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Revision Notes Chapter 1 Indian Economy on the Eve of Independence Class 11 Economics
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The need for and role of industrial sector have been fully recognized by the development thinking all over the world. Industrial sector through its forward and backward linkages with other sectors plays a very important role in achieving rapid growth and development. Most modern and rich countries have well developed industrial sector through their early industrial revolution.
Industrialization means widespread development of manufacturing vast quantities of goods, employing a large number of people, promoting international market, characterization of specialized skill, science, technology, increasing application of electrical, electronic, computer technologies to enhance productivity. Absence of such rigorous industrialization is the main reason for the backwardness of many poor countries too.
Hence, the modern development strategies attach more emphasis to rapid industrialization to achieve faster growth and progress. The following are some of the important needs for the industrial sector. Raising National Income
Vigorous industrialization ensures a solid and sustained base to increase the national income of an economy. A larger share of national income of industrially advanced economies comes from industrial sector.
Employment Opportunities
Availability of surplus labour and unemployment are the major challenges of development strategy. Industrialization uses the productive resources of the economy and expands employment opportunities which in turn will improve the income and well-being of the people.
The increasing national income through industrialization helps to meet the demands of the people for industrial products. It is also expected to improve the standard of living of the people by increasing their per capita income. This is possible only through a well designed growth process.
Promoting Exports
Industrially advanced countries are able to export more and earn large foreign exchange. The income elasticity of industrial goods is very high than that of the primary goods. Hence, exports can be promoted to earn adequate foreign exchange by producing advanced industrial goods.
Capital Formation
Expanding employment opportunities, income generation through rapid industrialisation will also lead to increased saving and capital formation in the economy. This will help to diversify and expand the industrial base further through higher investment.
Technological Progress
Industrial sector will also promote technological progress through its course of development and expansion. The technological advancements and their dynamic contents provide the required elements to strengthen the economy as a whole.
Patterns of Industrial Development
The pre-independent India, mostly characterised by backwardness, did not have an organized industrial sector. The Second World War made small beginning in the industrial development. Still the share of industries in the country’s national income was relatively small.
There had been a marked shift in the advancement of the industries after the implementation of five year Plans in the independent India. The ignificant role of industrialization as the major channel of rapid economic growth and allround development has been recognized by the planners of modern India.
Besides rapid growth and prosperity, the Indian strategy of development planning, inspired by economic nationalism, aimed at achieving self-sufficiency under the direction of public sector. It also aimed to translate the economic growth into improved standard of living of the masses.Maximum production and full employment, and the attainment of economic equality were the long term objectives declared by the First Five Pear Plan.
The policies aimed at achieving economic growth with distributive justice. Then the rapid development of industries and their diversification are considered to be absolutely necessary for development.
The experience of state dominated development planning for a period of more than five decades has brought out many significant achievements in the growth and structure of Indian industries.
‘Growth with social justice’ has been the main objective of planning since 1951. It has been defined to be inbuilt in the production process so that the major beneficiaries of the development planning are the majority of the people and the rapid and diversified industrialization serves the needs of the masses by generating adequate employment and income distribution.
The new policy environment focused on a mixed economy framework where the public sector will play a major role in building the industrial base of the economy with the objectives of accelerating growth, generating employment, reducing regional disparities, checking concentration of economic power and achieving self-reliance.
Significance of Public Sector
The pattern of industrial growth depends on the relative roles of private and public sector. Public sector means the part of the economy that is publicly owned as distinct from those owned by private individuals or firms. It has a number of absolutely essential functions.
By employing productive resources, the public sector provides most of the public goods, like primary education, public health, drinking water, social services, child nutrition, women and labour welfare, social security, sanitation, poverty eradication, road, defence, etc. All of them will facilitate the overall development of the economy and people.
As privately owned organizations or firms will not provide these public goods, the public sector has to assume such responsibility. Thus, the mixed economy consisting both the private sector and public sector, has been the feature of many modern states.
The post-Independent Indian State assumed a greater role in the reconstruction of the country that includes regulation, facilitation and welfare promotion. To meet these requirements, the Indian State adopted the public sector dominated, heavy industry based import substituting development planning over five decades since independence.
Public sector is playing a significant role in terms of its contribution to GDP in many developed as well as developing countries. Much of the developing world in the early 1950s adopted an inward oriented strategy of industrialization guided by the objective of self-reliance and a philosophy of economic nationalism. The promotion of public sector through development planning is basically used to direct the resources towards optimum utilization and equitable distribution.
India too adopted similar development strategy of expanding public sector to the commanding heights of the economy to meet the constitutional obligation that “the material resources of the community are so distributed as best to subserve the common good”.
Since Independence, public sector played an important role to be the principal driving force behind steady growth of the fifties, sixties and seventies and eighties. The contribution of the public sector to national income has increased from 7.5% in 1950-51 to 24% in 1982-83.
The contribution of the public sector through its basic, heavy and strategic industries to the economy and its growth are very significant. The role and contribution of the public sector in the development of many sectors like manufacturing industry, agriculture, and infrastructure and for the development of the whole private sector is noteworthy. The rapid growth of public sector investment in industries has obviously created a strong diversified
industrial base.
All such contributions have helped the economy in many ways.
It has promoted small scale and ancillary industries as a result of the backward and forward linkages.
It has promoted agro-based industries and supported agriculture sector by providing many inputs like fertilizer, power, etc.
It has created a sound infrastructural base to help the private sector.
Public sector has exerted a greater influence on the welfare of the people through its vast employment opportunities.
However, all these development rationale have been criticized since nineties by the proponents of market economy and private sector. Still public sector plays many critical roles.
Pattern of Industrial Growth
The specific pattern of industrial growth can also be seen through the use based classification of industries. This classification consists of four major components viz.
1. Basic goods such as cement, chemicals, fertilizers, etc.
2. Capital goods such as machineries, machine tools, and engineering goods.
3. Consumer goods such as cycle, television, refrigerators, bikes, cars,food articles, soft drinks, etc.
4. Intermediate goods such as paint, plywood, pipe & tube, ancillary parts, etc.
Source : CSO
Table 7.1 indicates the trends in the average annual growth rates of all these four sectors. The pattern shows that the industrial growth was consistently led by the growth of consumer goods industries. Its growth has increased from 6 per cent in eighties to 8 per cent during 2001-05.
The growth rate of capital goods industries has declined from its peak of 9.4 per cent during eighties to 5.4 per cent during nineties before making a recovery to 8.6 per cent in recent years.
The growth of basic goods is declining steadily since eighties. Steel Industry Steel industry, being the key industry, forms the base for almost all other industries. Manufacturing, mining, construction, power, transport and other infrastructures and service sectors are all using steel as their inputs.
Thus the development of steel had a multiplier effect on almost all other sectors of the economy. Hence, it is popularly called as ‘mother industry’.
Its critical role and importance in terms of its contribution to industrialization, national income, employment generation, is noteworthy. However, unremunerative prices, inefficient management practices of giant public sector, mostly by bureaucrats rather than technocrats are some of the major problems of the steel industry.
The Steel Authority of India (SAIL) was established in mid-seventies to extend support regarding raw materials and coordinate the development of many steel industries. The removal of price and distribution controls were the significant policy reform made in 1992.
The production of steel has increased more than about fifty seven times since independence. It has increased from .7 million tons per annum in 1951 to 40 million tons in 2004-05.
Textiles
Textile industry is one of the oldest as well as the largest industries in India. It has spread to almost all parts of the country. It has been well organized in terms of the labour employed and turnover of the output.
Textile industry accounts for 20 per cent of the total industrial output. It also employs 25 million people. The fabric produced during the First Plan period was 4775 million square metres. The industry underwent many changes since then. The production of fabrics in 2004-05 was 45378 million square metres. This is almost tenfold increase since independence.
The major problems of the industry are non-availability of enough raw material (cotton), increasing input costs, low profitability of small mills, and high cost of modernisation.
In recent years, budgetary concessions, rationalisation of duty structure and assistance under the Technology Upgradation Fund Scheme (TUFS) started paying some marginal dividends in the textile sector.
Cement
Cement is one of the emerging major industries with greater development potential. Cement, being the key raw material of the construction industry, plays a significant role in the country’s current phase of development. The industry is almost self-sufficient in terms of raw materials, machinery, technology and increasing local demand.
India, with all such advantage, produces only 6 per cent of world cement production. It has recorded an annual growth rate of 8.4 per cent over the last two decades. Cement industry has an installed capacity of 140.53 million metric tons (mmt) with 120 large and 365 mini plants. The capacity utilization of large plants has been very high at 80 percent.
The current policy reforms are expected to increase the capacity utilisation further. High input costs and poor export infrastructure are some of the problems facing the industry. The Tenth Plan has fixed a production target of 203 mmt and the estimated investment during 2002-07 would be Rs. 17,600 crore.
Sugar
Sugar industry is an important agro-based industry. Its contribution to the economy is manifold. This industry has been the source of rural development through employment and income generation, and increased transport and communication facilities. In addition, sugar industry also provides input for some other industry. It is also earning from abroad through exports.
India has emerged as the largest sugar producing country in the world. It contributes 15 per cent of the world sugar production. However, the share of India’s sugar in the international trade is very meagre at 0.05 per ent. Underutilization of capacity, unremunerative prices to sugar cane cultivators, industrial sickness and industrial closure are some of the major problems of the sugar industry
Adequate support from government, banks and financial institutions should come forward to provide enough relief to revive the sick units. The Tenth Plan has estimated an investment of Rs. 1300 crore during 2002-07.
Industrial Policies
During the pre-independent period the industrial sector was very small and the country did not have any significant industrial policy. After independence, the first formal initiative towards industrialization was the declaration of the Industrial Policy Resolution of 1948.
However, the more comprehensive, concerted and real planned effort towards industrialization commenced from the era of First Five Year Plan (FFYP) 1951-1956. The major step towards industrialization has been attributed to Industries (Development and Regulation) Act 1951.
Through this Act, the Union Government brought many key and basic industries under its control. The sectors of national importance namely atomic energy, arms and ammunition, aircraft, ship building, telephone and telegraph, iron and steel, coal, minerals, oils etc. have been brought under the exclusive sphere of government.
The Second Five Year Plan (SFYP) made a marked shift in the industrial policy and development of the country. The main aim of the second plan was to accelerate the growth of the economy through rapid industrialization.
The basic framework and direction for such rapid industrialization was laid down by the Industrial Policy Resolution of 1956 in tune with many provisions of the 1950’s Constitution.
The resolution of 1956, having declared “the adoption of the socialistic pattern of society as the national objective” urged that all industries of basic and strategic importance or in the nature of public utility services should be in the public sector for planned and rapid development. Thus, the State has, therefore, to assume direct responsibility for the future development of industries.
Another strategic dimension of the 1956 resolution was its emphasis on basic and heavy industries and capital goods industries to attain selfreliance in important sectors. This strategy also believed that rapid development within a limited span of time is possible through the development of capital goods industries rather then the consumer goods industries. The Plan created a strong foundation for the future economic development and provided support to the agriculture, village and small-scale industries and infrastructures.
Public Sector Restructuring
The macro economic policy reforms launched from 1991 onwards have restructured the public sector enterprises to a significant extent. The new policy reforms are expected to alter drastically the basic parameters of erstwhile Indian economic policies that were followed since Independence.
The national economy has been weaned away from regime of state controls and towards a market dependent one. The process of macro economic stabilization through which a planned economy is changed into a market driven competitive economy is called as economic policy reforms.
The process includes liberalization, privatization and globalization (LPG). These new set of polices reduced the then dominant role of public sector through various policy measures like new Industrial Policy 1991, disinvestment, promotion of private and foreign investment. All these policy initiatives have restructured the Indian public sector thoroughly. The employment generation, income distribution and welfare objectives of public sector have been replaced by profit maximization objectives.
The performance of the sector has been criticized on various grounds; particularly the question of efficiency is measured in terms of profit and not by employment and labour welfare. The welfare oriented pricing policy has also been subjected to criticism.
New Industrial Policy 1991
The New Industrial Policy declared was on July, 1991 with the major aim of loosening the barriers to entry for private firms to encourage competition in the industrial sector. The industrial policy acted to consolidate the earlier gains and to build further by correcting the distortions that might have crept in the Industrial structure developed in the earlier decades. It also aims to sustain growth in the productivity and gainful employment and to attain international competitiveness.
The specific reforms related to the restructuring of public sector enterprises are as follows.
(i) To encourage private participation in the economy. The areas of industry reserved for the public sector has been considerably reduced from 17 to 8. In particular, telecommunication, power, air transport, petroleum, sectors were opened for private sector.
(ii) The disinvestment of shares of some public sector enterprises in order to raise the resources and to encourage private participation in the public sector enterprises.
(iii) Public enterprises which are sick, will be referred to the Board of Industrial and Financial Reconstruction for rehabilitation or reformulation.
(iv) An improvement of performance and accountability has to be ensured through new rules and only potentially viable public sector undertakings (PSUs) can be revived.
(v) Budgetary support to sick public sector industries will be reduced drastically.
(vi) Only potentially viable PSUs can be revived and others will be closed down.In 1998-99, another two sectors were removed from the exclusive
public sector domain and subsequently only 3 sectors have been left under the public sector domain leaving the rest open for private and foreign investments. Thus the Industrial Policy of 1991 has dismantled the industrial controls, regulations in a significant way to restructure the public sector and to promote private sector.
Disinvestment of Public Enterprises
The process of industrial restructuring continued in response to the new industrial policy of 1991. The new policy suggested the partial disinvestment of public sector without fixing any ceiling. Citing fiscal crisis as the reason, comprehensive efforts have been initiated subsequently to disinvest the equity of public sector undertakings to a greater extent. This is nothing but the outright process of privatization. There are three models viz. public
offer, strategic sale and cross holding. The Government announced in 1998 to sell more than 51 percent in strategic sales and the new cap was fixed at 74% to 100%.
The objective of disinvestment is to mobilise enough resources by way of withdrawing from some sector in order to invest in priority areas like particularly social sectors. The mobilized resources are used to repay the public debt of the government to pay for various VRS schemes, labour retrenchment and redeployment schemes under the exit policy.
The other objectives include the promotion of private sector, enhancement of efficiency and competition. In 1991-92, over Rs.30 billion was raised through the disinvestment of public sector. In 1992-93, Rs.18.6 billion against a target of Rs.35 billion was raised. Until 2002-03, a huge resource of around Rs.300 billion was raised through the disinvestment policy.
Though the policy of disinvestment is criticized vehemently by the left parties and trade unions, the government is moving towards further disinvestment of many Public Sector enterprises including the strategic and profit making enterprises.
Liberalization and Privatization
Liberalism means the order of the market or capitalist economy relying predominantly on competition and private sector. It envisages freer trade, full convertibility and non-discriminatory tariffs. Liberalisation policies aim at minimizing the roles and functions of the government in the economy to promote private sector. It aims at more external capital inflows to finance the current account deficit, to augment capital formation to generate exports earnings to raise efficiency of capital used in India to improve the quality of the products. In India, the forms of liberalisation policy initially have been on general liberalisation of controls or marketisation and deregulation followed by privatization.
Privatization policy has been adopted as a part of the liberalisation. Privatization is defined as transfer of ownership from public sector to private sector. It is the process of reducing the role of State or public sector in the economic activities of a country. Privatisation is expected to ensure efficiency in the allocation of resources and promote faster growth.
In India, the process of intense privatization has been initiated since 1991. The various methods through which it has been undertaken includes disinvestment measures (i.e. setting the public ownership to private sector), deregulation and delicensing measures for the entry of private sector industries into the reserved public sector domains, surrendering the control and management of public sector enterprises to the private sector and by halting
any further public investment and diversification.
Thus, public sector restructuring refers mainly to disinvestment or denationalization of existing public sector enterprises, liberalisation and privatisation through deregulation and delicensing ultimately limiting the role of public sector to social and economic infrastructure.
The Eighth Five Year Plan (1992-97) clearly argued that considerable restructuring was necessary to reach the new goals of public sector within the framework of New Economic Policy. The new goal is ‘public sector industry has an important role as an autonomous, competitive and efficientsector to provide essential infrastructure goods and services, development of natural resources and areas of strategic concern’. The following are the
integrated strategies devised by the Eighth Plan for public sector restructuring:
1. Restructuring involving modernization, rationalisation, product-mix changes, selective exit and privatisation.
2. Increase in autonomy and performance accountability through the system of Memorandum of Understanding (MOU) between the administrative ministries and central public enterprises launched in the Seventh Plan.
3. Changes in management practices at specific enterprises level to promote efficiency, dynamic leadership, resourcefulness and innovation.
4. A major effort by state governments to promote reforms in public sector.
5. Technology upgradation through an integrated R & D effort and import of technology.
6. Re-orientation of approach in ministries and other government agencies regarding liberalisation and dismantling of regulations.
Environmental Hazards
Environmental hazards have become a matter of very serious concern of humanity. The western societies, having been driven by the culture of consumerism, increased their production rapidly to meet the accelerated consumption. This has resulted in mounting wastages and greater damages to the environment. The culture of rampant consumerism of the West has shifted to the East accompanied by vast number of ‘use and throw’ products.
Further, the pressing developmental needs of the less developed countries like India have resulted in a critical trade-off between growth and environment. The rich countries, after having done enough damage to the environment, now wants to impose many restrictions on the industrial development of less developed countries. At the same time they refuse to transfer many environmental friendly technologies free of cost in order to help the poor countries as well as to protect the environment.
After independence, India launched its heavy industry based development strategy which has resulted in the setting up many new industries, upgradation and modernization of existing industries. Industrialisation and the environmentally unfriendly Green Revolution technology have inflicted heavy damages to the environment. Further, deforestation and aquaculture have also caused severe damages to our environment.
Many legislations and regulatory measures for the protection, conservation and development of the environment have been introduced both by the Union and State governments. Pollution control boards have been set up at different levels of government to address the issues.
The following are some of the recent public policy initiatives in India to control environmental pollution.
1. Formulation of National Environmental Policy 2. Setting up of National Clean Development Mechanism (CDM) Authority as per Kyoto Protocol. 3. Reengineering environmental clearance process
4. Revising the Coastal Regulation Zones (CRZ) 5. Developing a National Chemical Management Profile for the country.
Inspite of all such efforts, polluting industries, particularly many large scale industries, aqua culture, thermal and nuclear power plants have been a significant source of air, water and land pollution on a large scale. At the international level, large scale bombardment of cities, oil fields and continuous wars like the one that Americans are waging against Iraq, frequent nuclear tests conducted by big and small countries, etc are the major sources of
environmental damage.
Industrial Finance
Finance is the backbone of industrial development. The financial requirement of industries may be for the short term to meet ‘working capital’ requirements. Or it may be for a long term to meet the ‘fixed capital’ requirements. To meet such requirements, the industries raise finance from different sources. In India, as in many other countries, industrial finance is available under two broad sources viz. external and internal sources.
Internal Sources
Internal sources of industrial finance consist of funds mobilized from own sources as in the case of small scale units, paid-up capital in the form of equity shares subscription as in the case of large units, own surpluses and reserve funds of industries.
External Sources
External sources of industrial finance include raising of borrowed finance from sources such as public deposits, equity capital, debenture issues and availing loans from commercial banks and other financial institutions.
Financial Institutions
The short term financial requirements can be met from internal sources like public deposits, share capital and commercial bank loans. However, for long term requirements, industries will approach specialized ‘financial institutions’. Financial institutions in developing countries are also referred to as development banks. This implies that their role must be development oriented and not mere lending alone. Thus, they are capable of inducing the
course of development through their policies and programmes. The following are some of the financial institutions available at different levels in India.
At National Level
1. Industrial Finance Corporation of India (IFCI)
2. Industrial Development Bank of India (IDBI)
3. Industrial Credit and Investment Corporation of India (ICICI)
4. Industrial Investment Bank of India (IIBI)
5. National Small Industries Corporation (NSIC)
At State Level
1. Tamil Nadu Industrial Investment Corporation (TIIC) (First of its nature to be set up in India in 1949)
2. State Financial Corporations (SFC)
3. State Industrial Development Corporations (SIDC)
At Intermediate Level
1. Unit Trust of India (UTI)
2. Life Insurance Corporation of India (LIC)
3. General Insurance Corporation of India (GIC)
Role of Small Scale Industries in Economic Development
Small Scale Industries (SSIs) play an important role in the economic development of a country. Their role in terms of production, employment generation, contribution to exports and facilitating equitable distribution of income is very critical. The small scale sector consists broadly of 1) the traditional cottage and household industries viz., khadi & village industries,handicrafts, handlooms, sericulture and coir industries; and 2) modern small scale industries.
The traditional village and cottage industries as distinguished from modern small scale industries are mostly unorganised and located in rural areas and semi-urban areas. They normally do not use power operated machines/appliances and use relatively lower levels of investment and technology. But they provide part-time employment to a very large number of poorer sections of the society. They also supply some essential products for mass consumption and exports.
The modern small scale industry is mostly defined in terms of the size of investment and labour force. The Industries (Development & Regulation) Act 1951 defines SSI having less than 50 workers with the aid of power or less than 100 workers working without the aid of power. The more formal definition is in terms of the fixed assets less than Rs. 35 lakh (1981). In 1991 the limit was raised to Rs. 60-75 lakh. The Ninth Plan fixed the ceiling at Rs. 100 lakh and the Tenth Plan increased to it to 50 corers in the case of hi-tech and export oriented sectors.
Government is extending various steps to the SSI. In India, a unique instrument called reservation in the sense of legal ban on production by large units introduced in 1970s was for the protection and promotion of SSI. During Ninth Plan period, SSI was producing about 8000 items out of which 812 items (15%) were reserved for protection in the small scale sector. In addition, the SSI has been supported and encouraged by various government policies for infrastructure support, technology upgradation, preferential access to credit, preferential policy support, etc.
Over the last five decades the small scale industries (SSIs) have emerged as a dynamic and vibrant sector of the Indian economy by helping to generate more new employment avenues, supplying variety of products, contributing to exports facilitating equitable distribution of income, emerging as outsourcing designations.
The SSI sector has been able to achieve 1 to 2 percentage points higher growth than the growth achieved by the whole industries sector. There were 3.4 million small scale industrial units in India that account for more than 40% of the gross value of output in the manufacturing sector and about 35 % of total exports by the end of march 2002.
The following are some of the specific contributions of SSIs.
1. The contribution of SSIs to the manufacturing sector and GDP asa whole is significant in terms of its share in total value added.
2. SSI performs a very significant role in generating employment opportunities in a sustainable manner.
3. SSI can play a role in mitigating the problem of imbalance in the balance of payment accounts through its export promotion.
4. While the large scale industries are expected to increases the inequities of income and concentration of wealth, SSI is expected to help widespread equal distribution of income and wealth.
5. SSI may provide opportunities to a large number of capable and potential entrepreneurs who are deprived of appropriate opportunities.
6. It can help to release scarce capital towards productive use. 7. SSI can reap the benefits of lean production and can find new cost-efficient techniques of lean production.
8. As small units can use resources more efficiently to the full capacity without any wastage, they may have higher allocative efficiency.
9. As the element of risk is minimum in small scale sectors, more resources will be employed by large number of labour force. Problems of Small Scale Industries
SSIs are facing many problems. The following are some of their major problems.
a) Scarcity of inputs
b) Inadequate capital
c) Marketing
d) Under-utilization of capacity
e) High cost of production
Government Policy on SSI
1. Having realized the importance of small scale industries to the Indian econmy, the government has supported the SSI through various policy measures since independence.
2. The appointment of Karve Committee by thePlanning Commission in 1955 was the first major effort towards the improvement of small scale industries.
3. During the second Five Year, a Japanese team of experts studied the organisation of SSIs in India and made many recommendations including the setting up of industrial estates in large numbers to promote small scale industries.
4. The policy of reservation of items for manufacturing in small scale industries was introduced in 1967. This has received a statutory banking in 1984.
5. A policy package for SSI has been announced in 1991 with the primary objectives of imparting more utility and growth impetus to SSIs.
6. The Tenth Plan announced a policy package on the basis of the recommendations made by S. P. Gupta’s Study Group. It includes policies regarding
a) enhancement of excise duty exemption limit
b) increase in loan limits
c) credit facilities
d) enhancement of investment limitI
Choose the correct answer
Question: A nation’s real strength is reflected in its
a. agriculture
b. Export
c. Import
d. Industrial development
Answer:
D
Question: The process of industrialization is the essential pre- requisite for
a. Generating employment
b. Inducing investment
c. Achieving economic development
d. Increasing per capita income4.
Answer:
C
Question: Which of the following is called as an important agro-based industry
a. Steel
b. Cement
c. Sugar
d. Jute
Answer:
C
Question:The productive capacity of a nation is represented by the progress of
a. agriculture
b. Infrastructure
c. Export
d. Industries
Answer:
D
Question:The new industrial policy was announced in
a.1980
b. 1984
c. 1991
d. 2001
Answer:
C
Fill in the blanks
Question: is one of the oldest as well as the largest industries in India.
Answer:
Textile Industry
Question: …………means the order of the market or capitalist economy relying predominantly on competition and private sector.
Answer:
Liberalism
Question: The main aim of the ……….was to accelerate the growth of the economy through rapid industrialization.
Answer
II Plan
Question: …………plays an important role in the economic development. .
Answer
Industrialisation
Question: …………is defined as transfer of ownership from public to rivate sector.
Answer
Privatisation
Match the following
| 1 Disinvestment process | a. Privatisation |
| 2.Cottage industries | b. Traditional Industries |
| 3.Delicensing | c. Industrial policy of 1991 |
| 4.Small scale units | d. Labour intensive |
| 5.Cement | e. Intermediate good |
Write in one word or two
Question: Give an example for large scale industry.
Answer: Steel industry
Question: Give an example of a country that follows mixed economic system.
Answer: India
Question: Is sugar industry an agro-based industry?
Answer: Yes
Question: What was the main aim of Second Five Year Plan?
Answer: Industrialization
Question: Expand LPG.
Answer: Liberalisation, Privatization, Globalization
