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CONTENTS

Page
Subject Chapter Marks %
No.

1. THE RISE OF NATIONALISM IN EUROPE 03

2. NATIONALISM IN INDIA 10
History 18+2 25%
3. THE MAKING OF GLOBAL WORLD 19

4. PRINT CULTURE AND THE MODERN WORLD 30

1. RESOURCES AND DEVELOPMENT 38

2. FOREST AND WILDLIFE RESOURCES 43

3. WATER RESOURCES 45

Geography 4. AGRICULTURE 49 20 25%

5. MINERALS AND ENERGY RESOURCES 54

6. MANUFACTURING INDUSTRIES 62

7. LIFE LINES OF NATIONAL ECONOMY 70

1. POWER SHARING 77

2. FEDERALISM 79

Civics 3. GENDER, RELIGION AND CASTE 83 17+3 25%

4. POLITICAL PARTIES 88

5. OUTCOMES OF DEMOCRACY 95

1. DEVELOPMENT 97

2. SECTORS OF THE INDIAN ECONOMY 101

Economics 20 25%
3. MONEY AND CREDIT 108

4. GLOBALIZATION AND THE INDIAN ECONOMY 114

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 HISTORY
CHAPTER 1: THE RISE OF NATIONALISM IN EUROPE
 1848….Frederic Sorrieu….The Dream of Worldwide Democratic and Social Republic.
 He prepared a series of four prints visualizing his dream of a world made up of ‘democratic
and social Republics.
 In his utopian vision, the peoples of the world are grouped as distinct nations, identified
through their flags and national costume (the United States and Switzerland, France,
Germany, etc.)
 Develops a sense of collective belonging, collective identity by symbolizing fraternity
among the nations of the world.
Nation state….is one in which most of its citizens comes to develop a sense of collective
common identity and shared history or descent.
Eg….Germany, Italy
Modern state…… is one in which a centralized power exercised sovereign control over a
long period of time in Europe
Eg….Austria, Hungary
Various measures created to develop a sense of collective belongingness among the
French people.
(“The first clear expression of nationalism came with the French Revolution in 1789. Examine
the statement.)
 The ideas of la patrie (the fatherland) and le citoyen (the citizen) emphasized to enjoy
the equal rights for all the citizens.
• New French flag (tri color) introduced.
• Estate general was replaced by National Assembly.
• New hymns and oaths were introduced.
• Martyrs were commemorated (honored) in the name of nation.
• Centralized administrative system was placed.
• Uniform laws for all the citizens within the territories.
• Internal customs duties and dues were abolished.
• Uniform system of weights and measures.
• Regional dialects were discouraged and encouraged French to use for speaking and
writing as a common language.
The changes that were happening in France had spread to all other parts of Europe.
As a result, students and all other members of the society also started to set up Jacobin
clubs to develop sense of collective belongingness and identity and nationalism in various
parts of Holland, Belgium, Switzerland, Italy, and Germany.

NAPOLEONIC CODE (Reforms introduced by Napoleon)

He had, no doubt, destroyed the democracy in France and introduced his own Code….Civil
Code….1804.
• Removed all the privileges by birth and encouraged privilege by merit.
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 • Established equality before the law and secured the right to property.
• Simplified administrative divisions.
• Abolished feudal system and freed peasants from serfdom and manorial dues.
• Abolished Guild system.
• Transport and communication systems were improved.
• Peasants, artisans, workers and new businessman were given with freedom to choose
their own part.
• Common national currency was introduced for the easy movement of goods.
• Uniform standardized weights and measures were introduced.
The reaction of the local population was mixed.
Initially the French army was welcomed as the blessing of liberty. But later this turned into
hostility as administration did not go hand in hand with political freedom.
Increased taxation, censorship, forced recruitment to the French army all seemed to
outweigh the advantages of the administrative changes.

How did nationalism and the idea of nationalism emerged in Europe

This was done by three groups….Aristocrats, Peasants, Middle-class people
Aristocrats
• They were socially and politically powerful
• United by a common way of life
• Owned estates in the countryside and town houses
• Spoke French for diplomatic matter
• Families are connected by ties of marriages
• Numerically a small group
Peasants
• Majority population was made up of peasants
• In Western Europe….bulk of land was farmed by tenants and small owners
• In East Europe… estates were cultivated by serfs
Middle class
• Consists of businessman, industrialists, and professionals.
• It was this group spread the idea of nationalism followed by the abolition of
aristocratic privileges that gained popularity.

Liberal Nationalism
• Idea of nationalism allied with the idea of liberalism
• Term is from Latin word …liber…freedom
• It stands for freedom - for the individual and equality of all before the law.
• Also stand for the end of autocracy and clerical privileges by birth.
• Aimed to have a representative government with a constitution and parliament.
• They were against private property.
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 • But not supported Universal Suffrage….all women were excluded from political rights.
• In the case of Economic Liberalism, they encouraged freedom of markets and
abolished all the state-imposed restrictions on the movement of goods and capital.
• As there were no uniform weights and measures earlier, it was difficult for a merchant
to measure his quantity and quality.
• Hence in 1834, Custom union or Zollverein, was formed by Prussia joined by most of
the German states (out of 39)
• It abolished tariff barriers. Also reduced the number of currencies from 30 to 2.
• Railway system also stimulated the movement of goods easily.
Conservatism after 1815
• They believed in the established, traditional institutions of state and society….like the
monarchy, church, social hierarchies, property and families and even in the privilege
by birth.
• They did not tolerate criticism and dissent and sought to curb activities that
questioned the legitimacy of autocratic governments.
• Imposed censorship laws to control newspapers, books, songs which spread
nationalism and freedom.

Treaty of Vienna (1815)

• Britain, Russia, Prussia and Austria who defeated Napoleon joined at Vienna to draw
a settlement for Europe.
• Hosted by Austrian Chancellor Duke Metternich and signed the Treaty of Vienna with
the aim of undoing all the changes that had come about in Europe during the
Napoleonic wars.
• Thus, Bourbon Dynasty was restored to power.
• France lost all the territories that were annexed by Napoleon.
• Army was set in all sides of the country to stop further expansion of France.
• In North….Netherland, in the south….Genoa, Prussia in the west, Russia in the east
took the control.
• But 39 German states were untouched.
• Thus created a new conservative regime order in Europe.

Revolutions 1815
• Secret societies started forming in various parts of Europe to spread nationalism and
freedom.
• Most important was Giuseppe Mazzini of Italy who formed Young Italy in Marseilles
and Young Europe in Berne.
• Collected all likeminded youth people from all over Europe to fight for nationalism and
freedom.
• His relentless opposition to monarchy and his vision of democratic republics frightened
the conservatives.
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 • Thus, Metternich described him as ‘the most dangerous enemy of our social order’.

Revolutions 1830 -1848

In 1830, Bourbon dynasty under Louis Philippe was again overthrown by liberal nationalists
belonging to educated middle class people, professors, school teachers, clerks, and business
people.
Revolution spread across Europe including Italy, Germany, Ireland, and Poland.
Once again Metternich said,’ When France sneezes, the rest of the Europe catches cold’.

Greek war of Independence

 Greece was part of the Ottoman Empire since 15th C.
 In 1821, revolution started by the liberal nationalists.
 They got support from outsiders too as they wish to preserve their Greek culture and
heritage.
 Poets and artists considered Greece as the cradle of European civilization and
mobilized public opinion and funds to support its struggle against the Muslim empire.
 Finally, Treaty of Constantinople 1832 recognized Greece as an independent nation.

Romantic Imagination (Culture played a vital role in developing the idea of nation in Europe.
Justify)
Culture played a vital role in developing the idea of nation in the forms of art, poetry, stories,
and music to shape nationalist feeling.
Their effort was to create a sense of shared collective heritage, a common cultural past, as
the basis of nation.
 This first started in Germany.
According to them, German culture was to be formed among common people (Dasvolk).
It was through folk songs, folk poetry, and folk dance that the true spirit of nation (Volkgeist)
was popularized.
Hence, they started collecting and recording all those with the help of vernacular languages
to spread the same to the illiterates too.
 Next happened was in Poland, by Karol Kurpinski, who celebrated the national
struggle through his operas, music, tuning folk dances like the Polonaise and Mazurka
into nationalist symbols.
Language too played an important role in developing nationalist sentiments.
After Russian occupation, the Polish language was forced out of schools and Russian
language was imposed everywhere.
In 1831, an armed rebellion took place against Russia by which Polish was used for church
gatherings and all religious instructions.
As a result, many priests and bishops were arrested.

1830’s was a period of great economic hardships.

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 • Unemployment existed and hence the population started to migrate from rural to
urban.
• Small producers faced stiff competition from the imports of machine-made goods from
England especially in the textile industry.
• Peasants struggled with the burden of feudal dues and obligations.
• Price of food increased due to bad harvests.
• Food shortage faced.
• And thus, Louis Phillipe was forced to flee.
• National Assembly turned to Republic.
• Granted Universal suffrage to all adult males above 21.
• Guaranteed rights to work.
• National workshops are set up to provide employment.

Silesia Revolt (1845)….revolt against contractors who supplied raw materials and gave
orders for finished goods but drastically reduced their payments.

Revolt in Germany…1848 (Frankfurt Parliament)

• Middle class professionals, businessman, artisans met at Frankfurt and decided to
vote for an All-German National Assembly.
• 831 elected representatives marched to take their places in the Frankfurt Parliament
convened in the Church of St Paul in 1848.
• They drafted a constitution for a German nation headed by a monarch subjected to
Parliament.
• But Friedrich Wilhelm IV, King of Prussia rejected it and joined other monarchs to
oppose the elected assembly.
• Thus, the social basis of parliament was eroded.
• As the parliament was supported by middle class people who resisted the demand of
workers and artisans, the assembly was disbanded by the troops.

Women Contribution
• Started forming their own political associations, founded newspapers and taken part
in political meetings and demonstrations.
• Denied Universal suffrage
• They were admitted only as observers to stand in the visitors’ gallery.

By 1848, conservatives could not restore their old power.

They realized the need for change, and this could only be ended by granting concessions to
the liberal nationalist revolutionaries.
Hence, they abolished serfdom and bonded labor in Habsburg Empire and Russia.

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Unification of Germany
• 1848… middle class Germans tried to unite German confederation into one nation
state governed by an elected Parliament.
• But this was repressed by monarchs with the support of military and landowners
(junkers) from Prussia.
• From then on, Prussia took the overall control of Germany for its unification.
• Its Chief Minister, Otto Van Bismark, the architect of this process, carried out with the
help of the Prussian army and bureaucracy.
• 3 wars over 7 years….with Austria, France, Denmark….ended in Prussian victory.
• Completed the unification process by proclaiming Kaiser Wilhelm 1 of Prussia as the
King.
• The new state modernized a new currency system, banking, legal and judicial orders.
• New uniform weights and measures were also introduced.

Unification of Italy
• Italy too was politically fragmented and were scattered over several dynastic states
as well as the multinational Habsburg Empire.
• During 19th C, it was divided into 7 states of which only Sardinia –Piedmont was ruled
by an Italy.
• North was controlled by Austria – Hungary
• South was under Bourbon Kings of Spain
• Centre was under the Pope.
• There was no common language, only had many vernacular languages.
• Unification process was led by Giuseppe Mazzini to make it a republic with the help of
Young Italy for the economic development and political dominance.
• Sardinia –Piedmont under the rule of King Victor Emmanual II tried to unify Italian
states through the war.
• Chief Minister Cavour through a tactful diplomatic alliance with France Sardinia
Piedmont succeeded in defeating the Austrian army in 1859.
• Giuseppi Garibaldi also joined the movements to unite Italy
• In 1860….Kingdom of Sicilies joined.
• In 1861, King Victor Emmanual II was proclaimed as the King of United Italy.
• In 1866….Venetia joined
• Finally, in 1870…Papal state joined.

Unification of Britain
• The primary identities of people inhibited the Britain Isles were ethnic ones…English,
Welsh, Scot and Irish.
• Each had their own cultural and political traditions.

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 • But English people were rich in wealth, importance and power which enabled them
to influence other nations of the island.
• And so, the English Parliament was the instrument through which a nation state can
be forged with England as its capital.
• The Act of Union 1707, between England and Scotland resulted in the formation of
United Kingdom of Great Britain.
• This helped England to impose its influence on Scotland which led to the suppression
of Scottish culture and political institutions.
• Catholic clans suffered a lot due to this….not even allowed to use their Gaelic
Language or to wear their national dress and even throwed out of the country.
• Ireland faced the same issue due to the division between Catholics and Protestants.
• English helped Protestants as against Catholics.
• Thus, Ireland joined United Kingdom in 1801.
• Thus, a new British nation with English culture came into power with the symbols of
the Britain….British flag (Union Jack), National anthem (God Save Our Noble King),
English as the official language.

Visualizing the Nation

• 18th and 19thcentury, artists found a way to personify the nation.
• They represented a country as if it were a person.
• Thus, nations were portrayed as female figures to personify the nation do not stand
for any particular woman in real life; rather it sought to give the abstract idea of a
nation in concrete form.
• Thus the female figure became the allegory of the nation.
• The allegory of France is Marianne….stands for liberty and republic, red cap, tricolor,
cockade and was marked in coins and stamps.
• The allegory of Germany is Germania….wears a crown of oak leaves (heroism).

Nationalism and Imperialism

• Through the 18th and the mid-19th century, Europe was marked by a lot of chaos
and turmoil.
• After 1871, there was a significant change in the concept of nationalism in Europe.
 The Balkan was a region of geographical and ethnic variations comprising modern-
day Romania, Bulgaria, Albania, Greece, Macedonia, Croatia, Bosnia-Herzegovina
Slovenia, Serbia, and Montenegro. The inhabitants were called Slaves.
 A large part of the Balkans was under the control of the Ottoman Empire while some
other parts were under the control of Russia and Austria causing a complex problem.
 The spread of ideas of Romantic nationalism in the Balkans together with the
disintegration of the Ottoman Empire made the region very explosive.
 The Balkan region became a region of intense conflict over the expansion of territory.

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  At the same time, the great European Powers – Russia, Germany, England, and
Austro-Hungary were keen on taking the control of the Balkan region, since it was
important from the trade point of view.
 This led to a series of wars in the region and finally became the cause of the First
World War.
 During this period, nationalist groups became increasingly intolerant of each other
and were ever ready to go to war.
• Major European powers manipulated the nationalist aspirations to further their own
imperialist (strong nations controlling weak nations) aims.
 One by one, European nationalities broke away from their control and declared
independence.

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CHAPTER 2: NATIONALISM IN INDIA

Impact of World War 1 on India

 The war created a new economic and political situation in India.
 It led to a huge increase in defense expenditure.
 Increased taxes.
 Customs duties were raised and income tax introduced.
 Prices of food increased.
 Forced recruitment of villagers to provide soldiers for the war effort, leading to anger
and resentment.
 Bad harvests in 1918-19 and 1920-21 resulted in food shortages.
 Followed by a deadly influenza epidemic.
 12 to 13 million died due to famine and epidemics.

The Idea of Satyagraha

 The concept of Satyagraha (the search for truth) and non-violence was originated in
South Africa where Gandhi successfully used it against racial discrimination.
 It argues that a righteous cause doesn't need violence to succeed.
 The idea is to win over the oppressor through peaceful means, appealing to their
sense of right and wrong.
 Satyagraha believes that truth will eventually prevail through persistent non-violent
struggle.

Examples of Satyagraha Movement: After arriving in India, Mahatma Gandhi successfully

organized Satyagraha movements in various places.
 Champaran (1917): Bihar….to support indigo planters for increasing the price of
indigo.
 Kheda (1917): Gujarat………to support peasants demanding relaxed revenue
collection due to crop failure and an epidemic.

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  Ahmedabad (1918): Gujarat……….to support the cotton mill workers to increase
their wages.

The Rowlatt Act (1919)

 Gandhiji decided to launch a nationwide Satyagraha against the proposed Rowlatt Act
of 1919.
 It gave the government the power to repress any political activity or demonstration.
 It allowed the detention of political prisoners without trial for two years.
 The British government could arrest anyone and search any place without a warrant.
The Rowlatt Act was opposed by Indians in the following ways:
 A non-violent civil disobedience against the unjust law began.
 Rallies were organized in various cities.
 Workers went on strike in railway and telegraph departments.
 Shops were closed in protest.

Jallianwala Bagh incident: 1919

 On 13 April, the Jallianwala Bagh incident took place.
 On that day a crowd of villagers gathered at Amritsar to attend Baisakhi fair in the
enclosed ground of Jallianwala Bagh.
 Being from outside the city, they were unaware of the martial law that had been
imposed.
 General Dyer entered the area, blocked the exit points, and opened fire on the crowd,
killing hundreds.
 His intention was to create in the minds of satyagrahis a feeling of terror and tensions.

The reasons for starting the Khilafat Movement

 Gandhiji now felt the need to launch a more broad-based movement in India.
 Hence, he wished to unify Hindus and Muslims against Britishers.
 With the defeat of Ottoman Turkey in the First World War, there were rumors that a
harsh peace treaty was going to be imposed on the Ottoman emperor (the Khalifa).
 Muslims all over the world began to support the temporal powers of the Khalifa. In
India, too Khilafat Committee was formed under the leadership of Ali
Brothers….Muhammad Ali and Shaukat Ali.
 At the Calcutta session of the Congress in September 1920 he convinced other leaders
of the need to start a non-cooperation movement in support of Khilafat and Swaraj.

Why Non-cooperation?
 In his famous book Hind Swaraj (1909) Gandhiji declared that British rule was
established in India with the cooperation of Indians and had survived only because of
this cooperation. If Indians refused to cooperate, British rule in India would collapse
within a year, and Swaraj would come.
What is the Non-cooperation movement?

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  At the Congress session at Nagpur in December 1920, a compromise was worked out
and the Non-Cooperation program was adopted.
 It should begin with the surrender of titles that the government awarded, and a
boycott of civil services, army, police, courts and legislative councils, schools, and
foreign goods.
 Non-Cooperation-Khilafat Movement began in January 1921.
 All of them responded to the call of Swaraj, but the term meant different things to
different people.
Differing Strands within the Movement
The Rebellion in the Towns
 The movement started with middle-class participation in the cities.
 Thousands of students left government-controlled schools and colleges
 Headmasters and teachers resigned.
 Lawyers gave up their legal practice.
 The council elections were boycotted in most provinces except Madras.
 Foreign goods were boycotted, liquor shops picketed, and foreign cloth burnt in huge
bonfires.
 Merchants and traders refused to trade in foreign goods.
 Production of Indian textile mills and handlooms went up.

The Non-Cooperation Movement in the cities gradually slowed down because:

 Khadi cloth was more expensive than mass-produced mill cloth and poor people could
not afford to buy it.
 The boycott of British institutions failed because Indian institutions could not be set
up in place of the British ones.
 Students and teachers began joining back to government schools.
 The lawyers too joined back to work in government courts.

Rebellion in the Countryside

1. Awadh Peasants:
 Peasants of Awadh were led by Baba Ramchandra, a sanyasi. The movement was
against talukdars and landlords.
 The landlords and talukdars demanded exorbitantly high rents and other cesses.
 Peasants had to do beggar (unpaid work) and work at landlords’ farms without any
payment.
 They had no job security, being regularly evicted.
 The peasant movement demanded a reduction of revenue, the abolition of beggar,
and a social boycott of oppressive landlords.
 In many places, Nai-dhobi bandhs were organized by panchayats to deprive landlords
of the services of barbers and watermen.

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  Oudh Kisan Sabha was set up by Jawaharlal Nehru, Baba Ramchandra, and a few
others to solve this issue.
 As a result, in 1921, the houses of talukdars and merchants were attacked, bazaars
were looted, and grain hoards were taken over.
2. Bardoli Satyagraha
 In 1928, Vallabhbhai Patel led the peasant movement in Bardoli, a taluka in Gujarat,
against enhancement of land revenue.
 The struggle was widely publicized and generated immense sympathy in many parts
of India.
3. Tribal Peasants:
 The colonial government had closed large forest areas preventing people from
entering the forests to graze their cattle, or to collect fuelwood and fruits. This
enraged the tribal people of Gudem Hills of Andhra Pradesh.
 Even their traditional rights were being denied.
 When the government began forcing them to contribute beggar (work without
payment) for road building, these people started to revolt.
Role of Alluri Sitaram Raju:
 Alluri Sitaram Raju was a tribal leader in the Gudem hills of Andhra Pradesh.
 He started a militant guerrilla movement against the colonial policies.
 He was inspired by Gandhiji’s Non-Cooperation movement and persuaded people to
wear khadi and give up drinking.
 But at the same time, he asserted that India could be liberated only using force, not
non-violence.
 He claimed that he had a variety of special powers like making astrological predictions,
healing people, and surviving bullet shots.
 Thus, they attacked police station, attempted to kill British officers and carried on
guerilla warfare for achieving swaraj.
 Later, he was captured and executed in 1924.
4. Swaraj in the Plantations of Assam
 For plantation workers in Assam, Swaraj meant the right to move freely in and out of
the confined space in which they were enclosed, and it meant retaining a link with
the village from which they had come.
 Under the Inland Emigration Act of 1859, plantation workers were not permitted
to leave the tea gardens without permission, and in fact, they were rarely given such
permission.
 When they heard of the Non-Cooperation movement, thousands of workers defied
the authorities, left the plantations, and headed home.
 They believed that Gandhi Raj was coming, and everyone would be given land in their
own villages.
 They, however, never reached their destination. Stranded on the way by a railway
and steamer strike, they were caught by the police and brutally beaten up.

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At Chauri Chaura (1922) in Gorakhpur (UP), a peaceful demonstration in a bazaar turned
into a violent clash with the police.
Peasants set fire to a police station, killing 22 policemen.
Hearing of the incident, Mahatma Gandhi called a halt to the Non-Cooperation Movement.

Towards Civil Disobedience

Gandhiji decided to withdraw from the Non-Cooperation Movement in February 1922
because:
 The movement was turning violent in many places.
 He felt that the satyagrahis needed to be properly trained before they would be ready
for mass struggles.
 Within the INC, few leaders need to participate in the elections for provincial council,
so that they can know about the steps that the British govt take up in future.

The first was the effect of the worldwide economic depression. Agricultural prices began to
fall from 1926 and collapsed after 1930. As the demand for agricultural goods fell and exports
declined, peasants found it difficult to sell their harvests and pay their revenue. By 1930,
the countryside was in turmoil.
Simon Commission:
 Set up in response to the nationalist movement, the commission was to look into the
functioning of the constitutional system in India and suggest changes.
 The problem was that the commission did not have a single Indian member. They
were all British.
 So, people started a peaceful demonstration and raised slogan….Simon Go Back
(1928).
 LalaLajpat Rai was assaulted by the British police during this demonstration against
the Simon Commission. He succumbed to injuries that were inflicted on him during
the demonstration.

To win them over, Lord Irwin, announced in October 1929, a vague offer of ‘dominion status’
for India in an unspecified future, and a Round Table Conference to discuss about future
constitution.
In December 1929, under the presidency of Jawaharlal Nehru, the Lahore Congress
formalized the demand for ‘Purna Swaraj’ or full independence for India.
It was declared that 26 January 1930 would be celebrated as Independence Day when
people were to take a pledge to struggle for complete independence.

The Salt March and the Civil Disobedience Movement

 On 31 January 1930, Gandhiji sent a letter to Viceroy Lord Irwin stating 11 demands,
the most stirring of which was the demand to abolish the salt tax.

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  Salt was one of the most essential items of food. Tax on salt and the government
monopoly over its production, Gandhi declared, revealed the most oppressive face of
British rule.
 Irwin was unwilling to negotiate and so, Mahatma Gandhi started his famous 240-
mile-long Salt March accompanied by 78 of his trusted volunteers.
 The march was over 240 miles, from Gandhiji’s ashram in Sabarmati to the Gujarati
coastal town of Dandi.
 On 6 April he reached Dandi, and ceremonially violated the law, manufacturing salt
by boiling seawater.
Features of the Civil Disobedience Movement:
 The movement started with Salt March.
 Thousands broke the salt law.
 Foreign clothes were boycotted.
 Liquor shops were picketed.
 Peasants refused to pay taxes.
People were now asked not only to refuse cooperation with the British but also to break
colonial laws.
Gandhiji relaunched the Civil Disobedience Movement after the Second Round Table
Conference because:
1. When Mahatma Gandhiji went to the Round Table Conference in December 1931, he
returned disappointed as the negotiations were broken down.
2. Back in India, he discovered that the government had begun a new cycle of
repression.
3. Ghaffar Khan and Jawaharlal Nehru were both in jail
4. The Congress had been declared illegal.
5. A series of measures had been imposed to prevent meetings, demonstrations, and
boycotts.

The reasons for the participation of various social classes and groups in the Civil
Disobedience Movement are as follows:
1. Rich peasants:
 Rich peasant communities like the Patidars of Gujarat & the Jats of Uttar Pradesh
joined the movement because being producers of commercial crops they were hard
hit by the trade depression and falling prices.
 The refusal of the government to reduce the revenue demand made them fight
against high revenues.
2. Poor peasants:
 Joined the movement as they found it difficult to pay rent.
 They wanted the unpaid rent to the landlord to be remitted.
3. Merchants and Industrialists:

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  Indian merchants and industrialists were keen on expanding their businesses and
reacted against colonial policies that restricted business activities.
 They wanted protection against imports of foreign goods, and a rupee-sterling foreign
exchange rate that would discourage imports.
 To organize business interests, they formed the Indian Industrial and Commercial
Congress(IICC) in 1920 and the Federation of the Indian Chamber of Commerce and
Industries (FICCI) in 1927.
 Led by prominent industrialists like PurshottamdasThakurdas and G. D. Birla, the
industrialists attacked colonial control over the Indian economy and supported the
Civil Disobedience Movement.
 They gave financial assistance and refused to buy or sell imported goods.
 Most businessmen wanted to flourish in trade without constraints.
4. Industrial working class:
 They did not participate in large numbers except in the Nagpur region.
 Some workers did participate, selectively adopting some of the Gandhian programs,
like boycotts of foreign goods, as a part of their own movements against low wages
and poor working conditions.
5. Women:
 There was large-scale participation of women in the movement.
 They participated in protest marches, manufactured salt, and picketed foreign cloth
and liquor shops.
 Many went to jail.
 In urban areas these women were from high-caste families; in rural areas they came
from rich peasant households.
 They began to see service to the nation as a sacred duty of women.
 Gandhiji was convinced that it was the duty of women to look after home and hearth,
be good mothers and good wives.
 And for a long time, the Congress was reluctant to allow women to hold any position
of authority within the organization. It was keen only on their symbolic presence.

The limitations of the Civil Disobedience Movement were:

Apart from these social groups, another group...
 Untouchables (Dalit or oppressed)…too had different notion on Swaraj.
For a long time, the Congress had ignored the Dalits, due to sanatanis (the conservative
high-caste Hindus).
It was Gandhiji’s who supported the ‘untouchables’ (harijans or God’s children).
And organized satyagraha to secure them entry into temples, and access to public wells,
tanks, roads and schools ,cleaned toilets to dignify the work of the Bhangi (the sweepers),
and persuaded upper castes to change their heart and give up ‘the sin of untouchability’.
The Dalit leaders began organizing themselves demanding……
 reserved seats in all educational institutions, and
 a separate electorate that would choose Dalit members for legislative councils.

16
  Political empowerment, they believed, would resolve the problems of their social
disabilities.
 At Maharashtra and Nagpur region their organization was quite strong.

Reasons for the Poona Pact of September 1932:

 Dr B.R. Ambedkar, who organized the Dalits into the Depressed Classes Association
in 1930, clashed with Mahatma Gandhi at the Second Round Table Conference by
demanding separate electorates for Dalits.
 When the British government agreed Ambedkar’s demand, Gandhiji began a fast unto
death.
 He believed that separate electorates for Dalits would slow down the process of their
integration into society.
 Ambedkar ultimately accepted Gandhiji’s position, and the result was the Poona Pact
of September 1932.

The Poona Pact of September 1932 gave the Depressed Classes (Schedule Castes) reserved
seats in provincial and central legislative councils, but they were to be voted in by the general
electorate.

Reaction of the Muslim political organizations in Indiain their response to the Civil
Disobedience Movement:
 Large sections of Muslims were lukewarm in their response to the Civil Disobedience
movement.
 The decline of Khilafat and Non-Cooperation movements led to the alienation of
Muslims from Congress.
 From the mid-1920s, the Congress was seen to be associated with Hindu nationalist
groups like the Hindu Mahasabha.
 Relations between Hindus and Muslims worsened and each community organized
religious processions with militant fervour, provoking Hindu-Muslim communal clashes
and riots in various cities.
 Every riot deepened the distance between the two communities
 The Muslim League gained prominence with its claim of representing Muslims and
demanding a separate electorate for them.
 Muhammad Ali one of the leaders of the Muslim League, was willing to give up the
demand for separate electorates, if Muslims were assured reserved seats in the
Central Assembly and representation in proportion to population in the Muslim-
dominated provinces (Bengal and Punjab).
 But all hope of resolving the issue at the All-Parties Conference in 1928 disappeared
when M.R. Jayakar of the Hindu Mahasabha strongly opposed efforts at compromise.

The Sense of Collective Belonging

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The sense of collective belonging was developed among the people through a variety of
cultural processes including history, fiction, folklore, songs, popular prints, symbols. This
was done through the following four steps:-
1. Introduction of new figures and images
 The identity of the nation in India is symbolized by the image of Bharat Mata created
by Bankim Chandra Chattopadhyay.
He wrote ‘VandeMataram’ as a hymn to the motherland (1870). Later it was included
in his novel – Anandamath- and widely sung during the Swadeshi movement in
Bengal.
 Moved by the Swadeshi movement, Abanindranath Tagore painted Bharat Mata and
portrayed it as an ascetic figure. She is shown as calm, composed, divine, and
spiritual.
 In subsequent years, the image of Bharat Mata acquired many different forms, by
different artists.
2. Preservation/revival of traditional Indian folklores
 Ideas of nationalism also developed through a movement to revive Indian folklore.
 It was essential to preserve this folk tradition to discover one’s national identity and
restore a sense of pride in one’s past.
 In Bengal, Rabindranath Tagore himself began collecting ballads, nursery rhymes and
myths, and led the movement for folk revival.
 In Madras, Natesa Sastri published a massive four-volume collection of books like -
Tamil folk tales, The Folklore of Southern India.
He believed that folklore was national literature; it was ‘the most trustworthy
manifestation of people’s real thoughts and characteristics.’
 Icons and symbols in unifying people and inspire in them a feeling of nationalism.
3. Introduction of new Flag:
 During the Swadeshi movement in Bengal, a tricolor flag (red, green, and yellow) was
designed.
 It had eight lotuses representing eight provinces of British India, and a crescent moon,
representing Hindus and Muslims.
 By 1921, Gandhiji had designed the Swaraj flag. It was again tricolor (red, green and
white) and had a spinning wheel in the centre, representing the Gandhian ideal of
self-help.
 Carrying the flag, holding it aloft, during marches became a symbol of defiance.
4. Reinterpretation of actual history
 By the end of the nineteenth century many Indians began feeling that to instill a sense
of pride in the nation; Indian history had to be thought about differently.
 The British saw Indians as backward and primitive, incapable of governing
themselves.
 In response, Indians began looking into the past to discover India’s great
achievements.

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  They wrote about the glorious developments in ancient times when art and
architecture, science and mathematics, religion and culture, law and philosophy, and
crafts and trade flourished.
 These nationalist histories urged the readers to take pride in India’s great
achievements in the past and struggle to change the miserable conditions of life under
British rule.
 When the past being glorified was Hindu, when the images celebrated were drawn
from Hindu iconography, then people of other communities felt left out.
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CHAPTER 3: THE MAKING OF GLOBAL WORLD

The Pre-modern World

 Globalization is a long-term process, not just a recent phenomenon.
 Trade, migration, the movement of capital, and the spread of ideas and diseases have
all contributed to globalization.
 Evidence of globalization can be found as far back as 3000 BC.
 Cowdies(the Hindi cowdi or seashells, used as a form of currency) from the Maldives
were used as currency in China and East Africa for over a millennium.
 The long-distance spread of disease-carrying germs can be traced back to the seventh
century.
 By the thirteenth century, globalization was an unmistakable link between different
parts of the world.

Silk Routes Link the World

 The silk routes are a good example of vibrant pre-modern trade and cultural links
between distant parts of the world.
 The name ‘silk routes’ point out the importance of West-bound Chinese silk cargoes
along this route.
 Historians have identified several silk routes over land and by sea connecting vast
regions of Asia with Europe and northern Africa.
 Chinese pottery, textiles and spices from India and Southeast Asia also traveled the
same route.
 In return, precious metals (gold and silver) flowed from Europe to Asia.
 Early Christian missionaries and Muslim preachers, Buddhism traveled this route to
Asia.

Food Travels: Spaghetti and Potato (Food offers many examples of long-distance cultural
exchange. Examine the statement)
 Traders and travelers introduced new crops to the lands wherever they traveled.
 Example: spaghetti and noodles:

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  It is believed that noodles travelled west from China to become spaghetti. Or, perhaps
Arab traders took pasta to Sicily, an island now in Italy.
 Potatoes, soya, groundnuts, maize, tomatoes, chilies, sweet potatoes, and so on were
only introduced in Europe and Asia after Christopher Columbus accidentally
discovered the Americas.
 Europe’s poor began to eat better and live longer with the introduction of the humble
potato.
 Ireland’s poorest peasants became so dependent on potatoes that when disease
destroyed the potato crop in the mid-1840s, hundreds of thousands died of starvation.
Conquest, Disease, and Trade
 The Indian subcontinent and Indian Ocean was central and crucial point for the flow
of goods.
 After the discovery of America, its vast lands and abundant crops and minerals began
to transform trade and lives everywhere.
 Precious metals, particularly silver, from mines in Peru and Mexico also enhanced
Europe’s wealth and financed its trade with Asia. For example, EL Dorado.
 Colonization also started with the help of biological warfare in this time. For example
the Spanish conqueror’s most powerful weapon was not a conventional military
weapon instead they used germs like smallpox which spread deep into the continent
before any European could reach there.
 European flee to America in the 19th century because of the following reasons:
- Poverty and hunger were common in Europe.
- Cities were crowded and deadly diseases were widespread.
- Religious conflicts were common and religious dissenters were persecuted.
- Therefore, thousands fled Europe for America where plantations were worked
by slaves captured in Africa for growing cotton and sugar for European markets.
 Until the 18th C, China and India were among the world’s richest countries.
 But later, China reduced their role and the rising importance of the Americas gradually
moved towards Europe and now emerged as the centre of world trade.

The Nineteenth Century (1815-1914)

The world changed profoundly in the 19th century as economic, political, social, cultural and
technological factors, interacted in complex ways to transform societies and reshape external
relations.
Economists have identified three types of flows or movements and were closely related and
impacted people’s lives.
1. The Flow of Trade: It refers to large trade in goods, e.g., England started
exporting machine made cotton pieces to Asian countries, especially to India. (e.g.,
cloth or wheat).
2. The Flow of Labour: It refers to the migration of workers in search of
employment. This flow also included the indentured labourers who were employed in
plantations, mines and in road or railway construction projects.
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 3. The Flow of Capital: This includes movement of capital for short term or long-
term investments over long distances.

Corn Laws
In 19th C, Britain considered self-sufficiency in food as one which lead to social conflict and
lower living standards because of the following factors.
 The expansion of urban centres and growth in industries led to an increase in the
population and demand for agricultural goods, leading to an increase in the prices of
food grains.
 The government restricted the import of corn due to pressure from landowner groups
and thus introduced Corn Laws.
 But Industrialists and urban dwellers opposed these laws and forced the British
government to abolish them.
 There was a very poor harvest in 1816. This caused the increase in food price rapidly.
 Industrial workers started demanding higher wages due to higher food prices.
 There were food riots all over Britain.
Impact(Consequences) of Scrapping the Corn Laws
 After the abolition of the Corn Laws, food could be imported into Britain more cheaply
than producing within the country.
 British agriculturists were unable to compete with imports.
 Vast areas of land were now left uncultivated and thousands of men and women were
unemployed and so they migrated to the cities or overseas.
 Due to a fall in prices, consumption of food grains in Britain rose.
 Thus, Russia, America and Australia and some East European countries started
exporting food grains to Britain.
How does a global agricultural economy take shape?
 Industrial growth in Britain led to higher incomes and more food imports.
 Food production was expanded and lands were cleared in East Europe, America,
Australia and Russia to meet British demand.
 Capital flowed from financial centres such as London.
 Railways and seaports were built while old ones were expanded to ship more cargoes.
 Nearly 60% of the trade comprised of ‘primary products’ i.e., agricultural products
and minerals.
 Nearly 50 million Europeans migrated to America and Australia in search of better
opportunities.
 Thus, a global agricultural economy took shape, followed by complex changes in
labour movement patterns, technology, capital flows and ecologies by 1890.
 In India, similar changes had occurred in West Punjab. Here the British government
built a network of irrigation canals that converted semi-desert wastes into fertile
agricultural lands that could grow cotton and wheat for export.

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  These areas were called Canal Colonies and peasants from other parts of Punjab
inhabited the Canal Colonies.
Role of technology
 Steamships, railways and telegraph were important inventions that transformed the
19th century world.
 They transported goods from one place to another more cheaply and faster.
 The development of refrigerated ships enabled transportation of perishable items like
meat over long distances.
 This reduced shipping costs and lowered meat prices in Europe.
 The poor people in Europe could now consume meat, butter and eggs to their diet.
 Better living conditions led to a peaceful environment in the country and provided
strength to imperialism i.e. colonization of Asian and African countries.
Impact of Colonialism in the late 19th Century
 Most of the colonies lost their political freedom especially in Africa.
 It brought about many painful economic, social and ecological changes.
 Belgium and Germany become new colonial powers apart from Britain, France and US.
 The boundaries of several African countries are straight lines because rival European
powers in Africa drew the borders to demarcate their respective territories.
Europe’s interest in Africa
 It’s because of vast natural resources and livestock (cattle) and the smaller
population in Africa hoping to establish plantations and mines.
 When Europeans arrived in Africa, they found that people were not ready to work as
laborers and so they faced a shortage of labor willing to work for wages.
 They adopted several coercing methods to force the Africans to work on wages.
- Heavy taxes were imposed which could be paid only by working for wages on
plantations and mines.
- Inheritance laws were changed so that peasants were displaced from land.
- Mine workers were enclosed in compounds and not allowed to move about
freely
- Nature also played havoc as the spread of Rinderpest, an animal disease,
destroyed the livestock wealth of Africans forcing them work as laborers on
wages.
Spread of Rinderpest and its impact
 In Africa, in the 1890’s Rinderpest, a fast-spreading disease of cattle plague,
transformed the people’s life.
 Rinderpest reached Africa in the late 1880s and was carried by infected cattle
imported from British Asia to feed Italian soldiers who were invading Eritrea in East
Africa.
 Rinderpest entered eastern Africa and spread like wildfire and killed 90% of the cattle
which were the main wealth of the African people.

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  The destruction of cattle impacted African livelihoods and enabled European
colonizers to conquer and subdue Africa.

Indentured Labor Migration from India (How did colonization of India change the world?)
Indentured labor means bonded laborers who are under contract to work under an employer
for a specific time period.
Two sides of the Indentured Labor System:
1. On one side economic growth and high income for some while there was misery and
poverty for others.
2. Technological advances in some areas while new forms of coercion in others.

Indentured labor from India

 Thousands of Indian and Chinese laborers were hired under contracts to work in the
mines, plantations and construction projects of Imperial Britain.
 Most Indian indentured workers were from the present-day regions of Bihar, Central
India, eastern Uttar Pradesh and Tamil Nadu for a period of five years to work on
plantations.
 The destinations of Indian indentured migrants were Fiji, Mauritius and Caribbean
islands (Trinidad, Guyana, Surinam), Ceylon, Malaya.
 Many indentured laborers agreed to take up work to escape poverty and oppression
in their villages.
 In the mid-19th century due to the arrival of Britishers these regions experienced
many changes which forced the people to migrate in search of work.
 The various reasons for this indentured labor from India were
- Due to industrialization the cottage industries had declined.
- Due to commercialization of agriculture, land rents rose.
- There was shortage of land as lands were cleared for mines and plantations.
Exploitation by Recruiting Agents
 The recruitment of the indentured laborers was through the agents engaged by the
employers for which the agents were paid a small commission.
 Most of the indentured workers migrated in the hope of a bright future but they were
exploited by the recruiting agents and by the employers.
 The agents provided false information regarding their work place, working conditions
and facilities.
 Sometimes agents even forcibly abducted less willing migrants.
 Writer V S Naipaul and cricketers, Shivnarine Chanderpaul and Ramnaresh
Sarwan are descendants of indentured labor migrants from India are the examples.
In the 19th C, indenture had been described as a ‘new system of slavery’ because of the
following reasons:

23
  The agents used to provide false information to the migrants regarding the place of
work, nature of work, living and working conditions and the modes of travel.
 Living and working conditions were harsh.
 Workers had few legal rights.
 They were paid less wages.
 They were treated as slaves.
 If the workers tried to escape and were caught, they had to face severe punishment.

Fusion of Culture – Adopting ways of survival

The indentured laborers had to live in a newer cultural atmosphere at their workplace. They
evolved their own ways of expressing themselves.
It was cultural fusion in which things and people from different places get mixed and blended
with different cultures. Such a fusions brings a new culture which is a mix of traits of the
local culture and the people’s native original culture.

For example:
 The annual Muharram procession in Trinidad called Hosay (for Imam Hussain) in
which the workers of all the races and religions joined in this carnival.
 The protest religion of Rastafarianism (which was made famous by the Jamaican
reggae star Bob Marley) which reflects the social and cultural links of Indian migrants
and the Caribbean.
 Indentured laborers started creating their own way of enjoyment like chutney music.

Abolition of Indentured Labor System (1921) by the Indian nationalist leaders

Indian entrepreneurs Abroad

 Bankers like Shikaripuri Shroffs and Nattukottai Chettiars financed export-oriented
agriculture in Central and Southeast Asia.
 They used a sophisticated money transfer system and even developed indigenous
forms of corporate organizations.
 Indian traders and moneylenders also followed European colonizers into Africa.
 Sindhi traders from Hyderabad (in today’s Pakistan) sold local and imported curios to
tourists across the world.

Indian trade, colonialism and global system

 Earlier, India was the main exporter of fine cotton to Britain and Europe.
 When the British cotton industries began to expand after the industrialization, they
put pressure on the government to restrict the import of cotton to Britain for
protecting local industries.
 As a result, tariffs were imposed on the import of cotton from India.
 This led to a decline of exporting Indian cotton to Britain.
 India also faced stiff competition in other international markets.

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  Exports of manufactures declined but the exports of raw materials and indigo which
were used for dyeing cloth rose equally fast from 5% to 35%.
 To finance the tea and other imports from China, the British grew opium in India and
shipped it to China. During 1820s, India was the single largest exporter of opium.
 The value of British imports was less than the value of British exports. Thus, Britain
had a ‘trade surplus’ with India which was used to balance its trade deficits with
other nations. This type of settling the balance amount was called a multilateral
settlement system.
 Thus, India played a crucial role in the late-19th-century world economy by helping
Britain to settle its trade deficits by introducing home charges like the private
remittances home by British officials and traders, paying the external debt interests
and pensions to the British officials.

The Inter-war Economy

How did the global economy function during and after the First World War?
Wartime Transformation (Major Characteristics of World War I)
 The First World War was fought from 1914-1918.
 On one side were the Allies--Britain, France and Russia, US.
 On other side were the Central European powers of Germany, Australia-Hungary and
Ottoman Turkey.
 This war was thus the first Modern Industrial War.
 It saw the use of machine guns, tanks, aircraft, submarines, chemical weapons, etc.
 And due to war millions of soldiers were recruited wildly and even many lost their lives.
 Societies were reorganized for war as men went to fight in the battle, women
undertook jobs that only men were expected to do earlier.
 US companies and the people had floated huge loans to the Allies during the war. US
became the international creditor to finance the war, and Britain borrowed huge sums
of money from the US banks and US public.
Post – War Recovery
 After the war Britain was overburdened with external debts.
 Unemployment was high. Britain was not able to gain its pre-war economic status.
 Economic recovery was difficult after the war.
 Agricultural economies also suffered.
For instance, wheat production in America, Canada and Australia decreased after the
war, causing farmers to fall into debt due to fall in income.
Rise of Mass production and consumption
 The war gave a big blow to the economy of Britain, but the US economic recovery
was quicker.
 In 1920s US started mass production that became a characteristic feature of industrial
production in the US.

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  Henry Ford, a well-known car manufacturer, adapted the assembly line method to his
new car plant located in Detroit.
 He realized that the assembly line method was a faster and cheaper method of
producing vehicles.
Assembly line method
 On the assembly line, workers repeated a single task mechanically and continuously
at a pace dictated by the conveyor belt.
 They could not take a break or have a friendly chat with a colleague.
 Henry Ford’s cars came off the assembly line at 3-minute intervals.
 The T-Model Ford became the world’s first mass-produced car.
 Work pressure and stress forced many workers to quit.
 Henry Ford doubled the wages and banned trade unions from functioning in his plants.
 He considered his decision to double the worker’s daily wage as the ‘best cost-cutting
decision’.
Impact of Fordist Industrial practices
 Fordist industrial practices became famous in the US and were copied in Europe in
the 1920s.
 Mass production reduced costs and the prices of engineered goods.
 Wages increased, people started purchasing durable consumer goods such as cars,
refrigerators, washing machines, radios, gramophone players.
 Investments in housing and household goods created higher employment and income,
rising consumption demand, more investment.
 In 1923, the US resumed the export of capital and became the largest overseas
lender.
 The economic prosperity lasted a short period of time, and by 1929, the world plunged
into economic depression.

The Great Depression & Its Impact

 The Great Depression (1929 to mid-1932s) was a period when the world experienced
a drastic reduction in employment, production, income and trade.
 The impact and timing varied across nations.
 Agricultural regions and communities were worse affected because the fall in
agricultural prices was greater than the prices of industrial products. .
 Though the economic depression started in the US it spread to the entire world; hence
it is known as great depression.

Factors (Causes) of the Great Depression

1. Agricultural overproduction
 Agricultural overproduction made its price to decline leading to decline in income

26
  Thus farmers tried to bring a larger volume of produce to the market to maintain their
overall income.
 This worsened the glut in the market, pushing down prices even further.
 The farm producers rotted for lack of buyers.
2. Shortage of loans
 In the mid-1920s, many nations used US loans to finance their investment and it
crossed $ 1 billion.
 Now US started the financial crisis. Hence started to call back loans.
 The withdrawal of US loans led to the failure of major banks and the collapse of
currencies such as British pound sterling in Europe.
 In Latin America, it intensified the fall in agricultural and raw material prices.
 US attempts to revive the economy by doubling import duties during depression were
a severe blow to world trade.
Impact of depression on US economy
 US banks slashed domestic lending and called back loans that severely affected the
consumers.
 Farmers failed to sell their produce.
 Households suffered and business collapsed and people who were unable to repay
loans were forced to give up their homes, cars and other consumer durables.
 Unemployment increased and thus people stared to migrate in search of any work.
 Ultimately the US banking system collapsed because they were unable to recover
loans and repay depositors.
Impact of Great Depression in Indian economy
 Indian imports and exports halved between 1928 and 1934.
 Wheat prices fell by 50%.
 Peasants and farmers suffered more than urban dwellers.
 Though agricultural prices reduced, the colonial government refused to reduce
revenue demands.
 Peasants producing for the world market were the worst hit and their indebtedness
increased.
 They used up their savings, mortgaged lands, and sold whatever jewelry and precious
metals they had to meet their expenses.
For example: Indian jute producers were the worst affected. The decline in export
demand of gunny bags brought in a fall of raw jute prices by 60%.
 In the depression years, India became an exporter of precious metals like gold.
According to John Maynard Keynes (the Father of Economics), the Indian gold exports
promoted global economic recovery including Britain.
 Only those with fixed incomes – say town-dwelling landowners who received rents
and middle-class salaried employees – now found themselves better off.
 Industrial investment also grew as the government extended tariff protection to
industries, under the pressure of nationalist opinion.

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Rebuilding a world economy: The Post-war Era
What initial efforts were made in the Post-World War period to rebuild the world economy?
(Impact of Second World War)
 The Second World War, which lasted six years, was fought between the Axis
powers (Nazi Germany, Italy and Japan) and the Allies (Soviet Union, US, Britain and
France), in many places, over land, on sea and in the air.
 Millions of people were killed and injured due to war.
 The Second World War caused massive economic destruction and social disturbance.
 Two major factors shaped the post-war reconstruction.
The first was the US’s emergence as a dominant military, economic and political power
in the world.
The second was the dominance of the Soviet Union.
Post-war Settlement and the Bretton Woods Institutions
Economists and politicians drew two key lessons from inter-war economic experiences.
1. Mass consumption is necessary for the economic stability of an industrial society that
is based on mass production. That means, mass consumption and mass production
should go hand in hand.
It happens only when the masses have stable income and stable employment. For
this, the government should take steps to minimize fluctuations in price, output, and
employment.
2. Government interference is necessary for the economic stability. The goal of full
employment could only be achieved if governments had the power to control the flow
of goods, capital and labor.
Bretton Woods system (Post War International Economic System)
 Post-war international economic system aimed at preserving economic stability and
full employment in the industrial world.
 The framework or model of such an international economic system was designed
and agreed upon at the United Nations Monetary and Financial Conference in July
1944 in New Hampshire, USA.
 The International Monetary Fund (IMF) was established at the Bretton Woods
Conference to deal with external surpluses and deficits of member countries.
 The International Bank for Reconstruction and Development (World Bank) was
established to finance post-war reconstruction.
 The IMF and World Bank are referred to as the Bretton Woods institutions or Bretton
woods Twins.
 Both started financial operations in 1947.
 USA has veto power over key decisions taken by the World Bank and IMF.
 The Bretton Woods system was based on fixed exchange rates.
The Early Post – war Years (Post-war Developments)
 The Bretton Woods system brought an era of immense growth of trade and incomes
for western industrialized countries and Japan.

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  There was a worldwide spread of technology and enterprises.
 Developing nations also tried to capture growth and invested vast amounts of capital
and imported industrial plants and equipment with modern technology.
Decolonization and independence
How has the world changed from the rise of new nations to globalization?
 Many countries in the world were under European rule when the Second World War
ended.
 In the next two decades, most African and Asian colonies became independent, but
they were overburdened by poverty and lack of resources due to colonial rule.
 The World Bank and IMF were created to meet financial needs and were not equipped
to deal with the challenge of poverty and development in these areas.
 But with Europe and Japan rebuilding their economies, they became less dependent
on these institutions.
 So, by late 1950s, these institutions shifted their attention to developing nations.
 It was ironic that even after getting freedom many developing countries were under
the control of western empires. They were guided by international agencies to lift
their populations out of poverty. This gave colonial powers an opportunity to exploit
the resources of former colonies.
 Large corporations of powerful countries like the US also often managed to secure
rights to exploit natural resources of developing countries.
New International Economic Order (NIEO) & G-77 (G 20)
 Many developing nations did not benefit from the fast growth experienced by western
economies in the 1950s and 1960s.
 Therefore, they formed a group – Group of 77 (G-77) — to demand a new
international economic order – NIEO.
 This aims at providing a system that would give them real control over their resources,
fairer prices for raw materials, more development assistance and better access for
their manufactured goods to the markets of developed countries.
 G – 77 has been declined and was re introduced as G – 20.
End of Bretton Woods system and the Beginning of Globalization
 The US dollar could not maintain its value in relation to gold. This led to the fall of the
system of fixed exchange rates and the introduction of a system of floating exchange
rates.
 Initially, developing countries took loans and development assistance from
international institutions, but they were forced to borrow from western commercial
banks and leading institutions, which led to periodic debts and poverty in the countries
of Latin America and Africa.
 In industrial nations, unemployment that began rising from the mid 1970’s remained
high until the early 1990’s.
 New economic policies in China and collapse of Soviet Union and communism in
Eastern Europe brought many countries into the network of world economy.

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  MNCs compete to capture the world market and to reduce their production cost. India,
Brazil and China underwent rapid economic transformation in the last two decades.

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CHAPTER 4: PRINT CULTURE AND THE MODERN WORLD
The First Printed Books
 The earliest kind of print technology was developed in China, Japan, and Korea.
 This was a system of hand-printing.
 From AD 594 onwards, books in China were printed by rubbing paper against the
inked surface of woodblocks.
 As both sides of the thin, porous sheet could not be printed, the traditional Chinese
‘accordion book’ was folded and stitched at the side.
 Skilled craftsmen could duplicate, with remarkable accuracy, and the beauty of
calligraphy (the art of beautiful and stylized writing).
 China possessed a huge bureaucratic system which recruited its personnel through
civil service examinations. Textbooks for this examination were printed in vast
numbers.
 BY 17th C, printing was used by scholars, officials, merchants.
 Reading became a leisure activity.
 Rich women began to read, and many women began publishing their poetry and
plays, even started writing about their lives.
 New Western printing techniques and mechanical presses were imported to China and
Shanghai became the hub of the new print culture.
Print in Japan
 Buddhist missionaries from China introduced hand-printing technology into Japan
around AD 768-770.
 The oldest Japanese book, printed in AD 868, is the Buddhist Diamond Sutra,
containing six sheets of text and woodcut illustrations.
 Pictures were printed on textiles, playing cards and paper money and these paintings
depicted an elegant urban culture involving artists, courtesans, and teahouse
gatherings.
 In medieval Japan, poets and prose writers were regularly published, and books were
cheap and abundant.
 Printing woodblocks of the Tripitaka Koreana are a Korean collection of Buddhist
scriptures. They were engraved on about 80,000 woodblocks.
 Kitagawa Utamaro, born in Edo in 1753, was widely known for his contributions
to an art form called ukiyo (‘pictures of the floating world’) or depiction of ordinary
human experiences, especially urban ones.
 Libraries and bookstores were packed with hand-printed material of various types –
books on women, musical instruments, calculations, tea ceremony, flower
arrangements, proper etiquette, cooking and famous places.

30
Print Comes to Europe
 In 1295, Marco Polo, a great explorer, returned to Italy after many years of
exploration in China. He brought the knowledge of woodblock printing back with him.
 Now Italians began producing books with woodblocks, and soon the technology
spread to other parts of Europe.
 Luxury editions were still handwritten on expensive vellum, meant for aristocratic
circles and rich monastic libraries.
 Merchants and students in the university towns bought the cheaper printed copies.
Factors responsible for the invention of new printing techniques:
 Copying was an expensive, laborious, and time-consuming business.
 The manuscripts were expensive, fragile, and needed careful handling.
 The handwritten manuscripts production was not sufficient to meet the demand.
 Thus, by early 15th C, new print technology was being widely introduced in Europe to
print textiles, playing cards, and religious pictures with simple, brief texts.
 The breakthrough occurred at Strasbourg, Germany, where Johann Gutenberg
developed the first-known printing press in the 1430s.
Gutenberg and the Printing Press
 Johannes Gutenberg developed the first mechanical printing press.
 Most of his childhood was spent on a large agricultural estate where he saw wine and
olive presses. He learned to polish stones and created lead moulds.
 Drawing on this knowledge, Gutenberg adapted existing technology to design his
innovation.
 The olive press was the model for the printing press and the moulds were used for
casting the metal types for the letters of the alphabet.
 By 1448, Gutenberg perfected the system. The first book he printed was the Bible.
About 180 copies were printed and it took three years to produce them.

The new technology did not entirely displace the existing art of producing books by hand:
 The metal letters imitated the ornamental handwritten styles.
 Borders were illuminated by hand with foliage and other patterns and illustrations
were painted.
 There was blank space for decoration in the books printed for the rich and the design
was chosen by the buyer.
 Very soon printing presses were set up in most countries of Europe.
 Printers from Germany travelled to other countries, seeking work and helping to start
new presses.
 As the number of printing presses grew, book production boomed. From 20 million
copies of printed books in 15th C, the number went up to about 200 million copies in
the 16th C.
 This shift from hand printing to mechanical printing led to the print revolution.

31
The Print Revolution and Its Impact
Print Revolution:
 It was a new way of producing books.
 It transformed the lives of people, changing their relationship to information and
knowledge, and with institutions and authorities.
 It influenced popular perceptions and opened up new ways of looking at things
A New Reading Public (If earlier there was a hearing public, now a reading public came into
being. Justify)
 With the printing press, a new reading public emerged.
 Printing reduced the cost of books.
 The time and labour required to produce each book came down.
 Multiple copies could be produced with greater ease.
 Books flooded the market, reaching out to an ever-growing readership.
 Earlier, reading was restricted to the elites. To bridge the gap between these two
public, printers began publishing popular ballads and folk tales, and such books were
illustrated with pictures.
 These were then sung and recited at gatherings in villages and in towns.
 Oral culture thus entered print and printed material was orally transmitted
Religious Debates and the Fear of Print
 Not everyone welcomed the printed book. There was widespread criticism.
 It was feared that if there was no control over what was printed and read, then
rebellious and irreligious thoughts might spread.
 And thus introduced a new culture of debate and discussion.
 It was used by the rebellions to let the people know the truth and take action against
the established authorities.
 The printed books were welcomed and also people had fear due to their rebellious
and irreligious thoughts.

Print brought about a new intellectual atmosphere and helped spread the new ideas that led
to the Reformation.
For example:
1. Martin Luther was a religious reformer.
 He wrote Ninety-Five Theses in 1517 criticizing the practices and rituals of the Roman
Catholic Church.
 A printed copy of this was posted on a church door in Wittenberg.
 It challenged the Church to debate his ideas.
 This lead to a division within the Church and to the beginning of the Protestant
Reformation.
 His translation of the New Testament sold 5,000 copies within a few weeks and a
second edition appeared within three months.
 He said, ‘Printing is the ultimate gift of God and the greatest one.’

32
2. Menocchio, a miller in Italy,
 Interpreted the message of the Bible and formulated a view of God and Creation that
enraged the Roman Catholic Church.
 The Roman Catholic Church started identifying such ideas, beliefs, and persons who
wrote against the Church and thus Menocchio was hauled up twice and finally
executed.
 Several restrictions were put over the publishers and the booksellers by the church
and also the church began to maintain an Index of Prohibited Books from 1558.
The Reading Mania
 As literacy rates increased and schools spread in European countries, there was a
virtual reading mania.
 Churches of different denominations set up schools in villages, carrying literacy to
peasants and artisans.
 New forms of popular literature appeared in print, targeting new audiences.
 In England, penny chapbooks were carried by petty pedlars known as chapmen, and
sold for a penny, so that even the poor could buy them.
 In France, were the “Biliotheque Blue”, which were low-priced small books printed on
poor-quality paper, and bound in cheap blue covers.
 Then there were the books based on romances, stories about the past.
 Newspapers and journals carried information about wars and trade, as well as news
of developments in other places.
 Similarly, the ideas of scientists and philosophers now became more accessible to the
common people. (eg Issac Newton)
 The writings of thinkers such as Thomas Paine, Voltaire and Jean Jacques Rousseau
were also widely printed and read. Thus their ideas about science, reason and
rationality found their way into popular literature.
'Tremble, therefore, tyrants of the world! Tremble before the virtual writer!’(Louise-
Sebastien Mercier)
 By mid-18th C, the books became a means of spreading progress and enlightenment.
 Many believed that books could change the world, liberate society from despotism
and tyranny, and herald a time when reason and intellect would rule.
Print Culture and the French Revolution
The print culture created the conditions within which the French Revolution occurred:
Three types of arguments have been usually put forward to clarify this…
1. Print popularized the ideas of enlightened thinkers like Voltaire and Rousseau.
 They attacked the sacred authority of the Church and the despotic power of the state.
 They wanted the rule of reason, questioning, and rationality.
 Thus eroded the legitimacy of a social order based on tradition.
2. Print created a new culture of dialogue and debate.
 This resulted in the re-evaluation of the values, norms, and institutions.
 They become aware of the power of reason, and recognized the need to question
existing ideas and belief

33
  Within this public culture, new ideas of social revolution came into being.
3. By the 1780s there was an outpouring of literature that mocked the royalty and criticized
their morality.
 Cartoons and caricatures typically suggested that the monarchy remained only in
sensual pleasures while the common people suffered immense hardships.
 In the process, it raised questions about the existing social order.
 They interpreted things their own way.
 Print did not directly shape their minds, but it did open up the possibility of thinking
differently.
The Nineteenth Century
Children, Women, and Workers
Children
 As primary education became compulsory in the late nineteenth century, children
became an important category of readers.
 A children’s press, devoted to literature for children alone, was set up in France in
1857. This press published new works as well as old fairy tales and folk tales.
 The Grimm Brothers in Germany spent years compiling traditional folk tales gathered
from peasants.
 Rural folk tales thus acquired a new form.
Women
 Women became important as readers as well as writers.
 Penny magazines were specially meant for women, as were manuals teaching proper
behavior and housekeeping.
 Women read as well as wrote novels.
 Some of the best-known novelists were women: Jane Austen, the Bronte sisters, and
George Eliot.
 Their writings became important in defining a new type of woman: a person with will,
strength of personality, determination, and the power to think.
Workers
 In the nineteenth century, lending libraries in England became instruments for
educating white-collar workers, artisans, and lower-middle-class people.
 After the working day was gradually shortened from the mid-nineteenth century,
workers had some time for self-improvement and self-expression.
 They wrote political tracts and autobiographies in large numbers.
Further Innovations
 By the mid-nineteenth century, Richard M. Hoe of New York had perfected the power-
driven cylindrical press.
 This was capable of printing 8,000 sheets per hour. This press was particularly useful
for printing newspapers.
 In the late nineteenth century, the offset press was developed which could print up
to six colors at a time.
 Then comes electrically operated presses accelerated printing operations.

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  Methods of feeding paper improved, the quality of plates became better, automatic
paper reels and photoelectric controls of the colour register were introduced.
 Printers and publishers continuously developed new strategies to sell their products.
 19th-century periodicals serialized important novels, which gave birth to a particular
way of writing novels.
 In the 1920s in England, popular works were sold in cheap series, called the Shilling
Series.
 The dust cover or the book jacket is also a twentieth-century innovation.
 To reduce the cost of books, publishers brought out cheap paperback editions.
India and the World of Print
Manuscripts Before the Age of Print
 India had a rich tradition of handwritten manuscripts in Sanskrit, Arabic, and Persian
as well as vernacular languages.
 Manuscripts were copied on palm leaves or on handmade paper and were sometimes
beautifully illustrated.
 They were pressed between wooden covers or sewn together to ensure preservation.
Drawbacks:
 Manuscripts were highly expensive and fragile.
 They had to be handled carefully.
 They could not be read easily as the script was written in different styles.
 So manuscripts were not used widely in daily life.
Print Comes to India
 The printing press first came to Goa with Portuguese missionaries.
 About 50 books had been printed in the Konkani and in Kanada languages.
 Catholic priests printed the first Tamil book in 1579 at Cochin, and in 1713 the first
Malayalam book was printed by them.
 James Augustus Hickey, began to edit the Bengal Gazette, was persecuted by
Governor General Warren Hastings, because he published a lot of gossip about the
East India Company’s officials in India.
 By the close of the eighteenth century, a number of newspapers and journals
appeared in print. There were Indians, too, who began to publish Indian newspapers.
 The first printed Indian newspaper to appear was the weekly Bengal Gazette, brought
out by Gangadhar Bhattacharya, who was close to Ram Mohan Roy.
Religious Reform and Public Debates
 Printed tracts and newspapers not only spread new ideas, but they shaped the nature
of the debate.
 Now everyone can participate in the open public discussion and express their views
in their own language.
 This was a time of intense controversies between social and religious reformers and
the Hindu orthodoxy over matters like widow immolation, monotheism, Brahmanical
priesthood, and idolatry.

35
  In West Bengal, Rammohun Roy published the Sambad Kaumudi in 1821 and the
Hindu orthodoxy commissioned the Samachar Chandrika to oppose his opinions.
 From 1822, two Persian newspapers were published, Jam-i-Jahan Nama and Shamsul
Akhbar.
 In the same year, a Gujarati newspaper, the Bombay Samachar, made its appearance.
 In the Muslim community of North India, the ulama feared that colonial rulers would
encourage conversion, and change the Muslim personal laws.
 To counter this, they used cheap lithographic presses, published Persian and Urdu
translations of holy scriptures, and printed religious newspapers and tracts.
 The Deoband Seminary, founded in 1867, published thousandsof fatwas telling Muslim
readers how to conduct themselves in their everyday lives, and explaining the
meanings of Islamic doctrines in Urdu.
 Among Hindus, print encouraged the reading of religious texts, especially in the
vernacular languages. The first printed edition ofthe Ramcharitmanas of Tulsidas, a
sixteenth-century text, came out from Calcutta in 1810.
 From the 1880s, the Naval Kishore Press at Lucknow and the Shri Venkateshwar Press
in Bombay published numerous religious texts in vernaculars.
 Print did not only stimulate the publication of conflicting opinions amongst
communities, but it also connected communities and people in different parts of India.
Newspapers conveyed news from one place to another, creating pan-Indian identities.
New Forms of Publication
The printing press led to a new visual culture in India by the end of the 19th C
 Painters like Raja Ravi Verma produced images for mass circulation.
 Cheap prints and calendars became easily available and could be bought even by the
poor to decorate their homes or workplace.
 These prints began shaping popular ideas about modernity and tradition, religion and
politics, and society and culture.
 By the 1870s caricatures and cartoons were being published in journals and
newspapers commenting on social and political issues.
 Some cartoons made fun of Indians blindly copying the Western taste and clothes
and criticized British rule over India, while imperial caricatures made fun of Indian
nationalists.
Women and Print (Print culture and its impact on women)
 Women’s readingincreased enormously in middle-class homes as they were allowed
to get educated even few had started home schooling.
 But not all families were liberal.
 For example: In East Bengal, Rashsundari Devi, a young married girl in a very
orthodox household, learned to read in the secrecy of her kitchen. Later she wrote
her autobiography Amar Jiban which was published in 1876. It was the first full-length
autobiography in Bengali.
 Many other women writers, like Kailashbhashini Debi, highlighted experiences of
women like their imprisonment at home, ignorance, and unjust treatment in their
writings.

36
  Tarabai Shinde and Pandita Ramabai narrated the plight of upper-caste Hindu women,
especially widows.
 Tamil writers expressed the poor status of women.
 By the early 20th century, journals written by women became popular, which
highlighted issues like women's education, widowhood, and widow remarriage.
 Some of them highlighted fashion lessons to women and entertainment through short
stories and serialized novels.
 In Punjab, Ram Chaddha published the fast-selling Istri Dharm Vichar to teach women
how to be obedient wives.
 The Khalsa Tract Society published cheap booklets with a similar message.
 Pedlars took the Battala (Bengal) publications to homes, enabling women to read
them in their leisure time.
Print and the Poor People
 From the late nineteenth century, issues of caste discrimination began to be written
in many printed tracts and essays.
 Jyotiba Phule wrote about the injustices of the caste system in his Gulamgiri (1871).
 In the twentieth century, B.R. Ambedkar in Maharashtra and E.V. Ramaswamy Naicker
in Madras, better known as Periyar, wrote powerfully on caste, and their writings were
read by people all over India.
 Kashibaba, a Kanpur millworker, wrote and published Chhote Aur Bade Ka Sawal in
1938 to show the links between caste and class exploitation.
 The poems of another Kanpur millworker, who wrote under the name of Sudarshan
Chakr between 1935 and 1955, were brought together and published in a collection
called Sacchi Kavitayan.
 These were sponsored by social reformers who tried to restrict excessive drinking
among them, to bring literacy and, sometimes, to propagate the message of
nationalism.
Print and Censorship
 By the 1820s, the Calcutta Supreme Court passed certain regulations to control press
freedom and the Company began encouraging publication of newspapers that would
celebrate British rule.
 In 1835, Governor-General Bentinck agreed to revise press laws.
 Thomas Macaulay, a liberal colonial official, formulated new rules that restored the
earlier freedoms.
 But after the revolt of 1857, the attitude to freedom of the press changed.
 Enraged Englishmen demanded a clamp down on the ‘native’ press.
 As vernacular newspapers became assertively nationalist, the colonial government
began debating measures of stringent control.
 In 1878, the Vernacular Press Act was passed, modelled on the Irish Press Laws.
 The government could keep a regular track on the reports and editorials in the
vernacular press.

37
  When a report was judged as seditious, the newspaper was warned, and if the
warning was ignored, the press was liable to be seized and the printing machinery
confiscated.
 Despite repressive measures, nationalist newspapers grew in numbers in all parts of
India.
 When Punjab revolutionaries were deported in 1907, Balgangadhar Tilak wrote with
great sympathy about them in his Kesari.
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GEOGRAPHY
CHAPTER 1 - RESOURCES AND DEVELOPMENT
Everything available in our environment which can be used to satisfy our needs, provided,
is termed as a ‘Resource’.
It is technologically accessible, economically feasible and culturally acceptable.
Interdependent relationship between nature, technology, and institutions:
(Refer first page of this chapter)
The process of transformation of things available in our environment involves an interactive
relationship between nature, technology, and institutions. Human beings interact with nature
through technology and create institutions to accelerate (increase) their economic
development.

Classification of Resources
(Refer first page of this chapter)

Development of Resources
The problems created because of indiscriminate utilization of natural resources are the
following
OR
Resource planning is essential for the sustainable existence of all forms of life. Sustainable
existence is a component of sustainable development. Examine the statement.
It was believed that resources are free gifts of nature. As a result, human beings used them
indiscriminately and this has led to the following major problems like:-
 Depletion of resources at a faster rate for satisfying the greed of a few individuals.
 Accumulation of resources in a few hands, as a result, dividing society into two
segments i.e., haves and have-nots or rich and poor.
 Increase in global ecological crises such as global warming, ozone layer depletion,
environmental pollution, and land degradation.
Hence, an equitable distribution of resources has become essential for a sustained quality
of life and global peace. If the present trend of resource depletion by a few individuals and
countries continues, the future of our planet is in danger.

38
Sustainable Development: Sustainable economic development means development should
take place without damaging the environment, and development in the present should not
compromise with the needs of the future generations.
Rio de Janeiro Earth Summit, 1992:
In June 1992, more than 100 heads of state met in Rio de Janeiro in Brazil, for the first
International Earth Summit.
The Summit was convened to address urgent problems of environmental protection and
socio-economic development at the global level.
Agenda 21 is the declaration signed by world leaders in 1992 at the United Nations
Conference on Environment and Development (UNCED), which took place in Rio de Janeiro,
Brazil.
It aims to achieve sustainable global development.

The two principles are:

 To combat environmental damage, poverty, and disease through global cooperation
on common interests, mutual needs, and shared responsibilities.
 Every local government should draw its own local Agenda 21.

Resource Planning
Need for resource planning
 Resource planning is a widely accepted strategy for the judicious use of resources.
 Resources in India are not evenly distributed. Some parts of the country are rich in
one resource but deficient in other important resources.
For example – Rajasthan is rich in solar and wind energy but lacks water resources.
Jharkhand is rich in minerals and coal deposits but lacks industrialization.
 Most of the resources present in our environment are limited. Therefore, if these
resources are not preserved or not used rationally, we will be in great trouble.
 It helps to reduce regional disparity.
 An equitable distribution of resources has become essential for a sustained quality of
life and global peace.
 It helps to save our future generations and to avoid wastage or overutilization of
resources.
Three stages of resource planning
 Identification and inventory of resources across the regions of the country.
This involves surveying, mapping, and qualitative and quantitative estimation and
measurement of the resources.
 Evolving a planning structure endowed with appropriate technology, skill, and
institutional setup for implementing resource development plans.
 Matching the resource development plans with overall national development plans.

India has made concerted efforts for achieving the goals of resource planning right from the
First Five Year Plan launched after Independence.
39
Gandhiji’s view on Conservation of resources:
“There is enough for everybody’s need and not for any body’s greed.”
He placed the greedy and selfish individuals and exploitative nature of modern technology
as the root cause for resource depletion at the global level.
He was against mass production and wanted to replace it with production by the masses.

Land Resources
India has land under a variety of relief (physical) features, namely, mountains, plateaus,
plains, and islands.
 About 43% of the land area is plain, which provides facilities for agriculture and
industry.
 Mountains account for 30% and ensure the perennial flow of some rivers, providing
facilities for tourism and ecological aspects.
 About 27% of the area of the country is the plateau region and possesses rich
reserves of minerals, fossil fuels, and forests.

Land Utilization
Land resources are used for the following purposes:
 Forests
 Land not available for cultivation
 Barren and wasteland
 Land put to non-agricultural uses, e.g. buildings, roads, factories, etc.
 Other uncultivated lands (excluding fallow land)
 Permanent pastures and grazing land
 Land under miscellaneous tree crops groves (not included in the net sown area)
 Culturable wasteland (left uncultivated for more than 5 agricultural years)
 Fallow lands
 Current fallow (left without cultivation for one or less than one agricultural year)
 Other than the current fallow (left uncultivated for the past 1 to 5 agricultural
years)
 Net Sown Area
 The physical extent of land on which crops are sown harvested is known as the
net sown area.
 Gross cropped area
 Area sown more than once in an agricultural year plus the net sown area is known
as gross cropped area.
Land Use Pattern in India
The use of land is determined by 2 factors ………
(1) Physical factors such as topography, climate, and soil types.

40
(2) Human factors such as population density, technological capability and culture and
traditions etc.
Land use data is available only for 93% of the total geographical area because
 The land use reporting for most of the northeast states except Assam has not been
done fully.
 Moreover, some areas of Jammu and Kashmir occupied by Pakistan and China have
also not been surveyed.
33% of the geographical area should be under forest as mentioned in the National Forest
Policy (1952) because:
 It is essential for maintaining ecological balance.
 It provides a livelihood for millions of people who live on the fringes of these forests
and depend upon it.
Land Degradation is mainly due to:
 Mining: In states like Jharkhand, Chhattisgarh, Madhya Pradesh, and Odisha
deforestation due to mining has caused severe land degradation.
 Overgrazing: In states like Gujarat, Rajasthan, Madhya Pradesh, and Maharashtra
overgrazing is one of the main reasons for land degradation.
 Over-irrigation: In the states of Punjab, Haryana, and western Uttar Pradesh, over-
irrigation is responsible for land degradation due to water logging leading to an
increase in salinity and alkalinity in the soil.
 In recent years, industrial effluents and its chemicals also lead to land degradation.
Ways to Prevent Land Degradation:
 Afforestation and proper management of grazing.
 Planting shelter belts of plants, control over grazing, and stabilization of sand dunes
by growing thorny bushes are some of the methods to check land degradation in arid
areas.
 Proper management of waste lands, controlling mining activities, and proper
discharge and disposal of industrial effluents and wastes after treatment can reduce
land and water degradation in industrial and suburban areas.
Soil Resources
Factors on which soil formation depends:
 Relief, parent rock or bedrock, climate, vegetation, and other forms of life and time
are important factors in the formation of soil.
 Various forces of nature such as changes in temperature, actions of running water,
wind, and glaciers, activities of decomposers, etc. contribute to the formation of soil.
 Chemical and organic changes which take place in the soil are equally important.
Based on age, alluvial soils can be classified into: Khadar and Bangar.

KHADAR BANGAR

It is a new alluvial soil. It is an old alluvial soil.

41
 Lower concentration of kankar nodules. Higher concentration of kankar nodules.

It has more fine particles. It has less fine particles.

It is more fertile. (intensive agriculture) It is less fertile.

Soil Erosion and Soil Conservation

Soil erosion is the displacement of the upper layer of soil, caused by various agents such as
water, wind, and human activities.
This can lead to loss of fertile land, reduced crop yields, and increased risk of landslides and
flooding.

Classification of Soil and its geographical features, its locations, crops cultivated (Refer text)
Points to be included for soils are (Refer text)
 Types of soil
 Characteristic features
 Crops cultivated
 Places found
Types of soil erosion:
 Gullies: The running water cuts through the clayey soil and makes deep
channels/gullies.
 Bad land: The unfit land caused by gullies is called bad land or ravines (bad land
called ravine in the Chambal basin).
 Sheet erosion: When the water flows as a sheet over large areas down a slope, the
topsoil is washed away. This process is known as sheet erosion.
Causes of soil erosion:
 Human activities like deforestation, over-grazing, construction, mining, etc. are
responsible for soil erosion.
 Natural forces like wind, glaciers, and water also lead to soil erosion.
 Running water cuts through the clayey soil and makes deep channels known as
gullies, which makes the land unfit for cultivation.
 The wind blows loose soil off flat or sloping land known as wind erosion.
 Soil erosion is also caused due to defective methods of farming. ie, ploughing in the
wrong way i.e., up and down the slope forms channels for the quick flow of water
leading to soil erosion.
Measures to prevent soil erosion:
 Contour ploughing: Ploughing along the contour lines can decrease the speed of water
flow down the slopes and soil erosion can be prevented.
 Terrace cultivation: Step or terrace cultivation on slopes restricts erosion. Western
and Central Himalayas have well-developed terrace farming.

42
  Strip cropping: Large fields can be divided into strips and strips of grass are left to
grow between the crops. This breaks up the force of the wind and prevents soil
erosion.
 Shelter belts: It’s a row of trees that led to the stabilization of sand dunes in the
desert in western India. This helps in the stabilization of sand dunes.
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CHAPTER 2 - FOREST AND WILDLIFE RESOURCES
Biodiversity
Biodiversity is the variety of organisms found within a specified geographic region including
varieties of plants, animals, and micro-organisms, the genes they contain, and the
ecosystems they form.
Importance of Biodiversity
 The plants, animals, and micro-organisms re-create the quality of the air we breathe,
the water we drink, and the soil that produces our food without which we cannot
survive.
 Forests plays a key role in the ecological system as these are also the primary
producers on which all other living beings depend.
 The forest ecosystems are repositories of some of the country's most valuable forest
products, minerals, and other resources that meet the demands of the rapidly
expanding industrial-urban economy.

Need for the Conservation of Forest and Wildlife in India

 Conservation preserves the ecological diversity and our life support systems – water,
air, and soil.
 It also preserves the genetic diversity of plants and animals for better growth of
species and breeding.
 Fisheries too are heavily dependent on the maintenance of aquatic biodiversity.

Steps taken for conservation by the government:

 The Indian Wildlife (Protection) Act was implemented in 1972, with various provisions
for protecting habitats.
 An All-India list of protected species was also published.
 The focus was on protecting the remaining population of certain endangered species
by banning hunting, giving legal protection to their habitats, and restricting trade in
wildlife.
 Central and State governments established 106 National Parks and 573 Wildlife
Sanctuaries and 18 Bio Reserves across India.
 The central government also announced several projects for protecting specific
animals, which were seriously threatened such as tigers, one-horned rhinoceros, and
the Gharial, the Asiatic lion, the Indian elephant, black buck (chinkara), the great
Indian bustard (godawan) and the snow leopard.

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  In the notification under the Wildlife Act of 1980 and 1986, several hundred
butterflies, moths, beetles, and one dragonfly have been added to the list of protected
species.
 In 1991, for the first time plants were also added to the list, starting with six species.

Project Tiger
 The major threats to the tiger population are numerous, such as poaching for trade,
shrinking habitat, depletion of prey base species, growing human population, etc.
 Since India and Nepal provide habitat to about two-thirds of the surviving tiger
population in the world, these two nations became prime targets for poaching and
illegal trading.
 “Project Tiger”, one of the most well-publicized wildlife campaigns in the world,
launched in 1973.
 Tiger conservation has been viewed not only as an effort to save an endangered
species but with equal importance as a means of preserving biotypes of sizeable
magnitude.
• Corbett National Park…………………….Uttarakhand
• Sunderbans National Park………………West Bengal
• Bandhavgarh National Park…………….Madhya Pradesh
• Sariska Wildlife Sanctuary……………….Rajasthan
• Manas Tiger Reserve……………………….Assam
• Periyar Tiger Reserve………………………Kerala

Types of forests found in India:

 Reserved forests: More than half of the total forest land has been declared reserved
forests. Reserved forests are regarded as the most valuable as far as the conservation
of forest and wildlife resources is concerned.
Located at… Jammu and Kashmir, Andhra Pradesh, Uttarakhand, Kerala, Tamil Nadu,
West Bengal, and Maharashtra have large percentages of reserved forests of its total
forest area.
 Protected forests: Almost 1/3 of the total forest area is protected by forest, as declared
by the Forest Department. This forest land is protected from any further depletion.
Located at……. Bihar, Haryana, Punjab, Himachal Pradesh, Odisha, and Rajasthan
have a bulk of it under protected forests
 Unclassed forests: These are other forests and wastelands belonging to both
government and private individuals and communities.
Located at…. All Northeastern states and parts of Gujarat have a very high percentage
of their forests as unclassed forests managed by local communities.
 Reserved and protected forests are also referred to as permanent forests.

Role of the community in forest and wildlife conservation:

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  In some areas of India, local communities are struggling to conserve forests (their
habitat) along with government officials.
 In Sariska Tiger Reserve, Rajasthan, villagers have fought against mining by citing
the Wildlife Protection Act.
 The inhabitants of five villages in the Alwar district of Rajasthan have declared 1,200
hectares of forest as the Bhairodev Dakav ‘Sonchuri’, declaring their own set of rules
and regulations which do not allow hunting and protecting the wildlife against any
outside encroachments.
 The famous Chipko movement in the Himalayas successfully resisted deforestation
and showed that community afforestation with indigenous species can be enormously
successful.
 Farmers and citizen groups like the Beej Bachao Andolan (save the crops without
using any chemicals) in Tehri (Uttarakhand) and Navdanya have shown that
diversified crop production without the use of synthetic chemicals is possible and
economically viable.
 Joint Forest Management is a program that involves local communities in the
management and restoration of degraded forests in Odisha.
Joint Forest Management (JFM)
 JFM furnishes a good example for involving local communities in the management
and restoration of degraded forests.
 The program started in 1988 when Odisha passed the first resolution for joint forest
management.
 JFM depends on the formation of local (village) institutions that undertake protection
activities mostly on degraded forest land managed by the forest department.
 In return, the members of these communities are entitled to intermediary benefits
like non-timbers forest produces and share in the timber harvested by successful
protection.
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CHAPTER 3 - WATER RESOURCES
Three-fourth of the earth’s surface is covered with water, but only a small proportion of it
accounts for freshwater that can be used.
This freshwater (2.5%) is mainly obtained from surface runoff and groundwater that is
continually being renewed and recharged through the hydrological cycle.
All water moves within the hydrological cycle, ensuring that water is a renewable resource.
The availability of water resources varies over space and time, mainly due to the variations
in seasonal and annual precipitation.

Water Scarcity and the Need for Water Conservation and Management:
Water Scarcity is the lack of freshwater resources to meet the demands of water usage
within a region.
Main causes of water scarcity:

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  Water scarcity in most cases is caused by over-exploitation, excessive use, and
unequal access to water among different social groups.
 Water scarcity may be an outcome of a large and growing population and consequent
greater demands for water and unequal access to it.
 To facilitate higher food-grain production, water resources are being over-exploited
to expand irrigated areas for dry-season agriculture.
 Intensive industrialization and urbanization exerted pressure on existing freshwater
resources.
 Even if water is sufficiently available to meet the needs of the people, much of it is
maybe polluted by domestic and industrial waste, chemicals, pesticides, and fertilizers
used in agriculture, thus causing water scarcity.

Jal Jeevan Mission (JJM)

The Goal of JJM is to enable every rural household to get an assured supply of potable piped
water at a service level of 55 liters per capita per day regularly on a long-term basis by
ensuring the functionality of the tap water connections.
Need for Water Conservation
 Conserving water ensures its availability for future generations and sustains
ecosystems.
 It helps to balance supply and demand of water.
 Conserved water supports healthy habitats for aquatic plants and animals.
 Water treatment and distribution to consume energy.
 Efficient irrigation practices save water and optimize agricultural productivity.
 Reduced water wastage contributes to climate change mitigation.
 Conservation reduces the need for pollutant removal from all water sources.

Atal Bhujal Yojana (Atal Jal)

Implementation:
 Covers 8,220 water-stressed Gram Panchayats.
 Implemented in seven states: Gujarat, Haryana, Karnataka, Madhya Pradesh,
Maharashtra, Rajasthan, and Uttar Pradesh.
 The selected states represent 37% of India's total water-stressed blocks (over-
exploited, critical, and semi-critical).
 It aimed to shift community behavior from water consumption to conservation.
 Promotes smart water management practices.

Multi-purpose River Projects and Integrated Water Resources Management:

A dam is a barrier across flowing water that obstructs, directs, or retards the flow, often
creating a reservoir, lake, or impoundment. “Dam” refers to the reservoir rather than the
structure.
Jawaharlal Nehru proclaimed the dams as the ‘Temples of modern India’ because

46
  They integrate the development of agriculture and the village economy with rapid
industrialization and growth of the urban economy.
 They provide water for irrigation.
 They provide water for electricity generation
 Provide water supply for domestic and industrial uses.
 Helps in flood control.
 Provide recreation
 Helps in inland navigation.
 Useful for fish breeding.
Hence, dams are now referred to as multi-purpose projects where many uses of the
impounded water are integrated with one another.
In recent years, multi-purpose projects and large dams have come under great scrutiny and
opposition for a variety of reasons
 Regulating and damming of rivers affect their natural flow causing poor sediment flow
and excessive sedimentation at the bottom of the reservoir, resulting in rockier stream
beds and poor aquatic life.
 It is difficult for aquatic fauna to migrate, especially for spawning.
 The dams have triggered floods due to sedimentation in the reservoir and the release
of excess water during heavy rains.
 Multipurpose projects induced earthquakes, caused water-borne diseases, and pests,
and lead to pollution resulting from excessive use of water.
 Irrigation has changed the cropping pattern of many regions with farmers shifting to
water-intensive and commercial crops. This has great ecological consequences like
salinization of the soil.
 The dams increase the social gap between the richer landowners and the landless
poor.
 The dams create inter-state water disputes about sharing the costs and benefits of
the multi-purpose project.

Most of the objections to the projects arose due to their failure to achieve the purposes for
which they were built. Examine.
 The dams that were constructed to control floods have triggered floods due to
sedimentation in the reservoir.
 Moreover, the big dams have mostly been unsuccessful in controlling floods at the
time of excessive rainfall.
 The floods have not only devastated life and property but also caused extensive soil
erosion.
 Sedimentation also meant that the flood plains were deprived of silt, a natural
fertilizer, further adding to the problem of land degradation.
 It was also observed that the multi-purpose projects induced earthquakes, causing
water-borne diseases and pests, and pollution resulting from excessive use of water.

Narmada Bachao Andolan or Save Narmada Movement

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  It is a Non-Governmental Organization (NGO) that mobilized tribal people, farmers,
environmentalists, and human rights activists against the Sardar Sarovar Dam being
built across the Narmada River in Gujarat.
 It originally focused on the environmental issues related to trees that would be
submerged under the dam water.
 Recently it has re-focused the aim to enable poor citizens, especially the oustees
(displaced people) to get full rehabilitation facilities from the government.
Pradhan Mantri Krishi Sinchaee Yojana (PMKSY) Objectives:
 To increase irrigated areas: Make sure every field gets water. ("Har Khet Ko
Pani")
 To boost efficiency: Improve water use to avoid wastage.
 To promote technologies: Use methods like drip irrigation.
 To promote conservation practices: Adopt sustainable water-saving practices.

Rainwater Harvesting ……its necessity

 Rainwater harvesting is needed to provide it for agriculture, collect drinking water,
irrigate the fields, and moisten the soil.
 Rainwater harvesting is a viable alternative, both socio-economically and
environmentally to multipurpose projects.

Traditional methods of rainwater harvesting:

 In hill and mountainous regions, people-built diversion channels like the ‘guls’ or ‘kuls’
of the Western Himalayas for agriculture.
 Rooftop rainwater harvesting was commonly practiced to store drinking water,
particularly in Rajasthan.
 In semi-arid and arid regions, agricultural fields were converted into rain-fed storage
structures that allowed the water to stand and moisten the soil like the ‘khadins’ in
Jaisalmer and ‘Johads’ in other parts of Rajasthan.
 In the flood plains of Bengal, people developed inundation channels to irrigate their
fields

1. Rooftop Rainwater Harvesting in Rajasthan

 Rainwater is commonly referred to as Palar Pani in the arid and semi-arid regions of
Rajasthan particularly in Bikaner, Phalodi, and Barmer.
 Here almost all the houses traditionally had underground tanks for storing drinking
water.
 The tanks could be as large as a big room.
 The tanks were part of the well-developed rooftop rainwater harvesting system.
 They were connected to the sloping roofs of the houses through a pipe.
 Rain falling on the rooftops would travel down the pipe and be stored in these
underground tanks.
 The first spell of rain was usually not collected as this would clean the roofs and the
pipes.
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  The rainwater from the subsequent showers was then collected.
 Tamil Nadu is the first state in India that has made rooftop rainwater harvesting
structures compulsory for all houses across the state.
Importance of rooftop rainwater harvesting in Rajasthan:
 It was commonly practiced to store drinking water.
 The rainwater can be stored in the tanks till the next rainfall, making it an extremely
reliable source of drinking water when all other sources are dried up, particularly in
the summers.
 Rainwater (Palar Pani) is considered the purest form of natural water.
 Many houses construct underground rooms adjoining the ‘tanks’ to beat the summer
heat as it would keep the room cool.
 Some houses still maintain the tanks since they do not like the taste of tap water.

2. Bamboo Drip Irrigation system in Meghalaya

It is a 200-year-old system of tapping stream and spring water by using bamboo pipes and
transporting water from higher to lower regions with the help of gravity.
Features:
 18-20 liters of water enter the bamboo pipe system, gets transported over hundreds
of meters, and finally reduces to 20-80 drops per minute at the site of the plant.
 The flow of water into the pipes is controlled by manipulating the pipe positions.
 If the pipes pass a road, they are taken high above the land.

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CHAPTER 4 - AGRICULTURE
India is an agriculturally important country due to the following reasons:
 Two-thirds of the population is engaged in agricultural activities.
 Agriculture is a primary activity, which produces most of the food that we consume.
 Besides food grains, it also produces raw materials for various industries.
 Some agricultural products like tea, coffee, spices, etc., are also exported.
Types of Farming
Factors that depend on this are as follows
 the characteristics of physical environment
 technological know-how
 socio-cultural practices
1. Primitive Subsistence Farming: Characteristics are:
 In this type of farming, farmers grow crops for self-consumption.
 It is practiced on small patches of land.
 Farmers use primitive tools like hoe, dao, digging sticks, etc.
 Completely depends upon monsoon, natural fertility of the soil, and suitability of other
environmental conditions for the crops grown.
 Only family labor is used for farming.
 Land productivity is low.

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  It is also known as slash-and-burn agriculture.
Slash and Burn Agriculture: Farmers clear a patch of land and produce cereals and other
food crops to sustain their families.
When soil fertility decreases, the farmers shift and clear a fresh patch of land for cultivation.
This type of shifting allows nature to replenish the fertility of the soil through natural
processes.
Land productivity in this type of agriculture is low as the farmer does not use fertilizers or
other modern inputs.
Different names of jhumming in different parts of India (Refer text)
 In north-eastern states (Assam, Meghalaya, Mizoram, and Nagaland)….Jhumming.
 Manipur…..Pamlou
 Chhattisgarh and Andaman and Nicobar Islands…………
Different names in different countries
 Mexico and Central America – Milpa
 Venezuela – Conuco
 Brazil – Roca
 Vietnam – Ray
 Central Africa – Masole.
2. Intensive Subsistence Farming
 This type of farming is practiced in areas of high population pressure on land.
 It is labor-intensive farming, where high doses of biochemical inputs and irrigation
are used to obtain higher production.
 The ‘right of inheritance’ leading to the division of land among successive generations
has rendered land-holding size uneconomical.
3. Commercial Farming
The main characteristic of this type of farming is the use of higher doses of modern inputs,
e.g. high yielding variety (HYV) seeds, chemical fertilizers, insecticides, and pesticides to
obtain higher productivity.
Eg: The plantation is a type of commercial farming. In this type of farming, a single crop is
grown in a large area using capital-intensive inputs, with the help of migrant laborers.
Examples: Tea, coffee, rubber, sugarcane, etc.
Characteristics of plantation farming:
 Plantations have very large areas.
 Capital-intensive inputs are used.
 Migrant labor is used.
 It is done mainly for the market. The sole aim is to earn profit.
 It has an interface between agriculture and industry.
 All the produce is used as raw material in respective industries.

Cropping Pattern
India has three cropping seasons — rabi, kharif, and zaid.

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  Rabi crops are sown in winter from October to December and harvested in summer
from April to June.
Wheat, barley, peas, gram, etc. are the main rabi crops.
 Kharif crops are sown with the onset of monsoon in June-July and harvested in
September-October.
Rice, maize, jowar, bajra, tur, moong, cotton, jute, groundnut, etc. are the main kharif crops.
 In between the rabi and the kharif seasons, there is a short season during the summer
months known as the Zaid season.
Watermelon, muskmelon, cucumber, vegetables, and fodder crops.

Major Crops

Food Crops Non-food Crops

Rice, Wheat, Millets, Maize, Pulses, Sugarcane, Oilseeds,

Rubber, Cotton, Jute
Tea, Coffee, Horticulture Crops

1. Rice
 Rice is the staple food crop of many people in India.
 Geographical conditions required for rice are:
 Temperature: High temperature (above 25°C).
 Rainfall: High humidity with annual rainfall above 100 cm.
 Agricultural season: Kharif crop
 Major producing areas: West Bengal, Andhra Pradesh, Tamil Nadu, Punjab,
Haryana, Uttar Pradesh.
2. Wheat
 Wheat is the second staple food crop of many people in India.
 Geographical conditions required for wheat are:
 Temperature: It requires a cool growing season and bright sunshine at the time
of ripening.
 Rainfall: 50-75 cm of annual rainfall evenly distributed over the growing season.
 Agricultural season: Rabi crop
 Major producing areas: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh,
Bihar, and Rajasthan.
 There are two important wheat-growing zones in the country – the Ganga-
Sutlej plains in the north-west and the black soil region of the Deccan.
3. Millet:
 Jowar, bajra, and ragi are the important millets grown in India.
 Though these are known as coarse grains, they have very high nutritional value.
Jowar: Jowar is the third most important food crop with respect to area and production.
It is a rain-fed crop mostly grown in moist areas which hardly needs irrigation.
Maharashtra, Karnataka, Andhra Pradesh, and Madhya Pradesh.
Bajra: Bajra grows well on sandy soils and shallow black soils.

51
 Rajasthan, Uttar Pradesh, Maharashtra, Gujarat, and Haryana.
Ragi: Ragi is a crop of dry regions and grows well on red, black, sandy, loamy, and shallow
black soils. Ragi is very rich in iron, calcium, other micronutrients, and roughage.
Karnataka, Tamil Nadu, Himachal Pradesh, Uttarakhand, Sikkim, Jharkhand, and
Arunachal Pradesh.
4. Maize
 It is a crop which is used both as food and fodder.
 It is a kharif crop that requires a temperature between 21°C to 27°C and grows well
in old alluvial soil.
 Major maize-producing states are Karnataka, Madhya Pradesh, Uttar Pradesh, Bihar,
Andhra Pradesh and Telangana.
5. Pulses
 A major source of protein in a vegetarian diet.
 Pulses need less moisture and survive even in dry conditions.
 Pulses are mostly grown in rotation with other crops because pulses being leguminous
crops help restore soil fertility (except arhar) by fixing nitrogen from the air.
 Major pulse-producing states are Madhya Pradesh, Rajasthan, Maharashtra, Uttar
Pradesh, and Karnataka.
6. Sugarcane
 Sugarcane grows well in a hot and humid climate
 Requires a temperature of 21°C to 27°C
 Needs annual rainfall between 75cm and 100cm
 Irrigation is required in regions of low rainfall.
 It can be grown on a variety of soils and needs manual labor from sowing to
harvesting. All these conditions are available in Uttar Pradesh.
 It is the main source of sugar, gur (jaggary), khandsari, and molasses.
 The major sugarcane-producing states are Uttar Pradesh, Maharashtra, Karnataka,
Tamil Nadu, Andhra Pradesh, Telangana, Bihar, Punjab and Haryana.
7. Oil Seeds
 Major oil seeds produced in India are :
 Groundnut, Mustard, Coconut, Sesamum (til), Soyabean, Castor seeds
The importance of oilseeds are:
 Most of the oilseeds are edible and used as cooking mediums.
 Used as raw materials in the production of soap, cosmetics, and ointments.
The importance of ground nuts are:
 Most of the oilseeds are edible and used as cooking mediums.
 Used as raw materials in the production of soap, cosmetics, and ointments.
8. Tea
Geographical conditions needed for the cultivation of tea are:
 Tea grows well in tropical and sub-tropical climates endowed with deep and fertile
well-drained soil, rich in humus and organic matter.
 Tea bushes require a warm and moist frost-free climate all through the year.

52
  Frequent showers evenly distributed over the year ensure continuous growth of
tender leaves.
 Two major tea-producing states are Assam and West Bengal (hills of Darjeeling and
Jalpaiguri districts).
9. Coffee
 The Arabica variety initially brought from Yemen is produced in the country. This
variety is in great demand all over the world.
 Initially, its cultivation was introduced in the Baba Budan Hills and even today its
cultivation is confined to the Nilgiri in Karnataka, Kerala, and Tamil Nadu.
10. Horticulture Crops
 In 2018, India was the second largest producer of fruits and vegetables in the world
after China. India is a producer of tropical as well as temperate fruits.
11. Rubber
 Rubber is an important raw material for industries.
 Geographical conditions:
It is an equatorial crop.
It requires a moist and humid climate with rainfall of more than 200 cm and temperature
above 25°C.
 Two rubber-producing states are Kerala, Tamil Nadu, Karnataka, etc.
Fiber Crops
 Cotton, jute, hemp, and natural silk are the four major fiber crops grown in India.
 The first three are derived from the crops grown in the soil, the latter is obtained from
cocoons of the silkworms fed on green leaves, especially mulberries.
 The rearing of silkworms to produce silk fiber is known as sericulture.
1. Cotton
The geographical conditions required to grow cotton are:
 Cotton grows well in drier parts of the black cotton soil of the Deccan plateau.
 It requires high temperature, light rainfall or irrigation, 210 frost-free days, and bright
sunshine for its growth.
 It is a kharif crop and requires 6 to 8 months to mature.
 Major cotton-producing states are – Maharashtra, Gujarat, Madhya Pradesh, etc.
2. Jute
The geographical conditions required to grow jute (also known as golden fiber) are:
 Grows well on well-drained fertile soils in the flood plains where soils are renewed
every year.
 High temperatures are required during the time of growth.
 It is used in making gunny bags, mats, ropes, yarn, carpets, etc.

Technological and Institutional Reforms are required because:

 Sustained uses of land without compatible techno-institutional changes have hindered
the pace/speed of agricultural development.

53
  Despite the development of sources of irrigation, most of the farmers still depend
upon monsoons and natural fertility to carry on their agriculture.
 Agriculture, which provides livelihood for more than 60 % of its population, needs
some serious technical and institutional reforms.
Institutional reforms
 Collectivization, consolidation of holdings, cooperation, and abolition of zamindari, etc.
were given priority to bring about institutional reforms after Independence.
 Laws of land reforms were enacted.
 Provision of crop insurance against drought, flood, cyclone, fire, and disease.
 Establishment of Grameen banks, cooperative societies, and banks for providing loan
facilities to the farmers at lower rates of interest.
 Introduction of Kissan Credit Card (KCC) and Personal Accident Insurance Scheme
(PAIS).
Technological reforms
 Green revolution and white revolution (operation flood)
 HYV seeds, chemical fertilizers, and pesticides were provided.
 Methods of irrigation modernized.
 Latest agricultural equipment introduced.
 Special weather bulletins and agricultural programs for farmers were introduced on
Radio and Television.
 Announcement of minimum support price (MSP), remunerative, and procurement
prices for important crops.
Bhoodan and Gramdan
It is called a bloodless revolution because some zamindars, owners of many villages offered
to distribute some villages among the landless, and many landowners chose to provide some
part of their land to the poor farmers due to fear of the Land Ceiling Act.

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CHAPTER 5 - MINERALS AND ENERGY RESOURCES
Minerals are an indispensable part of our lives. Examine the statement
 The earth’s crust is made up of different minerals embedded in the rocks. Various
metals are extracted from these minerals after proper refinement.
 Almost everything we use, from a tiny pin to a towering building or a big ship, all are
made from minerals.
 The railway lines and the tarmac (paving) of the roads, our implements and machinery
too are made from minerals.
 Cars, buses, trains, airplanes are manufactured from minerals and run on power
resources derived from the earth.
 Even the food that we eat contains minerals. Our mineral intake represents only about
0.3 per cent of our total intake of nutrients, they are so potent and so important that
without them we would not be able to utilise the other 99.7 per cent of foodstuffs.
 In all stages of development, human beings have used minerals for their livelihood,
decoration, festivities, religious and ceremonial rites.
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  For example: Toothpaste cleans your teeth. Abrasive minerals like silica, limestone,
aluminium oxide and various phosphate minerals do the cleaning. Fluoride which is
used to reduce cavities, comes from a mineral fluorite. Most toothpaste are made
white with titanium oxide, which comes from minerals called rutile, ilmenite and
anatase. The sparkle in some toothpaste comes from mica. The toothbrush and tube
containing the paste are made of plastics from petroleum.

Thus, a mineral is a homogenous, naturally occurring substance with a definable internal

structure and are found in varied forms in nature, ranging from the hardest diamond to the
softest talc.

Rocks are combinations of homogenous substances called minerals.

Some rocks, for instance limestone, consist of a single mineral only, but majority of the rock
consist of several minerals in varying proportions.
Although, over 2000 minerals have been identified, only a few are abundantly found in most
of the rocks.

A particular mineral that will be formed from a certain combination of elements depends
upon the physical and chemical conditions under which the material forms.
This, in turn, results in a wide range of colours, hardness, crystal forms, lustre and density
that a particular mineral possesses.
Geologists use these properties to classify the minerals.

Geographers study minerals as part of the earth’s crust for a better understanding of
landforms.
The distribution of mineral resources and associated economic activities are of interest to
geographers.
Geologist, however, is interested in the formation of minerals, their age and physical and
chemical composition.

Mode of Occurrence of Minerals

Minerals are usually found in “ores”.
The term ore is used to describe an accumulation of any mineral mixed with other elements.
Factors that make mineral extractions commercially and economically viable of a reserve
are;
 The concentration of minerals in the ore.
 The ease of extraction
 Closeness to the market

Formation of Minerals
1. In igneous and metamorphic rocks
 Minerals may occur in the cracks, crevices, faults, or joints.
 The smaller occurrences are called veins and the larger are called lodes.

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  In most cases, they are formed when minerals in liquid/ molten and gaseous forms
are forced upward through cavities towards the earth’s surface.
 They cool and solidify as they rise.
 Major metallic minerals like tin, copper, zinc lead, etc. are obtained from veins and
lodes.
2. In sedimentary rocks
 A number of minerals occur in beds or layers.
 They have been formed as a result of deposition, accumulation, and concentration in
horizontal strata.
 Another group of sedimentary minerals include gypsum, potash salt, and sodium salt.
 These are formed as a result of evaporation, especially in arid regions.
3. Decomposition of surface rocks, and the removal of soluble constituents,
 Leaving a residual mass of weathered material containing ores.
 Bauxite is formed this way.
4. Certain minerals may occur as alluvial deposits in the sands of valley floors and the
base of hills.
 These deposits are called placer deposits.
 Gold, silver, tin, and platinum are the most important among such minerals.
5. The ocean waters contain vast quantities of minerals.
 Common salt, magnesium, manganese and bromine are largely derived from ocean
water.

Classification of minerals (Refer the table from page no: 43)

Ferrous Minerals provide a strong base for the development of metallurgical industries.
Justify the statement with examples
1. Iron Ore
Iron ore is the basic mineral and the backbone of industrial development. India is endowed
with fairly abundant resources of iron ore. India is rich in good quality iron ores.
 Magnetite: Finest iron ore, has up to 70% iron content. It has excellent magnetic
qualities, especially valuable in the electrical industry.
 Hematite: Has iron content (50-60%). And is the most important industrial iron ore
in terms of the quantity used.
 The major iron ore belts in India are:
 Odisha - Jharkhand belt:
High-grade hematite ore is found in Badampahar mines in the Mayurbhanj and Kendujhar
districts.
Also in Singbhum district of Jharkhand in the mines of Gua and Noamundi.
 Durg – Bastar - Chandrapur belt:
Very high-grade hematites are found in the famous Bailadila hills in the Bastar district of
Chhattisgarh and Maharastra.
Used for steel making. And is exported to Japan and South Korea via Vishakhapatnam port.
 Ballari – Chitradurga – Chikkamagaluru - Tumakuru belt in Karnataka.

56
And is transported as slurry through a pipeline to a port near Mangaluru.
Kudremukh deposits are known to be one of the largest in the world.
 Maharashtra - Goa belt includes the state of Goa and Ratnagiri district of
Maharashtra.
Iron ore is exported through Marmagao port.
In 2018–19 almost entire production of iron ore (97%) accrued from Odisha, Chhattisgarh,
Karnataka and Jharkhand. The remaining production (3%) was from other states.

2. Manganese
Uses of Manganese ore are:
 It is used in the manufacturing of steel and ferromanganese alloys.
 Used in manufacturing bleaching powder, insecticides, paints.
 Nearly 10 kg of manganese is required to manufacture one tonne of steel.

Non-Ferrous Minerals
1. Copper
 Being malleable, ductile, and a good conductor, copper is mainly used in electrical
cables, electronics, and chemical industries.
Areas of distribution:
The Balaghat mines in Madhya Pradesh, the Khetri mines in Rajasthan, and the Singhbhum
district of Jharkhand are leading producers of copper.
2. Bauxite
Formation:
 Bauxite deposits are formed by the decomposition of a wide variety of rocks rich in
aluminium silicates.
 Bauxite is a clay-like substance from which alumina and later aluminium are obtained.
 Aluminium is an important metal because it combines the strength of metals such as
iron with extreme lightness and also with good conductivity and great malleability.
Areas of distribution:
 Bauxite is found in the Amarkantak Plateau, Maikal Hills, and the plateau region of
Bilaspur-Katni.
 Panchpatmali deposits in Koraput district of Odisha is the largest bauxite-producing
state in India.

Non-Metallic Minerals
1. Mica
Formation
 Mica is a mineral made up of a series of plates or leaves. It splits easily into thin
sheets.
 Mica can be clear, black, green, red yellow or brown
 Mica is considered the most important mineral in electrical and electronic industries
because of its excellent dielectric strength, low power loss factor, insulating
properties, resistance to high voltage.
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Areas of distribution:
Chota Nagpur plateau, Koderma Gaya – Hazaribagh belt of Jharkhand, Ajmer (Rajasthan),
Nellore mica belt of Andhra Pradesh is also an important producer in the country.
2. Rock Minerals: Limestone
 It is found in association with rocks composed of calcium carbonates or calcium and
magnesium carbonates.
 It is found in sedimentary rocks of most geological formations.
 Limestone is the basic raw material for the cement industry and is essential for
smelting iron ore in the blast furnace.

Hazards of Mining
 The miners have to work under tough conditions where no natural light is available.
 There is always a risk of collapse of the mine roof, inundation with water, and fire.
 Miners are at great risk of getting afflicted with pulmonary disorders.
 The water sources in the region get contaminated due to mining.
 Dumping of waste and slurry leads to the degradation of land, and soil, and an
increase in stream and river pollution.

Why to do the Conservation of Minerals

 The strong dependence of industry and agriculture upon mineral deposits and the
substances manufactured from them.
 The geological processes of mineral formation are very slow.
 Mineral resources are finite and non-renewable.
 Continued extraction of ores leads to increasing costs as mineral extraction comes
from greater depths along with a decrease in quality.
Ways to conserve minerals:
 A concerted effort has to be made in order to use mineral resources in a planned and
sustainable manner.
 Improved technologies need to be constantly evolved to allow the use of low-grade
ores at low costs.
 Recycling of metals, using scrap metals and other substitutes.
 Firewood and cattle dung cake are most common in rural India.
 More than 70% energy requirement of rural households is met by these two.
 Continual use of firewood is increasingly becoming difficult due to decreasing forest
area.

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Types of Energy Resources

Conventional source of energy Non-conventional source of energy

1. These are the sources of energy

1. These are the traditional sources of
developed recently from the sun, wind,
energy
tide, etc.

2. They are non-renewable. 2. They are renewable.

3. Their generation is expensive. 3. Their generation is cheaper.

4. They pollute the atmosphere on a large 4. They are pollution-free/less pollution

scale. sources.

5. Example: coal, petroleum, natural gas, 5. Example: Solar energy, wind energy,
firewood, cattle dung cake, and electricity tidal power, biogas, geo thermal, atomic
(both hydel and thermal) etc.

Conventional Sources of Energy

1. Coal: The most abundantly available fossil fuel in India is coal. It is formed due the
compression of plant material over millions of years.

Uses:
 It provides a substantial part of the nation’s energy needs.
 It is used for power generation, to supply energy to industry as well as for domestic
needs.
 India is highly dependent on coal for meeting its commercial energy requirements.
 Heavy industries and thermal power stations are located on or near the coalfields
Forms of Coal depends on the degrees of compression and the depth and time of burial.
 Peat: Decaying plants in swamps produce peat. It has low carbon and high moisture
content and low heating capacity.
 Lignite: It is low-grade brown coal that is soft with high moisture content. It is used
for generating electricity. Eg: Lignite Reserve at Neyveli, Tamilnadu.
 Bituminous: Coal that has been buried deep and subjected to increased temperatures
is bituminous coal.
It is the most popular coal for commercial use. It has a special value for smelting iron in
blast furnaces.
 Anthracite: It is the highest quality hard coal.
Areas of distribution:
 The major resources of Gondwana coal, which are metallurgical coal, are located in
Damodar valley (West Bengal - Jharkhand), Jharia, Raniganj, Bokaro, the Godavari,

59
 Mahanadi, Son and Wardha valleys, Meghalaya, Assam, Arunachal Pradesh and
Nagaland.

2. Petroleum
Importance of petroleum:
 It provides fuel for heat and lighting, lubricants for machinery, raw materials for a
number of manufacturing industries.
 Petroleum refineries act as a ‘nodal industry’ for synthetic textile, fertilizer, and
numerous chemical industries.
Occurrence of petroleum:
 Most of the petroleum occurrences in India are associated with anticlines and fault
traps in the rock formations of the tertiary age.
 In regions of folding, anticline, or domes, it occurs where oil is trapped in the crest of
the upfold.
 Petroleum is also found in fault traps between porous and non-porous rock.
Areas of distribution:
 Ankeleshwar (Gujarat).
 Digboi, Naharkatiya and Moran-Hugrijan (Assam) is the oldest oil producing state of
India.
3. Natural Gas
 Natural Gas is found in petroleum deposits and is released when crude oil is brought
to the surface.
 It can be used as a domestic and industrial fuel.
 It is used as fuel in power sector to generate electricity, for heating purpose in
industries, as raw material in chemical, petrochemical and fertilizer industries, as
transport fuel and as cooking fuel.
 With the expansion of gas infrastructure and local city gas distribution (COD)
networks, natural gas is also emerging as a preferred transport fuel (CNG) and
cooking fuel (PNG) at homes.
Areas of distribution:
 The first 1,700 km long Hazira-Vijaipur Jagdishpur (HVJ) cross country gas pipeline,
constructed by GAIL (India), linked Mumbai High and Cambay Bassein gas fields with
various fertilizer, power and industrial complexes in western and northern India.
4. Electricity
Two main ways of generating electricity:

Thermal Electricity Hydro Electricity

1. It is produced from water. Eg: Bhakra

1. It is obtained by using coal, petroleum,
Nangal, Damodar Valley corporation, the
and natural gas.
Kopili Hydel Projects

2. It is a non-renewable resource. 2. It is renewable.

60
 3. It causes pollution. 3. It does not cause pollution.

4. It is expensive in the long run. 4. It is cheaper in the long run.

Non-Conventional Sources of Energy

Increasing use of fossil fuels also causes serious environmental problems. Hence, there is a
pressing need to use renewable energy sources like solar energy, wind, tide, biomass and
energy from waste material. These are called non-conventional energy sources.
1. Nuclear or Atomic Energy
 Nuclear energy is obtained by altering the structure of atoms.
 When such an alteration is made, much energy is released in the form of heat and
this is used to generate electric power.
 Uranium and Thorium, which are available in Jharkhand and the Aravalli ranges of
Rajasthan are used for generating atomic or nuclear power. The Monazite sands of
Kerala is also rich in Thorium.
2. Solar Energy
Solar energy can solve the energy problems to some extent in India:
 India is a tropical country therefore it receives sunlight in abundance throughout the
year.
 Solar plants can be easily established in rural and remote areas.
 It will minimize the dependence of rural households on firewood and dung cakes
which in turn will contribute to environmental conservation and adequate quantity of
manure.
3. Wind Energy
 India has great potential for wind power.
 The largest wind farm cluster is located in Tamil Nadu from Nagarcoil to Madurai.
 Nagarcoil and Jaisalmer are well known for the effective use of wind energy in the
country.
4. Biogas
 Shrubs, farm waste, animal and human waste are used to produce biogas for
domestic consumption in rural areas.
 High thermal efficiency in comparison to kerosene, dung cake, and charcoal.
 It burns without smoke, causing no pollution.
 The plants using cattle dung are known as ‘Gobar gas plants’ in rural India.
 These provide twin benefits to the farmer in the form of energy and improved
quality of manure.
 Biogas is by far the most efficient use of cattle dung as it improves the quality of
manure and also prevents the loss of trees and manure due to burning of fuel wood
and cow dung cakes.
5. Tidal Energy
 Floodgate dams are built across inlets.
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  The water flows into the inlet during high tide and gets trapped when the gate is
closed.
 Once the tide recedes, the gates are opened so that water can flow back to the
sea/ocean.
 The flow of water is used to run the turbine to generate electricity.
Areas of distribution:
 In India the Gulf of Khambhat, the Gulf of Kuchchh in Gujarat
 On the western coast and Gangetic delta in Sunderban regions of West Bengal
6. Geo-Thermal Energy
 Geothermal energy refers to the heat and electricity produced by using the heat from
the interior of the Earth.
 Geothermal energy exists because the Earth grows progressively hotter with
increasing depth.
 Groundwater in such areas absorbs heat from the rocks and becomes hot. It is so hot
that when it rises to the earth’s surface, it turns into steam. This steam is used to
drive turbines and generate electricity.
Areas of distribution:
 One is located in the Parvati valley near Manikarn in Himachal Pradesh.
 The other is located in the Puga Valley, Ladakh.
Conservation of Energy Resources (“energy saved is energy produced”)
 We have to adopt a cautious approach to the judicious use of our limited energy
resources.
 To develop a sustainable path of energy development by promoting energy
conservation and increased use of renewable energy sources as the twin planks of
sustainable energy.
 Using public transport systems instead of individual vehicles.
 Switching off electricity when not in use.
 Using power-saving devices
 Using non-conventional sources of energy.

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CHAPTER 6 - MANUFACTURING INDUSTRIES
Production of goods in large quantities after processing from raw materials to more
valuable products is called manufacturing. Manufacturing industries falls in the secondary
sector. The economic strength of a country is measured by the development of
manufacturing industries.
Importance of Manufacturing
The manufacturing sector is considered the backbone of general and economic development
because:
 Manufacturing industries help in modernizing agriculture.
 It helps in reducing the heavy dependence of people on agricultural income by
providing them with jobs in secondary and tertiary sectors.
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  It helps to eradicate unemployment and poverty in our country.
 This was the main philosophy behind public sector industries and joint sector ventures
in India.
 It helps in reducing regional disparities by establishing industries in tribal and
backward areas.
 The export of manufactured goods expands trade and commerce and helps in bringing
foreign exchange.
 Countries with large numbers of manufacturing industries are prosperous.

Agricultural sector and manufacturing sector move hand in hand. Justify the statement
 The given statement means that agricultural and manufacturing industries are not
exclusive of each other and are quite interconnected.
 Agro-industries in India have given a major boost to agriculture by raising its
productivity and efficiency.
 Agro-industries are units that add value to agricultural produce, intermediates (raw
materials) by processing or improving storability or by providing links from the farm
to the markets.
 Industries depend on agriculture for raw materials and sell their products such as
irrigation pumps, fertilizers, insecticides, pesticides, PVC pipes, machines, tools, etc
to farmers.
 So, the development and competitiveness of manufacturing industries have not only
assisted agriculturalists and farmers in increasing their production but also made the
production processes very efficient and far better.

Factors responsible for the location of industries

Physical factors:
 Availability of raw materials for heavy industries like iron and steel, cement industry,
etc.
 Availability of power resources like coal, and electricity will attract more industries.
 Availability of water – Almost all industries require a huge quantity of water.
 Availability of favorable climate.
Human factors:
 The availability of skilled and unskilled laborers attracts more industries.
 Proximity to market which helps to reduce transport costs and delays.
 Infrastructural facilities like banking, transport, communication, etc. attract more
industries.
 Government policies like tax benefits and subsidies on inputs play an important role
in industrial location.

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Classification of Industries
Based on the source of raw materials
 Agro - based industries (eg. Cotton, woolen, jute, silk, rubber and sugar, tea, coffee,
edible oil)
 Mineral - based industries (eg. Iron and steel, cement, aluminium, machine tools,
petrochemicals)
Based on the main role
 Basic or key industries: These industries supply their products as raw materials to
manufacture other goods.
Examples: iron and steel industry, copper smelting, aluminium smelting.
 Consumer industries: These industries produce goods for direct use by consumers.
Examples: sugar, paper, toothpaste, fans, machines tools, etc.
Based on capital investment
 Small scale industry: Maximum investment allowed on the assets of a unit is ₹ 1
Crore.
 Large scale industry: When investment in the assets of a unit is more than ₹ 1
Crore.
Based on ownership
 Public sector industries: Public sector industries are owned and operated by
government agencies. For example BHEL, SAIL, etc.
 Private sector industries: Private sector industries are owned and operated by
individuals or a group of individuals. For example TISCO, Bajaj Auto Ltd., Dabur
industries, etc.
 Joint sector industries: Joint sector industries are jointly run by the state and
individuals or a group of individuals. For example Oil India Limited (OIL).
 Cooperative sector industries: Cooperative sector industries are owned and operated
by the producers or suppliers of raw materials, workers, or both. They pool the
resources and share the profits or losses proportionately. For example Sugar industry,
coir industry, etc.
Based on the bulk and weight of raw material and finished goods:
 Heavy industries such as iron and steel
 Light industries that use light raw materials and produce light goods such as electrical
goods industries.

Agro – based Industries

Textile Industry: The textile industry occupies unique position in the Indian economy,
because it contributes significantly to industrial production, employment generation and
foreign exchange earnings.
It is the only industry in the country, which is self-reliant and complete in the value chain
i.e., from raw material to the highest value added products.

64
1. Cotton Textile Industry
 In ancient India, cotton textiles were produced with hand spinning and handloom
weaving techniques.
 After the 18th century, power -looms came into use.
 The first successful textile mill was established in Mumbai in 1854.
 The cotton textile industry was concentrated in the cotton-growing belt of
Maharashtra and Gujarat because of availability of raw cotton, markets, transport
including accessible port facilities, labor, moist climate, etc.
 This industry has close links with agriculture and provides a living to farmers, cotton
boll pluckers and workers engaged in ginning, spinning, weaving, dyeing, designing,
packaging, tailoring and sewing.
Problems faced by this industry:
 While spinning continues to be centralised in Maharashtra, Gujarat and Tamil Nadu,
weaving is highly decentralised to provide scope for incorporating traditional skills and
designs of weaving in cotton, silk, zari, embroidery, etc.
 India has world class production in spinning, but weaving supplies low quality of fabric
as it cannot use much of the high quality yarn produced in the country.
 Weaving is done by handloom, powerloom and in mills.
 The handspun khadi provides large scale employment to weavers in their homes as a
cottage industry.

2. Jute Textiles
India is the largest producer of raw jute and jute goods and stands at second place as an
exporter after Bangladesh.
Most of the mills are located in West Bengal, mainly along the banks of the Hugli river, in a
narrow belt.
The first jute mill was set up near Kolkata in 1855 at Rishra.
After Partition in 1947, the jute mills remained in India but three-fourth of the jute producing
area went to Bangladesh (erstwhile East Pakistan).
Factors responsible for their location in the Hugli basin are:
 proximity of the jute-producing areas,
 inexpensive water transport,
 supported by a good network of railways, roadways, and waterways to facilitate the
movement of raw materials to the mills,
 abundant water for processing raw jute,
 Cheap labor from West Bengal and adjoining states of Bihar, Odisha, and Uttar
Pradesh.
 Kolkata as a large urban center provides banking, insurance, and port facilities for
the export of jute goods.

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3. Sugar Industries
India stands second as a world producer of sugar but occupies the first place in the
production of gur and khandsari.
In recent years, there has been a tendency for the mills to shift and concentrate in the
southern and western states, especially in Maharashtra. This is because
 The cane produced here has a higher sucrose content.
 The cooler climate also ensures a longer crushing season.
 The cooperatives are more successful in these states.
Areas of distribution: The mills are located in Uttar Pradesh, Bihar, Maharashtra, Karnataka,
Tamil Nadu, Andhra Pradesh, Gujarat, Punjab, Haryana and Madhya Pradesh.

Mineral based Industries

Industries that use minerals and metals as raw materials are called mineral-based
industries.
1. Iron and Steel Industry
 The iron and steel industry is the basic industry since all the other industries — heavy,
medium and light, depend on it for their machinery.
 Steel is needed to manufacture a variety of engineering goods, construction material,
defense, medical, telephonic, scientific equipment and a variety of consumer goods.
 Production and consumption of steel is often regarded as the index of a country’s
development.
 Iron ore, coking coal, and limestone are required in a ratio of approximately 4 : 2 : 1.
 Some quantities of manganese, are also required to harden the steel.
 Chhotanagpur plateau region has the maximum concentration of iron and steel
industries because of:…low cost of iron ore, high-grade raw materials in proximity,
cheap labor, vast growth potential in the home market.
Processes of Manufacture of Steel (Refer page no 62)
2. Aluminium Smelting
 It is the second most important metallurgical industry in India.
 It is light, resistant to corrosion, a good conductor of heat, malleable and becomes
strong when it is mixed with other metals.
 It is used to manufacture aircraft, utensils and wires.
 It has gained popularity as a substitute of steel, copper, zinc and lead in a number of
industries.
 Aluminium smelting plants in the country are located in Odisha, West Bengal, Kerala,
Uttar Pradesh, Chhattisgarh, Maharashtra and Tamil Nadu.
 Bauxite, the raw material used in the smelters is a very bulky, dark reddish coloured
rock.
 Regular supply of electricity and an assured source of raw material at minimum cost
are the two prime factors for location of the industry.
3. Chemical Industries
 It comprises both large and small scale manufacturing units.
66
  Rapid growth has been recorded in both inorganic and organic sectors.
 Inorganic chemicals include sulphuric acid (used to manufacture fertilizers, synthetic
fibres, plastics, adhesives, paints, dyes stuffs), nitric acid, alkalies, soda ash (used to
make glass, soaps and detergents, paper) and caustic soda. These industries are
widely spread over the country.
 Organic chemicals include petrochemicals, which are used for manufacturing of
synthetic fibers, synthetic rubber, plastics, dye-stuffs, drugs and pharmaceuticals.
 Organic chemical plants are located near oil refineries or petrochemical plants.
 The chemical industry is its own largest consumer.
 Basic chemicals undergo processing to further produce other chemicals that are used
for industrial application, agriculture or directly for consumer markets.

4. Fertilizer Industry
 The fertilizer industry is centred around the production of nitrogenous fertilizers
(mainly urea), phosphatic fertilizers and ammonium phosphate and complex fertilizers
which have a combination of nitrogen (N), phosphate (P), and potash (K).
 The third, i.e. potash is entirely imported as the country does not have any reserves
of commercially usable potash or potassium compounds in any form.
 After the Green Revolution the industry expanded to several other parts of the
country. Gujarat, Tamil Nadu, Uttar Pradesh, Punjab, Kerala, Andhra Pradesh, Odisha,
Rajasthan, Bihar, Maharashtra, Assam, West Bengal, Goa, Delhi, Madhya Pradesh and
Karnataka.

5. Cement Industry
 Cement is essential for construction activity such as building houses, factories,
bridges, roads, airports, dams and for other commercial establishments.
 This industry requires bulky and heavy raw materials like limestone, silica and
gypsum.
 Coal and electric power are needed apart from rail transportation.
 The industry has strategically located plants in Gujarat that have suitable access to
the market in the Gulf countries.
 The first cement plant was set-up in Chennai in 1904. After Independence the industry
expanded.

6. Automobile Industry
 Automobiles provide vehicle for quick transport of good services and passengers.
 Trucks, buses, cars, motor cycles, scooters, three-wheelers and multi-utility vehicles
are manufactured in India at various centres.
 After the liberalisation, the coming in of new and contemporary models stimulated
the demand for vehicles in the market, which led to the healthy growth of the industry
including passenger cars, two and three-wheelers.
 The industry is located around Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata,
Lucknow, Indore, Hyderabad, Jamshedpur and Bengaluru.
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7. Information Technology and Electronics Industry
 The electronics industry covers a wide range of products from transistor sets to
television, telephones, cellular telecom, telephone exchange, radars, computers and
many other types of equipment required by the telecommunication industry.
 Bengaluru has emerged as the electronic capital of India.
 Other important centres for electronic goods are Mumbai, Delhi, Hyderabad, Pune,
Chennai, Kolkata, Lucknow, Coimbatore, Noida.
 A major impact of this industry has been on employment generation.
 The continuing growth in the hardware and software is the key to the success of IT
industry in India.

Industrial Pollution and Environmental Degradation

Industries cause environmental degradation in the following ways:
Air pollution:
 High proportion of carbon dioxide, sulphur dioxide, and carbon monoxide create air
pollution.
 Airborne particulate materials contain both solid and liquid particles like dust, sprays
mist and smoke.
 Smoke is emitted by chemical and paper factories, brick kilns, refineries and smelting
plants, and burning of fossil fuels in big and small factories that ignore pollution
norms.
 Toxic gas leaks can be very hazardous with long-term effects.
Water pollution:
 Organic and inorganic industrial wastes and effluents cause water pollution.
 The main culprits of water pollution are paper pulp, chemicals, textiles, dyeing,
petroleum refineries, tanneries and electroplating industries that let out dyes,
detergents, acids, salts and heavy metals like lead and mercury, pesticides, fertilisers,
synthetic chemicals with carbon, plastics and rubber, etc. into the water bodies.
 Fly ash, phospo- gypsum and iron and steel slags are the major solid wastes in India.
Thermal pollution:
 Hot water from factories and thermal plants is drained into rivers and ponds before
cooling.
 Wastes from nuclear power plants, nuclear and weapon production facilities cause
cancers, birth defects and miscarriages.
 Soil and water pollution are closely related.
 Dumping of wastes specially glass, harmful chemicals, industrial effluents, packaging,
salts and garbage renders the soil useless.
 Rain water percolates to the soil carrying the pollutants to the ground and the ground
water also gets contaminated.
Radioactive waste: Wastes from nuclear power plants cause cancer, birth defects,
miscarriages, etc.

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Noise pollution:
 It can also cause hearing impairment, increased heart rate and blood pressure among
other physiological effects.
 Unwanted sound is an irritant and a source of stress.
 Industrial and construction activities, machinery, factory equipment, generators, saws
and pneumatic and electric drills also make a lot of noise

Control of Environmental Degradation

 Every litre of waste water discharged by our industry pollutes eight times the quantity
of freshwater.
 Some suggestions are-
(i) minimising use water for processing by reusing and recycling it in two or more successive
stages
(ii) harvesting of rainwater to meet water requirements
(iii) treating hot water and effluents before releasing them in rivers and ponds.
 Treatment of industrial effluents can be done in three phases
(a) Primary treatment by mechanical means. This involves screening, grinding, flocculation
and sedimentation.
(b) Secondary treatment by biological process
(c) Tertiary treatment by biological, chemical and physical processes. This involves recycling
of wastewater
 Overdrawing of ground water reserves by industry where there is a threat to ground
water resources also needs to be regulated legally.
 Particulate matter in the air can be reduced by fitting smoke stacks to factories with
electrostatic precipitators, fabric filters, scrubbers and inertial separators.
 Smoke can be reduced by using oil or gas instead of coal in factories.
 Machinery and equipment can be used and generators should be fitted with silencers.
 Almost all machinery can be redesigned to increase energy efficiency and reduce
noise.
 Noise absorbing material may be used apart from personal use of earplugs and
earphones.
 The challenge of sustainable development requires integration of economic
development with environmental concerns.
NTPC (National Thermal Power Corporation)
 It is a major power providing corporation in India. It has ISO certification for EMS
(Environment Management System) 14001.
 The corporation has a proactive approach for preserving the natural environment and
resources like water, oil and gas and fuels in places where it is setting up power
plants.
 This has been possible through the following ways..
(a) Optimum utilisation of equipment adopting latest techniques and upgrading existing
equipment.

69
(b) Minimising waste generation by maximising ash utilisation.
(c) Providing green belts for nurturing ecological balance and addressing the question of
special purpose vehicles for afforestation.
(d) Reducing environmental pollution through ash pond management, ash water recycling
system and liquid waste management.
(e) Ecological monitoring, reviews and on-line database management for all its power
stations.

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CHAPTER 7 - LIFE LINES OF NATIONAL ECONOMY

Efficient means of transport are prerequisites for fast development.

Movement of the goods and services can be over three important domains of our earth i.e.
land, water and air. Based on these, transport can also be classified into land, water and air
transport. With the development in science and technology, the area of influence of trade
and transport expanded far and wide. Transport has been able to achieve this with the help
of equally developed communication system. Therefore, transport, communication and trade
are complementary to each other.
India is well-linked with the rest of the world despite its vast size, diversity and linguistic and
socio-cultural plurality. Railways, airways, waterways, newspapers, radio, television, cinema
and internet, etc have been contributing to its socio-economic progress in many ways. The
trades from local to international levels have added to the vitality of its economy. It has
enriched our life and added substantially to growing amenities and facilities for the comforts
of life.

Classification of means of transportation (Refer page no 71)

Importance of means of transportation and communication:

 They are the very basis of industries and trade in the country.
 Create job employment opportunities
 Help to grow economy
 Transport maintains the movement of persons and products from one region to
another region of the country
 For sending and receiving messages
 Interlinking world
 Increases awareness among the people at the national level
 Help in defending the independence and the national unity of a country.
 Encourage national and international tourism.

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Roadways
Benefits of Roadways:
 Roads need less capital than railways.
 Road transport provides door-to-door service, thus the cost of loading and unloading
is much lower
 Road transport provides flexible service to men and materials.
 Road transport is useful for small distances.
 Road transport is helpful in the production of perishable goods as it facilitates the
distribution of perishable goods from point of production to point of consumption.
 Roads can negotiate higher gradients of slopes and as such can traverse mountains
such as the Himalayas.
 Road transport is also used as a feeder to other modes of transport such as they
provide a link between railway stations, air, and sea ports.
 The construction cost of roads is much lower than that of railway lines.

India has second largest road networks in the world.

The growing importance of road transport vis-à-vis rail transport is rooted in the following
reasons;
(a) construction cost of roads is much lower than that of railway lines,
(b) roads can traverse comparatively more dissected and undulating topography,
(c) roads can negotiate higher gradients of slopes and as such can traverse mountains such
as the Himalayas,
(d) road transport is economical in transportation of few persons and relatively smaller
amount of goods over short distances,
(e) it also provides door - to-door service, thus the cost of loading and unloading is much
lower,
(f) road transport is also used as a feeder to other modes of transport such as they provide
a link between railway stations, air and sea ports.

Classification of Roads:
i. Golden Quadrilateral Super Highways:
 The government has launched a major road development project linking Kolkata-
Chennai-Mumbai and Delhi by six-lane Super Highways.
 The North-South corridors linking Srinagar (Jammu & Kashmir) and Kanyakumari
(Tamil Nadu), and East-West Corridor connecting Silchar (Assam) and Porbandar
(Gujarat) are part of this project.
 These highway projects are being implemented by the National Highway Authority of
India (NHAI).
 The major objective of these Super Highways is to reduce the time and distance
between the mega cities of India.
ii. National Highways:
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  National Highways link extreme parts of the country.
 These are the primary road systems and are laid and maintained by the Central Public
Works Department (CPWD).
 A number of major National Highways run in North-South and East-West directions.
 The historical Sher-Shah Suri Marg is called National Highway No.1, between Delhi
and Amritsar.
iii. State Highways:
 Roads linking a state capital with different district headquarters are known as State
Highways.
 These roads are constructed and maintained by the State Public Works Department
(PWD).
iv. District Roads:
 These roads connect the district headquarters with other places in the district.
 These roads are maintained by the Zila Parishad.
v. Other Roads:
 Rural roads, which link rural areas and villages with towns, are classified under this
category.
 These roads received special impetus under the Pradhan Mantri Grameen Sadak
Yojana.
vi. Border Roads:
 Border roads are very significant for the security of the country.
 These roads are constructed and maintained by the Border Roads Organization.
 It has provided access to areas of difficult terrain.
 It helps in the economic development of the area.
vii. Expressways
 Constructed by NHAI.
 These are run through one or more states or UT’s.
 Some are designated as NE or National Expressways.
 Currently we have 23 operational expressways.
 Biggest expressways is Delhi – Mumbai Expressway.
 UP is the only state having 13 expressways.

Railways
Importance of railways:
 Railways are the principal mode of transportation for freight and passengers in India.
 It is convenient and safe to travel long distances by railway.
 Railways make it possible to conduct multifarious activities like business, sightseeing,
and pilgrimage along with the transportation of goods over longer distances.
 Railways in India bind the economic life of the country.
 Railways accelerate the development of industry and agriculture.

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  It provides employment to a large number of people.
Physical and economic factors have influenced the distribution pattern of the Indian Railways
network in the following ways:
 Northern Plain: Level land, high population density, and rich agricultural resources
have favored the development of railways in these plains. However, a large number
of rivers requiring the construction of bridges across their wide river beds posed some
obstacles.
 Peninsular region and the Himalayan region: It is a hilly terrain. The railway tracks
are laid through low hills, gaps, or tunnels. So, it is very difficult to lay the railway
lines. The Himalayan mountainous regions too are not favorable for the construction
of railway lines due to high relief, sparse population, and lack of economic
opportunities.
 Desert of Rajasthan: On the sandy plain of western Rajasthan too, it is very difficult
to lay railway lines which have hindered the development of railways.
 Swamps of Gujarat, and forested tracts of Madhya Pradesh, Chhattisgarh, Orissa, and
Jharkhand; are also not suitable for the development of railways.
 The contiguous stretch of Sahyadri could be crossed only through gaps or passes.
Although the Konkan railway along the west coast has been developed, it has also
faced a number of problems such as the sinking of track in some stretches and
landslides.

Pipeline transport
 The pipeline transport network is the new mode of transport these days.
 In the past, pipelines were used to transport water to cities and industries.
 Now, these are used for transporting crude oil, petroleum products, and natural gas
from oil and natural gas fields to refineries, fertilizer factories, and big thermal power
plants.
 Solids can also be transported through a pipeline when converted into the slurry.
 It rules out trans-shipment losses or delays.
 It saves time and reduces pressure on rail transport.
 Pipelines make transport fast, safe, and easy.
There are three important networks of pipeline transportation in the country.
 From oil field in upper Assam to Kanpur (Uttar Pradesh)
 From Salaya in Gujarat to Jalandhar in Punjab
 The first 1,700 km long Hazira-VijaipurJagdishpur (HVJ) cross country gas pipeline,
linked Mumbai High and Cambay Bassein gas fields with various ferilizer, power and
industrial complexes in western and northern India.

Waterways
 Waterways are the cheapest means of transport.
 They are most suitable for carrying heavy and bulky goods.
 It is a fuel-efficient and environment friendly mode of transport.
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  The Ganga river between Allahabad and Haldia (National Waterway No. 1) is the
longest National Waterway in India.
 The Brahmaputra river between Sadiya and Dhubri (891 km)-N.W. No.2
 The West-Coast Canal in Kerala (Kottapurma-Kollam, Udyogamandal and
Champakkara canals-205 km) – N.W. No.3
 Specified stretches of Godavari and Krishna rivers along with Kakinada Puducherry
stretch of canals (1078 km) – N.W. No.4
 Specified stretches of river Brahmani along with Matai river, delta channels of
Mahanadi and Brahmani rivers and East Coast Canal (588 km) – N.W. No.5
 There are some other inland water ways on which substantial transportation takes
place. These are Mandavi, Zuari and Cumberjua, Sunderbans, Barak and backwaters
of Kerala.
 Apart from these, India’s trade with foreign countries is carried from the ports located
along the coast. 95 per cent of the country’s trade volume (68 per cent in terms of
value) is moved by sea.
 Mumbai is the biggest port with a spacious natural and well-sheltered harbor.
(Refer the map of ports from map book)

Airways
 The air travel, today, is the fastest, most comfortable and prestigious mode of
transportation.
 It can cover very difficult terrains like high mountains, dreary deserts, dense forests
and also long oceanic stretches with great ease.
 UDAN (Ude Desh ka Aam Nagrik) is a first of-its kind scheme globally, designed to
jump-start the regional aviation market.
 Regional Connectivity Scheme (RCS) – UDAN was conceived by the Ministry of Civil
Aviation (MoCA), Government of India, to promote regional connectivity by making
fly affordable for the common citizen.
 The central idea of the scheme is to encourage airlines to operate flights on regional
and remote routes through enabling policies and extending incentives.
Airways are the most preferred mode of transport in North-Eastern states of India because:
 The northeastern part of the country is marked by the presence of big rivers, dissected
relief, and dense forests hence, it is difficult to construct roads and railway lines there.
 There are frequent floods and international frontiers, which require immediate and
quick attention from the government authorities. Floods also damage roads and
railway lines.
 Air travel has made access to the northeastern part of the country easier and quicker.

Communication
Role of mass communication in India:
 Mass communication provides entertainment.

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  Creates awareness among people about various national programs and policies. It
includes radio, television, newspapers, magazines, books, and films.
 All India Radio (Akashwani) broadcasts a variety of programs in national, regional,
and local languages
 Doordarshan broadcasts programs of entertainment, education, sports, etc. for people
of different age groups.
 India publishes a large number of newspapers and periodicals annually
 Newspapers are published in about 100 languages and dialects to create awareness
among people in different parts of the country.
 India produces short films; video feature films and video short films.
 Mass media creates awareness among people on various socio-economic and political
issues.
 India is the largest producer of feature films in the world. It produces short films;
video feature films and video short films. The Central Board of Film Certification is the
authority to certify both Indian and foreign films.
Means of Personal Communication in India –
 The Indian postal network is the largest in the world.
 It handles parcels as well as personal written communications.
First class mails - Cards and envelopes are considered first–class mail and are airlifted
between stations covering both land and air.
Second–class mail includes book packets, registered newspapers, and periodicals. To
facilitate quick delivery of mail in large towns and cities, six mail channels have been
introduced recently. They are called Rajdhani Channel, Metro Channel, Green Channel,
Business Channel, Bulk Mail Channel, and Periodical Channel.
 India has one of the largest telecom networks in Asia.
 Excluding urban places, more than two-thirds of the villages in India have already
been covered with Subscriber Trunk Dialling (STD) telephone facility. There is a
uniform rate of STD facilities all over India. It has been made possible by integrating
the development of space technology with communication technology.
 Digital India is an umbrella programme to prepare India for a knowledge based
transformation. The focus of Digital India Programme is on being transformative to
realise – IT (Indian Talent) + IT (Information Technology)=IT (India Tomorrow) and
is on making technology central to enabling change.

International Trade
 The exchange of goods among people, states and countries is referred to as trade.
The market is the place where such exchanges take place.
 Trade between two countries is called international trade. It may take place through
sea, air or land routes.
 While local trade is carried in cities, towns and villages,
 State level trade is carried between two or more states.

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The advancement of International Trade in a country is an index or economic barometer to
its economic prosperity: Examine.
 Trade between two countries through sea, air, or land route helps in the development
of the country.
 No country can survive without International trade.
 Export and Import are the components of trade.
 Commodities in export- agriculture and allied products, areas and minerals, gems and
jewelry, etc.
 The commodities imported to India include Petroleum and its products, precious
stores, chemicals, etc.
 India has emerged as a software giant at the international level and it is earning
large foreign exchange through the export of information technology.
The balance of trade of a country is the difference between its export and import.
When the value of export exceeds the value of imports, it is called a favourable balance of
trade.
If the value of imports exceeds the value of exports, it is termed as unfavourable balance of
trade.
India has trade relations with all the major trading blocks and all geographical regions of the
world.

Tourism
Tourism is considered a trade because:
 Tourism in India has grown remarkably over the past two decades, with government
initiatives, infrastructure development, and global branding contributing to this
success.
 To boost tourism in India, schemes like Swadesh Darshan 2.0, Vibrant Village
Programme, PRASHAD (Pilgrimage Rejuvenation and Spiritual Heritage Augmentation
Drive), Paryatan Mitra, etc. have been started.
 Tourism also promotes national integration, provides support to local handicrafts and
cultural pursuits.
 It also helps in the development of international understanding about our culture and
heritage.
 Foreign tourists visit India for heritage tourism, eco tourism, adventure tourism,
cultural tourism, medical tourism and business tourism.
 There is a vast potential for development of tourism in all parts of the country.
 Efforts are being made to promote different types of tourism for this upcoming
industry.

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 CIVICS
CHAPTER 1 - POWER SHARING
Belgium
 A European country.
 Boundaries shared with France, the Netherlands, Germany, and Luxembourg.
 59% population lives in the Flemish region and speaks the Dutch language.
 40% population lives in the Wallonia region and speaks French.
 1% population speaks German.
 Capital City: Brussels
o 80% of people speak French
o 20% of people speak Dutch.
 The minority French-speaking community was relatively rich and powerful.
Accommodation in Belgium
 Between 1970 and 1993, they amended their constitution four times
 The number of Dutch and French-speaking ministers shall be equal in the central
government.
 Some special laws required the support of many members from each linguistic group.
 The state governments are not subordinate to the central government.
 Brussels has a separate government in which both communities have equal
representation.
 Apart from the central and state government, there is a third kind of government
called ‘community government’. Community government is elected by people
belonging to one language community – Dutch, French, and German-speaking.
 This government has the power regarding cultural, educational and language-related
issues

Sri Lanka
 An Island nation
 It has a diverse population.
 Major social groups:
• 74% Sinhala speakers
• 18% Tamil speakers
• 13% Sri Lankan Tamils
• 5% Indian Tamils
 Sri Lankan Tamils are concentrated in the north and east of the country.
 Most of the Sinhala-speaking people are Buddhists.
 Most of the Tamils are Hindus or Muslims.
Majoritarianism in Sri Lanka
Sri Lanka emerged as an independent country in 1948.
The democratically elected government adopted a series of majoritarian measures to
establish Sinhala supremacy:

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  In 1956, an Act was passed to recognize Sinhala as the only official language thus
disregarding Tamil.
 The government favored Sinhala applicants for university positions and government
jobs as per their preferential politics.
 A new Constitution stipulated that the state shall protect and foster Buddhism.
 But the demands of the Tamilians were different.
 They want recognition of Tamil as an official language.
 Equal opportunities for Tamilians in government jobs and educational institutions.
 Provincial autonomy for Tamil-dominated provinces.
 But all was denied.
 Hence by 1980s, several political organizations were formed demanding an
independent Tamil Eelam (state) in northern and eastern parts of Sri Lanka.
 The distrust between the two communities turned into widespread conflict called civil
war.
 As a result, thousands of people of both the communities have been killed, were
forced to leave the country as refugees and even many lost their livelihoods.
 The civil war has caused a terrible setback to the social, cultural and economic life of
the country. It ended in 2009.
Belgium Vs Sri Lanka
 Both democratic countries have very diverse social setups and so adopted very
different approaches when it comes to power-sharing.
BELGIUM SRILANKA
1. Adopted the policy of 1. Adopted a democratic system but followed
accommodation of social and ethnic majoritarian policies.
divisions
2. Power was shared among two 2. Favored the interests of the majority
ethnic groups Sinhala community.
3. Both groups had an equal share in 3. The minority community was isolated.
the working of government
4. To maintain political stability and 4. Had no such arrangement.
unity, equal representation was
provided to both groups
5. The community government of
both ethnic groups also existed at
the local level.
6. The Constitution was amended 5. Majoritarianism led to civil war for twenty-
four times before arriving at a final long years.
draft to prevent civil strikes.
Why is power sharing desirable?
 Power does not rest with any one organ of the state; it is shared among different
levels/organs of the government.
 It helps to reduce the possibility of conflicts between social groups.

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  It ensures the stability of political order.
 It is the very spirit of democracy
 It promotes legitimate government where citizens acquire a stake in the system.
 There are two sets of reasons in this context…….
Prudential reasons:
 It promotes the unity of the nation.
 Helps to bring out better outcomes.
Moral reasons:
 A democratic rule involves sharing power with those affected by its exercise and who
must live with its effect.
 People have a right to be consulted on how they are to be governed and emphasize
the very act of power sharing as valuable.

FOUR Forms of Power Sharing

 Power sharing among the different organs of government (Horizontal power sharing)
with legislature, executive, and judiciary at the same level.
No organ can exercise unlimited powers.
Also known as the system of checks and balances.
Example: in India, though the ministers and government officials exercise power, they are
responsible to the Parliament or state legislatures. Similarly, although the judges are
appointed by the executive, they can check the functioning of the executive or laws made
by the legislatures.
 Power sharing among governments at different levels. (Vertical) Centre, state and
local self-government
 Power sharing among different social groups such as the religious and linguistic
groups.
Eg... Community government in Belgium.
 Power sharing among political parties, pressure groups, and movements like interest
groups such as businessmen, farmers, and industrial workers.
They also will have a share in governmental power, either through participation in
governmental committees or bringing influence on the decision-making process.
Eg:..trade unions, lions club, rotary clubs, women associations
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CHAPTER 2 - FEDERALISM
 Federalism is a system of government in which power is divided between a central
authority and various constituent units of the country.
 A federation has two levels of government. Both levels of governments enjoy their
power independent of the other.
 One is the government for the entire country that is usually responsible for a few
subjects of common national interest.
 The other is the governments at the level of provinces or states that look after much
of the day-to-day administering of their state.

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Difference between unitary and federal government
Federal Government Unitary Government
o 2 level of Government o Only one level of government
o Political Powers are shared by 2 o Political power held by central government
levels of government
o The Central Government cannot o The Central Government can pass orders on
order the state government to do to the provincial or local government.
something.
o Different types of Law (Central o Only one set of laws(uniform) for whole
+States laws) country
o State Government has powers of its o Central government is supreme, and the
own for which it is not answerable administrative divisions exercise only the
to the central government powers that the central government has
delegated to them. Their powers may be
broadened and narrowed by the central
government
Eg; Eg;
Key features of federalism
 There are two or more levels (or tiers) of government.
 Different tiers of government govern the same citizens, but each tier has its own
JURISDICTION in specific matters of legislation, taxation and administration.
 The existence and authority of each tier of government is constitutionally guaranteed.
 The fundamental provisions of the constitution cannot be unilaterally changed by one
level of government. Such changes require the consent of both the levels of
government.
 Courts have the power to interpret the constitution and the powers of different levels
of government.
 Sources of revenue for each level of government are clearly specified to ensure its
financial autonomy.
 The federal system has dual objectives.
1) To safeguard and promote the unity of the country
2) Accommodate regional diversity.
Difference between coming together and holding together
COMING TOGETHER HOLDING TOGETHER
o Independent states come together on o Large countries decide to divide power
their own to form bigger unit. between constitutional units and Centre.
o Increase security by pooling o Centre is more powerful vis-a-vis the
sovereignty and retaining identity. states.
o All constituent states have equal o Constituent units of federation have
power unequal powers.
o USA, Switzerland & Australia. o India, Spain & Belgium.

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What makes India a federal country?
 India is a Union of States based on the principal of federalism.
 The Indian Constitution is a three-fold distribution of legislative powers between the
Union Government and the State Governments.
 The 3 lists are mentioned below:
Union List: - Has subjects of National importance.
Union alone can make laws.
Defense, Banking, Currency, Foreign affairs and communication.
State List:- Has subjects of local and State importance.
State Govt. alone can make laws.
Police, trade, commerce, agriculture and irrigation.
Concurrent List: - Has subjects of common interest both to Centre and State.
Both the Centre and State can frame laws.
Education, Forest, Trade Union, Marriage, Adoption and succession
Residuary List: - The Union government has the power to make laws on residuary subjects.
E.g.: Computer Software, e-commerce

How is federalism practiced?

The real success of federalism in India is attributed to its nature of democratic politics. Some
of the major ways in which federalism is practiced in India.
 Linguistic States: - The creation of linguistic States was the first and a major test for
democratic politics in India.
From 1947 to 2017, many old States have vanished, and many new States have been
created.
Areas, boundaries and names of the States have been changed.
Some States has been formed of people who speak the same language. These states are
known as the Linguistic States.
Some states are created based on culture, ethnicity or geography.
Eg. Nagaland, Uttarakhand and Jharkhand.
 Language Policy: -A second test for Indian federation is the language policy.
Hindi was identified as the official language. 40% speak this language.
Besides Hindi, there are 22 other languages recognized as Scheduled Languages under the
8th schedule of the Constitution.
States too have their own official regional languages and government work takes place in
the official language of the state concerned.
 Centre – state relations: - Restructuring the Centre-State relations is one more way
in which federalism has been strengthened in practice.
Coalition Government:- If no single party gets a clear majority in the Lok Sabha, the major
national parties can alliance with many parties including several regional parties to form a
government at the Centre.

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This led to a new culture of power sharing and respect for the autonomy of State
Governments.

Decentralization in India
 When power is taken away from Central and State governments and given to the local
government, it is called decentralization.
 The basic idea behind decentralization is that there are many problems and issues
which are best settled at the local level.
 Local people can also directly participate in the decision making.
 A major step towards decentralization was taken in 1992.
 The Constitution was amended to make the third tier of democracy more powerful
and effective.
The key features of 3-tier democracy: Changes after decentralization
 It is constitutionally mandatory to hold regular elections with local government bodies.
 Seats are reserved in the elected bodies and the executive heads of these institutions
for the Scheduled Castes, Scheduled Tribes and Other Backward Classes.
 At least one-third of all positions are reserved for women.
 The State Election Commission has been created in each State to conduct panchayat
and municipal elections.
 The State governments are required to share some powers and revenue with local
government bodies.
 The nature of sharing varies from State to State.
Local self government: Panchayati raj system
 Rural local government is popularly known as Panchayati Raj.
 Each village, or a group of villages in some States, has a gram panchayat.
 This is a council consisting of several ward members, often called panch, and a
president or sarpanch.
 They are directly elected by all the adult population living in a village or ward.
 Gram Panchayat is the decision making body for the entire village.
 The Panchayat works under the overall supervision of the Gram Sabha.
 All the voters in the village are its members.
 It has to meet at least twice or thrice in a year to approve the annual budget of the
gram panchayat and to review the performance of the Gram Panchayat.
Zilla parishad
 All the Panchayat Samitis or Mandalsina district together constitute the Zilla (district)
Parishad.
 Members of the Lok Sabha, MLAs of the district, and some other officials of other
district-level bodies are the members of Zilla Parishad.
Municipalities
 As Gram Panchayat is for rural areas, similarly we have Municipalities for urban areas.
 Big cities are constituted into Municipal Corporations.
 Both Municipalities and Municipal Corporations are controlled by elected bodies
consisting of people’s representatives.
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  The Municipal Chairperson is the political head of the Municipality.
 In a Municipal Corporation such an officer is called the mayor.
 This new system of local government is the largest experiment in democracy
conducted anywhere in the world.
 Constitutional status for local government has helped deepen democracy in our
country.
 It has also increased women’s representation and voice in our democracy.

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CHAPTER 3 - GENDER, RELIGION AND CASTE
Gender Politics
Gender division is a form of hierarchical social division seen everywhere. It tends to be
understood as natural and unchangeable. However, it is based on social expectations and
stereotypes.
Boys and girls are brought up to believe that the main responsibility of women is housework
and bringing up children.
Sexual division of labour
A system in which all work inside the home is either done by the women of the family, or
organized by them through the domestic helpers.
 Women do all work inside the home such as cooking, cleaning, washing clothes,
tailoring, looking after children, etc., and men do all the work outside the home.
 It is not that men cannot do housework; they simply think that it is for women to
attend to these things. When these jobs are paid for, men are ready to take up these
works.
 Most tailors or cooks in hotels are men. Similarly, it is not that women do not work
outside their home.
 In villages, women fetch water, collect fuel and work in the fields.
 In urban areas, poor women work as domestic helper in middle class homes, while
middle class women work in offices.
 In fact, the majority of women do some sort of paid work in addition to domestic
labour. But their work is not valued and does not get recognition.
 The result of this division of labour is that although women constitute half of the
humanity, their role in public life, especially politics, is minimal in most societies.
 Earlier, only men were allowed to participate in public affairs, vote and contest for
public offices.
 Gradually the gender issue was raised in politics.
 Women in different parts of the world organised and agitated for equal rights.
 There were agitations in different countries for the extension of voting rights to
women.
Feminist Movement:
 Women all over the world fought for equal rights in the feminist movements.

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  They demanded the right to vote, more political and legal power, and better education
and career opportunities.
 They also fought for equality in their personal and family lives.
 In Scandinavian countries, such as Sweden, Norway, and Finland, the participation of
women in public life is very high.
Women face disadvantage, discrimination, and oppression in various ways:
 The literacy rate among women is only 54 % compared to 76 % among men as many
parents prefer to spend their resources only on sons.
 The proportion of women in highly paid and valued jobs is very low.
 The Equal Wages Act provides that equal wages should be paid for equal work.
 However, in many areas of work like sports, cinema, agriculture, and factories, women
are paid less than men for the same work.
 Girl children are aborted before being born as many parents prefer to have sons rather
than daughters. Such sex-selective abortion has led to a decline in the child-sex ratio
in the country to merely 919.
 Women face various kinds of harassment, exploitation, and violence inside as well as
outside their homes in both rural and urban areas.
Political representation of women in India:
 In India, the proportion of women in the legislature has been very low.
In Central government:The percentage of elected women members in Lok Sabha has
touched 13.6 % of its total strength for the first time in 2024.
In State legislature, less than 5% of its total strength is women
Local Government: 1/3rd of the seats are reserved for women in Panchayats and
Municipalities.
Now there are more than 10 lakh elected women representatives in rural and urban local
bodies.
 India is among the bottom group of nations in the world, in this aspect.
 Women’s organizations and activists have been demanding a reservation of at least
1/3rd of seats in Lok Sabha and State Assemblies.
 In 2023, Nari Shakti Vandan Adhiniyam (Womens’ Reservation Act, 2023) has been
passed which will give 33 percent reservation of seats for women in Lok Sabha, State
Legislative Assemblies and also Delhi Assembly.
 As a result, we are having few women holding the high post of President, Chief
Ministers, MP’s, MLA’s, Finance Minister and even in the defence department.
Examples: Draupati Murmu, Nirmala Sitaraman, Col. Sophia Qureshi, Wing Commander
Vyomika Singh.
Hence gender aspect is having a positive side in all areas.

Religion, Communalism, and Politics

Religious differences are expressed in politics in various ways (Relationship between Religion
and Politics)

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  Gandhiji believed that religion can never be separated from politics and so politics
must be guided by ethics drawn from religion.
 Human rights groups in our country have argued that most of the victims of communal
riots in our country are people from religious minorities. So they have demanded that
the government take special steps to protect religious minorities.
 The women’s movement has argued that family laws of all religions discriminate both
men and women.
So they have demanded that the government should change these laws to make them more
equitable.
 But they do not seem very wrong or dangerous.
 Ideas, ideals and values drawn from different religions can and perhaps should play
a role in politics.
 People should be able to express in politics their needs, interests and demands as a
member of a religious community.
 Those who hold political power should sometimes be able to regulate the practice of
religion so as to prevent discrimination and oppression.
 These political acts are not wrong as long as they treat every religion equally.
Communalism
 Communal politics is based on the idea that religion is the principal basis of social
community.
 The followers of a particular religion must belong to one community.
 Their fundamental interests are the same.
 It also follows that people who follow different religions cannot belong to the same
social community.
 In its extreme form, communalism leads to the belief that people belonging to
different religions cannot live as equal citizens within one nation. Either, one of them
has to dominate the rest or they have to form different nations.
Communal belief is flawed because:
 People of one religion do not have the same interests and aspirations in every context.
 Everyone has several other roles, positions and identities.
 There are many voices inside every community. All these voices have a right to be
heard. Therefore any attempt to bring all followers of one religion together other than
religion is bound to suppress many voices within that community.
 The problem begins when religion is seen as the basis of the nation and when one
religion and its followers are pitted against another
 This manner of using religion in politics is communal politics.
Communalism can take various forms in politics:
 The most common expression of communalism is in everyday beliefs. These involve
religious prejudices, stereotypes of religious communities, etc. This is dangerous when
we fail to notice it and once we start to believe it.
 A communal mind often leads to a quest for political dominance of one’s own religious
community.

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Example: for those belonging to majority community, this takes the form of majoritarian
dominance. For those belonging to the minority community, it can take the form of a desire
to form a separate political unit.
 Political mobilization on religious lines involves the use of sacred symbols, religious
leaders, and emotional appeal to bring the followers of one religion together in the
political arena.
Example: In electoral politics, this often involves special appeal to the interests or emotions
of voters of one religion in preference to others.
 Sometimes communalism takes its ugly form of communal violence, riots, and
massacre.
Example: India and Pakistan suffered some of the worst communal riots from the time of
the Partition in the name of terrorism leading to Indo – Pak wars.

Secular State
A secular state is a state that is neutral in matters of religion. It does not favor any one
religion over another, and it does not promote or discourage any religious beliefs.
Secular states guarantee freedom of religion for all citizens, regardless of their beliefs.
The constitutional provisions that make India a ‘secular state’ are as follows:
 There is no official religion in the Indian state.
 Our constitution does not give a special status to any religion.
 It provides all individuals and communities the freedom to profess, practice, and
propagate any religion, or not to follow any.
 The Constitution prohibits discrimination on the grounds of religion.
 It allows the state to intervene in matters of religion in order to ensure equality within
religion to ensure equality within religious communities.For example, it bans
untouchability.
Hence religion and communalism is having a negative aspect in all areas.

Caste and Politics

 Caste system was based on exclusion of and discrimination against the ‘outcaste’
groups. They were subjected to the inhuman practice of untouchability.
 In most societies, occupations are passed on from one generation to another.
 Caste system is an extreme form of this.
 What makes it different from other societies is that in this system, hereditary
occupational division was sanctioned by rituals.
 Members of the same caste group were supposed to form a social community that
practiced the same or similar occupation, married within the caste group and did not
eat with members from other caste groups.
 Even now most people marry within their own caste or tribe.
 Untouchability has not ended completely, despite constitutional prohibition.

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Socio – economic changes taken place in modern India:
(The caste system has undergone changes in modern India)
Political leaders and social reformers like Jotiba Phule, Gandhiji, B.R. Ambedkar, and Periyar
Ramaswami Naicker advocated and worked to establish a society in which caste inequalities
were absent.
 With economic d e v e l o p m e n t………l a r g e s c a l e urbanization,
Growth of literacy and education,
Occupational mobility,
The weakening of the position of landlords in the villages,
The old notions of caste hierarchy are breaking down.
 The Constitution of India prohibited any caste-based discrimination and laid the
foundations of policies to reverse the injustices of the caste system.

Caste can take various forms in politics:

 Casteism is rooted in the belief that caste is the sole basis of social community.
 According to this way of thinking, people belonging to the same caste belong to a
natural social community and have the same interests which they do not share with
anyone from another caste.
 During elections, they keep in mind the caste composition of the electorate.
 Political parties and candidates in elections make appeals to caste sentiments to
muster support to win elections.
 When governments are formed, political parties usually take care that representatives
of different castes and tribes find a place in it.
 Political parties and candidates in elections make appeals to caste sentiment to muster
support. Some political parties are known to favour some castes and are seen as their
representatives
 Universal adult franchise and the principle of one-person-one-vote compelled political
leaders to gear up for the task of mobilizing and securing political support.

The focus on caste in politics can sometimes give an impression that elections are all about
caste and nothing else. But this is not true:
 No parliamentary constituency in the country has a clear majority of one single caste.
So, every candidate and party needs to win the confidence of more than one caste
and community to win elections.
 No party wins the votes of all the voters of a caste or community.When people say
that a caste is a ‘vote bank’ of one party, it usually means that a large proportion of
the voters from that caste vote for that party.
 Many political parties may put up candidates from the same caste. Some voters have
more than one candidate from their caste while many voters have no candidate from
their caste.

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  The ruling party and the sitting MP or MLA frequently lose elections in our country.
That could not have happened if all castes and communities were frozen in their
political preferences.
 People’s assessment of the performance of the government and the popularity rating
of the leaders matter and are often decisive in elections.

Politics in Caste (It is not politics that gets caste-ridden; it is the caste that gets politicized)
Politics too influences the caste system and caste identities by bringing them into the political
arena. Thus, it is not politics that gets caste-ridden; it is the caste that gets politicized. This
takes several forms:
 Each caste group tries to become bigger by incorporating within it neighboring castes
or sub-castes that were earlier excluded from it.
 Various caste groups are required to enter into a coalition with other castes or
communities.
 New kinds of caste groups have come up in the political arena like ‘backward’ and
‘forward’ caste groups.
Thus, caste plays different kinds of roles in politics and has both positive and negative
aspects:

Positive aspects of caste in politics:

 Expression of caste differences in politics gives many disadvantaged communities the
space to demand their share of power.
 Several political and non-political organizations have been demanding and agitating
for an end to discrimination against particular castes, and for more dignity and more
access to land, resources, and opportunities.
Negative aspects of caste in politics:
 Caste politics lead to tension and violence.
 Politics based on caste identity alone is not a healthy feature in a democracy.
 It can divert attention from other pressing issues like poverty, development,
corruption, etc.

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CHAPTER 4 - POLITICAL PARTIES
Why do we need political parties?
Meaning
 A political party is a group of people who come together to contest elections and hold
power in the government.
 They agree on some policies and programs for society to promote the collective
goodness.
 They try to persuade people as to why their policies are better than others and seek
to implement these policies by winning popular support through elections.

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Partisanship: A person who is strongly committed to a party, group or faction.
Parties are about to be a part of the society and thus, involve partisanship. Thus, a party is
known by which part it stands for, which policies it supports and whose interests it upholds.
The main components of political parties are:
 The leaders
 The active members, and
 The followers.
Functions of a political party:
 Parties contest elections:
In most democracies, elections are fought mainly among the candidates put up by political
parties. In India, top party leaders choose candidates for contesting elections.
 Parties put forward different policies and programs and the voters choose from them:
In a democracy, a large number of similar opinions have to be grouped together to provide
a direction in which policies can be formulated by the governments. This is what the parties
do.
A government is expected to base its policies on the line taken by the ruling party.
 Parties play a decisive role in making laws for a country:
Since most of the members belong to a party, they go by the direction of the party leadership
in decision making, irrespective of their personal opinions.
 Parties form and run governments:
Parties recruit leaders, train them and then make them ministers to run the government in
the way they want.
Those parties that lose in the elections play the role of opposition to the parties in power,
by voicing different views and criticizing the government for its failures or wrong policies.
 Parties shape public opinion:
They raise and highlight issues. Parties have lakhs of members and activists spread all over
the country. Parties sometimes also launch movements for the resolution of problems faced
by people.
 Parties provide people access to government machinery and welfare schemes
implemented by governments.
Parties have to be responsive to people’s needs and demands. Otherwise people can reject
those parties in the next elections.

Necessity of political party in a country

 The rise of political parties is directly linked to the emergence of representative
democracy.
 As societies become large and complex, they need some agency to get different views
on various issues and to bring this to the notice of government.
 They need some ways and means to bring various representatives together so that a
responsible government could be formed.

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  They need a mechanism to support or restrain the government, make policies, and
justify or oppose them.
 Political parties fulfill these needs that every representative government has. Thus,
political parties are a necessary condition for democracy.

How many parties should we have?

One - Party System
 Countries, where only one party is allowed to control and run the government are
called one - party systems.
 For example, in China, only the Communist Party is allowed to rule. North Korea,
Cuba, Vietnam are other examples.
 A one - party system is not considered a good option in a democratic system because
voters are not offered any choice at the time of voting. This is not a democratic option.
Any democratic system must allow at least two parties to compete in elections and
provide a fair chance for the competing parties to come to power.
Two - Party System
 Countries where only two main parties contest elections are called two-party systems.
 For example - the United States of America and the United Kingdom are examples of
a two -party system.
Multi - party system
 If several parties compete for power, and more than two parties have a reasonable
chance of coming to power either on their strength or in alliance with others, we call
it a multiparty system.
 When several parties in a multi - party system join hands for the purpose of contesting
elections and winning power, it is called an alliance or a front.
 For example, in India there were three such major alliances in 2004 parliamentary
elections – the National Democratic Alliance, the United Progressive Alliance and the
Left Front.
The multi - party system evolved in India because:
 India is blessed with tremendous social and geopolitical diversity. This diversity cannot
be easily accommodated by two or three political parties.
 Because of the multiparty system, a variety of interests and opinions enjoy political
representation.

All the countries of the world can't have the same party system because:
 A party system is not something any country can choose.
 It evolves over a long time depending on the nature of society, its social and regional
divisions, its history of politics, and its system of elections.
 Each country develops a party system that is conditioned by special circumstances.
No system is ideal for all countries and all situations.

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National parties
 National political parties are country-wide parties. They have units in various states.
All these units follow the same policies, programs, and strategy that are decided at
the national level.
 Every party in the country has to register with the Election Commission.
 These parties are given a unique symbol – only the official candidates of that party
can use that election symbol.
 Parties that get this privilege and some other special facilities are ‘recognized’ by the
Election Commission for this purpose.
 That is why these parties are called, ‘recognized political parties’.
 The Election Commission has laid down detailed criteria of the proportion of votes and
seats that a party must get in order to be a recognized party.

Conditions required to be a national and state political party are:

 A party that secures at least 6% of the total votes in an election to the State Legislative
Assembly and wins at least two seats is recognized as a State party.
 A party that secures at least 6% of the total votes in Lok Sabha elections or Assembly
elections in four States and wins at least four seats in the Lok Sabha is recognized as
a national party.

There were 6 recognized national parties in India as of 2024 by the Election Commission of
India.
1. Aam Aadmi Party (AAP):
 Founded: November 26, 2012, after the 2011 anti-corruption movement.
 Ideals: Accountability, transparency, clean governance, and good governance.
 Achievements: Quickly rose to prominence in Delhi, forming a government with
support from the Indian National Congress (INC) till 2024. Recently became a key
political player in Gujarat as well.
 Governments Formed: Currently governs Punjab
 Lok Sabha: Secured 3 seat in the 2024 elections.

2. Bahujan Samaj Party (BSP)

 Founded: 1984 by Kanshi Ram.
 Ideals: Advocates for the "bahujan samaj" (majority society) which includes Dalits,
Adivasis, OBCs, and minorities. Inspired by social reformers like Ambedkar, Phule, and
Periyar.
 Focus: Welfare and representation of Dalits and oppressed communities.
 Base: Primarily in Uttar Pradesh but also has a presence in Madhya Pradesh,
Chhattisgarh, Uttarakhand, Delhi, and Punjab.
 Lok Sabha: Polled 3.63% of the vote share and secured not even a single seat in 2024
election.

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3. Bharatiya Janata Party (BJP)
 Founded: 1980, tracing its origins back to the Bharatiya Jana Sangh, formed by Syama
Prasad Mukherjee in 1951.
 Ideals: Strong and modern India rooted in Indian culture; adheres to the idea of
cultural nationalism (Hindutva) and concepts like integral humanism and Antyodaya
(upliftment of the marginalized).
 Policies: Advocates for the complete integration of Jammu and Kashmir with India, a
uniform civil code, and a ban on religious conversions.
 Reach: Initially limited to northern and urban areas, now has a substantial presence
across rural, southern, and eastern India.
 Governments Formed: Leads the National Democratic Alliance (NDA) and currently
holds power at the Centre with 240 seats in the 2024 Lok Sabha elections.

4. Communist Party of India - Marxist (CPI-M)

 Founded: 1964.
 Ideals: Marxism-Leninism, socialism, secularism, democracy; opposes imperialism and
communalism.
 Support Base: Strong in West Bengal, Kerala, and Tripura, particularly among poor,
factory workers, farmers, agricultural labourers.
 Policies: Critical of economic liberalization policies that encourage foreign investment
and imports.
 Governments Formed: Ruled West Bengal continuously for 34 years.
 Lok Sabha: Secured about 1.75% of the vote and won 4 seats in the 2024 elections.

5. Indian National Congress (INC)

 Founded: 1885, one of the oldest political parties globally.
 Ideals: Centrist, supporting secularism and the welfare of weaker sections and
minorities.
 Role in History: Played a dominant role in Indian politics at the national and state level
for several decades after India’s Independence. Under the leadership of Jawaharlal
Nehru, the party sought to build a modern secular democratic republic in India. Ruling
party at the centre till 1977 and then from 1980 to 1989. After 1989, its support
declined, but it continues to be present throughout the country, cutting across social
divisions.
 Policies: Embraces economic reforms with a focus on social welfare, supports the new
economic reforms with a human face.
 Governments Formed: Led the United Progressive Alliance (UPA) from 2004 to 2024.
 Lok Sabha: Won 19.5% of the vote and 99 seats in the 2024 elections.

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6. National People Party (NPP)
 Founded: July 2013 by P.A. Sangma. NPP is the first political party from North East
India to have attained the status of a national party.It believes in diversity of the
country and recognizes that different regions have different developmental
challenges.
 Ideals: Focuses on recognizing regional diversity and addressing unique
developmental challenges in North Eastern India. The party’s philosophy emphasizes
education, employment, and empowerment.
 Governments Formed: Governed Meghalaya and has a growing presence across North
Eastern states.
 Lok Sabha: Secured 8 seat in the 2024 elections.

State parties/Regional Party

A regional party is a party that is present in only some states.
Examples: Samajwadi Party, Rashtriya Janata Dal, Biju Janata Dal, Sikkim Democratic Front,
Mizo National Front and Telangana Rashtra Samithi.
Conditions required for a party to be recognized as a regional political party are:
 A party that secures at least 6% of the total votes in an election to the Legislative
Assembly of a State
 Wins at least 2 seats in the Legislative Assembly.

Challenges to political parties

1. Lack of internal democracy within parties
 Parties do not keep membership registers, do not hold organizational meetings, and
do not conduct internal elections regularly.
 Ordinary members of the party do not get sufficient information on what happens
inside the party.
 They do not have the means or the connections needed to influence the decisions.
 As a result, the leaders assume greater power to make decisions in the name of the
party.
 Since one or few leaders exercise paramount power in the party, those who disagree
with the leadership find it difficult to continue in the party.
 More than loyalty to party principles and policies, personal loyalty to the leader
becomes more important.
2. The challenge of dynastic succession
 Top leaders favor people close to them or even their family members.
 In many parties, the top positions are always controlled by members of one family.
Example: INC, DMK.
 This practice is unfair to other members of that party and is also bad for democracy
since people who do not have adequate experience or popular support come to occupy
positions of power.
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3. The growing role of money and muscle power in parties, especially during elections
 Since parties are focused only on winning elections, they tend to use shortcuts to win
elections.
 They tend to nominate those candidates who have or can raise lots of money.
 Rich people and companies who give funds to the parties tend to influence the policies
and decisions of the party.
 In some cases, parties support criminals who can win elections.
 Democrats all over the world are worried about the increasing role of rich people and
big companies in democratic politics.
4. Parties do not seem to offer a meaningful choice to the voters.
 In recent years there has been a decline in the ideological differences among parties
in most parts of the world.
 They agree on more fundamental aspects but differ only in details on how policies are
to be framed and implemented.
 Those who want different policies have no option available to them.
 Sometimes people cannot even elect very different leaders either, because the same
set of leaders keeps shifting from one party to another.
 In our country too, the differences among all the major parties on the economic
policies have reduced.

How can parties be reformed?

Some of the recent efforts in India to reform political parties and their leaders are:
 The constitution was amended to prevent elected MLAs and MPs from changing
parties. This was done because many elected representatives were indulging in
defection to become ministers or for cash rewards. Now the law says that if any MLA
or MP changes parties, he/she will lose the seat in the legislature.
 The Supreme Court passed an order to reduce the influence of money and criminals.
Now, it is mandatory for every candidate who contests elections to file an affidavit
giving details of his property and criminal cases pending against them.But there is no
system to check if the information given by the candidates is true.
 The Election Commission passed an order making it necessary for political parties to
hold their organizational elections and file their income tax returns.

Suggestions to reform political parties in India:

 Regulation of party’s internal affairs: A law should be made to regulate the internal
affairs of political parties. It should be made compulsory for political parties to
maintain a register of their members, to follow their constitution, to have an
independent authority, etc.
 Ensure women's participation: It should be made mandatory for political parties to
give a minimum number of tickets, about one-third, to women candidates.

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  State funding: There should be state funding of elections. The government should
give money to parties to support their election expenses to avoid corruption.
 The pressure of public opinion: Political parties can be reformed if people put pressure
on them. This can be done through petitions, propaganda, and agitations. Pressure
groups and media play an important role in this.
 Public participation: Political parties can improve if anyone wantsto join political party.
The quality of democracy depends on the degree of public participation.

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CHAPTER 5 - OUTCOMES OF DEMOCRACY

 Definition of democracy
 Features of democracies
 Merits and demerits of democracy (Refer class 9 civics book)

Democracy is a better form of government when compared with dictatorship or any other
alternative form of government because it:
 Promotes equality among citizens.
 Enhances the dignity of the individual.
 Improves the quality of decision-making.
 Provides a method to resolve conflicts.
 Allows room to correct mistakes.
Thus, Democracy is just a form of government that can only create conditions for achieving
something. The citizens have to take advantage of those conditions and achieve those goals.

Democratic government is more efficient and effective. Examine

1. Accountable, responsive, and legitimate government
 The most basic outcome of democracy should be that it produces a government that
is accountable to the citizens, and responsive to the needs and expectations of the
citizens.
 Democracy is based on the idea of deliberation and negotiation. So, the democratic
government will take more time to follow procedures before arriving at a decision.
 The people have the right and the means to examine the process of decision making.
This is known as transparency. This factor is often missing from a non-democratic
government.
 A democratic government develops mechanisms for citizens to take part in the
decision-making process. For these free and fair elections, open debate on major
policies, legislation, and the right to information is there in good democracies.
Therefore, democracies are called accountable governments.
 Democracy is a responsive government. It is responsive to the needs and expectations
of the citizens. It makes policies for the welfare of the citizens.

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  A democratic government is called a legitimate government because it is the people’s
own government.
 People wish to be ruled by representatives elected by them.

2. Economic growth and development

Relationship between democracy and the economic growth of a country
 The factors that determine the economic growth and development of a country are –
population size, global situation, cooperation from other countries, economic priorities
adopted by the country, etc.
 And all these can be easily achieved by dictatorships than a democratic country.
 It is better to prefer democracy as it has several other positive outcomes like dignity
and freedom of citizens.
 Democracies are expected to produce development.
 In democracies, time is taken to discuss and reach a decision. So, it is slow, but it is
not unjust or inappropriate.
 The difference in the rates of economic development between less developed
countries with dictatorships and democracies is negligible. Overall, we cannot say that
democracy is a guarantee for economic development.
3. Reduction of inequality and poverty
 Democracies are based on political equality and all individuals have an equal role in
electing representatives.
 However, we find growing economic inequalities.
 A small number of ultra - rich people enjoy a highly disproportionate share of wealth
and incomes, while the poor find it difficult to fulfill their basic needs of life like food,
shelter, and clothing.
 The poor constitute a high proportion of our voters and no party would like to lose
their votes.
 In actual life, democracies appear to be partially very successful in reducing economic
inequalities.
 If we take the example of India, we are much far developed in the case of reducing
inequality.

4. Accommodation of social diversity

 No society can fully and permanently resolve conflicts among different groups. But
we can certainly learn to respect these differences and can evolve a mechanism to
negotiate these differences.
 The ability to handle social differences, divisions, and conflicts is a definite plus point
of democratic regimes and ensures peace and harmony in society.
 A democracy remains democracy only as long as every citizen has a chance of being
in majority at some point of time.

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  If someone is barred from being in majority on the basis of birth, then the democratic
rule ceases to be accommodative for that person or group.
 It is also necessary that rule by the majority does not become the rule by the majority
community in terms of religion or race or linguistic group, etc.
 It is necessary to understand that democracy is not simply ruled by majority opinion.
 The majority always needs to work with the minority so that governments function to
represent the general view. Majority and minority opinions are not permanent.
 Example: Belgium has successfully negotiated differences among its ethnic
population. This reduces the possibility of tensions. But in Sri Lanka this has created
tensions and had even led to civil war.

5. Dignity and freedom of the citizens

 Democracy stands much superior to any other form of government in promoting
dignity and freedom of the individual.
 Every individual wants to receive respect from fellow beings.
 Often conflicts arise among individuals because some feel that they are not treated
with due respect.
 The passion for respect and freedom are the basis of democracy.
 Democracy assure the dignity of women and prevent caste inequalities
 In the case of the dignity of women, long struggles by women have created some
sensitivity today that respect for and equal treatment of women are necessary
ingredients of a democratic society.
 Once the democratic principle is recognized, it becomes easier for women to raise a
struggle against what is now unacceptable legally and morally.
 Democracy in India has strengthened the disadvantaged and discriminated castes for
equal status and equal opportunity.
 There are still instances of caste-based inequalities and atrocities, but these lack moral
and legal foundations.

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ECONOMICS
CHAPTER 1 - DEVELOPMENT
It is a situation that can fulfill the aspirations or desires of people. It is the progress or
improvement in the lifestyle of the people.
Two aspects of development are:
1. Different people can have different development goals
• It is because there exist individual differences and so their lifestyles, thought process,
aspirations, goals, etc. all get varied from one to another.
• People see things that are most important for them or that can fulfill their aspirations
or desires.

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 • For example, the development goal of a boy from a rich urban family would be to get
admission to a reputed college whereas the development goal of a girl from a rich
urban family would be to get as much freedom as her brother. (Also refer page no: 4
table 1.1)
2. What may be development for one may not be development for others (i.e., Development
Goals can be conflicting or even destructive for the others)
• At times two people or groups of people may seek things that are conflicting. A
student expects as much freedom and opportunity as her brother, and he also shares
in the household work. Her brother may not like this.
• Similarly, to get more electricity, industrialists may want more dams, but this may
submerge the land and disturb the lives of people who are displaced, such as tribals.
They might resent this and may prefer small checks or tanks to irrigate their land.

Goals of Development/Criterions of development

Income Equal treatment
Freedom Security
Respect for others Discrimination free society
One’s life depends on material and non-material things.
Material things are money which one can buy anything. But the quality of one’s life depends
on non-material things.

For development, people especially women look at a mix of goals:

It is true that if women are engaged in paid work, their dignity in the household and society
increases. However, it is also the case that if there is respect for women there would be
more sharing of housework and a greater acceptance of women working outside.
A safe and secure environment may allow more women to take up a variety of jobs or run
a business.

National Development:
Improvement in people's living standards, providing basic things to citizens like food,
education, social service, medical aid, etc., and increase in per capita income, is referred to
as National development.
How to compare different countries or states
For comparing countries, their income is one of the most important attributes.
Countries with higher incomes are more developed than others with less income. This is
based on the understanding that more income means more of all the things that human
beings need.
Whatever people like, and should have, they will be able to get with greater income. So, the
greater income itself is one important goal.
However, for comparison between countries, total income is not such a useful measure.
Since countries have different populations, comparing total income will not tell us what an
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average person is likely to earn.

Average Income/Per Capita Income:

The average income is the total income of the country divided by its total population. The
average income is also called per capita income.
• In World Development Reports, brought out by the World Bank, Per Capita Income is
used in classifying countries.
• Countries with a per capita income of US$ 49,300 per annum and above in 2019, are
called high-income or rich countries.
• Countries with a per capita income of US$ 2500 per annum or less are called low-
income countries.
• India comes in the category of low-middle-income countries because its per capita
income in 2019 was just US$ 6700 per annum.
• The rich countries, excluding countries of the Middle East and certain other small
countries, are generally called developed countries.

Disadvantages of using Average Income as a criterion to compare countries:

• Average income is useful for comparisons but hides the disparity.
• Average income does not tell us the distribution of income among people.
• It is just a material criterion for the comparison.

• Infant Mortality Rate (or IMR) indicates the number of children that die before the
age of one year as a proportion of 1000 live children born in that particular year.
• Literacy Rate measures the proportion of the literate population in the 7-and-
above age group.
• Net Attendance Ratio (NAR) is the total number of children of age group 14- and 15-
years attending school as a percentage of total number of children in the same age
group.
• The first column of the table 1.4 shows that in Kerala, out of 1000 children born, 7
died before completing one year of age but in Haryana, the proportion of children
dying within one year of birth was 30, which is nearly three times more than that of
Kerala.
On the other hand, the per capita income of Haryana is more than that of Kerala.
 The last column of the table shows that about half of the children aged 14-15 in Bihar
are not attending school beyond Class 8.
This means that if you go to school in Bihar nearly half of your elementary class
students would be missing.

Public Facilities:
Public facilities are those provided by the government instead of individuals or private
sources.
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For this reason, they may be either highly subsidized or totally free of cost.
They are important because many people do not have enough income to be able to avail of
facilities provided by the private sector resulting in difficulties faced like inadequate
healthcare, poor nutrition, lack of education, etc.

The utility of two public facilities available in India are:

• The public distribution system (PDS) provides fair quality food grains and other
essential items to the weaker section of the population at subsidized prices.
• Health care in government hospitals and dispensaries is provided to all at a subsidized
rate. This includes outpatient as well as hospitalization facilities.

Money in our pockets cannot buy all the goods and services that we may need to live well.
• Money cannot buy us a pollution-free environment.
• Money cannot buy us a disease-free life and we might not be able to get protection
from infectious diseases.
• Besides money, people also like to have equal treatment in society, freedom, dignity,
and honor in their lives, which money cannot buy them.

Body Mass Index (BMI): Body mass index (BMI) is a person's weight in kilograms divided by
the square of height in meters.

Human Development Index (HDI):

The United Nations Development Program has used the criterion of the Human Development
Index (HDI) to measure the development of countries. It is a composite index of the
achievements of a nation in terms of three important variables (longevity, knowledge, and
standard of living, quality of life).
HDI is calculated based on:
• Per capita income: It is calculated by dividing the total national income of a country
by the total population.
• Life expectancy: It is the average expected length of life of a person at the time of
birth in a country.
• Gross enrolment ratio for three levels: It means the enrolment ratio for primary
schools, secondary schools, and higher education beyond the secondary level.
• HDI stands for Human Development Index.
• Life Expectancy at birth denotes the average expected length of life of a person
at the time of birth.
• Per Capita Income is calculated in dollars for all countries so that it can be
compared.
It is also done in a way so that every dollar would buy the same amount of goods
and services in any country.

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 • Nepal and Bangladesh have low per capita income than that of India, yet they are
better than India in life expectancy.

Sustainable Development:
Development, at present, without harming the environment and keeping it safe for future
generations is termed sustainable development.
• Groundwater, which is a renewable resource, is getting depleted because of its
overuse. People are facing the problem of a water crisis due to its indiscriminate use.
• The development that emerged from the fast industrialization leads to the cutting of
forests and its result is a polluted- environment for the present as well as for future
generations.
• Crude oil, which is a non-renewable resource with limited stock is depleting gradually.
So, we need to use it wisely.
The present sources of energy that are used by the people of India are:
• Electricity, Coal, Crude oil, Cow dung, Solar energy
Are GDP and GNI same concept?
No, they are not the same concepts.
Gross Domestic Product (GDP) is the sum of all the finished goods and services produced
within a country in a specific time period.
Gross National Income (GNI) is related to national products which can be calculated by
adding Net Factor Income from abroad into GDP.
So, GNI is a broader concept than GDP.
Human Development Report Vs World Development Report:
UNDP's method of measuring World Bank's method of measuring
development development
i. UNDP compares based on literacy rate, i. World Bank compares based on per capita
gross enrolment ratio, and health status income.
of people.
ii. It gives ranks to the countries ii. It divides the countries according to
according to their level of development. - rich or high-income countries
- middle-income or developing countries
- poor or low-income countries
iii. It is a wider concept as it includes iii. It is a narrow concept.
other things besides income.

CHAPTER 2 - SECTORS OF THE INDIAN ECONOMY

• People are engaged in various economic activities.
• Some of these are activities producing goods.
• Some others produce services.

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 • These economic activities are grouped (classified by them) using some important
criteria. These groups are also called sectors of the economy based on economic
activities.

Primary (Agriculture and allied) Sector

These are activities that are undertaken by directly using or exploiting the natural resources.
Since most of the natural products we get are from agriculture, dairy, fishing, and forestry,
this sector is also called agriculture and allied sector
• Example 1: The cultivation of cotton.
It takes place during crop season. For the growth of the cotton plant, we depend
mainly, but not entirely, on natural factors like rainfall, sunshine, and climate. The
product of this activity is cotton which is a natural product.
• Example 2: Dairy
We are dependent on the biological process of animals and the availability of food,
etc. The product here is milk, which also is a natural product.

• Example 3: Mining
Minerals and ores are also natural products.
Secondary (Industrial/manufacturing) Sector
• The secondary sector covers those activities in which natural products are changed
into other forms through ways of manufacturing that are associated with industrial
activities.
• The product is not produced by nature but must be made and therefore some process
of manufacturing is essential. This could be in a factory, a workshop, or at home.
• Since this sector gradually became associated with the different kinds of industries to
get final finished product, it is also called the industrial sector/manufacturing
sector.
• Example: Gadgets, Vehicles, Textiles

Tertiary (Service) Sector

• Economic activities in this sector help in the development of the primary and
secondary sectors. These activities, by themselves, do not produce good but they are
an aid or support for the production process.
• Transport, storage, communication, banking, and trade are some examples of tertiary
activities.
• The service sector also includes some essential services that may not directly help
with the production of goods.
• For example, we require teachers, doctors, and those who provide personal services
such as washer men, barbers, cobblers, lawyers, and people to do administrative and
accounting work.

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 • In recent times, certain new services based on information technology such as
internet cafes, ATM booths, call centers, software companies, etc. have become
important.
• Since these activities generate services rather than goods, the tertiary sector is also
called the service sector.

Interdependence of Three Sectors

• The tertiary sector does not produce any goods, but it helps in the production of
goods in the primary and secondary sectors.
• For example: In the primary sector, we need the transportation service for getting
the supply of agricultural inputs and for selling food grains in the market or supplying
agricultural raw materials to agro-based industries.
• In the secondary sector, we need the help of transportation to bring the raw materials
and take the final products to the market.
• Transportation, communication is required in the service sector as well as providing
medical facilities to people and other services like fire services, etc.
• Hence in brief, all these sectors are interrelated, interconnected, and interdependent
to each other or are complementary to each other.

Final Goods and Intermediate Goods

Final Goods Intermediate Goods
i. The goods which are used for final i. The goods which are used up in
consumption. producing final goods & services (raw
materials)
ii. Value of final goods is included in the ii. The value of intermediate goods is not
GDP. included in the GDP.
iii. For eg- TV, Bread, Bakery products, etc. iii. For example - Flour, cotton, etc

Gross Domestic Product (GDP)

Gross Domestic Product (GDP) is a broad measurement of a nation’s overall economic
activity.
GDP is the sum of all the finished goods and services produced within a country in a specific
time period.

Historical Change in Sectors

 The histories of many developed countries indicate that the primary sector was the
most dominant sector of their economic activity at the initial stages of development.
 In the early phase, most of the goods produced were natural products from the
primary sector.
 But in the later phase, new methods of manufacturing were introduced, factories
came up and people started shifting from agriculture to the secondary sector.

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  Later, there was a further shift from the secondary sector to the service sector.
Most of the people employed in the primary and secondary sectors have now shifted
to the service sector and thus the service sector became the most dominant sector.

Rising Importance of the Tertiary Sector in Production

Over the forty years between 1973-74 and 2013-14, while production in all three sectors
has increased, it has increased the most in the tertiary sector.
As a result, since 2013-14, the tertiary sector emerged as the largest producing sector in
India replacing the other two sectors.
Reasons
• Basic services such as hospitals, educational institutions, post and telegraph services,
transport, banks, and insurance companies are in this group.
• The development of agriculture and industry leads to the development of services
such as transport, trade, and storage.
• As income levels rise, certain sections of people start demanding many more services
like eating out, tourism, shopping, private hospitals, private schools, and professional
training centers.
• Certain new services, such as those based on information and communication
technology, have become important and essential.
• Due to globalization, people have become aware of new services and activities,
because of which the tertiary sector has gained importance.

Why the entire tertiary sector has not grown in importance:

The service sector includes two different kinds of people.
• One who is highly educated, skilled, and earning very high income such as doctors,
engineers, software professionals, etc.,
• On the other hand, those who are not educated and unskilled such as street vendors.
Though the service sector has grown over the past few decades not all the service sector
has grown equally. The educated and highly skilled workers have grown high whereas the
uneducated and the unskilled barely manage to earn a living and yet they perform these
services because no alternative opportunities for work are available to them.

Where are most of the people employed?

The primary sector is the largest employer in India. Nearly 44% of the population is engaged
in this sector in one way or the other. However, its share in GDP is very low due to the
following reasons:
• The average size of the land holders is very low, which results in low productivity per
holder.
• Less use of modern technology and knowledge among the farmers to increase crop
productivity.

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 • The system of providing finance and marketing facilities has been insufficient since
independence. The small and marginal farmers are not able to get benefits from the
loan facilities and access to large markets.
• The absence of alternate income-generating activities in rural areas that gives rise to
disguised unemployment where the efficient labor force is not used.

Two types of Unemployment

i. Underemployment: A situation where someone works less than their full potential or
capacity. This can happen due to various reasons like:
 Part-time work when desiring full-time.
 A job that doesn't utilize their full skills.
 Seasonal work with limited hours during off-seasons.
ii. Disguised unemployment: Occurs when there's a surplus of labor in a particular sector,
often agriculture.
In summary, underemployment is more related to the quality of the job, while disguised
unemployment is related to the quantity of the job.

How to create more employment in rural areas?

Employment can be generated in rural areas by:
• People can be employed in projects like the construction of
dams/canals/roads/statues in the villages.
• Provide irrigation facilities so that farmers harvest two or three crops a year. Thus,
more people can be employed.
• Government can open centers to give them training and financial assistance to help
them become self-employed.
• Government can invest and employ people in providing transportation and storage
services.
• Honey collection centers and vegetable and fruit processing units and other storage
facilities should be set up by government.
• More cottage industries and services should be promoted in rural areas with soft loans
and marketing support.
• Government can arrange loans from banks to construct a well/water bodies to irrigate
the land.

How to create more employment in urban areas?

There are several ways to increase urban employment in India, including:
• Encouraging foreign investment: Attracting foreign investment can create jobs in a
variety of industries, including manufacturing, technology, and services.
• Developing Small and Medium-sized Enterprises (SMEs): SMEs are a major source of
employment in urban areas, and policies that support their growth and development
can help to create jobs.

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 • Providing vocational training: Vocational training can help to match workers with the
skills that are in demand in the urban labor market.
• Promoting the growth of the service sector: The service sector, including tourism,
retail, and healthcare, is a major source of urban employment in India. Policies that
encourage the growth of this sector can help to create jobs.
• Focusing on Infrastructure development: Infrastructure development can create jobs
in the short term, as well as make it easier for businesses to operate and for people
to move around in the long term.
• Encouraging entrepreneurship: Encouraging entrepreneurship can help to create new
businesses and jobs, particularly in the informal sector.
• Improving access to credit: Improving access to credit can help entrepreneurs and
small businesses grow, which can create jobs.

Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005)
• The Central Government in India made a law implementing the Right to Work in about
625 districts of India. It is called Mahatma Gandhi National Rural Employment
Guarantee Act, 2005 (MGNREGA 2005).
• Under this, all those who can and need to work in rural areas are guaranteed 100
days of employment in a year by the government.
• If the government fails in its duty to provide employment, it will give unemployment
allowances to the people.
• It would help in the future to increase the production of land and will be given
preference under the Act.
Flexible labor laws mean:
• The company has lived with workers for a short period.
• A lot of pressure and work overtime.
• No work when there is no demand.
Government can:
• Set some laws to see that the companies see the welfare of the workers.
• Check whether the labor laws are properly implemented.
• Government can create opportunities for alternative employment.

Division of Sectors as Organized and Unorganized based on employment

Organized Sector Unorganized Sector
1. These units are registered with the 1. These units are not registered with the
government. government.

2. These are big units. 2. These are small and scattered units

3. They follow the labor laws given by the 3. They do not follow the labor laws given by

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 government. the government.
4. There are some formal processes and 4. There are no formal processes and
procedures in this sector. procedures in this sector.
5. There is a security of employment. 5. There is no security of employment.

6. There are fixed working hours and 6. There are no fixed working hours and
workers are paid for overtime workers are not paid for overtime.
7. There are some other benefits like paid 7. There are no benefits like paid holidays,
holidays, medical facilities, a safe working medical facilities, a safe working
environment, a provident fund, etc. environment, provident funds, etc.
Sectors of economy based on ownership:
Public sector and private sector
The public sector plays a major role in India than the private sector because:
• The public sector is owned and run by the government.
• They enable the government to have control over the economy for the benefit of the
people in general.
• It creates employment opportunities.
• It generates financial resources for development.
• It ensures equality of income, wealth and thus balances regional development.
• Activities undertaken by the public sector require a huge amount of money. But it
provides the services at a lower rate.
• Its investment in the infrastructure/tertiary sector paves the way for the agricultural
and industrial development of a country like India.
• It encourages the development of small, medium, and cottage industries.

The public sector contributes to the economic development of a nation:

1. It promotes rapid economic development through the creation and expansion of
infrastructure.
2. It creates employment opportunities.
3. It generates financial resources for development.
4. It ensures equality of income, wealth and thus, balanced regional development.
5. It encourages the development of small, medium and cottage industries.
6. It ensures easy availability of goods at moderate rates.
7. It contributes to community development, i.e. to the Human Development Index (HDI)
via health and educational services.

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 CHAPTER 3 - MONEY AND CREDIT

Money as a Medium of Exchange

Barter system: It is a system in which goods, property, services, etc. are

exchanged for other goods without the use of money.
Limitations of the Barter system:
 Both parties must agree to buy and sell each other’s commodities.
 Value of all goods cannot be done easily.
 There are certain products that cannot be divided easily.
Double Coincidence of Wants: The condition when both parties in a barter economy agree
to sell and buy each other’s commodities is known as a double coincidence of want.
Money
 It is a medium of exchange that is widely accepted in transactions for goods and
services. It can take many forms, such as currency, coins, bank deposits, cheques
and digital currency.
 Money acts as an intermediate in the exchange process and thus eliminates the
existence of double coincidence of wants.
 Since money acts as an intermediate in the exchange process, it is called a medium
of exchange.

Modern Forms of Money

Modern currency is accepted as a medium of exchange because:
 Modern currency is authorized by the government of the country.
 The law legalizes the use of rupees in India as a medium of payment and it cannot
be refused in doing transactions in India.
 In India, the Reserve Bank of India issues currency notes on behalf of the
government.
The forms of modern currency are:
 Paper notes
 Coins
 Demand deposits: The deposits in the bank accounts, which can be withdrawn on
demand, are called demand deposits.
 Cheque: A cheque is a paper instructing the bank to pay a specific amount from a
person’s account to the person in whose name the cheque has been issued.
 Digital Currency/UPI (Unified Payment Interface) Payments: Like... Google pay,
Phone Pay…and the following countries had accepted our UPI payments….Sri Lanka,
Mauritius, France, UAE, Singapore, Bhutan, Nepal, Oman, South East Asian
regions(Malaysia, Thailand, Philippines, Vietnam, Cambodia, South Korea, Japan,
Taiwan, Hongkong) Source: The Economic Times
Demand Deposits
The benefits of deposits with the banks are:

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  This ensures the safety of money, and they also earn interest from the bank.
 Demand deposits can be withdrawn whenever the person demands.
 It also allows payments to be made through cheque.
 A cheque is a paper instructing the bank to pay a specific amount from the person’s
account to the person in whose name the cheque has been issued. (Refer image in
page no : 41)
 Through cheque, the money gets directly transferred between banks. So, no direct
payment of cash needs to be made.
 Banks extend loans from the deposits they receive so they mediate between people
having surplus/more funds and people in need of more funds through these deposits.
 Since bank deposits only white money, the nation’s economy is more transparent.

How do banks provide loan facilities to the people?

 People have extra cash with them. They deposit that surplus money in the bank by
opening an account in their name.
 Out of the total money deposited with the banks, 15% of it, is kept as a minimum
cash balance to pay to the depositors who might come to withdraw money from the
bank on any given day.
 Banks use a major portion of deposits to extend loans.
 There is a huge demand for loans for various economic activities (agriculture,
educational, medical, construction of buildings, houses and to start business) for the
people.
 Banks make use of these deposits to meet the loan requirements of the people.
 In this way, banks mediate between those who have surplus funds (the depositors)
and those who are in need of these funds (the borrowers)
 They charge a certain amount as rate of interest on loans than what they offer on
deposits.
 The difference between what is charged by borrowers and what is paid to the
depositors is the main source of income for the banks.
Credit:
 A large number of transactions in our day-to-day activities involve credit in some form
or the other.
 Credit (loan) refers to an agreement in which the lender supplies the borrower with
money, goods or services in return for the promise of future payment.

Two Different Credit Situations

1. Credit is a crucial element and plays a positive role in the economic development of a
country because:-
 It helps to meet the ongoing expenses of production.
 It helps in increasing earnings and
 It encourages people to invest in agriculture, engage in business, and set up small
industries.
 It helps in completing production on time.
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  Cheap credit will end the vicious cycle of a debt trap.
 Cheap and easy credit would inspire better investment in technology and would
increase competition.
For example: In this case, Salim obtains credit to meet the working capital needs of
production. The credit helps him to meet the ongoing expenses of production, complete
production on time, and thereby increase his earnings.

2. Credit also plays a negative role in the economic development of a country because:-
 A debt trap is a situation where an individual or organization becomes trapped in a
cycle of debt that they are unable to escape from at any time and may even lose their
property or life.
 This typically occurs when the borrower takes out a loan or credit but struggles to
make repayments due to high interest rates or other financial obligations.
 As a result, they are forced to take on additional debt to meet their existing loans,
which can lead to a spiral of increasing debt and financial distress.
For example: A small farmer Swapna took a loan for crop cultivation but due to pest attack
and weather condition, she faced crop failure. So, she took another loan for spraying
pesticides, but the production was not enough to repay the loan. So, she was caught in a
debt trap and even lost her land.

In rural areas, the main demand for credit is for crop production.
Crop production involves considerable costs on seeds, fertilizers, pesticides, water,
electricity, repair of equipment, etc.
Farmers usually take crop loans at the beginning of the season and repay the loan after
harvest (usually 3 to 4 months). Repayment of the loan is crucially dependent on the income
from their farming.

Credit is both a boon and curse for the people. Examine

 In one situation, credit helps to increase earnings and therefore the person is better
off than before.
 In another situation, because of the crop failure, credit pushes the person into a debt
trap. To repay her loan she must sell a portion of her land. She is clearly much worse
off than before.
 Hence, whether the credit would be useful or not depends on the risks in the situation
and whether there is some support, in case of loss.
(Add here the examples of Salim and Swapna)

Terms of Credit
 Every loan agreement specifies an interest rate which the borrower must pay to the
lender along with the repayment of the principal amount.
 The lenders (banks, money lenders) may demand collateral (security) against loans.

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  Collateral: It is an asset that the borrower owns (such as land, building, vehicle,
livestock, deposits with banks, etc.) and is used as a guarantee to a lender until the
loan is repaid.
 If the borrower fails to repay the loan, the lender has the right to sell the asset or
collateral to obtain payment.
 The documents required mandatorily are Aadhar card, Pan Card, Bank statements,
employment records, salary statement.
The terms of credit vary substantially from one credit arrangement to another. They may
vary depending on the nature of the lender and the borrower.

Variety of credit arrangements

Shyamal Arun Rama

Occupation Farmer Supervisor Laborer
Credit Money lender Bank Medium landlord
source and agriculture
trader
Interest 60% per 8.5% per annum 60% per annum
Rate annum
Duration After harvest After harvest (3 years) Take loan to repay the earlier
one
Purpose Crop Cultivation and storing in Daily expenses, sudden illness,
cultivation cold storage family functions

Loans from Cooperatives/ Cooperative societies

 Members of a society pool their resources for cooperation in certain areas.
 There are several types of cooperatives such as farmer’s cooperatives, weaver’s
cooperatives, industrial workers cooperatives, etc.
 It accepts deposits from its members.
 With these deposits as collateral, the Cooperative has obtained a large loan from the
bank.
 These funds are used to provide loans to members.
 Once these loans are repaid, another round of lending can take place.
 For example: Krishak Cooperative provides loans for the purchase of agricultural
implements, loans for cultivation and agricultural trade, fishery loans, loans for
construction of houses and for a variety of other expenses.

Formal source of Credit in India

The types of loans can be conveniently grouped as formal source loans and informal source
loans.
The formal sources are loans from banks and cooperatives.

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The informal sources are lenders include moneylenders, traders, employers, relatives and
friends, etc.

Significance/Role of RBI in the Indian economy:

 In India, the Reserve Bank of India issues currency notes on behalf of the Central
Government.
 It supervises the functioning of formal sources of loans.
 The banks maintain a minimum cash balance out of the deposits they receive.
 The RBI monitors that the banks maintain the cash balance.
 The RBI sees that the banks give loans not just to profit-making businesses and
traders but also to small cultivators, small-scale industries, small borrowers, etc.
 On a daily basis, banks must submit information to the RBI on how much they are
lending, to whom, at what interest rate, etc.
 As per Indian law, no other individual or organization is allowed to issue currency.
 Moreover, the law legalizes the use of rupee as a medium of payment that cannot be
refused in settling transactions in India.
 No individual in India can legally refuse a payment made in rupees.
 Hence, the rupee is widely accepted as a medium of exchange.

Difference between Formal and informal Credit

Formal Sources of Credit Informal Sources of Credit

1. Credit is provided by banks and 1. Credit is provided by moneylenders,
cooperatives. friends, relatives, etc.
2. Rate of interest is low. 2. Rate of interest is high.
3. If no repayment is done, the lender 3. Unfair measures are adopted.
has the right to sell the asset or collateral
to obtain payment through fair means
4. Supervised by RBI 4. Not supervised
5. Must adhere to terms of credit i.e., 5. Keep no proper or fake records of the
collateral, rate of interest, mode of transactions.
payment, and documents
6. Absence of collateral is one of the 6. The borrowers can, if necessary,
major reasons which prevent the poor approach the money lenders even without
from getting bank loans. repaying their earlier loans or with no
collateral.

Cheap and affordable credit is crucial for the country’s development because
 Banks and cooperative societies need to lend more.
 This would lead to higher incomes and many people could then borrow cheaply for a
variety of needs.

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  They could grow crops, do business, set up small-scale industries etc.
 They could set up new industries or trade in goods.

Most rural households are still dependent on informal sources of credit because:
 Limited availability of nationalized Banks in rural areas.
 People in rural areas face problems about documentations (collaterals).
 The absence of collateral is one of the major reasons which prevent the poor from
getting bank loans.
 Poor people so will approach the moneylenders even without repaying their earlier
loans.
The formal credit should be distributed more equally because of the following reasons:
 The poor can benefit from the cheaper loans.
 Most loans from informal lenders carry a very high interest rate and do little to
increase the income of the borrowers.
 Thus, it is necessary that banks and cooperatives increase their lending particularly in
the rural areas, so that the dependence on informal sources of credit reduces.

Self-Help Groups for the Poor

A recent introduction to help the poor rural people by the Central government with RBI from
1993 onwards.
Actually initiated in 1991 but spread to rest of India from 1993 onwards. Banks are not
present everywhere in rural India.
Even when they are present, getting a loan from a bank is much more difficult than taking
a loan from informal sources.
In this scenario, Central Government got inspired from Grameen Bank, Bangladesh by 2018.
Almost all of the borrowers are women and belong to poorest sections of the society.
These borrowers have proved that not only are poor women reliable borrowers, but that
they can start and run a variety of small income-generating activities successfully.
Working Procedure
 A typical SHG has 15-20 members, usually belonging to one neighborhood, who meet
and stay regularly.
 They pool their savings per member, and it varies from Rs. 25 to Rs. 100 or more,
depending on the ability of the people to save.
 Members can take small loans from the group itself to meet their needs.
 The Head of the group will charge very low interest on these loans, which is still less
than what the moneylender charges.
 After a year or two, if the group is regular in savings, it becomes eligible for availing
loan from the bank.
 Loan is sanctioned in the name of the group and is meant to create self-employment
opportunities for the members.
For example, small loans are provided to the members for releasing mortgage land,
for meeting working capital needs (e.g. buying seeds, fertilizers, raw materials like
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 bamboo and cloth), for household materials, for acquiring assets like sewing
machines, handlooms, cattle, etc.
 Most of the important decisions regarding the savings and loan activities are taken by
the group members.
 The group decides as regards the loans to be granted — the purpose, amount, interest
to be charged, repayment schedule etc.
 Also, it is the group which is responsible for the repayment of the loan.
 Any case of non-repayment of loan by any one member is followed seriously by other
members in the group.
 Because of this feature, banks are willing to lend to the poor women when organized
in SHGs, even though they have no collateral as such.
Advantages
 People can get timely loans for a variety of purposes and at a reasonable interest
rate.
 SHGs are regular in their savings which can be used as monetary help for themselves.
 Members can take small loans without collateral to meet their needs.
 SHGs are the building blocks of organization of the rural poor.
 It helps women to become financially self-reliant.
 The regular meetings of the group provide a platform to discuss and act on a variety
of social issues such as health, nutrition, domestic violence, women empowerment,
etc.

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CHAPTER 4 - GLOBALIZATION AND THE INDIAN ECONOMY
Multinational Corporations (MNCs)
Until the middle of the twentieth century, production was largely organized within countries.
What crossed the boundaries of these countries were raw material, food stuff and finished
products.
Example: Colonies such as India exported raw materials and food stuff and imported finished
goods.
Trade was the main channel connecting distant countries. This was done by large companies
called multinational corporations (MNCs).
 An MNC is a company that owns or controls production in more than one nation.
 They set up offices and factories for production inregions where they can get cheap
labor and other resources.
 This is done so that the cost of production is low, and they can earn greater profits.
For example: A large MNC, producing industrial equipment, designs its products in research
centers in the United States, and then has the components manufactured in China. These
are then shipped to Mexico and Eastern Europe where the products are assembled, and the
finished products are sold all over the world. Meanwhile, the company’s customer care is
carried out through call centers located in India.

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In this example, the MNC is not only selling its finished products globally, but also the goods
and services are produced globally. As a result, production is organized in increasingly
complex ways.
The production process is divided into small parts and spread out across the globe.
 MNCs set up production where it is close to the markets; where there is
skilled and unskilled labor available at low costs; and where the
availability of other factors of production is assured.
 MNCs might look for government policies that look after their interests.
 Investment: The money that is spent to buy assets such as land,
buildings, machines, and other equipment is called investment.

Foreign Investment: The investment made by MNCs is called foreign

investment.
It is done with the expectation of earning more profits by reducing the cost of
production.

Multinational corporations adopt multiple strategies to spread their production:

1. MNCs set up their production units in those areas where they can save on their cost
of production.
2. It sets up production jointly with some of the local companies of the selected
countries.
3. Sometimes large MNCs place orders for production with small producers, provide them
with money for additional investments and then sell the products under their brand
name at much higher rates in foreign countries.
4. Even they buy local companies and then expand their production.

The local companies get benefits by collaborating with MNCs in the following ways:
1. MNCs provide money for additional investments, like buying new machines for faster
production.
2. They even introduced the latest technology for production.

Foreign Trade and Integration of Markets

Foreign trade is the exchange of goods – purchase and sale – across geographical
boundaries of countries. Or foreign trade results in connecting the markets or integration of
markets in different countries.
 Goods travel from one market to another.
 The choice of goods available in the market increases.
 Prices of similar goods in different markets tend to become equal.
 Producers in two countries closely compete against each other even though they are
separated by geographical boundaries.

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What is Globalization?
Globalization is the process of rapid integration or interconnection between countries.
The key idea behind globalization is …Integration of markets and integration of production.

Role of MNCs in promoting globalization:

 Goods and services are bought and sold at a global level.
 Investments, technology are moving between countries.
 MNCs by foreign trade integrate the other markets in the world.
 Besides this, people usually move from one country to another in search of better
income, better jobs, better education, and better medical facilities.

Factors that have enabled Globalization

1. Rapid improvement in Technology
 Role of transportation technology has made much faster delivery of goods across long
distances possible at lower costs.
Even more remarkable have been the developments in information and
communication technologywith the help of customer care &support cells.
For example: Goods are placed in containers that can be loaded intact onto ships,
railways, planes and trucks. Containers have led to a huge reduction in port handling
costs and increased the speed with which exports can reach markets. Similarly, the
cost of air transport has fallen. This has enabled much greater volumes of goods being
transported by airlines.
 Role of Information Technology
Telecommunication facilities (telegraph, telephone including mobile phones, emails,
fax) are used to contact and access information.
Helps to communicate from remote areasby satellite communication devices.
One can obtain and share information through the internet.
Electronic mail (e-mail) and talk (voicemail) across the world at negligible costs.
For example: A news magazine published for London readers is to be designed and
printed in Delhi. The text of the magazine is sent through the Internet to the Delhi
office. The designers in the Delhi office get orders on how to design the magazine
from the office in London using telecommunication facilities. The designing is done
on a computer. After printing, the magazines are sent by air to London. Even the
payment of money for designing and printing from a bank in London to a bank in
Delhi is done instantly through the Internet (e-banking)
2. Liberalization of foreign trade and foreign investment policy
Restrictions set by the government to increase or decrease (regulate) foreign trade are called
trade barriers.
For example, tax on imports, quotas (the government places a limit on the number of goods
that can be imported), etc.

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Reasons for putting trade barriers after independence:
 Governments use trade barriers to regulate foreign trade.
 Trade barriers were used to protect domestic industries from foreign competition.
 The competition from foreign competitors could have crippled the start-up companies
in India.
Removing barriers or restrictions set by the government is known as liberalization.
 The Indian government wanted domestic producers to face global competition.
 Competition would improve the quality of the goods.
 International organizations like WTO also support this.

3. Pressures from the international organizations like World Trade Organization:

The main aim of WTO is to liberalize international trade.

Functions of WTO
 It establishes rules regarding international trade and checks that these rules are being
obeyed or not.
 To establish a forum for trade negotiations.
 To handle trade disputes.

Positive Impact of Globalization

1. A wide variety of goods is now available to consumers.
2. Good quality products are available at lower prices.
3. New jobs are created in industries.
4. Local companies have prospered by supplying raw materials to the industries.
5. Top Indian companies like Tata Motors, Infosys, Reliance, Wipro, IBM, TCS,and Tech
Mahindra have emerged asMNCs.
6. Some local companies have been able to invest in newtechnology and production
methods.
Negative Impact of Globalization
1. Globalization may not help in achieving sustainable development
2. It may lead to the widening of income inequalities among various countries.
3. It may lead to greater dependence on underdeveloped countries on advanced
countries.
4. Flexibility in labor laws.
5. Closure of small industries.
The Struggle for a Fair Globalization
Fair Globalization
 It would create opportunities for all.
 Ensure the benefits of globalization are shared better.

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Role of Government in ensuring Fair Globalization
 Government policies must protect the interests, not only of the rich and the powerful
but all the people in the country.
 It should ensure that the labor laws are properly implemented, and the workers get
their rights.
 It can support small producers to improve their performance till they become strong
enough to compete.
 If necessary, the government can use trade and investment barriers.
 It can negotiate at the WTO for fairer rules.
 It can also align with other developing countries with similar interests to fight against
the domination of developed countries in the WTO.

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