Chapter – 3

Politics of Plan Development

Very Short Answer Type Questions [ 1 Mark]

1. Who was the founder of Indian Statistical Institute?

Answer: P.C. Mahalanobis to initiate Second Five Year Plan to support industrialisation and
positive role of public sector.

2. What is ‘Left’ and ‘Right’ in politics?

Answer: These refer to position of concerned party in the group. The left signifies to favour the poor
and downtrodden section of society through government politics whereas the ‘Right’ favours free
economy in the market not to be intervened unnecessarily by the government.

3. What is ‘Development’?
Answer: Development refers to the process of improving living standard of country people and
economic level in reference of industrialisation and modernisation to be judged by the improvements
in the quality of life.

4. Mention the primary responsibilities of India immediately after independence.

Answer: 1. Development of agriculture
2. Poverty alleviation of rural and urban level both.
3. Social and economic redistribution.

5. Why did India adopt planning?

Answer: Because:
1. To bring a socio-economic changes.
2. It was to provide a controlled and faster growth rate.
3. To resolve contradictions between societies.

6. What is composition of Planning Commission of India?

Answer: 1. It consists Prime Minister as its Chairman.
2. Some ministers or incharges of economic portfolios.
3. The members of Planning Commission have a high public image alongwith an administrative and
educational background.

7. Mention the various interests associated with Orissa Reserved Iron Resource.
Answer: The reserved iron resource of Orissa is an important investment destination due to rise a
global demand of Iron. The state government signed Memorandum of Understanding (MoU) with
both international and domestic steel makers in order to bring in capital investment and employment
opportunities.

8. What are the key conflicts associated with Orissa reserved Iron Resources?
Answer: 1. These iron resources lie in some most underdeveloped and predominant tribal districts.
2. Tribal population feared that the setting up of industries would mean displacement from their
name and livelihood.
3. The environmentalist feared to be polluted the environment due to mining and industrial activities.
9. What was Bombay Plan?
Answer: Bombay Plan was drafted in 1944 in the want of states to take major initiatives in industrial
and other economic investment through a joint proposal of a section of the big industrialist for
setting up a “Planned Economy”.

10. What are the objectives of planning?

Answer: 1. To make economy self reliant and self generating through planned strategies.
2. To activate distributive justice among various sectors of economy.

Very Short Answer Type Questions [2 Marks)

1. Differentiate between the main objectives of the First and Second Five Year Plans.
Answer: 1. Objectives of First Five Year Plan:
(a) It focused on land reforms for the development in rural areas.
(b) It aimed to increase level of National Income.
2. The First Five Year Plan differed from the Second Five Year Plan:
(a) The second five year plan stressed on heavy industrialisation.
(b) Second five year plan wanted to bring quick structural transformations in all possible directions
in place of slow and steady growth like first five year plan.

2. Differentiate between the capitalist and socialist models of development.

Answer: The capitalist model of development refers to the strategies in which the private sectors are
prioritised in place of social welfare whereas socialist model of development aims at public sector
and planning to establish egalitarian society.

3. What is meant by decentralized planning?

Answer: Decentralized planning is designed to involve the peoples through voluntary citizens
organisation in making plans at the panchayats, blocs and districts level. Its example is the ‘Kerala
Model’.

4. Highlight the two areas on which the First Five Year Plan focused.
Answer: The first five year plan was commenced in 1951 to be drafted by young economist K.N.
Raj with the emphasis on poverty alleviation. Its main thrusts were as follows:
1. To invest in dams and irrigation to improve agricultural sector with the urgent attention.
2. Huge allocations were made for large scale projects like Bhakra-Nangal Dam.

5. Which are the two models of development? Which model of development was adopted by
India?
Answer: Two models of development are the capitalist and socialist models of development, India
adopted the elements from both these models together to be known as “Mixed Economy”.

6. What were the fears of tribal population of Orissa and environmentalist about setting up
industries in tribal areas?
Answer: 1. These iron resources lie in some most underdeveloped and predominant tribal districts.
2. Tribal population feared that the setting up of industries would mean displacement from their
home and livelihood.
3. The environmentalists feared to be polluted the environment due to mining and industrial
activities.
7. What is the meaning and importance of economic planning in Indian context?
Answer: Economic planning in India refers do a systematic regulation of economic activities by
government to reduce the wastage of time and resources:
1. Economic planning helps to achieve national goals in a continuous process of development.
2. It is a rational process to associate with the future needs and goals to evaluate alternate proposals
also.

8. What was Kerala Model?

Answer: Kerala model is an example of decentralised planning at the state level:
1. It is the initiative taken by Kerala for planning and development strategies.
2. It targeted on education, health, land reform, effective food distribution and poverty alleviation.
3. Kerala model initiated to implement Panchayati Raj, blocs and district level of government.

9. Which state was prone to food crisis in the early years of independence?
Answer: Bihar was prone to food crisis in the early years of independence
1. It was due to a near famine situation.
2. The food shortage was very much acute in all districts of Bihar.
3. Food shortage led to acute and widespread malnutrition.
4. The zoning policies of government prohibited trade of food across states, which reduced
availability of food in Bihar.

10. Who was J.C. Kumarappa?

Answer: 1. J.C. Kumarappa was originally known as J.C. Cornelius.
2. He was an economist and chartered accountant.
3. He was the follower of Mahatma Gandhi to apply Gandhian Principles of Economic Policies.
4. He was the author of ‘Economy of Permanence’ and a member of planning commission.

11. What is Plan Holiday?

Answer: 1. Plan Holidays is a gap between two five years plan, i.e. 1966-68, 1979-1980 and 1990-
92.
2. It was a stop gap arrangements by the provisions of annual plans.
3. Plan holidays took place due to change in government to be locked in development-goals and
priorities etc.
4. Those five year plans were supposed to be reviewed and changed by the succeeding government.

12. What results were revealed by Planned Economy?

Answer: 1. Big industrialists continued to benefit.
2. The land owning classes became politically powerful.
3. Land reforms could not take place effectively.
4. The early initiatives for planned development were realising the goals of economic development.

13. Which methods were used to implement the development process in a mixed economy?
Answer: 1. Planning and governmental regulation to control economy.
2. Licensing, subsidies, progressive taxing, price control and reforfhs etc. were also implemented.
3. To make a significant role of public sector.
4. To ensure a political democracy.
14. What is ‘Mixed Economy’?
Answer: Mixed economy is an economy to co-exist private and public sector both:
1. Both the sectors work within invisible lands of market forces and visible lands of planning set by
government.
2. ‘State own’ means of production to aim social welfare and ‘private own’ means of production to
be regulated by states.

15. How did Indian lay down the foundation of future economic growth?
Answer: 1. Some of the largest developmental projects in India’s history were undertaken during
this period to include mega dams like Bhakra- Nangal and Hirakud for irrigation and power
generation.
2. Heavy industries were started in the public sector like steel plants, oil refineries, manufacturing
units and defence production etc.
3. Infrastructure and communication were also improved.

Short Answer Type Questions [4 Marks]

1. Explain any two merits and two demerits each of the Green Revolution.
Answer: Two Merits of the Green Revolution:
(i) The Green Revolution ensured food sufficiency in the country. In many parts, the stark contrast
between the poor peasantry and the landlords produced conditions favourable for left wing
organisations to organise the poor peasants.
(ii) The Green Revolution resulted in the rise of middle peasant sections.
These were farmers with medium size holding, who benefited from the changes and soon emerged
politically influential in many parts of the country.
Two Demerits of the Green Revolution:
(i) The Green Revolution delivered only moderate agricultural growth and raised the availability of
food in the country but also increased polarisation between classes and regions.
(ii) Some regions like Punjab, Haryana and Western UP became agriculturally prosperous while
others remained backward.

2. List any two merits and two demerits of Green Revolution.

Or
What is Green Revolution? Highlight any two of its effects?
Answer: Green Revolution was introduced to bring about revolutionary changes in agriculture
especially in foodgrains like wheat and Rice to increase production:
1. Production was increased by the use of high yielding varieties of seeds.
2. Scientific irrigation and fertilisers were also applied.
Merits of Green Revolution:
(а) The government offered various irrigational facilities at a subsidised prices.
(б) It resulted in the rise of ‘Middle Peasant Section’ who soon emerged politically influential.
Demerits of Green Revolution:
(a) This created a stark contrast between the poor peasantry and the landlords.
(b) It increased polarisation between the classes and regions like northern states i.e. Punjab, Haryana,
West UP, became agriculturally rich but other remained backward.
3. How was Planning Commission of India : set up? Mention its scope of work.
Answer:Planning Commission was set up as:
1. It consists Prime Minister as its chairman.
2. Some ministers or incharges of economic portfolios.
3.The members of planning commission have a high public image alongwith an administrative and
educational background.
Its scope of work:
1. To bring socio-economic change.
2. It was to provide a controlled and faster growth rate.
3. To resolve contradictions between societies.

4. describe the main functions of planning commission of India.

Answer: Planning commission was set up in 1950 by a cabinet resolution as an extra constitutional
body:
1. It look advisory in nature but it is very powerful to be known as economic cabinet of country.
2. Planning commission prepares a document to have plan for income and expenditure for five year
plans.
3. Planning commission prepares strategies to provide adequate means of livelihood for every man
and woman.
4. It also ensures not to concentrate wealth and means of production into few hands only.

5. What was the protest against Posco plants in Orissa?

Answer: In Orissa, Posco is the state plant. The government of Orissa signed a Memorandum of
understanding (MoU) with Korean Company for enhancement of the plant. But this displaced many
workers working in the plant.
Hence, the workers demonstrated outside Korean Company’s office to cancel the memorandum.
This demonstration was organised by Rashtriya Yuva Sanghtan and Navmirmana Samithi.

6. Which part of constitution helps the planning commission to ensure socio¬economic

justice?
Answer. The directive principles of state policy ensure the welfare through securing and protecting
them from any kind of social, economic and politieal industries:
1. Men and women equally have the right to adequate means of livelihood.
2. Prevent concentration and means of production into the few hands only.
3. Equal distribution of resources.

7. What do you know about land reforms in India during planning period?
Answer: 1. Zamindari system was abolished to release land from big landlord who were least
interested in agriculture.
2. Lands were consolidated to bring small pieces together to increase the farm size.
Drawbacks:
1. Despite a ‘ceiling’, people with excess land managed to violate the laws.
2. The tenants, who worked on
someoneelse’s land were given greater legal security which rarely implemented.
3. Landowners were very powerful and wielded considerable political influence.

8. What is meant by White Revolution in Gujarat?

Answer: The White Revolution in Gujarat was started by ‘Varghese Kurien’ known as milkman of
India to launch Gujarat Cooperative Milk and Marketing Federation Ltd., which further launched
‘AmuF.
Amul is a dairy cooperative movement based in ‘Anand’ town of Gujarat to become a unique
appropriate model for rural development and poverty alleviation.

Passage Based Questions [5 Marks]

1. Read the passage given below carefully and answer the questions:
It was in Bihar that the food-crisis was most acutely felt as the state faced a near-famine
situation. The food shortage was significant in all districts of Bihar, with 9 districts producing
less than half of their normal output. Five of these districts, in fact, produced less than one-
third of what they produced normally. Food deprivation subsequently led to acute and
widespread malnutrition. It was estimated that the calorie intake dropped from 2200 per
capital per day to as low as 1200 in many regions of the
state (as against the requirement of2450 per day for the average person.). Death rate in Bihar
in 1987 was 34% higher than the number of deaths that occurred in the following year. Food
prices also hit a high in Bihar during the year, even when comp
states. For wheat and rice the prices in the state were twice or more than their prices in more
prosperous Punjab. The government had ‘honing” policies that prohibited tra.de of food
across states* tins reduced the availability of food in Bihar dramatically. In situations such as
this, the poorest sections of the so. . most.
Questions
1. What is food-crisis?
2. What were the reasons of food crisis in Bihar?
3. What do you understand by ‘Zoning’ policies of government?
Answer:
1. When any state or country face the problem of insufficiency of food in the region or food shortage
is known as food crisis.
2. (i) Famine situation occurred there.
(ii) Food prices also hit a high in Bihar than other states.
(iii) Government policies of‘Zoning1 also caused it.
3. Zoning policies of government prohibit trade of food across the states which reduced the
availability of food in Bihar.

2.Read the passage given below carefully and answer the questions:
Decentralized Planning: It is not necessary that all planning always lias to be centralised; nor
is it that planning is only about big industries and large projects. The ‘Kerala modle’ is the
name given to the path of planning and development charted by the Stats of Kerala .There has
been a focus model on education, health, land refoiin, effective food distribution, and poverty
alleviation. Despite low per capita incomes,
and a relatively weak industrial base, Kerala achieved nearly total literacy,long life expectency
,low infant and female mortality, low birth .rates and Mgb access to medical care. Between
1987 and 1991, the government launched the New Democratic Initiative which involved
campaigns for development (including total literacy especially in science and environment)
designed to involve people directly in development activities through voluntary citizens’
organisations. The State has also taken initiative to involve people in making plans at the
Panchavat, block and district level.
Questions
1. What is meant by decentralisation?
2. Which state is the best example for this?
3. Which methods were used by state of Kerala for decentralisation?
Answer:
1. Decentralisation shares the powers even among the states and its subordinate units to run the
administration in efficient manner i.e. at the Panchayats, blocs and district level.
2. Kerala which is known as ‘Kerala Model’ also.
3. 1. Campaigning for development
especially in Science and environment.
2. To involve people in making plans at Panchayat, blocs and district level.

Long Answer Type Questions [6 Marks]

1. What was Green Revolution? Mention its any two positive and two negative consequences.
Answer: Green Revolution was introduced to bring about revolutionary changes in agriculture
especially in foodgrains like wheat and rice to increase food production through high yielding
varieties of seeds, fertilisers and scientific irrigation. Positive Consequences:
1. In many parts, the stark contrast between the poor peasantry and the landlords produced
conditions favourable for left wing organisations to organise the poor peasants.
It resulted in the rise of what is called the ‘Middle Peasant Sections’
who were farmers with medium size holdings who benefitted from the changes and soon emerged
politically influential in many parts of country. Negative Consequences:
(i) This created a stark contrast between the poor peasantry and the landlords.
(ii) It delivered only a moderate agricultural growth i.e. a rise in rice and wheat production by raising
availability of foodgrains in country. On the other hand it increased polarisation between the classes
and regions like Northern States i. e. Punjab, Haryana, West-U.P. became agriculturally rich but
others remained backward.

2. Explain the main arguments in the debate that ensued between industrialisation agricultural
development at the time of second five year plan.
Answer: At the time of second five year plan, some controversial issues rose in reference of
relevancy of agriculture over industry:
1. Second five year plan emphasised on industry in place of agriculture or rural India.
2. J.C. Kumarappa, a Gandhian Economist proposed an alternative blueprint to emphasise on rural
industrialisation.
3. Bharatiya Lok Dal leader, Chaudhary Charan Singh also commented that the planning was leading
to creation of prosperity in Urban and industrial sections at the cost of rural welfare.
Others debated that without an increase in industrial sector poverty could not be alleviated:
1. India planning did not have agrarian strategy to boost the production of foodgrains.
2. It also proposed programme of community development and spent large sums on irrigation
projects and failure was not that of policy but of its non-implementation because of the politics of
land owning classes.
3. Besides they also argued that even if the government had spent more money on agriculture, it
would not have solved the massive problems of rural poverty.

3. What were the major differences in the approach towards development at the time of
Independence? Has the debate been resolved?
Answer. At the time of independence, development was about becoming more like the industrialised
countries of the West, to be involved with the break down of traditional social structure as well as
rise of capitalism and liberalism.
1. Modernisation referred to growth, material progress and scientific rationality.
2. India had two models of modern development at the time of independence into considerations to
be adopted i.e. the liberal capitalist model like Europe and the US and the socialist model like the
USSR.
3. A debate had been occurred regarding adoption of model of development as communists,
socialists and Pt.
J.L. Nehru supported the socialist model to reflect a broad consensus to be developed during national
movement.
4. Above mentioned intentions cleared that the government made the priority to poverty alleviation
alongwith social and economic redistribution.
5. At the same time, these leaders differed and debated:
(a) Industrialisation should be the preferred path or
(b) Agricultural development should take place or
(c) Rural poverty should be alleviated.

4. What was the major thrust of the First Five Year Plan? In which ways did the Second Plan
differ from the first one?
Answer: The First Five Year Plan was commenced in 1951 to be drafted by Young Economist
K.N. Roy with the emphasis on poverty alleviation. Its main thrusts were as follows:
1. To invest in dams and irrigation to improve agricultural sector with the urgent attention.
2. Huge allocations were made for large scale projects like Bhakra-Nangal Dam.
3. It focused on land reforms for the development in rural areas.
4. It aimed to increase level of National Income.
The first five year plan differed from the second five year plan:
(a) TheSecondFiveYearPlanstressed on heavy industrialisation.
(b) Second Five Year Plan wanted to bring quick structural transformation in all possible directions
in place of slow and steady growth like First Five Year Plan.

5. State the main arguments in the debate that ensued between industrialisation and
agricultural development at the time of the Second Five Year Plan.
Answer: At the time of Second Five Year Plan, some controversial issues rose in reference of
relevancy of agriculture over industry.
1. Second Five Year Plan emphasised on industry in place of agriculture or rural India.
2. J.C. Kumarappa, a Gandhian Economist proposed an alternative blueprint to emphasise on rural
industrialisation.
3. Bharatiya Lok Dal leader, Chaudhary Charan Singh also commented that the planning leading to
creation of prosperity in Urban and industrial sections at the cost of rural welfare. Others debated
that without an increase in industrial sector poverty could not be alleviated:
(i) India planning did not have an agrarian strategy to boost the production of food grains.
(ii) It also proposed programmes of community development and spent large sums on irrigation
project and failure was not that of policy but of its non¬implementation because of the politics of
land owning classes.
(in) Besides, they also argued that every if the government had spent more money on agriculture it
would not have solved the massive problem of rural poverty.

6. “Indian policy makers made a mistake by emphasising the role of state in the economy.
India could have developed much better if private sector was allowed a free play right from the
beginning”. Give arguments for or against this proposition.
Answer: No, the above statement is not perfectly true because state’s intervention was mandatory to
regulate country’s economy
after independence immediately. Indian did not follow either capitalist model of development or
socialist model completely. Instead she adopted the model of‘mixed economy’ to be criticised from
the right and the left:
(i) Private sector lacked enough space and stimulus to grow.
(ii) Licensing and permits for investment in private sector created hurdles for private capital
accumulation.
(iii) The state control beyond the limits led to inefficiency and corruption. State control was
emphasised:
1. State helped the private sector to make profits by intervening only in those areas where the private
sector was not prepared to go.
2. Instead of helping the poor, the states intervention ended up creating a new class that enjoyed the
privileges of higher salaries without much account-ability.
 Picture/Map Based Questions [5 Marks]

A1. Study the picture given below and answer the questions that follow:

Questions
1. What message does the cartoon convey?
2. Name the person who is making efforts to balance both the sectors.
3. How was both these sectors balanced?
Answer:
1. Cartoon is trying to make balance between the private and public sector to maintain the growth of
an economy adopted by India.
2. Pt. Jawahar Lai Nehru, the then Prime Minister of India.
3. Pt. Nehru made a balance between both the sectors by adopting the model of mixed economy to
co-exist the private and public sector.

2. Study the picture given below and answer the questions that follow:

Questions
1. About which state the clipping is talking about?
2. What is food-crisis?
3. What were the main reasons for food- crisis?
4. Is India now sufficient in food production?
Answer:
1. Bihar
2. Food crisis is unavailability of sufficient food or food shortage.
3. (i) High prices of food items.
(ii) Zoning policy of government.
4. Yes, due to Green Revolution foodgrain production has been increased upto maximum extent.

B. On a political outline map of India locate and label the following and symbolise them as
indicated:

Questions
1. The state prone to food crisis during independence days! 1. Bihar
2. The state adopted decentralisation. 2. Kerala
3. The state where people protested against POSCO plants. 3. Orissa
4. The state where White Revolution took place. 4. Gujarat
 National Development Council
(Newly added Topics)

National Development Council (NDC) or the Rashtriya Vikas Parishad, was set up on August
6, 1952

It is the apex body in India presided over by the Prime Minister.

It is the body for decision making and deliberations on development matters and to strengthen
and mobilize the effort and resources of the nation.

National Development Council was made to promote common economic policies for all and
to ensure the balanced and rapid development of all parts of the country.
The National Development Council comprises the following members -

• Indian Prime Minister

• All the Union Cabinet Ministers
• Chief Ministers of all States or their substitutes
• Representatives of the union territories and
• The members of the Planning Commission.
Objectives
• To strengthen and deploy the effort and resources of the nation in support of the Plan.
• To encourage common economic policies in all vital spheres.
• To make sure the balanced and rapid development of all parts of the country.
• To provide a platform for all the states to discuss their problems and issues related to
development. It helps to secure the cooperation of the states in the execution of
developmental plans.
 Niti Aayog
NITI Aayog was formed in 1 January 2015, by replacing 65 year old The Planning
Commission

The NITI Aayog comprises the following members:

• Chairperson: The Prime Minister

• Vice Chairperson: Rajiv Kumar
• A Governing Council: Chief Ministers of all the States and Union territories
• Regional Councils: Composed of Chief Ministers of States and Lt. Governors of Union
Territories
• Ex-Officio Members: Composed of Amit Shah, Rajnath Singh, Nirmala Sitaraman and
Narendra Singh Tomar.

NITI Aayog Evolution

NITI stands for "National Institution for Transforming India". It is the premier policy making
institution of the country that is expected to boost the economic growth of the country.
It aims is to construct dynamic and strong nation by making the state strong. It is based on
bottom to top approach.
This helps India to emerge as a major economy in the world.
The NITI Aayog has two hubs called "Team India Hub" and "Knowledge and Innovation Hub".
It promotes cooperative federalism.
It also known as think tank of the Union Government in order to harmonize the interest of
economic policy and national security.