4. Economic Development
Complete solutions to the Exercise. Maharashtra State Board (Balbharati), Grade Nine History and Political Science.
ShareAdvertisement
Exercise
(1) On 19th July 1969 ........... major banks in India were nationalised.
- a) 12
- ✓ b) 14
- c) 16
- d) 18
Answer: On 19th July 1969 14 major banks in India were nationalised.
(2) ........... declared a 20 point programme.
- a) Pandit Nehru
- b) Lal Bahadur Shastri
- ✓ c) Indira Gandhi
- d) P. V. Narsimha Rao
Answer: Indira Gandhi declared a 20 point programme.
| Person | Associated Event/Role |
|---|---|
| Kavasaji Davar | Iron and Steel factory |
| Dr Datta Samant | Leadership of mill workers |
| N. M. Lokhande | Holiday for mill workers |
| Narayan Survey | Depiction of lives of workers through poems |
Answer: The wrong pair is Kavasaji Davar — Iron and Steel factory.
Correction: Kavasaji Davar is associated with starting the first textile mill in Mumbai in 1854, not an iron and steel factory.
Advertisement
| Five-year plan | Duration | Purposes |
|---|---|---|
| First | 1951-1956 | Agriculture, Social development |
| Second | 1956-1961 | Industrialisation |
| Third | 1961-1966 | Elimination of inequality, increasing the opportunities for employment, increase in national income |
| Fourth | 1969-1974 | Scientific research, health and family planning |
| Fifth | 1974-1979 | Making India economically self-sufficient by alleviating poverty |
(1) Mixed Economy
A mixed economy is an economic model that combines elements of both capitalism and socialism. India adopted this middle path after independence to achieve rapid economic development and eliminate poverty. In a mixed economy, there are three main sectors: the Public Sector (industries fully controlled and managed by the government, e.g., defence), the Private Sector (industries owned by private individuals but supervised by the government, e.g., consumer goods), and the Joint Sector (industries run jointly by private industrialists and the government). This system aims to maximize production, encourage popular participation, and balance the profit motive with long-term national interests, especially in capital-intensive areas like infrastructure, research, and defence where private investment may be lacking.
(2) 20-point Programme
Prime Minister Indira Gandhi announced the 20-point programme on 1st July 1975 with the resolve to make rapid efforts toward making India a developed nation. The key provisions of this comprehensive programme included imposing a land ceiling for cities and agricultural land, ensuring equal division of wealth, securing minimum wages for workers, and increasing water conservation schemes. It also mandated workers' participation in industry, aimed at freeing bonded labour, preventing tax evasion and smuggling, and regulating the prices of basic necessities while improving the public distribution system. Additionally, it focused on improving the textile industry by developing the handloom sector, waiving loans for weaker sections, and providing housing, communication facilities, and educational equipment.
(1) Independent India opted for mixed economy.
After gaining independence, India faced severe challenges like poverty, unemployment, and an underdeveloped industrial sector. The leaders, particularly Prime Minister Pandit Nehru, brainstormed the ideal economic path and rejected the extremes of both pure capitalism (where production is entirely privately owned) and pure socialism (where the state owns everything). Instead, India opted for a mixed economy to bring together the best aspects of both systems. This model was essential because long-term national development required massive investments in heavy industries, defense, railways, and infrastructure—areas where returns are delayed and private industrialists were reluctant to invest. A mixed economy allowed the government to take the initiative in these critical sectors while still permitting private entrepreneurship and profit motive in other areas.
(2) Banks were nationalised in 1969.
During the initial decades after independence, banking was predominantly a monopoly of the private sector. These commercial banks represented various industrial groups and operated primarily to develop the industrial sector and maximize their own profits. However, the government was implementing various social and agricultural welfare schemes (like the Green Revolution) which required vast financial resources. Nationalisation was deemed essential so that the enormous profits and resources of these banks would flow into the government treasury, helping cover potential deficits from welfare schemes. Furthermore, groups inspired by socialist ideas demanded this move to promote small-scale and pharmaceutical industries. Consequently, Prime Minister Indira Gandhi nationalised 14 major commercial banks on 19th July 1969.
(3) Mill workers went on strike.
In the 1980s, a strong sense of unrest began growing among the textile mill workers in Mumbai. This dissatisfaction stemmed primarily from observing the economic conditions in other industrial sectors, where workers were receiving increasing wages, higher bonuses, and better overall facilities compared to the textile workers. The breaking point occurred during Diwali in 1981 when the mill workers expected a 20% bonus. However, the Rashtriya Mill Mazdoor Sangh, the officially recognized negotiating body, agreed to a significantly lower bonus (8 to 17%) without taking the workers into confidence. Feeling betrayed by the cut in their expected bonus, the workers approached Dr. Datta Samant to take up their leadership. Consequently, on 18th January 1982, approximately two and a half lakh workers from 65 mills went on a massive, prolonged strike.
(1) Which programmes were started in the 8th five-year plan?
The Eighth Five Year Plan (1992-1997), which was formulated as a reflection of the liberalisation and free-market policy adopted in 1991, saw the initiation of several important developmental and social welfare programmes. The key programmes started during this period include:
- Pradhanmantri Rozgar Yojana
- Mahila Samriddhi Yojana
- Rashtriya Samajik, Arthik Sahayya Yojana
- Midday Meal Scheme
- Indira Mahila Scheme
- Ganga Kalyan Scheme
(2) Which projects were started in the 2nd five-year plan?
The Second Five Year Plan (1956-1961) had highly ambitious goals focused heavily on rapid industrialisation. To achieve this, several massive infrastructural and heavy industry projects were established in the Public Sector. The major projects started during this plan include:
- Iron and steel industries established at Durgapur, Bhilai, and Rourkela.
- A chemical fertilisers plant set up at Sindri.
- A rail engine factory built at Chittaranjan.
- A factory for manufacturing railway bogies established at Perambur.
- A major shipbuilding factory set up at Vishakhapattanam.
- Huge dams, such as the Bhakra-Nangal and Damodar dams, were constructed to make ample water available for agricultural development.
The Project activities (gathering information about the World Trade Organisation logo, member countries, and aims from the internet, and visiting a nationalised bank to learn about its functioning) are practical research assignments intended to be completed independently by students.