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INDIAN ECONOMY

TOPIC : AGRICULTURE ,INDUSTRY & TRADE [


1950-1990]

SUBMITTED BY : SUBMITTED TO :
NAME – AVISHI MR.SUMIT KUMAR
ROLL NO – 504
CLASS – XII A
CONTENTS

Agriculture
- Land Reforms-
-Technical Reforms HYV Technology and Green Revolution

Industry:-
-Public and Private Sectors in Indian Industrial Development-
-Industrial Policy Resolution (1956)
-Small Scale Industry

Trade:-
- Strategy of Import Substitution

 Salient Features of Growth Strategy during the Period 1950-1990 and its Good and Bad Effects
LAND REFORMS

 Land reform means equity in agriculture that also means the shift in the
ownership of landholdings. Land reform normally relates to the
redistribution of land from the rich to the poor. It involves a control of
operation, ownership, sales, leasing, and inheritance of land.

 In a country like India with vast deficiency and irregular arrangements of


land with a huge mass of the rural people below the poverty line, there are
captivating economic and political disputes for land reforms.

 This structure includes the land tenure system, farm organisation, the
pattern of cultivation, the scale of the farm operation, the terms of
tenancy, and the system of rural credit, marketing, and education. It also
deals with advanced technology.
HYV TECHNOLOGY AND GREEN REVOLUTION

 At the time of independence, 75% of India’s population was dependent on


agriculture. Agriculture production was very less because of the use of old
technology.

 The slack in agriculture was destroyed by the green revolution. This means
there was a large improvement in the production of agricultural grains by
the use of high yielding variety (HYV) seeds, notably for wheat and rice.

 The proper growth of these seeds needed the right amounts of manure and
pesticide as well as the constant supply of water. All these utilisations had to
be in correct proportions.

 Later from the mid-1970s to mid-1980s, the green revolution was shifted to
a large number of states. This revolution made India a self-sufficient
country in food grains.
PUBLIC AND PRIVATE SECTORS IN INDIAN INDUSTRIAL
DEVELOPMENT-

Public and Private Sectors


Public Sector refers to those business enterprises which are
controlled and run by the government. These are largely driven by
considerations of social welfare.

Private Sector refers to those business enterprises which are


controlled and run by private individuals. These are largely driven
by considerations of profit-maximization .
INDUSTRIAL POLICY RESOLUTION (1956)

Industrial Policy Resolution, 1956 was a clear declaration of government on the leading role of the
government in the process of industrialisation.

Three-fold Classification of Industries:


(1)Those which would be established and developed
exclusively a public sector enterprises. These include
atomic energy .defence and railways. etc.
(2) Those which could be established both as the private
and public sector enterprises. However, the private
sector was to play only a secondary role
(3) All industries other than in categories (i) and (ii) were
left to the private sector.
 Industrial Licensing

Industries in the private sector could be established only through a license


from the government. The basic idea of licensing policy was to encourage
industry in backward regions of the country. This was to promote regional
equality.

 Industrial Concessions.

The private entrepreneurs were offered many types of industrial


concessions for establishing industry in the backward regions of the
country. These concessions included:

• tax holiday (freedom from the payment of tax for sometime),and


• subsidized power supply.
SMALL SCALE INDUSTRY

 Essentially the small scale industries are generally comprised of


those industries which manufacture, produce and render services
with the help of small machines and less manpower. These
enterprises must fall under the guidelines, set by the Government
of India.

 The SSI’s are the lifeline of the economy, especially in


developing countries like India. These industries are generally
labour-intensive, and hence they play an important role in the
creation of employment. SSI’s are a crucial sector of the
economy both from a financial and social point of view, as they
help with the per capita income and resource utilisation in the
economy.
TRADE : STRATEGY OF IMPORT SUBSTITUTION

To complement the efforts of industrial development, India adopted the strategy of import substitution during the
Period 1950-1990. It is also called 'Inward Looking Strategy.

 Import substitution is a strategy under trade policy that abolishes the import of
foreign products and encourages production in the domestic market. The
purpose of this policy is to change the economic structure of the country by
replacing foreign goods with domestic goods.

 Post-independence India adopted the policy of import substitution by imposing


heavy tariffs on import duty. The industrial policy that the country endorsed was
linked to the trade policy. In the first seven Five-Year plans, trade in India was
distinguished by the inward-looking trade strategy. This strategy is known as
import substitution, which aims to boost domestic production and shield
domestic products from international competition
SALIENT FEATURES OF GROWTH STRATEGY DURING THE
PERIOD 1950-1990

 Principal features of the growth strategy during the period 1950-1990 were as follows:

(i) Public enterprises were to play a central role in the process of industrialization.

(ii) Private enterprises were to play only a secondary role in the process of industrialization and that too under
Permit-Lisence Raj.

(iii) Process of industrialization focused on 'import substitution Implying that the production of such goods was to
be accorded a high priority which were imported from rest of the world.

(iv) As far as possible, domestic industry was to be protected from foreign competition. It was realised that
protection would foster the growth of the domestic industry.

(v) Large-scale industry was to be developed with a view to building an infrastructural base in the country.

(vi) Small-scale industry was to be developed with a view to achieving the objectives of employment and equity.
GOOD AND BAD EFFECTS

GOOD EFFECTS

• Big push for economic growth 6% annual increase


• Diversification in industrial sector
• Growth of large scale industry
• Growth of small scale industry with employment and equity

BAD EFFECTS

• it decrease the crop production in india


• it creates a pollution which harmed the living organisms
• people cut off many trees in order to start an industry
• the rate of practicing of agriculture is decrease because of jobs

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