NCERT Solutions Class 11 Indian Economic Development Chapter 2: Indian Economy 1950–1990 (Free PDF)

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The NCERT Class 11 Indian Economic Development Chapter 2: Indian Economy 1950–1990 explores India’s post-independence economic policies, focusing on planning, the public sector’s role, agricultural reforms like the Green Revolution, and objectives such as self-reliance and growth with equity. It highlights achievements and challenges during this period, shaping India’s economic framework. These solutions offer clear, concise, and CBSE-aligned answers for effective exam preparation. You can also download the free PDF for revision.

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NCERT Solutions Class 11 Indian Economic Development Chapter 2: Indian Economy 1950–1990

This section provides detailed and student-friendly answers for the Class 11 Indian Economic Development Chapter 2 exercise questions. Each answer is explained clearly to strengthen understanding and exam preparation.

Exercise 

(Answer in Brief)

  1. Define a plan.
    A plan is a structured framework that outlines the goals, strategies, and policies a government aims to achieve over a specific period. In India post-1950, it refers to the Five-Year Plans by the Planning Commission to promote development, allocate resources efficiently, and tackle issues like poverty and unemployment, laying the foundation for economic growth.
  1. Why did India opt for planning?
    India adopted planning to address post-independence challenges like poverty, unemployment, and underdevelopment. It aimed to utilise scarce resources efficiently, boost industrial growth, reduce regional disparities, and achieve self-reliance. Inspired by a socialist model, planning was seen as a tool to transform the economy and improve living standards after years of colonial exploitation.
  1. Why should plans have goals?
    Plans need goals to provide a clear direction for economic development, ensure efficient resource use, and measure progress. Objectives like growth with equity, self-reliance, and modernisation help address specific issues such as poverty and unemployment, making the planning process focused and effective in achieving desired outcomes for the nation.
  1. What are High-Yielding Variety (HYV) seeds?
    High-yielding Variety (HYV) seeds are specially bred seeds that produce higher crop yields with proper irrigation, fertilisers, and pesticides. Introduced during the Green Revolution in the 1960s, these seeds, such as those for wheat and rice, revolutionised agriculture by significantly increasing food production and supporting India’s goal of self-sufficiency in food grains.
  1. What is marketable surplus?
    Marketable surplus is the portion of agricultural produce left with farmers after meeting their family’s consumption and seed needs. This surplus is sold in the market, contributing to food availability and the rural economy. Its importance grew post-Green Revolution, enabling farmers to generate income and support national food distribution systems.
  1. Explain the need and type of land reforms implemented in the agriculture sector.
    Land reforms were needed to eliminate the exploitative zamindari system, reduce rural inequality, and boost productivity. Types included abolishing intermediaries, tenancy reforms for tenant security, land ceiling for redistribution, and consolidation of holdings. These reforms aimed to empower small farmers and enhance agricultural efficiency across India.
  1. What is the Green Revolution? Why was it implemented, and how did it benefit the farmers? Explain in brief.
    The Green Revolution, starting in the 1960s, introduced HYV seeds, fertilisers, and irrigation to transform agriculture. It was implemented to achieve food self-sufficiency amid frequent famines. Farmers benefited from higher yields and income, though benefits were uneven, favouring those with resources, thus reducing dependence on imports and improving food security.
  1. Explain ‘growth with equity’ as a planning objective.
    ‘Growth with equity’ seeks to achieve economic growth while ensuring fair benefit distribution across society. In India’s planning, it aimed to reduce poverty, bridge regional disparities, and uplift marginalised groups. This objective balanced industrial progress with social justice, promoting inclusive development during the 1950–1990 period.
  1. Does modernisation as a planning objective create a contradiction in the light of employment generation? Explain.
    Yes, modernisation can contradict employment generation. The use of advanced technology and machinery boosts productivity but reduces labour demand, leading to job losses, especially in agriculture and traditional sectors. This challenges the goal of providing jobs to a growing population, creating a tension in India’s planning objectives during 1950–1990.
  1. Why was it necessary for a developing country like India to follow self-reliance as a planning objective?
    Self-reliance was crucial for India to minimise dependence on foreign aid and imports, safeguard against global economic uncertainties, and build a robust industrial base. Post-colonial exploitation necessitated using domestic resources and promoting local industries, ensuring economic sovereignty and resilience, particularly in the 1950s and 1960s.
  1. What is the sectoral composition of an economy? Is it necessary that the service sector should contribute the maximum to the GDP of an economy? Comment.
    Sectoral composition refers to the contribution of agriculture, industry, and services to GDP. The service sector doesn’t need to dominate; during 1950–1990, India relied heavily on agriculture. A balanced sectoral growth is ideal, though a service-led economy often signals advanced development, which India aimed for over time.
  1. Why was public sector given a leading role in industrial development during the planning period?
    The public sector led industrial development to establish a strong base, produce essential goods like steel, and reduce disparities. It controlled key industries, ensured resource allocation for national interest, and promoted self-reliance, as the private sector lacked capacity post-independence, aligning with India’s socialist planning approach.
  1. Explain the statement that green revolution enabled the government to procure sufficient food grains to build its stocks that could be used during times of shortage.
    The Green Revolution increased food grain production, especially wheat and rice, through HYV seeds and modern methods. This surplus allowed the government to procure and stockpile grains, creating a buffer to address shortages during droughts or famines, ensuring food security and stability for the population in times of crisis.
  1. While subsidies encourage farmers to use new technology, they are a huge burden on government finances. Discuss the usefulness of subsidies in the light of this fact.
    Subsidies on fertilisers and seeds encourage farmers to adopt new technology, boosting productivity and food security. However, they strain government finances, causing deficits. Their usefulness lies in supporting small farmers, but targeted and sustainable subsidy policies are essential to balance economic growth and fiscal health.
  1. Why, despite the implementation of the green revolution, 65 per cent of India’s population continued to be engaged in the agriculture sector till 1990?
    Despite the Green Revolution, 65% stayed in agriculture due to slow industrial growth, limited job alternatives, population pressure, and slow urbanisation. The revolution benefited specific regions, leaving many dependent on traditional farming, with insufficient diversification into other sectors by 1990.
  1. Though the public sector is essential for industries, many public sector undertakings incur huge losses and are a drain on the economy’s resources. Discuss the usefulness of public sector undertakings in the light of this fact.
    Public sector undertakings (PSUs) are vital for strategic goods and national interest, but often incur losses due to inefficiency. Their usefulness lies in infrastructure and employment creation, yet reforms are needed to enhance efficiency and reduce financial drain, ensuring they align with economic goals during 1950–1990.
  1. Explain how import substitution can protect the domestic industry.
    Import substitution protects the domestic industry by promoting local production of goods previously imported. Through tariffs and quotas, it shields industries from foreign competition, fostering growth and self-reliance. However, it may limit exposure to global innovations, requiring a balanced approach to sustain long-term industrial development.
  1. Why and how was the private sector regulated under the IPR 1956?
    The private sector was regulated under the 1956 Industrial Policy Resolution to align with national goals like self-reliance and equity. Through licensing and restricting investments in key public sector industries, it prevented monopolies and ensured balanced growth, guiding private enterprises to support India’s planned economic development.
  1. Match the following:
1. Prime MinisterA. Seeds that give large proportion of output
2. Gross Domestic ProductB. Quantity of goods that can be imported
3. QuotaC. Chairperson of the planning commission
4. Land ReformsD. The money value of all the final goods and services produced within the economy in one year
5. HYV SeedsE. Improvements in the field of agriculture
6. Subsidy F. The monetary assistance given by government for production activities

Answer: 1-C, 2-D, 3-B, 4-E, 5-A, 6-F

Also Read: CBSE Class 10 Economics Chapter 1 NCERT Solutions

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Explore Solutions of Class 11: Indian Economic Development

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