vinoda Bai.
Ans. Dadabhai Naoraji.

3. Some are rich most of the time but may sometimes have a patch of bad luck, They are
called:-
a) Occasionally poor.
b) Usually poor.
c) Always Poor.
d) None of the above.
Ans. Occasionally poor.

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.
Ans. MGNREGA.

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 programs are implemented are based on the perspective of
the five year plans.
3. British raj impoverished millions of people in India.
9
 4. Economics identify the poor on the basis of their occupation and ownership of
assets.
III. Answer the following questions in a word / sentence each. (Each questions
carries one mark):-
1. What is poverty?
A. Poverty is a situation in which people are not able to fulfil their basic needs like food,
shelter, and clothing.
2. What makes the poor physically weak?
A. Malnutrition, ill health, disability, makes the poor physically weak.
3. Who are the churning poor? Give Examples.
A. The churning poor is the one who regularly move in and out of poverty
Example:-Small Farmers and seasonal workers.
4. Define Poverty Line as per planning commission?
A. In general terms poverty line refers to the cut of point on the line of distribution which
divides the population as poor and non-poor.
The planning commission of India estimated the poverty line on the basis of
minimum nutritional calories required for rural and urban people. The minimum
calories intake per day was estimated at 2400 calories for a rural person and 2100 for
a person in urban areas.
5. What do you mean by Head Count Ratio?
A. The number of poor estimated as the proportion of people below the poverty line is
known as head count ratio. It is calculated by dividing the number of people below
the poverty line by the total population.
6. What programs the government adopted to help the elderly people and destitute
women?
A. National social assistants’ program is the one which has been initiated by the
central government to help the elderly people and destitute women.
7. Suppose you are from a poor family of a rural area and you wish to get help from
the government to set up a petty shop under which scheme will you apply for
assistance?
A. The scheme is SGSY [Swarnajayanthi gram Swarozgar yojana].
IV. Answer the following question in four sentences each. (Each question carries
two marks)
1. Poverty has many dimensions. How it has to be looked at?
A. It has to be looked through a variety of indicators such as: levels of income,
consumption, social indicators and indicators of vulnerability to risk and of socio-
political access.
10
 2. List the features of poorest households.
A. Starvation and hunger are the features of poorest households. The poor lack basic
literacy, skills & hence have very limited economic opportunities.
3. Who are urban poor? Give examples.
A. Urban poor are largely the overflow of rural poor who had migrated to urban areas in
search of alternative employment and livelihood. Ex: Casual wage labourers, street
vendors etc.
4. Who are rural poor? Give examples.
A. Rural poor are those who work as landless agricultural labourers, cultivators with
small land holdings, landless labourers who are engaged in non-agricultural jobs and
tenants.
5. What are the social factors that trigger and perpetuate the poverty?
A. The social factors that trigger and perpetuate the poverty are illiteracy, ill health, lack
of access to resources, discrimination or lack of civil & political freedom.
6. Name the states where the poverty level is far above the national poverty level.
A. Odisha, Madhya Pradesh, Bihar and Uttar Pradesh.
7. Name the states where the poverty level is below the national poverty level.
A. Tamil Nadu, Andhra Pradesh and Rajasthan
8. How can creation of income earning assets address the problem of poverty?
A. Creation of income earning assets helps as a means to create new employment
opportunities which creates the means of work generation & help the unemployed
poor to get employed, which in turn helps to access the basic requirements of life
(improves SOL).
9. Name the self-employment generation programmes of the government for poor.
A. Rural Employment Generation Programme (REGP), Prime Minister’s Rozgar Yogana
(PMRY) & Swarna Jayanti Shahari Rozgar Yojana (SJSRY).

10. Why are employment generation programmes important in poverty alleviation

in India?

A. Employment generation programmes are important for poverty alleviation in India

because, these programmes are considered the major ways to address the poverty, as they
help in creating wage employment & self-employment opportunities to poor & in turn
help to reduce poverty.

Or

The employment generation programmes are important in poverty alleviation in India

because:
11
→ It gives an opportunity to the poor to raise their income through government
supported schemes.
→ Increase in income give access to higher standard of living and greater
accessibility to education, better health facilities, proper sanitation, etc. to the poor.
→ These programmes also create additional assets by means of work generation.

10. List the programme that aims at improving the food & nutritional status of the
poor.
Ans. Public Distribution System (PDS), Integrated Child Development Scheme and
Midday Meals Scheme.

12. List the factors that prevent successful implementation of poverty alleviation
programmes.

 Lack of adequate resources.

 Unequal distribution of land & other assets
 Ill motivated officials.
 Inadequate trained officials.
 Corruption.
 Inefficient usage of resources.
 Wastage of resources.
V. Answer the following question in twelve sentences each. (Each question carries
four marks)
1. Write the chart of poverty line and give the meaning of chronic poor, Transient
poor and non-poor.
A. Poverty line refers to the level of personal or family income below which one
is classified as poor according to governmental standards.

12
 Chart of poverty line:

Chronic poor consist of the below two categories.

 Usually poor: people who are usually poor, and may sometimes have some money.
E.g.: Casual wage earners.
 Always poor: people who are always poor.

Transient poor consist of the below two categories:

 Churning poor: are those who regularly move in & out of poverty.
 Occasionally poor: who are rich most of the times but may sometimes have patch of
bad luck.

Non poor: These are the group of people who live above the poverty line and they are never
poor.

2. What do you mean by Growth oriented approach to poverty reduction? Why it is not
successful in India.

Answer: The government’s approach to poverty reduction is of three dimensions. One of

them is growth-oriented approach.
 This approach is based on the expectation that the effects of economic growth – 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 – Trickledown effect.
According to this thesis, as long as an economy is growing, the benefits will eventually
make their way through the system.
 This was the major focus of planning in the 1950s and early 1960s.
 It was felt that rapid industrial development and transformation of agriculture through
green revolution in select regions would benefit the under developed regions and the
more backward sections of the community.
13
But this did not prove to be beneficial to Indian economy; rather it resulted in many negative
impacts as follows:
 The gap between the poor and the rich has widened.
 The Green Revolution exacerbated the disparities regionally and between large and
small farmers.
 There was unwillingness and inability to redistribute land by large & wealthy farmers.
 Economists state that the benefits of economic growth have not trickled down to the
poor. Explain the employment generation programmes of poverty alleviation in India.
3. Explain the employment generation programmes of poverty alleviation in India.
Answer: Government has introduced various self-employment programmes and wage
employment programmes in order to alleviate poverty.

 Various self-employment programmes are Rural Employment Generation

Programme (REGP) – implemented by Khadi and Village Industries Commission.
Under this programme, one can get financial assistance in the form of bank loans to
set-up small industries.
 Prime Minister’s Rozgar Yojana (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 PMRY.
 Swarna Jayanthi Shahari Rozgar Yojana (SJSRY) - it mainly aims at creating
employment opportunities – both self-employment and wage employment – in urban
areas. Swarnajayanthi Gram Swarozgar Yojana (SGSY) is one such programme.
This has now been restructured as National Rural Livelihoods Mission (NRLM).
 A similar programme called National Urban Livelihoods Mission has also been in
place for urban poor.

The government has a variety of programmes to generate wage employment for the poor
unskilled people living in rural areas. In August 2005, the parliament passed a new act to
provide guaranteed wage employment to every rural household whose adult volunteer is to
do unskilled manual work for a minimum of 100 days in a year. This act is known as
Mahatma Gandhi National Rural Employment Guarantee Act.
4. Explain the programmes that provide minimum basic amenities to the people to
reduce the poverty in India.

Answer: government has undertaken many programmes & policies which benefit the poor by
providing them with basic needs & requirements, such as provision of social consumption
needs – provision of food grains at subsidized rates, education, health, water supply and
sanitation which helps to improve the living standard of people.

14
This approach can be traced from the Fifth Five Year Plan.

 Three major programmes that aim at improving the food and nutritional status of the
poor are Public Distribution System (PDS), Integrated Child Development Scheme
and Midday Meals Scheme.
 Programmes which aim at providing basic amenities & developing infrastructure and
housing conditions are Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri
Gramodaya Yojana, Valmiki Ambedkar Awaz Yojana.
 National Social Assistance Programme initiated by the Central government, provides
pension to elderly people who do not have anyone to take care of them.
 Poor woman who are destitute and widows are also covered under National Social
Assistance Programme.
 The government has also introduced a few schemes to provide health insurance to poor
people.
 From 2014, a scheme called Pradhan Mantri Jan-Dhan Yojana is available in which
people in India are encouraged to open bank accounts besides promoting savings habit,
this scheme intends to transfer all the benefits of government schemes and subsidies to
account holders directly.

5. Critically asses the poverty alleviation programmes of the government.

Answer: Efforts at poverty alleviation have resulted in eradicating it to a certain extent,

the percentage of absolute poor in some states is now well below the national average.
Despite various strategies to alleviate poverty, hunger, malnourishment, illiteracy and lack of
basic amenities continue to be a common feature in many parts of India.

 Much of the programmes did not result in any radical change in the ownership of
assets, process of production and improvement of basic amenities to the needy.
 Scholars, while assessing these programmes, state three major areas of concern which
prevent their successful implementation.
 Due to unequal distribution of land and other assets, the benefits from direct poverty
alleviation programmes have been appropriated by the non-poor.
 Compared to the magnitude of poverty, the amount of resources allocated for these
programmes is not sufficient.
 These programmes depend mainly on government and bank officials for their
implementation, ill motivated, inadequately trained, corruption prone officials and
vulnerable to pressure from a variety of local elites.
 The resources are inefficiently used and wasted.
 Non-participation of local level institutions in programme implementation.

15
  Government policies have also failed to address the vast majority of vulnerable people
who are living on or just above the poverty line.
 It also reveals that high growth alone is not sufficient to reduce poverty. Without the
active participation of the poor, successful implementation of any programme is not
possible.
Poverty can effectively be eradicated only when the poor start contributing to growth by their
active involvement in the growth process. This is possible through a process of social
mobilisation, encouraging poor people to participate and get them empowered. It is
necessary to identify poverty-stricken areas and provide infrastructure such as schools, roads,
power, telecom, IT services, training institutions etc.
VI. Answer the following question in twenty sentences each. (Each question carries six
marks)

1. Explain the causes of poverty.

Answer: Poverty is a situation in which people are not able to fulfill their basic needs
like food, shelter, clothing etc.

The following are the important causes of poverty: -

 Exploitation under British rule

 Economic inequalities
 Low resource base
 Unemployment
 Rapid growth in population
 Inflationary pressure
 Vicious circle of poverty
 Social factors

 Exploitation under British rule:

The colonial rule of British destroyed our traditional cottage and small-scale
industries to encourage their modern industries. Therefore, India was not able to
overcome and compensate the damage done by the British rule seen today.
 Economic Inequalities:
In India, inequalities in distribution of wealth and income are also responsible for
poverty as the income and wealth had been concentrated in the hands of few people.
 Low resource base:
At present, a large section of rural poor is having very little land or no land at all.
The income from these small holdings is not sufficient to meet their basic needs. Even
in urban areas people have a very low resource base and in turn resulting in poverty.
16
 Unemployment:
The degree of unemployment among the poor is very high in India so that they
are not able to earn the required income to purchase minimum needs and thus can be
held responsible for poverty.
 Rapid growth in population: The single most important reason for poverty in India is
rapid growth of population which is responsible for low level of per-capita income and
consumption.
 Inflationary pressure:
Inflationary rise in price in the price of food grains and other commodities further
intensified the situation of poverty.
 Vicious circle of poverty:
At present, India is facing the challenge of vicious circle of poverty. Here, poverty
is both cause and effect.
 Social Factors:
In India, social problems are also causing poverty. Illiteracy, ignorance
backwardness and narrow outlook affected the quality of life of the people and their
employability.
2. Explain briefly the three-dimensional programs adopted by the government to
eradicate poverty in India.
Answer: Poverty is a situation in which people are not able to fulfill their basic needs
like food, shelter and clothing.
The government’s approach to poverty reduction has 3 dimensions and they are:

 Growth Oriented Approach:

The main objective of the planning in 1950’s and early 1960’s was based on the
economic growth which increased gross domestic product (GDP) and pre-capita income
to reduce poverty. But the attempt has not been successful because of rapid growth rate
of population and lack of implementation of land reforms.

 Income and employment generation approach:The income and employment for the
poor could be increased by the creation of additional assets and by work generation
programs. This approach includes:
 Self-employment Programs:
 It includes SGSY (Swarnajayanthi Gram Swarazgar Yojana) it is
implemented through self-help groups to provide financial assistance for
self-employment.
 SJRY- Swarna Jayanthi Shahari Rozgar Yojana.
 PMRY- Pradhana Mantri Rozgar Yojana.

17
 These 2 programs provide financial assistance in the form of bank loans to set-up small
industries.
 Wage employment Program:
It includes NFWP (National Food for Work Program), SGRY (Sampoorna
Gram Rozgar Yojana) and MGNREGP (Mahatma Gandhi National Rural
Employment Guarantee Program). MGNREGP provides guaranteed wage
employment to every household whose adult volunteer is to do unskilled manual
work for a minimum of 100 days in a year.
 Providing Minimum Basic Needs to the people:
This approach aims to provide the minimum needs like food grains at subsidized
price, education, health, water-supply etc. to improve the standard of living of
people.The important programs are:
 The three programs which are aimed to improve the food and nutritional status of
the poor are Public Distribution System (PDS),Integrated Child Development
Scheme (ICDS) and Mid-Day Meal Scheme (MDMS).
 The programs that aim to provide the basic infrastructure in rural areas are
Pradhana Mantri Gram Sadakh Yojana (PMGSY) andPradhana Mantri
Gramodaya Yojana (PMJY).
 The programs that provide shelter to the poor are IAY (Indhra Awaz Yojana),
VAMAAY (Valmiki Ambedkar Awaz Yojana) and BVY (Basathi Vasathi
Yojana).
 Social Security Measures:
The government has adopted various social security measures to help the poor
such as national social assistance programs initiated by the central government to
give pensions for elderly people who do not have anyone to care. Women and
widows also get help from this program.
In Karnataka, it is named as Sandhya Surakshana Yojana, Aam Aadmi Bima
Yojana provides insurance to the head of the family of rural landless households.
Yashaswini Yojana provides health insurance to the rural poor. Bhagyalakshmi
Yojana provides financial support the female child born in the poor family.

VII. Project Oriented Question (Five Marks)

1. Suppose you are a resident of a village suggest a few measures to tackle the problem
of poverty.

Answer
Being a resident of a village; I would suggest the following measures to tackle
the problem
18
 of poverty:
→ Identification of poor.
→ Generating employment opportunities for the identified poor.
→ Free access to education and health care facilities.
→ Establishment of small scale industries.
→ Redistribution of income-earning assets.
→ Encouraging poor for their active participation
→ Organizing Training Camps and Night Classes for imparting vocational
training to unskilled labourers.
→ Advancing financial and technical assistance to establish small enterprises.
→ Up gradation of agricultural practices to raise productivity
→ Enforcement of measures to check population growth.
→ Development of infrastructure.
→ Motivating the poor to acquire skills, information and knowledge.
************************************************************

19
 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?

[1] A sick person [2] An Unhealthy labourer

[3] A person with sound health [4] None of the above

Ans. A person with sound health

2) India’s literacy rate in 2013,

[1] 70 % [2] 71 %

[3] 74 % [4] 73 %

Ans. 74 %

3) What per cent GDP as estimated by the Tapas Majumdar Committee should spend for
education?

[1] 4 % [2] 6 %

[3] 8% [4] 5 %

Ans.6 %

4) Education for all,

[1] Still not a distant dream [2] Still a distant dream

[3] Dream Only [4] None of the above

Ans. Still a distant dream

II. Fill in the Blanks. (Each question carries one mark)

1) Investment on Education is considered as one of the main sources of HUMAN

CAPITAL FORMATION

2) Government of India has also started levying a 2 percent of EDUCATION CESS on all
union taxes.

20
3) The revenues from education cess has been ear marked for spending on ELEMENTARY
EDUCATION

4) Health expenditure directly increases the supply of HEALTHY labour force.

5) The contribution of the educated person to economic growth is more than that of an
ILLITERATE person.

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

A B

1) More contribution to National Income 1] Global Growth Centres

2) Deutsche Bank 2] India and the Knowledge economy.

3) World Bank 3] Literacy Rate

4) Educational Achievements 4] illiterate person

5) Better Gender Equity 5] A positive Development

6] Skilled Labourer

7] A Negative Development

Ans. 1-6, 2-1, 3-2, 4-3, 5-5.

IV. Answer the following question in a word /sentence each. (Each question carries one
mark)

1) State the need of investment on human capital.

Ans. We need investment in human capital to produce more human capital out of human
resources. 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?

Ans. Individuals invest on education with the objective of increasing their future income.

3) Expand NCERT.

Ans. National Council for Educational Research and Training

4) State the reasons for migration.

21
 Ans. People migrate from one place to another in search of jobs that fetch them higher
income. Unemployment is the major reason for rural-urban migration in India.

5) Expand UGC.

Ans. University Grants Commission

6) What is the Literacy Rate of India as per 2001 census?

Ans. 65.20% is the literacy rate of India as per 2001 census

7) Expand ICMR.

Ans. Indian council for medical research

V. Answer the following question in four sentences each. (Each question carries two
marks)

1) State the meaning of human capital.

Ans. human capital refers to that part of population which possesses skills, knowledge,
education and experience. It also includes the ability of human beings to give their best and
ability to create economic value of anything.

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

Ans. Investment on education and health are the two major source of human capital in a
country.

3) What are the indicators of educational achievement in a country?

Ans. The education achievements in a country are indicated in terms of adult literacy rate,
primary education rate and youth literacy rate.

4) Bring out the differences between human capital and human development.

Ans. The two terms sound similar but there is a clear distinction between them.

 Human capital considers education and health as a means to increase labour

productivity.
Whereas human development is based on the idea that education and health are
integral to human being
 Human capital treats human being as a means to an end.
Whereas human development considers human being as an end
 Human capital leads to increase in productivity but human development leads to
human welfare.
22
5) What factors contribute to human capital formation?

Ans. The important factors which contribute to human capital formation are as follows:

 Expenditure on Education
 Expenditure on Health
 Expenditure on Training
 Expenditure on Information
 Migration

6) What are the various forms of health expenditures?

Ans. preventive medicines, curative medicines and social medicine and provision of clean
drinking water and good sanitation are the various forms of health expenditure

VI. Answer the following question in twelve sentences each. (Each question carries four
marks)

1) Education is considered to be an important input for the development of the nation.

How?

Ans. Education is considered to be an important input for the development of the nation
because the labour skill of an educated person is more than that of an uneducated person even
in terms of efficiency of work and that the for the former generates more income than later.

Economic growth means increase in real national income of a country. Naturally the
contribution of the educated person to economic growth is more than that of an illiterate
person.

To sum up, the education is considered as important input for the development of a nation in
following ways:

 It increases a person’s capacity to earn higher income

 It provides knowledge to understand the changes taking place in society.
 It encourages innovations and inventions.
 It facilities development and adoption of new techniques of production.

2) How does investment in human capital contribute to growth?

Ans. Human capital has direct relationship with economic growth. The skill of an educated
person is more than that of an uneducated person.

23
  As you know human capital is the skill knowledge and experience possessed by an
individual or population viewed in terms of the value of cost to a country. Whereas
economic growth means increase in real national income of a country since labour
scale of an educated person is more than that of an uneducated person the former
contributes more to economic growth than the latter
 If a healthy person could provide uninterrupted labour supply for a longer period of
time then health is also important factor for economic growth along with other factors
like on the job training job market information extra all these factors would help to
increase the individual income generating capacity.
 This enhanced productivity of human beings and human capital contributed
substantially not only 2 hours increasing labour productivity but also stimulates
innovation and create ability to observe new technology which in turn would contribute
for the economic growth.
3) Bring out the need for on-the-job-training for a person.

Ans. on the job training refers to training a person for a certain job while he is working. This
has two forms one being off campus training the Other being the workers may be trained in
the firm itself under the supervision of a skilled or experienced worker.

There is a need for on the job training as it enhances labour productivity. The firm spends on
job training because the outcome in the form of productivity of a trained worker is more than
the cost of it and is beneficial to the firm.

It helps in undertaking innovations.

The employees will get adjusted to technical advancement and get promotions in their jobs.

4) How government organisations facilitate the functioning of schools and hospitals in

India?

Ans. In India, the minister of education and the Union and State level the departments of
education and various organisations like NCERT (National Council of educational research
and training) UGC: (University Grants Commission) and AICTE: (All India Council of
Technical Education) regulate the education sector.

Similarly, the ministers of health at the Union and State Level departments of Health and
various organisations like ICMR Indian Council for Medical Research regulate the health
sector.

Further, basic education and health care are considered as rights of the citizens, then it is
essential that the Government should provide education and health services free of cost for
the deserving citizens and those from the socially oppressed class.

24
5) Explain the need for acquiring information relating to health and education
expenditure.

Ans. Expenditure on education and health make substantial long term impact and can’t be
reversed hence there is a need for acquiring information relating to health and education
expenditure.

Ex: 1 child is admitted to a school or Health Care Centre whether required services are not
provided before the decision is taken to save the child to another institution, substantial
amount of damage would have been done. The information on expenditure on education and
health and also help us to know the literacy rate and health conditions of a country.

People spend to acquire information relating to labour market and other markets like
education and health, this information is necessary to make decisions regarding investment
in human capital as well as for efficient utilization of acquired human capital stock.

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

Ans. The gap between male and female literacy rate is declining. This gap must be reduced
to increase the total literacy rate. Hence, gender equality needs to be improved. To achieve
this target women education must be promoted.

The need to promote education for women in India is imminent for various reasons such
as:-

 Education improves the economic Independence of women

 It improves social status of women
 women education makes a favorable impact on the whole family
 It also makes a favorable impact on fertility rate
 Education leads to better Healthcare 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.

Ans. Investment on information:

It refers to the process of acquiring and increasing the number of persons who have skills,
education and experience which are essential for an economic development of a country.
There are various sources of human capital formation like:-

25
 1. Investment on education
2. Investment on migration
3. Investment on information
4. Investment on healthcare infrastructure
5. Investment on job training

 Health infrastructure:

Health expenditure is considered important for the development of a nation as much as it is

important for the development of individual. Basic labour without access to medical facilities
contribute nothing to overall output hence expenditure on health is an important source of
human capital formation and human development.

Preventive medicines, curative medicines and social medicines and provision of clean
drinking water and sanitation are the various forms of health expenditure. Health expenditure
directly increases the supply of health labour force and thus a source of human capital
formation.

 Expenditure on migration:

People migrate in search of jobs that fetch them higher salaries than what they may get in
their native places. Unemployment is a reason for the rural- urban migration in India.

Migration involves cost of transport, higher cost of living in the migrated places and cost of
living in a strange social culture setup. The enhanced earnings in the new place outweigh the
cost of migration hence; expenditure on migration is also a source of human capital
formation.

 Investment on information:

People spend to acquire information relating to the labour market and other markets like
education and health this information is necessary to make decisions regarding investment in
human capital as well as for efficient utilization of the acquired human capital stock
expenditure incurred for acquiring information relating to the labour Markets and other
markets is also a source of human capital formation

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

Ans. REFER QUESTION 1 IN THE 6TH MAIN

3) Trace the relationship between human capital and economic growth.

Ans. Human capital has direct relationship with economic growth. The skill of an educated
person is more than that of an uneducated person.
26
 As you know human capital is the skill knowledge and experience possessed by an
individual or population viewed in terms of the value of cost to a country. Whereas
economic growth means increase in real national income of a country since labour
scale of an educated person is more than that of an uneducated person the former
contributes more to economic growth than the latter
 If a healthy person could provide uninterrupted labour supply for a longer period of
time then health is also important factor for economic growth along with other factors
like on the job training job market information extra all these factors would help to
increase the individual income generating capacity.
 This enhanced productivity of human beings and human capital contributed
substantially not only 2 hours increasing labour productivity but also stimulates
innovation and create ability to observe new technology which in turn would contribute
for the economic growth

27
 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
Ans. Poor

2. Leather industry and tourism are

(a) Non farm sector. (b) Farm sector.
(c) Other sectors. (d) Productive activities.
Ans. Non farm sector

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.
Ans. Operation flood

4. It is an agricultural allied activity

(a) Poultry (b) Cottage industry.
(c) Small industry (d) tourism
Ans. Poultry

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

1. The growth of real India is possible only from the development of villages
2. At the time of independence moneylenders 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 or provider
5. Private trade pre dominates agricultural market.

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

A B (direct answers)
1. NABARD Institutional source
2. Money lender Non-institutional force
3. Green Revolution Food production
4. Golden Revolution Fruit production
5. White Revolution Milk production

28
IV. Answer the following question in a word /sentence each. (Each question carries one
mark)

1. What is rural development?

Ans: Rural development means the action plan for the social and economic upliftment of rural
areas. In simple words the term rural development refers to the overall development of the
rural economy.

2. Give the meaning of agricultural marketing.

Ans: Agriculture marketing is a process that involves the assembling, storage, processing,
transportation, packaging, grading, and distribution of different agriculture commodities
across the country.

3. What is organic farming?

Ans: Organic farming is a whole system of farming that restores, maintains, and enhances the
ecological balance.

4. Expand PDS.
Ans: Public Distribution System.

V. Answer the following in four sentences each:(each question carries two marks)

1. Name the areas which are challenging and need fresh initiative for rural
development.
Ans: Areas which are challenging and need fresh initiative for rural development are as
follows:

 Development of human resources

 Land reforms
 Development of productive resources of each locality
 Infrastructure development
 Special measures for poverty alleviation.

2. How money lenders exploited the rural farmers?

Ans: Money lenders and traders exploited farmers:

 By charging high rates of interest

 Manipulating the accounts to keep them in debt trap
 Making debtors into bonded labourers

29
 3. Name the institutional sources of rural credit.
Ans: The institutional sources of rural credit are as follows:

 Commercial banks
 RRB- Regional Rural Banks
 Co-operative societies
 Land development banks

4. Give two examples for alternative markets.

Ans: Examples for alternative markets are;

 Rythara Santhe in Karnataka

 Rythu Bazaar in Andhra Pradesh
 Apni Mandi in Rajasthan, Haryana and Punjab
 Uzhavar Sandies in Tamil Nadu.

5. Name 2 life giving sources of fishing community.

Ans: The major life giving sources of fishing community are rivers, lakes, dams, natural and
aquatic ponds.

6. Mention the benefits of organic farming.

Ans: The benefits of organic farming are as follows:

 It generates income through exports

 It contributes to the ecological balance
 It provides healthy and chemical free food
 It offers the means to substitute costlier agricultural inputs with cheaper ones

7. What is the role of self-help groups in providing rural credit?

Ans: The self-help groups are to encourage small savings from each member and the
booted money is given as loans and advances to the members at very low rate of interest and
also at easy repayment instalments.

VI. Answer the following questions in 16 sentences each:(each question carries four
marks)

1. List out the major problems of rural development.

Ans: The major problems of rural development which needs fresh initiatives are as follows:
30
  Development of human resource – 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.
 Land reforms – It includes sealing of land holdings, prevention of fermentation and
subdivision of land and making the tiller as the owners of the land.
 Infrastructure development –The development of infrastructure like provision of
electricity, irrigation, ban king, marketing, transportation, agricultural research centres,
information, etc.
 Poverty alleviation measures – Special measures for poverty alleviation and bringing
progress among weaker sections of the population and giving importance to productive
employers’ opportunities also part of major issues of rural economy.

2. Explain the drawbacks of agricultural marketing.

Ans: Agricultural marketing is a process that involves the assembling, storage, processing,
transportation, packing, grading and distribution of agricultural commodities across the
countries.

The major drawbacks of agricultural marketing are:

 Long chain of middle men taking away the profit of farmers.

 No proper storage facilities to protect the agricultural products.
 Faulty methods of measuring agricultural crops.
 Manipulation of accounts
 Farmers are forced to sell the products at low prices due to lack of information

3. Write a short note on alternative markets.

Ans: The examples for emerging alternative marketing channels are as follows:

 Farmers directly sell their agriculture produce to consumers.

Ex: Apne Mandi: Rajasthan, Punjab and Haryana
Rgthu Bazaar: Andra Pradesh
Uzhavar Sandies: Tamil Nadu
 Agriculture Controls – 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 produced at pre-decided prices.

31
VII. Answer the questions in 20 sentences each: :(each question carries six marks)

1. Explain the measures taken by the government to improve the agricultural

marketing system.
Ans: The government of India has taken the following steps to improvethe agricultural
market in India, they are as follows:

 Establishment of regulated markets – The regulated markets are those markets which
are controlled and managed by the government. To provide transparent marketing
conditions like better storage facilities, fare prices, removing middlemen, etc.
 Provision of infrastructure facilities – The provision of physical infrastructure
facilities like roads, railways, warehouses, godowns, cold storage and processing units
will make agricultural sector a commercial and profit oriented sector in India.
 Establishment of co-operative marketing societies – These societies encouraged by
the government to realize fair prices for agricultural products and insure better income
to farmers.
 The other measures are:
1. Assures minimum support price [MNSP] for agricultural products to protect the
farmers from loss.
2. Maintenance of buffer stops of wheat and rice by Food Corporation of India.
3. Distribution of essential commodities like wheat, rice, sugar and kerosene under
public distribution system.

2. Write a short note on the following:

a) Horticulture b) Fisheries.

Ans: a) Horticulture- it is one of the type of farming in which cultivation of land is

taken under to grow crops like fruits, vegetables, flowers, medicinal plants, spicies and
plantations of crops.

 It contributes nearly one third of the value of the agricultural output.

 It contributes 6% of GDP (gross domestic product) of India.
 India has emerged as a world leader in producing a variety of fruits like mangoes,
bananas, coconuts, etc.
 India is the 2nd largest producers 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 in rural India.
b) Fisheries- the fishing community regards the water body as mother or provider.

32
  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 64% of fish production comes from inland sources and the remaining
36% from oceans, seas etc.
 Among the states Kerala, Gujarat, Maharashtra and Tamil Nadu are the major
producers of marine products.

3. Write a note on animal husbandry.

Ans. The animal husbandry that is livestock includes cattle breading, goats, cow, fowl
raring, etc. Livestock production provides increased stable income, food security,
transport, fuel and nutrition for the family in rural areas.

 In India, more than 70million small and margin farmers have got alternate livelihood
options from as husbandry.
 If the distribution of live stock is taken into consideration poultry accounts for the
largest share with 58% by others. The other animals which include camels, horses,
ponies, etc.
 In India we have about 300million cattle including 108million buffaloes.
 The animal husbandry is undertaken to develop organic farming by developing green
manure and the waste is being used to produce gobar gas in rural areas.
 Meat, eggs, wool and other by products are also considered as important productive
sectors in animal husbandry.

4. List out the benefits of organic farming.

Ans. Organic farming is a whole system of farming that restores, maintains, and enhances
the ecological balance.

The main benefits of organic farming are as follows:

 It generates income through exports

 It contributes to the ecological balance
 It provides healthy and chemical free food
 It offers the means to substitute costlier agricultural inputs with cheaper ones
 Organic farming contributes to higher production and productivity.
 It enhances quality and quantity of agricultural products.
 Provide alternative employment opportunities to rural people.
 Helps to prevent deforestation, infertility of soil.
 Soil conservation.
33
 _____________________________________________________________________
__________________________________________________________________

CHAPTER – 7

EMPLOYMENT: GROWTH, INFORMATION AND OTHER ISSUES

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

1. Those activities which contribute to the gross national product is called

a) Social activities b) cultural activities

c) Political activities d) Economic activities

2. GDP stands for

a) Gross domestic product b) Gross domestic price

c) none of the above. d) Gross dollar price

3. Which of the following activity is not considered as productive work

a) House hold activities b) Agricultural activities

c) Service sector d) Industrial activities

4. Workers who own and operate an enterprise to earn their livelihood is called

a) Ministers b) Public servant

c) Self employed d) Government doctor.

5. Urban people are mainly engaged in the

a) Primary sector b) Service sector

c) Mining d) Agriculture

6. India is an

a) Industrial country b) Scientifically developed country

c) Agrarian nation d) Service developed country

34
7. Those who are working in the formal sector enjoy

a) Economic benefits b) Social security benefits

c) Educational advantages d) Cultural benefits

8. Owing to the effort of the following organisation Indian Govt initiated modernisation
and also provision of social security measures to informal sector workers.

a) GNP b) NSSO

c) ILO d) LPG

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

1. Mahatma Gandhi insisted upon education and training through variety of works
including craft.

2. The nature of employment in India is multifaceted

3. Majority of workforce reside in rural area in our country

4. For every 100 rural females about 25persons participate in the employments market.

5. The construction workers are known as casual wage labourers

6. When a worker is engaged by someone and paid his /her wages on regular basis is known
as regular salaried employees.

8. Primary sector is the main source of employment for majority of workers in India.

9. The Government protects the rights of workers through labour laws

10. In India disguised unemployment can be seen more in agriculture sector

III. Answer the following question in a word / sentence each. (Each question carries one
mark)

1. Why do people work?

Ans: People work to get earning for living.

2. Give the meaning of workforce?

Ans: All those who are engaged in economic activities are workforce or workers.

3. Define worker population ratio?

35
Ans: Worker population ratio can be obtained by total no. of workers of India by the
population and multiplied by 1000.

No. of workers X 1000

Total population

4. What is informalization of work force?

Ans: 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. It is called informalisation
of work force.

5. Define jobless growth?

Ans: In the Indian economy, without generating employment, we have been able to produce
more goods and services.

6. What is meant by casualisation of work force?

Ans: The process of moving from self-employment and regular salaried employment to
casual ways work is called as casualisation of work force.

Ex: Construction work.

7. Define open unemployment?

Ans: According to economics open unemployment is a situation where the people are not
able to get employment of even one hour in half a day.

8. What is seasonal unemployment?

-Ans: Seasonal unemployment is situation where people get unemployed only during a
particular season.

Ex: Agriculturist, farmers get jobs in rainy season.

9. Expand GDP, GNP, ILO?

Ans: GDP: Gross domestic product

GNP: Gross national product

36
 ILO: International labour organisation.

10. What do mean by formal sector establishment?

Ans: It refers to that sector where all public sectors establishments and those private sector
establishment which employs ten or more hired workers.

11. What do mean by informal sector establishment?

Ans: It is the sector where less than 10 workers employed without job security, profit, ESI
etc.

Ex: Agriculture labourers.

IV. Answer the following question in four sentences each. (Each question carries two
marks)

1. Who are all included in labour force?

Ans: All those who are engaged in economic activities in whatever capacity- high or low are
called workers. Even if some of them temporarily abstain from work due to illness injury or
physical disability, bad weather, festival, social and religious functions are also called
workers. Apart from these the labour force consists of those who help the main workers and
self-employed workers.

2. What is the difference between labour force and work force.

Ans: Labour force:

 It includes all the workers who are engaged in the economic activities.
 It does not include the work by women/men at homes, cooks, fetching water, wood etc
as they are not paid for.
Work force:

 It includes all those workers who are engaged in both economic and non-economic
activities.
 It includes the women carrying out work like fetching water, participating farm labour
though it is not paid for etc.
3. Why are regular salaried employees more in urban areas than in rural areas?

Ans: In regular salaried employment, men are found to be engaged in greater proportion.
They form 20percent whereas women form only 13 percent. The main reason is skill
requirement. Since, regular salary job requires skills and higher level of literacy more
employees can be seen from urban areas than rural areas.
37
4. Name any 6 kinds of unemployment

 Open unemployment
 Disguised unemployment
 Seasonal unemployment
 Technical unemployment
 Under unemployment
 Frictional unemployment

5. What are net earnings. How do you calculate GNP?

ANS. If the total values of exports is greater than the total value of imports it’s called net
earnings.
When we add net earnings from foreign transactions to the value of total goods and services
Produced (GDP), we get GNP.

6. Who are not included in labour force?

ANS. The women carrying out works like cooking, fetching water, and participating in farm
labour are generally not included in labour force. This is mainly because they are not paid
wages in cash or
in the form of grains; at times they are not paid at all.

7. Who are self employed. Give two examples.

Ans. Self-employed are those workers who own and operate an enterprise themselves to earn
their livelihoods.
Example; People running petty shop.
people having their own transport facilities.
Teachers running their own tutorial and coaching centers etc.
8. Name the types of rural unemployment?

Ans. Types of rural unemployment are as followes.

o Disguised unemployment
o Seasonal unemployment
o Open unemployment
o Technological unemployment.

9. Why does rural work force migrate to urban areas during some part of the year?

Many people migrate to urban areas, pick up a job and stay there for some time, but
comeback to their hometown as soon as the rainy season begins. This mainly is because of
work in agriculture is seasonal. There are no employment opportunities in a village for all the

38
common months in the year. So when there is no work to do in farms people go to urban
areas and look for jobs.

10. Name the three sectors of the economy?

Ans . The three sectors of the economy are,

o Primary sector: It includes agriculture, mining, fishing.

o Secondary industries: It includes all the manufacturing industries.
o Tertiary industries: It includes transport, communication, banking, insurance, health
education, warehousing etc.

11. Distinguish between formal and informal sector labourer’s.

Basis Formal Sector Informal Sector

Meaning Any sector which Any organization
covers any of the which doesn’t follow
following schedules. any of the mention
i) Industrial Dispute schedules or act.
act.
ii) Employee’s State
Insurance act.

Nature Organized Unorganized

Job agreement Written Oral agreement
Workings hours Fixed and working Non fixed and long
hours. working hours.

12. What is unemployment according to NSSO?

According to national sample survey organization(NSSO),”unemployment is a situation in
which all those who are willing to work, are not working but either seek work through
employment exchange, intermediaries, friends, relatives or by making application to
prospected employers or express their willingness or ability for work under the prevailing
conditions of work and remuneration”.

13. Name the three sources of data regarding unemployment in India

The three sources of data:

i) Report of census of India.
ii) Report of NSSO on employment and unemployment situation.
iii) Directorate generate of employment and training data of registration with employment
exchanges.
V. Answer the following questions in 12 sentences each (4marks)

39
1. Write the importance of employment.

Work or employment plays an important role in our lives as individuals and as a member of
society are as follows:
o People work for earning or living. Some people get, or have money by
inheriting, not working for it. It does not completely satisfy anybody.
o It is well understood that being employed in work gives us sense of self work
and enable us to relate ourselves meaningfully with others.
o Every working person is actively contributing to national income.
o It helps in understanding and planning our human sources.
o Studying about working people gives us inside into the quality and nature of
employment in our country.

2. Analyze the recent trend in sectoral distribution union of work force in India.
Residence Sex Total
Sectors Rural Urban Man Woman
Primary 64.1 6.7 43.6 62.8 48.7
secondar 20.4 35 25.9 20 24.3
y
tertiary 15.5 58.3 30.2 17.2 26
total 100 100 100 100 100

Primary sector is the main source of employment for majority of workers in India.
Secondary sector provides work to 24% and about 27% work force are in the service sector.
The above table also shows that 64% of work force in rural India depends on
agriculture, forestry and fishing. About 20% rural workers are working in manufacturing
industries and other industrial activities. Service sector provides employment to only about
16% of rural workers.
Agriculture is not a major source of employment in urban areas where people are
mainly engaged in service sector. About 60% of urban are in service sector. The secondary
sector gives employment about 35% urban workforce.

3. Discuss the two types of rural unemployment.

o Disguised unemployment-it is situation where too many workers are engaged in work
than the number of workers required. Suppose a work which requires only 3 workers
is involved by5 workers, then it is a situation of disguised unemployment. The
marginal productivity of marginal labour will be zero. It is mostly prevailing in
agricultural activities.

o Seasonal unemployment-It occurs due to seasonal nature of work. It is found in those

economic activities which are depending on nature. In agriculture during sowing and
harvesting season work will be heavy whereas during post harvesting and pre sowing
40
 season people engaged in agriculture are almost workless. This situation is also found
in tourism and sugar industry.

4. How does the government generate employment?

Ans. Government is making efforts to generate employment opportunities to unemployed
through 2 categories.
i) Direct steps: -
Govt. is directly providing job opportunities by employing people in various
departments for administrative purpose, hotels, transport, corporation etc.

ii) Indirect step: -

Govt. has introduced NEP in 1991 in form of LPG which has provided ample
opportunities to the private enterprises to start their own production center which are creating
employment opportunities to millions of people in India.

5. Write a note on Informal sector.

Ans. The informal sector is the sector where we see less than 10 workers employed in
different establishment. The informal sectors include millions of farmers, rural labourers,
owner of small enterprises and people working in those enterprises and also the self-
employed who don’t have any hired workers.

It also includes all non-form casual wage labourers, who work for more than one
employer such as construction workers and head load workers.
The following are the major issues with informal work force:
I) Don’t ensure job security.
II) Poor working conditions.
III) Employment is seasonal and temporary.
IV) Less wages.
V) Don’t ensure social security measures like pension, maternity benefits.

6. Name the different types of economic activities.

Ans. The different types of economic activities are of 8 types.
i) Agricultural
ii) Mining and quarrying
iii) Manufacturing
iv) Electricity, gas, water supply
v) Construction
vi) Trade (internal and external)
vii) Transport and storage
viii) Service
41
 For simplicity all the working persons engaged in the division can be clubbed into 3
major sectors
I) Primary
II) Secondary
III) Tertiary.

7. What are the problems being faced by the workers of informal sector?
Ans. The problems faced by workers in informal sector are as follows.
i) Don’t ensure job security.
ii) Workers and entrepreneurs don’t get regular income.
iii) The workers don’t have any protection of regulation from the govt.
iv) Workers are dismissed without any compensation.
v) Technology used is outdated.
vi) They don’t maintain any accounts.
vii) Workers in this sector live in slums and are squatters.
viii) Poor working conditions.
ix) Don’t ensure social security measures like pension, bonus etc.
x) Employment is seasonal and temporary.

VI. Answer the following questions in 20 sentences each (6 marks)

1. What are the types of unemployment in India? Discuss any two.
Ans. Types of unemployment are as follows:
o Open unemployment
o Disguised unemployment
o Seasonal unemployment
o Technical unemployment
o Under employment
o Frictional unemployment

o Disguised unemployment-it is situation where too many workers are engaged in work
than the number of workers required. Suppose a work which requires only 3 workers
is involved by5 workers, then it is a situation of disguised unemployment. The
marginal productivity of marginal labours will be zero. It is mostly prevailing in
agricultural activities.
o Seasonal unemployment-It occurs due to seasonal nature of work. It is found in those
economic activities which are depending on nature. In agriculture during sowing and
harvesting season work will be heavy whereas during post harvesting and pre sowing
season people engaged in agriculture are almost workless. This situation is also found
in tourism and sugar industry.
2. What are the main causes of unemployment in India?
Ans. The main causes of unemployment in India are as follows:

42
 i) Population Explosion-Population in India is increasing at a rate of 1.6% PA. it is
creating army of unemployed persons every year. Due to this reason unemployment is
increasing.
ii) Slow rate of Economic growth- India being an under developed economic country
could not grow more than 4 -6% PA, during the plan period it could not observe the
growing labour force in agriculture, industry and service sector.
iii) Low rate of capital formation- the main reason for unemployment in India is the
deficiency of capital. Rate of formation capital is not matching with the increasing rate
of labour force.
iv) Backwardness of Agriculture – Agriculture occupies a dominant place in our
economy. Being backward it cannot provide employment to farmers throughout the
year.
v) Immobility of labour – Indian labors are attached to their families and native place
and therefore they do not move far off in search of jobs.
vi) Illiteracy and ignorance – many people are illiterate and unskilled; they are not
trained in accordance with the employment being generated. There is mismatch
between education and employment industry.

3. What do you mean by organized sectors? Discuss the reasons for fall in employment
in the organized sectors.
Ans. It refers to that sector where all the public sector establishment and those private sector
establishment which employs 10 or more workers. The following are the major reasons for
the decline in the employment opportunities in organized sector.
(i) Lack of initiative from the government in creating employment opportunities.
(ii) Migrating character of work force.
(iii) Industrial sickness has made public sector industries to cut down their vacancy.
(iv) Privatization and disinvestment have reduced jobs in public sector.
(v) The business process outsourcing (BPO) is also one of the reasons for decline in
employment opportunities.
(vi) The risk of loss and economic recession and forcing the public sector companies
to reduce the working staff.

4. What role does the government play in generating employment opportunities in

India?
Ans. Government is making efforts to generate employment opportunities to unemployed
through 2 categories.
i) Direct;-
Govt. is directly providing job opportunities by employing people in various
departments for administrative purpose, hotels, transport, cooperation etc.
ii) Indirect;-

43
 Govt. has introduced NEP in 1991 in form of LPG which has provided ample
opportunities to the private enterprises to start their own production center which are
creating employment opportunities to millions of people in India.

Self employment Programmer –are

(i) Swarna Jayanthi Grama Swarogar Yojana – this program aims at providing
financial assistance to self-help group which then decide whom the loan is to be given for
self-employment activities among the members.
(ii) Swarna jayanthi Shahari Rosgar Yojana – it aims at creating opportunities for both
self-employment and wage employment opportunities, under self employment
programmes, financial assistance was given to families or individuals, now these
programmes are encouraged to form a self-help group.
(iii) Pradhan Mantri Rosgar Yojana – 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-

(i) National food for both programmes
(ii) Sampurna Grameena Rosgar Yojana
(iii) Mahatma Gandhi National Rural Employment Guarantee Program (MGMREGP)

5. Explain occupational structure of work force.

The sectoral distribution of work force of India can be explained by the help of the following
table.

Residence Sex Total

Sectors Rural Urban Man Woman
Primary 64.1 6.7 43.6 62.8 48.7
secondar 20.4 35 25.9 20 24.3
y
tertiary 15.5 58.3 30.2 17.2 26
total 100 100 100 100 100

The following table shows the status wise employment in India which includes self
employment, regular salary employee and casual wage labourers during 2011-12 in %.

status % of work force

Self employed 52
Regular salaried 18
employees
Casual wage labourers 30

44
From the above table it’s clear that the self-employment is the major employment provider
with 52%, but the casual wage employment with 30% shows that there is also a gradual
increase in the no.of casual wage workers.

6. Discuss the informalisation of Indian work force.

Ans. It is the process where the company or the employers are trying to take workers without
assuring the job security, provident fund, ESI, periodical pay high etc. some well established
firms are converting the structure of the employment formal to informal to avoid risk of
labour laws. This is known as informalisation of workers.
The following is the live incident informalisation which happened in India during
1980.
During 1980 the textile mills began to close down. In some places like Mumbai the
mills closed rapidly. In Ahmedabad the process of closure was long drawn out and spread
over 10 years. Over this period about 80000 permanents workers and 50000 casual workers
lost their jobs and were driven to informal sector.
The following are the major problems faced by the workers in informal sectors.
i) Don’t ensure job security.
ii) Workers and entrepreneurs don’t get regular income.
iii) The workers don’t have any protection of regulation from the govt.
iv) Workers are dismissed without any compensation.
v) Technology used is outdated.
vi) They don’t maintain any accounts.
vii) Workers in this sector live in slums and are squatters.
viii) Poor working conditions.
ix) Don’t ensure social security measures like pension, bonus etc.
x) Employment is seasonal and temporary.

VII. Project - Oriented Question (Five Marks)

1. Identify the formal and informal workers in the following list
Ans. 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 Agricultural labourers
45
 CHAPTER-8

INFRASTRUCTURE

I. CHOOSE THE CORRECT ANSWER

1. Which state in India popularly known as ‘god’s own country'

a) Kerala b) Goa

c) Karnataka d) Himachal Pradesh

Ans. a)Kerala

2 .which state has achieved excellency in information in technology

a) Rajasthan b) West Bengal

c) Tamil Nadu d) Karnataka

Ans. d) Karnataka

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

1. Infrastructure facilities can be classified into two types
2. Indian system of medicine includes 6 system

III. Answer the following question in a word /sentence each. (Each question
carries one mark)
1. Mention the states that have achieved prosperity in agriculture and horticulture?

Ans: Punjab and Haryana have achieved prosperity in agriculture and horticulture.

2. Identify the state which has achieved excellency in literacy?

Ans: Kerala is the state which has achieved excellency in literacy.

3. Write one industrially most advanced state in India?

Ans: Maharashtra and Gujrat is one of the most industrially advanced state in India.

4. Why Bengaluru city attracts many multination companies?

Ans : Because it provides world class information technology and communication facilities.

5. What is infrastructure?

Ans : Infrastructure refer to the facilities, activities and services which support the operation
and development of the economy
46
 IV. Answer the following question in four sentences each. (Each question
carries two marks)
1. How infrastructure facilities have been classified?

Ans: Infrastructure facilities have been classified as

 social infrastructure
It refers to the structures which indirectly support economic system from outside the system
of production and distribution. It includes health, education, housing etc

 Economic infrastructure
It refers to the structures that directly contribute to the economic growth of the country as a
part of the process of production and distribution. It includes banking, transport, dams, etc

2.Write the meaning of health?

Ans: Health is a state of physical and mental well-being. It is not only absence of disease but
also the ability to realize once potential.

3. Which are the economic infrastructure?

Ans: refer Q1

4. Which are the social infrastructure?

Ans: refer Q1

5. How does infrastructure help the modern economy?

Ans: Infrastructure is the support system on which the efficient working of a modern
industrial economy depends. modern agriculture also largely depends on it for speedy and
large-scale transport of seeds, pesticides, modern roadways and shipping facilities.

6. What is the meaning of global burden of diseases?

Ans : 'Global Burden of Diseases (GDP)is an indicator used by experts to gauge the no of
people dying prematurely due to a particular disease as well as the number of years spent by
them in the state of disability owning to the disease.

7. which are the important health indicators?

Ans : the important health indicator are :

 Infant mortality rate

 maternal mortality rate
47
  life expectancy and nutrition level along with the incidence of communicable and non-
communicable diseases
8. why do we need energy?

Ans : Energy is used for industries and agriculture on a large scale and related to it are
production and transportation of fertilisers pesticides and farm equipment . It is required in
houses for cooking ,household lighting and heating.

9.Which are the component of Indian system of medicine?

Ans : India systems of medicine includes 6 systems - Ayurveda ,yoga ,Unani, siddha ,
homeopathy and naturopathy.

V. Answer the following question in twelve sentences each. (Each question carries
four marks)

1. Explain the role of infrastructure in the development of a modern economy?

Ans : The infrastructure helps the modern economy as follows:

o It supports system the efficient working of industrial sector

o It encourages speedy development of agricultural sector

The agriculture and industry largely depends on infrastructure. Transportation of seats,

pesticides, and fertilizers and the produce using modern roadways, railways and shipping
facilities help in development of agriculture which leads to development of an economy.

o Infrastructure contributes to economic development of a country both by

increasing the productivity of the factors of production and improving the
quality of life of its people
o 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 diseases when it occurs.
o The transport and communication also influences the health care facilities.

2. Briefly explain the state of infrastructure in rural India?

Ans: A majority of our people live in rural area, Despite so much technical progress in the
world, rural women are still using bio fuels such as crop residues, dung and fuel wood to
meet their energy requirement, they walk long distances to fetch fuel, water and other basic
needs . The census of 2001 shows that in rural India only 56% household 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
48
population drinks water from open sources such as well , tanks ponds , lakes , rivers, canals
etc . access to improved sanitation in rural area was only 20%

3. Explain the consumption pattern of commercial energy in India?

Ans : In India , commercial energy consumption includes coal with the largest share of 54%,
followed by oil at 32%, natural gas at 10% and hydro energy at 2%.

>The transport sector was the largest consumer in commercial energy in 1953-54 however
,there has been continuous fall in the share of the transport sector

> while the share of the household agriculture and industrial sector have been increasing

> the share of oil and gas is highest among all commercial energy consumption with the
rapid rate of economic growth , there has been a corresponding increase in the use of energy
.

4. Write a short note on power/electricity in India?

Ans : The most visible form of energy which is often identified with progress in modern
civilisation is electricity, it is a critical component of infrastructure that determines the
economic development of a country . The growth rate of demand for power/electricity is
generally higher than the GDP growth rate, studies point that in order to have 8%GDP
growth per annum , power supply needs to grow around 12% annually.

>In India , 2013 , thermal sources accounted for 70% of the power generation capacity .

>Hydro and wind power accounted for 16%

>while nuclear power accounted for 2% India's energy policy encourages two energy
sources hydel and wind , as they do not rely on important source of electric power , it has
economic advantages at present nuclear energy accounts for only 2% of total energy
consumption against a global average of 13%

5. Explain the state of health infrastructure in India ?

Ans : The government has the constitutional obligation to guide and regulate all health
related issues such as medical, education , adulteration of food , drugs and poisons and
medical professionals

Over the years India has built up a vast health infrastructure and manpower at different level
At the village level, a variety of hospitals and primary health centres [PHCs] have been setup
by the government . India also has a large number of hospitals run by voluntary agencies

49
and the private sector, the hospitals are maintained by the professionals and para-medical
professionals trained in medical , pharmacy and nursing colleges.

6. Write a short note on private health infrastructure in India?

Ans : Private sector has grown by leaps and bounds more than 70% of the hospital in India
are run by the private sector they control nearly two fifth of the beds available in the hospital
. nearly 60% of the dispensaries are run by the same private sector. they provide healthcare
for 80% of out- patients and 46% of in patients.

In recent times, private sector has been playing a dominant role in medical education and
training, medical technology and pharmaceuticals, hospital construction and the provision of
medical services. In 2001-02, there were more than 13 lakh medical enterprises employing
22 lakh people more than 80% them are solely owned and operate with hired workers. health
care sector in India has grown independently without any major regulation, some private
practitioners are not even registered doctors and are known as quacks.

since the 1990s , owing to liberalization measures many non-resident Indians and industrial
and pharmaceutical companies have setup state-of-the-art super-speciality hospitals to
attract to India rich medical tourists .

7. Write a short note on women health in India?

Ans: Women constitute about half the total population in India . They suffer 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 country close to 300000 girls under the age of 15 are not only married but have
already borne a child.

More than 50% of women aged from 15 to 49 have an anaemia caused by iron deficiency
and nutritional deficiency, which has contributed to 19% of maternal deaths . Abortion are
also a major cause of maternal morbidity and mortality in India.

VI. Answer the following question in twenty sentences each. (Each question
carries six marks)
1 Write a critical appraisal on the indicators of health and health infrastructure?

Ans : generally scholars assess peoples health by talking into account indicators like infant
mortality and maternal mortality rate life expectancy and nutrition levels along with the
incidence of communicable and non-communicable diseases.

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Development of health infrastructure ensures a country of healthy manpower for production
of goods and services . In recent times scholars argue that people are entitled to health care
facilities . It is the responsibility of the govt to ensure the right to healthy living .

>Health infrastructure include hospitals, doctors, nurses,beds, equipment required in

hospitals and a well-developed pharmaceutical industry and other para-medical professionals
. It is also true that mere presence of health infrastructure is not enough it should be
accessible to all the people since the initial stages of planned development policy-makers
envisaged that no individual should toil to secure medical curative and preventive care
because of the inability to pay for it.

2.Explain the state of power/electricity in India and what are the challenges in the
power sector?

Ans: The most visible form of energy which is often identified with progress in modern
civilisation is power commonly called electricity . It is a critical component of infrastructure
that determines the economic development of a country’s growth ,GDP growth rate studies
point that in order to have 8% GDP growth per annum , power supply need to grow around
12% annually .

Status of electricity in India

In India , in 2013 , thermal sources accounted for 70% of the power generation capacity .

> Hydro and wind power accounted for 16% .

> nuclear power accounted only for 2 %

>India 's energy policy encourages two energy sources-hydel and wind-as they do not rally
on fossil fuel and hence avoid carbon emissions.

>Atomic energy is an important source of electric power it has economic advantages at

present nuclear energy account only for 2% of total energy consumption against a global
average of 13%

3.Explain the state of infrastructure in India ?

Ans : Traditionally the government has been solely responsible for developing the countries
infrastructure . But it was found that the government's investment in infrastructure was
inadequate. Today, the private sector by itself and in joint partnership with the public sector
has started playing a very important role in infrastructure development .

Majority of Indians live in rural area despite so much technical development people here still
use bio-fuel such as crop residues dung and fuel wood to meet their energy requirements
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they walk long distances to fetch fuel water and other basic needs the census 2001 shows that
in rural India only 56% household have an electricity connection and 43%still use kerosene .
About 76% of the population drinks water from open sources such as wells ,tanks, ponds
,lakes, rivers, canal, Etc access to improved sanitation in rural area was only 20 percent

VII. Project - Oriented question (Five Marks)

1. Name any ten power generating stations in Karnataka?

Ans: the power generating stations in Karnataka are:

a. kaveri river basin -hydroelectricity

b. Bhandra bank canal powerhouse-hydroelectricity
c. Raichur thermal power station- thermal energy
d. Bellary thermal power station- thermal energy
e. Kappadagudda wind farm- wind energy
f. Itnal solar power plant- solar power
g. Simsha solar pv plant - solar power
Yermasas thermal power station- thermal energy

h. Krishna basin project-hydroelectricity

i. Edlapur thermal power station - thermal energy

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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% of the
world’s geographical area.
2. Forests are trees and fish resource.
3. Thermal power plants emit large quantities of carbon Dioxide
II. Match the following (Each question carries one mark)
A B
1. Non-renewable resources. LPG
2. Bio pest control Sustainable development
3. Encroachment into forests Land degradation
4. Industrialization Air pollution
5.Renewable resources Water resource
III. Answer the following question in a word /sentence each. (Each question
carries one mark)
4. What is meant by environment?
Ans. Environment refers to the totality of the physical conditions on the earth or a part of it.
In other words it refers to the physical surrounding, conditions, circumstances, etc; in which
a person lives.

5. What happens when the rate of resources extraction exceeds that of their
regeneration?
Ans. When the rate of resources extraction exceeds that of their regeneration, the
environment fails to perform its vital function of life sustenance and this result in an
environmental crisis.

6. Give the meaning of renewable resources?

Ans. Renewable resources are those resources that can be used again and again. There will
be a continuous supply of resources. Example: sunlight, wind energy etc:

7. What is meant by absorptive capacity of environment?

Ans. Absorptive capacity of environment refers to the ability of the environment to absorb
degradation.

8. What is sustainable development?

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Ans. According to the 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.

9. Expand CNG
Ans. Compressed natural gas.

IV. Answer the following question in four sentences each. (Each question
carries two marks)
10. Mention any four function of environment?
Ans. The major functions of environment are as follows:

 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. The environment assimilates waste.
 The environment sustains the life on earth by providing genetic and bio diversity.
 Environment also provides aesthetic services like beautiful scenery of forest, land, water
falls etc.
11. What are non-renewable resources? Give two examples?
Ans. Non-renewable resources are those which get exhausted with extraction and use.
Examples: mineral resources like petrol, coal, iron ore, etc;

12. Classify the following into renewable and non-renewable resources.

Trees Renewable resources
Fish Renewable resources
Petroleum Non-renewable resources
Coal Non-renewable resources
iron ore Non-renewable resources
water Renewable resources
13. List out any four biotic factors of environment?
Ans. The biotic factors of environment are

 Birds
 Animals
 Plants
 Forests
14. What do you mean by carrying capacity of the environment?

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Ans. Carrying capacity 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.

15. Government expenditure on health is increasing. Why?

Ans. The decline in air and water quality has resulted in increased incidence of respiratory
and water-borne diseases. This has contributed to increase in Government Expenditure on
health.

16. Write any two threats to environment in our country?

Ans. The major threat of environment in India is as follows:

 Threat of poverty induced environmental degradation.

 Threat of population from rapidly growing industrial sector air pollution, water
contamination, soil erosion, deforestation and wildlife extinction.
17. Mention any four strategies to achieve sustainable development?
Ans. The four strategies for sustainable development are as follows:

 Utilisation of non-conventional source of energy.

 Use of liquified petroleum gas, gobar gas in rural areas.
 Use of natural compressed gas.(CNG) in public transport
 Use of solar energy.

18. Give the meaning of bio- pest control. Give example.
Ans. Bio pest control is a method of using pesticides based on plant products in other words
organic pesticides and spreading awareness about various animals and birds which help in
controlling pest.

For example. Snakes are one of the important groups of animals which eat way rats, mice
and various other pests.

Similarly, large varieties of birds like owls, peacocks prey upon vermin and pests. If these
are allowed to dwell around the agricultural lands, they can clear large amount of pests.

19. Name the types of medical systems included in AYUSH? Ans. The types of
medical systems included in AYUSH are:
 Ayurveda
 Yoga
 Unani
 Siddha

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  Homeopathy and naturopathy.
V. Answer the following question twelve sentences each. (Each question carries four
marks)
20. Explain the function of environment?
Ans. Refer question 1 in third main and refer question 1 in fourth main

21. Is environmental crisis a recent phenomenon? Is so why?

Ans. Yes, environmental crisis is a recent phenomenon. It is due to supply demand reversal.
In recent years population has increased. This has resulted in increase in demand for natural
resources while supply of natural resources is fixed. It creates excess demand and exerts
pressure on natural resources. These resources are over used and usage goes beyond the
carrying capacity leading to environmental degradation.

The developmental activities in India and the world have created excessive pressure on natural
resources. There is threat to India's environment which has posed- dichotomy threat to poverty
induced environmental degradation and threat of pollution from industrialisation.

The major issues identified in India in respect of environment are as follows:

 Land degradation
 Bio diversity loss
 Air pollution with special reference to vehicular pollution in urban areas.
 Mismanagement of fresh water
 Solid waste management
Thus India is facing major challenges as for the environment issues are concerned, if proper
measures are not taken India and the world is going to face severe environmental crisis in the
near future.

22. Explain the supply demand reversal of environmental resources?

Ans. The environment can perform its functions without any interruptions as long as the
demand for environmental resources is less than its supply when the demand is more than the
supply; it results in the environmental crisis. This is known as supply demand reversal of
environmental resources.

In other 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 increased demand for environmental resources and services
but their supply is limited due to over use and misuse of resources.

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The major cause is:

 The rising population of the developing countries

 Affluent consumption and production of the developed countries
 Intensive and extensive extraction of both renewable and non-renewable resources.
23. Explain the suggestions given by Herm Daly to achieve sustainable development?
Ans. A leading environmental economist has given the following suggestions to achieve
sustainable development are as follows:

 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 environmental friendly.
 Use of nonrenewable resources should not supersede their availability
 There should be optimum utilisation of non-renewable resources i.e., rate of extraction
of these should not exceed substitute resources.
 The adverse effect of pollution should be corrected immediately.
24. Write a note on eco- friendly traditional knowledge and practices of our country?
Ans. 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 directly or indirectly. All economic and social activities like
agricultural, health care, housing transport, etc, were environment friendly.

But, from recent times, there is shift from traditional systems to modern and causing
considerable damage to the environment and also our rural economy this is mainly because
of indiscriminate use of modern techniques in agricultural sector, rapid industrialisation
advanced medical science etc,

The health care system like AYUSH is being important nowadays. The health care system
including Tibetan and FOLK systems are in great demand again for treatment of chronic
health problems.

Apart from these, at present, the consumer products like hair oil, tooth paste, toilet soaps,
body lotion, perfumes, etc, have herbal composition in India. These products are not only
environmental friendly but side effects free.

VI. Answer the following questions in twenty sentences each:

25. How do the following factors contribute to the environmental crisis in India?
What problems do they pose the government?
a. Rising population
c. Water pollution
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e. Deforestation f.air pollution g. urbanization.

o Rising population: the rising population has resulted in increase in demand for
natural resources while supply of natural resources is constant. It has created excess
demand and exerts beyond the carrying capacity leading environmental
degradation. They pose a threat to environment.
o Air pollution: the pollution caused by the industrialisation and vehicular emissions
have created diseases like asthma, lung cancer, tuberculosis, and many air- borne
diseases and causing a problem for the environment in the form of increase
expenditure of government on health.
o Water contamination: the water pollution out of industrialisation and urbanisation
has led to many diseases like cholera, malaria, diarrhoea and many water borne
diseases. This has also resulted in increase in expenditure of government on health.
o Urbanisation: the development of large cities and towns i.e, urbanisation has
increased the demand for natural resources while supply of natural resources in
constant. It has created excess demand over the supply. There is over extraction of
resources beyond the carrying capacity of the environment. There is miss- match in
absorptive capacity of environment also. There is problem that the rich wasting the
resources and poor struggling to get the same.
o Deforestation: deforestation is reckless cutting down of trees has led to
deforestation it causes 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 increase in the financial
commitments of government even for future.
26. India has abundant natural resources. Substantiate the statement.
Ans. India is favourably located in north eastern hemisphere with abundant natural resources
in terms of rich quality of soil, many rivers, vast forest areas, plenty of mineral resources,
ranges of mountain, oceans, etc., The richness of Indian in many resources can be listed as
follows:

 Black soil of Deccan plateau is best suitable for cotton and the same has encouraged
The concentration of the 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, coal, and natural gas.
 Bauxite, diamonds, gold, lead manganese, uranium, zinc, etc also available

27.Explain any 6 strategies for sustainable development.

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Ans. The sustainable development aims at decreasing the absolute poverty of the poor by
providing secured livelihood that minimizes resources depletion, environmental degradation,
and natural disruption on social instability.

The strategies for sustainable development are as follows:

 Utilisation of non- conventional source of energy.

 Wind power
 Solar energy
 Mini- hydel plants
 Bio- composting
 Bio pest control
27. Utilisation of non- conventional source of energy: In India, thermal power plants
produce maximum electricity to meet the demands of country. The thermal power
plants emit large quantities of carbon- dioxide which is a Green House gas. So,
alternative sources should be made available like wind power and solar energy as non
-conventional sources to meet the increasing demand for power.
28. Wind power: The wind mills can provide electricity without any adverse impact on
environment. It areas where speed of wind is usually high, wind mills play an
important role in combating energy crisis.
29. Solar energy: it can be converted into electricity with the help of photo- voltaic cells.
These cells are special form of materials used to capture solar energy and then convert the
heat from the sun into electricity. This technique does not damage environment.

30. Mini- Hydel plants: These can be constructed and produced in small streams or water
falls which are found throughout India. They use the energy of small streams to move
turbines. The electricity generated from such small turbines can be used in local areas.
These mini hydel plants power plants are environment friendly as they do not change
the land use pattern of India.
31. Bio- composting: it is a process of converting organic matter into compost naturally.
Earth worms can convert organic matter into compost faster than the normal
composting process.
32. Bio pest control: it is a method of using pesticides made out of plants products and
spreading awareness about how various animals and birds which help in controlling
pest.
For example: neem, trees, seeds oil used to control pests, mixed cropping, etc

To conclude, the main objective of sustainable development is to promote that kind of

development that minimises environmental degradation and meets the needs of the present
generation without compromising the needs of future generation.

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Assignment and project oriented questions

1. Prepare a list of causes of land degradation in India

Ans. Land in India suffers from varying degrees and types of degradation are increasing
mainly due to the factors mentioned below:

 Deforestation i.e, reckless cutting down trees resulting in loss of vegetation

 Indiscriminate and over exploitation forest products as fuel wood and over grazing.
 Conversion of forest land into agricultural land
 Forest fire and poor methods of cultivation.
 Excessive application of pesticides and insecticides.
 Disproportionate an excessive use of chemical fertilisers in Indian agriculture.
 The irrigation system in India are not properly planned and managed.
 Over exploitation of ground water for various competing utilities like human
settlement industrialisation, etc.,
 No proper introduction of crop rations 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 the conservation
of land and water and natural resources in future which may lead to conflict among countries
in future.

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 Development Experience of India

A Comparison with neighbours

 I. Fill in the blanks

1. The Great Leap Forward campaign was initiated in the year 1958.
2. India country has the largest work force in agriculture.
3. Both India and Pakistan have followed model of development.
4. Life expectancy at birth (years) is highest in China.
 II Answer the following questions in a word/ sentence
5. What type of economic system is followed in Pakistan?
A. Mixed economic system is followed in Pakistan.
2. Mention some examples of regional and global economic groups?

A. SAARC, G-8, G20, ASEAN are some examples of regional and global economic
groupings.

3. When were reforms introduced in all the 3 economies India, China and Pakistan?

B. In India it was introduced in 1951- 1956, in China 1953 and 1956in Pakistan.

4. Give the meaning of infant mortality rate?

C. Infant mortality rate refers to number of death at birth per 1000 children born.

5. Who introduced, the Great Proletarian cultural Revolution?

D. MAO introduced the Great Proletarian cultural Revolution.

6. Between India and China, which country has higher value of human Development
Index?

E. India has the higher value of human Development Index.

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7. Mention the major reasons for the low population growth in China?

F. One child policy is the reason for the low/slowdown population growth in China.

8. Name the campaign initiated in China with the aim of industrialisation?

G. The campaign initiated in China was the Great Leap Forward- 1958.

9. Which country has the highest life expectancy?

H. China has the highest life expectancy.

10. Among China, Pakistan and India, which country has the largest contribution of
the service sector to GDP?

I. India has the largest contribution of the service sector to the GDP.

 III Answer the following in 4 sentence each

6. Why are regional and economic grouping formed?

J. Nations have been primarily trying to adopt various means which will strengthen their
own domestic economies. regional and global economic groups are formed

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7. What is commune system?
K. In rural areas, communes were started. under the commune system people collectively
cultivated lands.

8. Give the meaning of liberty indicator.

L. Liberty indicators has actually been added as a measure of the extent of democratic
participation in social and political decision-making.

9. Write 2 implications of the one child norm in China

M. After a few decades in China, there will be more elderly people in proportion to young
people. This led China to allow couples to have 2 children T&C. The fertility rate is
also low in China and very high in Pakistan.

 IV Answer the following question in twelve sentences each

10. What are the various indicators of Human development?

N. Income indicator such as GDP, per capita, or properties of population below poverty
line or health indicators such as mortality rates, access to sanitation, literacy, life
expectancy or malnourishment.

11. What similar development strategies have India and Pakistan followed for their
respective development paths?
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O. India and Pakistan adopted similar strategies such as creating a large public sector and
raising public expenditure on social development.

12. Compare and contrast the development of India, China and Pakistan with
respect to some salient human development indicators.
P. Pakistan is ahead of India in reducing proportion of people below poverty line and
also its performance in sanitation. But neither of these two countries have been 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 respectively. You will notice that for
the proportion of people below the international poverty rate of $3.10 a day India has
the largest share of poor among the 3 countries.

13. Write a note on Great Leap Forward campaign of China?

Q. Some obvious liberty indicators like measures of the extent of constitutional protection
given to citizens on the extent of constitutional protection of the independence of the
judiciary and the rule of law have not even been introduced so far without including
these (and perhaps some more) and giving them overriding importance in the list, the
construction of a human Development Index may be said to be incomplete and it’s
usefulness limited.

14. Give reasons for the slow growth an re-emergence of the poverty in Pakistan.
R. Through the data on international poverty line for Pakistan is quite healthy. The
proportion of poor in 1960s was more than 40% which declined to 25% in 1980s and
started rising again in 1990s. The reason for the slow-down of growth and re-
emergence of poverty in Pakistan’s economy as experts put it, are agricultural growth
and food supply situation were based not on an institutionalised process of technical
change but on good harvest. When it happened the economy was in all good condition
when it was not the economic indicators showed stagnation or negative trends.

 V . Answer the following in twenty sentences each

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15. China’s rapid growth can be travel back to its reforms in 1978. Do you agree?
Elucidate
S. The present-day fast industrial growth in China can be traced back to the reforms in
the initial phase, reforms were initiated in agriculture, foreign trades and investment
sectors and of course manufacturing . In agriculture, for instance 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. The reform process
also involved dual pricing. This means fining the price in 2 ways; farmers and
industrial units were required to buy and sell fined quantities of input and outputs on
the basis of price by the government and the rest were purchased and sold at market
prices in order to attract foreign investors, special economic zones were set up.

16. What were the various factors that led the rapid growth in economic
development in China?
T. It was found that establishment of infrastructure in the areas of education and health,
land reforms, long instance of decentralised planning and existence of small
enterprises had helped positively in improving the social and income indicators in the
post reform period before the introduction of reforms, there had already been massive
intension on basic health services in rural areas through the commune system there,
was more equitable distribution of food grains, experts also point out that each reform
measure was first implemented at a smaller level and then extended to a massive scale.
The experimentation under decentralised government enabled to access the economic,
social and political costs of success or failure. It created conditions for the subsequent
phenomenal growth in rural industries and build up a strong support base for more
reforms experts quote many such examples on how reforms measures led to rapid
growth in China.

17. Explain the path of developmental strategies followed in Pakistan

U. experts argue that in Pakistan the reforms process led to worsening of all the economic
indicators we have seen in an earlier section that compared to 1980s the growth rate of
GDP and its sectoral constituents have fallen in the 1990s when there was a good
harvest, the economy was in good condition, when it was not the economic indicators
showed stagnation or negative trends. In Pakistan most foreign exchange earnings
65
 came from remittances from Pakistan workers in the Middle East and the exports of
highly volatile agricultural products; there was also growing dependency on foreign
exchange loans on one hand and increasing difficulty in paying back the loans on the
other. However, during the last few years Pakistan has recovered its economic growth
and has been sustaining in reports that the GDP registered a growth of 4.7% highest
when compared to the previous 8 years ,agriculture recorded growth rate far from
satisfactory level, industrial and service sectors grew at 6.8 and 6.7.1 respectively
many macroeconomic indicators also began to show stable and positive trends.

18. Compare and contrast India and China’s sector contribution towards GDP in
2013. What does it indicate?
V. One of the much talked issues around the world about China is its growth of Domestic
product, China has the largest GDP of $18.4 trillion compared to India’s $7.5 trillion
and Pakistan’s GDP is about about 12% of India’s GDP China was able to maintain
near double-digit growth for one decade as can be seen. Also notice that in 1980s
Pakistan was having double digit growth and India was at the bottom. In 2011-15 there
is a decline in India and China’s growth rates whereas Pakistan met with drastic
decline at 4%. In China, due to topography and climatic conditions, the area suitable
for cultivation is relatively small, only about 10% of its total land area. The total
cultivable area in China accounts for 40% of the cultivable area in India. In both india
and Pakistan, the contribution of agriculture to GDP were at 17% and 25%
respectively, but the proportion of workforce that works in this sector is more in India.
In Pakistan, about 43% of people work in agriculture whereas in India it is 50%. The
sectors share of output and employment also shows that in all the 3 economies, the
industry and service sector have less proportion of workforce but contribute more in
terms of output. In China manufacturing and service sector contribute the highest to
GDP at 43% and 48% respectively in India and Pakistan, it is the service sector which
contributes the highest by more than 50% to GDP.

66