UNDERSTANDING INDIA

UNIT III

UNIT III- THE INDIAN ECONOMY

1. Goals and Policies: Post Independent Goals and Policies of National Development
2. Features of the National Development
a. Social Justice and Economic Equality
b. Goals and Policies and National Development during 21st Century
3. Indian Economy through the Ages ( Agriculture, Industry and Trade)
4. Directive Principle and Fundamental Rights and Duties.

Goals and Policies: Post Independent Goals and Policies of National Development

National Development:-

Meaning- National development refers to the ability to improve the standard of living of the
residents of the country. The term is used to refer to the overall development of the country in
terms of facilities provided to the citizens. This can be achieved through various means, most
of which revolve around meeting the basic needs of the people (food, clothing and shelter).
This may include providing them with livelihood as well as employment. It ensures that the
country develops in terms of per capita income and facilities like education, health care, etc.

Definition-

i. John Vaizey defines, “National development is the total effect of all citizen forces
and addition to the stock of physical, human resources, knowledge and skill.”
ii. United Nations Decade Report has defined it as, “National development is growth
plus change. Change in turn is social and cultural as well as economic and
qualitative as well as quantitative”.
Features of National Development-

1. Social Justice: It denotes the equal treatment of all citizens without any social
distinction based on caste, colour, race, religion, sex and so on. It means absence of
privileges being extended to any particular section of the society, and improvement in
the conditions of backward classes (SCs, STs and OBCs) and women.
The Preamble of the Constitution of India enshrines the word Justice- Social,
Economic and Political. Social justice can be promoted in two ways:
- By reducing the poverty of the poorest section of the society.
- By reducing the inequalities of the wealth and income.
 2. Economic Equality: It is the concept on idea of fairness in economics, particularly in
regard to taxation or welfare economics. To achieve the objective of economic
equality the progressive taxation and reservation of jobs for the economically
backward classes were applied.

3. Human Development: Human development is the process of widening people’s

choices as well as raising the level of well- being achieved. It embraces the
enlargement of all human choices- whether economic, social, cultural or political.
Human development is measured with help of human development index (HDI) with
the dimension and indicators as given below:
Dimension Indicator Minimum Maximum
Health Life expectancy (years) 20 85
Education Expected years of schooling 0 18
Mean years of schooling 0 15
Standard of Gross national income per capita 100 75,000
Living (PPP 2011 $)
India’s rank in HDI 2021-22:
According to the Human Development Report of 2021-22, India ranks 132 out of 191
countries.
India’s rank is behind Bangladesh (129) and Sri Lanka (73).

4. Economic Development: It incorporates both quantitative and qualitative measures.

Quantitative measures are per capita income and Gross Domestic Product (GDP).
Qualitative measures includes all those things that improves the quality of life or
standard of living i.e., reduction in poverty, unemployment, illiteracy and social evils.

5. Social Development: Social development is about the overall improvement in the

well-being of every individual in society so they can reach their full potential. For
example, social development refers to change in the thought process of people
regarding different genders in a positive sense.

Goals and Policies of National Development-

The goals and policies of National Development can be studied on varied ways.

I. Five Year Plans

II. Economic Models
- Gandhian Model of Growth-1948
- Nehru-Mahalanobis Model-1956
- Gadgil Formula 1964
- LPG Model/ New Economic Policy 1991
- PURA Model-2004
III. NITI Aayog 2015.
 IV. Policies in different Sectors like agriculture, industry, foreign trade, service
education, health, employment, poverty and others

Five Year Plans

Economic Planning is the process in which the limited natural resources are used skilfully so
as to achieve the desired goals. The concept of economic planning is borrowed from Soviet
Union (Russia). The planning commission was constituted in India in 1950 as a non-
constitutional and advisory corporation. The basic aim of economic planning is to bring about
rapid economic growth through development of agriculture, industry, power, transport and
communications and all other sectors of the economy.

Five Years Targets Achieved Objectives Assessments

Year
Plans
1st 2.1% 3.6% Rehabilitation of refugees, – Net domestic product increased
rapid agricultural by 15%, while the achieved
development to achieve growth rate stood at 3.6%
food self-sufficiency in the – Five Indian Institutes of
shortest possible time and Technology (IITs) were created
control of inflation – University Grants Commission
1951 – was established to provide money
1956 and improve higher education in
India
– Industrial growth fell short of
its target due to a lack of
investment in heavy industries
and slow growth in the private
sector
2nd 4.5% 4.27% To promote – The plan did not meet its target
industrialization in the growth rate of 4.5% and only
country managed to achieve a growth rate
of 4.27%
– New industries were
1956 – established, and infrastructure
1961 was improved
– The plan also led to the
establishment of hydroelectric
power projects and five steel
plants were built in places like
Rourkela, Durgapur, and Bhilai
3rd 5.6% 2.4% To promote agriculture, – The plan helped set up many
industry, and social welfare primary schools in rural areas and
– The goal of this plan was created state electricity and
to create a self-sufficient education boards
1961 –
economy with a focus on – The states were given
1966
agriculture and increasing responsibility for secondary and
wheat production. higher education
However, it failed due to
wars and drought
Three The third five year plan The three annual plans focused
Annual was unsuccessful due to on a revamped agriculture-based
1966 –
Plans various reasons including strategy which included the
1969
wars and other issues. utilization of fertilizers on an
– Therefore, the value of increased level, good-quality
 the Indian rupee decreased seeds, and the conservation of
in the global market soil.
leading to high inflation.
– This led to the
postponement of the next
five year plan in India.
4th 5.6% 3.3% To reduce the The plan promoted the Green
concentration of wealth and Revolution, which aimed to
economic power and to increase agricultural productivity
1969 – achieve growth with by using better crops, irrigation,
1974 stability and self-reliance and fertilizers
– The Fourth Five Year
Plan was created based on
the Gadgil formula
5th 4.4% 4.8% Aimed to reduce poverty, – Government introduced several
increase employment initiatives like amending the
opportunities, improve the Electricity Supply Act in 1975,
1974 – justice system, boost
1979 launching a Twenty-point
agricultural production, and program in 1975, and
strengthen defence implementing the Minimum
Needs Programme
Rolling The sixth five year plan The Janata Party lost power and
Plans was introduced twice, one the Congress government took its
of which was introduced by place. The new government later
the ruling Janata Party. The rolled out a new plan which
1978 – party mainly laid stress on aimed towards poverty
1980 the matter alleviation
of unemployment. It was
majorly focused on the
criticism of the Nehru
government.
6th 5.2% 5.7% Focused on investing – The Sixth Five Year Plan was
money, changing also significant because it marked
infrastructure, and growing the beginning of economic
1980 – the economy liberalization in India.
1985 – They made a new bank called
the National Bank for Agriculture
and Rural Development to help
people in rural areas.
7th 5.0% 6.0% The goal of the Seventh – The Seventh Five Year Plan
Five Year Plan was to focused on agriculture, small
make India more self- businesses, and improving roads
sufficient, create more jobs, and technology.
1985-
and improve technology – The plan aimed to promote
1990
social justice and help the poor,
increase the productivity of
farmers, and make India more
independent.
Annual 1990- It was the beginning of No plan due to political
plans 1992 privatization and uncertainties
liberalization in India
8th 1992- 5.2% 6.8% To promote – The Eighth Five Year Plan was
1997 entrepreneurship, support the beginning of a new economic
small and medium-sized approach called
enterprises, and enhance internationalization, relaxation,
the skills of the labour and commercialization in India.
force – The plan gave priority to
energy, allocating 26.6% of the
budget to it.
 – Overall, it was successful in
achieving its objectives,
9th 1997- 6.5% 5.4% The focus of the plan was – The government planned to
2002 to achieve growth along spend a total of ₹859,200 crores
with social justice and on public projects
equality – It introduced new measures
called Special Action Plans to
help achieve targets on time with
enough resources
10th 2002- 8.1% 7.5% – Its main goal was to – The GDP growth rate during
2007 increase India’s per capita the plan period was 7.5%, which
income over the next 10 was close to the target of 8%
years and reduce the – Poverty rates also decreased,
poverty ratio to 15% by and significant progress was
2012 made in the areas of health,
education, and infrastructure
11th 2007- 9% 8% The main focus of the – Although the plan aimed for a
2012 Eleventh Five Year Plan growth rate of 9%, it achieved a
was to achieve rapid and growth rate of 8%
inclusive growth
– The 11th Five Year Plan
aimed to increase the
number of 18-23 year-olds
enrolled in higher
education by 2011-12
12th 2012- 8.2% – The 12th Five Year Plan – The key areas of focus under
2017 had three main objectives: the Twelfth Five Year Plan were
growth, inclusiveness, and infrastructure development, skill
sustainability development, health, education,
agriculture, energy, and the
environment

Economic Models

1. Gandhian Model:
- Gandhian Plan was brought out by Acharya S.N. Agarwala in 1944 and was re- affirmed in
1948, formed the basis of Gandhian Model of growth.
- The basic objective of this model is to raise the material as well as the cultural level of the
Indian masses so as to provide a basic standard of life.
- It aims primarily at improving the economic condition of the villages of India and hence, it
lays the greatest emphasis on the scientific development of agriculture and rapid growth of
cottage and village industries.
- The Gandhian model aims at the reform of agriculture as the most important sector in
economic planning in India.
- Gandhian Models primary aims is the attainment of maximum self-sufficiency in village
communities. Hence, the plan emphasises the rehabilitation, development and expansion of
cotton industries, side by side with agriculture, spinning and weaving are given the first
place.
- While Nehru wanted to give prime importance to heavy industries, the Gandhian model
attempts to give primary to agriculture supported by handicrafts and cottage industries.

2. Nehru- Mahalanobis Model:

- Adopted at the time of formation of the second five year plan (1956-61) and has continued
right up to the 1980’s.
- It aimed as enlargement of opportunities for the less privileged sections of the society.
- Goals: Growth with social justice since it intended to foster a self- generating path of
development with an assurance to the common man that poverty, employment, disease and
ignorance would be removed so that individuals could and economic opportunities.
- In the Nehru- Mahalanobis model the state controlled the commanding heights of the
economy through the public sector.

3. Gadgil Formula:
- It was evolved in 1969 for determining the allocation of central assistance for state plans in
India. It comprises of:
- Population (60%)
- Per- capita Income (10%)
- Tax Effort (10%)
- On- going Irrigation & Power Projects (10%)
- Special Problems (10%)

4. LPG Model:
- The LPG Model of development was introduced in 1991 by the then Finance Minister Dr.
Manmohan Singh.
- This model was intended to charter new strategy with emphasis on liberalisation,
privatisation and globalisation.
- LPG model of development emphasises on bigger role for the private sector.
- It envisages a much larger quantum of foreign direct investment to supplement over growth
process.
- It aims at a strategy of export led growth as against import substitution practised earlier.
- It aims at reducing the role of the state significantly and thus abandons planning
fundamentalism in favour of a more liberalise and market driven pattern of development.

5. PURA Model:
- The union cabinet on the 20th January 2004 accorded in principle approval for the execution
of PURA within the gross budgetary support for bridging the rural- urban divide and
achieving balanced socio- economic development.
- Dr. A.P.J. Abdul Kalam, to eradicate poverty from India, emphasised the adoption of PURA
(Providing Urban Amenities in Rural Areas). Earlier, it was Mahatma Gandhi who underlined
the exploitation of rural society by its urban counterpart.
- The Objectives of PURA is to propel economic development without population transfer.
- The PURA Concept is to response to the need for creating social and economic infrastructure
which can create a conducive climate for investment by the private sector to invest in rural
areas.
- Although PURA draws its inspiration from the Gandhian model of development which
emphasises rural development as a fundamental postulate, get in the prescription, it is neo-
 Gandhian in the sense that it intends to bring rural regeneration with the objective of taking
modern technology and modern amenities to the rural areas.
- It does emphasis the enlargement of employment as the sole objective to more use of rural
manpower in various development activities.
- The PURA model, however, attempted reconciliation between employment and GDP growth
objectives.

NITI Aayog:
- Planning Commission on January 1, 2015 with Arvind Panagariya as its Vice Chairperson.
- Prime Minister will be the Chairperson.
- NITI Aayog is a policy think-tank of the Government of India and aims to involve the states
in policy making in India.
- It will be providing strategic and technical advices to the Central and State Governments by
adopting bottom- up approach rather than the traditional top- down approach of the Planning
Commission.
- NITI Aayog will seek to promote a critical directional and strategic input into the
development process.
- The Centre-to- State one-way flow of policy, that was the hallmark of the Planning
Commission era, is now sought to be replaced by a genuine and continuing partnership of the
states.
- It will help evolve a shared vision of national development priorities, and foster cooperative
federalism, recognising that strong states make a strong nation.
- It will develop mechanisms to formulate plans to the village level and aggregate these
progressively at higher levels of government.
- It will ensure special attention to the sections of the society that may be at risk of not
benefiting adequately from economic progress.
- It will create a knowledge, innovation and entrepreneurial support system through a
collaborative community of national and international experts, practitioners and partners.
- It will offer a platform for resolution of inter-sectoral and inter- departmental issues in order
to accelerate the implementation of the development agenda.
- It will monitor and evaluate the implementation of programmes, and focus on technology
upgradation and capacity building.

Aims of NITI Aayog:

i. Leveraging of India’s demographic dividend and realisation of the potentials of
youths, men and women through education, skill development, elimination of
gender bias and employment.
ii. Elimination of poverty, and the chance for every Indian to live a life of dignity
and self- respect.
iii. Redressal of Inequalities based on gender bias, caste and economic disparities.
iv. Integrate villages institutionally into the development process.
v. Policy support to more than so million small businesses, which are a major source
of employment creation.
vi. Safeguarding of our environmental and ecological assets.
 Indian Economy through the Ages ( Agriculture, Industry and Trade) + Goals and
Policies and National Development during 21st Century(Policies in different Sectors like
agriculture, industry, foreign trade, service, education, health, employment, poverty and
others)

AGRICULTURE:
This sector’s growth and development can be studied under following
I) At the eve of Independence (till 1947):
- Indian economy under colonial rule was agrarian in structure.
- About 85% of the country’s population lived in villages and derived their livelihood from
agriculture.
- Agricultural productivity was low and agricultural sector experience stagnation.
- The stagnation in the agricultural sector was caused because of the various systems of land
settlement.
- These land settlements were i) Zamindari system (Bengal Presidency), ii) Mahalwari system
(Agra, Uttar Pradesh, Madhya Pradesh, Punjab) and iii) Ryotwari system (Tamil Nadu,
Maharashtra, Brar, East Punjab, Assam and Coorg )
- The revenue settlements under land settlement were exploitative in nature.
- Low levels of technology, lack of irrigation facilities and negligible use of fertilizers, all
added and contributed in low level of productivity.
- Commercialisation of agriculture led to the higher yield of cash crops in certain areas of the
country. But farmers were deprived from the profit made by cash crop and their economic
conditions declined.
II) Planning period (1951-1991)
a) Land Reform: The policy makers of the independent India tried to introduce land reform in
the country.
Objectives of the Land Reform-
i) to remove such impediments to increase in agricultural production as arise from the agrarian
structure inherited from past and
ii) ii) to eliminate all forms of exploitation and social justice, injustice within the agrarian
system, to provide security for the tillers of the soil and assure equality of status and
opportunity to all sections of the rural population.

Measures used to achieve these objective were as given below-

i) Abolition of intermediaries
ii) Tenancy reforms
iii) Reorganisation of agriculture.

b) Green Revolution:
- In India, the green revolution was mainly led by Dr. M.S. Swaminathan.
- Resulted in a great increase in production of the introduction into food grain (Wheat and
Rice) due to the introduction into developing countries of the new, high- yielding variety
seeds.
- From 1967-68 to 1977-78, India’s status changed from a food deficient country to one of the
world’s leading agricultural varieties.
- Green revolution in India refers to a period when Indian agriculture was converted into an
industrial system due to the adoption of modern methods and technology such as the use of
HYV seeds, tractors, irrigation facilities, pesticides and fertiliser.
- Main crops were wheat, rice, jowar, bajra and maize.
III) Reform period (1991):
- Investment in agricultural sector declined. Infrastructure like irrigation, power,roads, market
linkages and research and extension (which played a crucial role in the green revolution)
declined.
- Removal of fertiliser subsidy has led to increase in the cost of production which affected the
small and marginal farmers.
- Number of policy changes such as reduction in import duties on agricultural products,
removal of minimum support price and lifting of quantitative restrictions on agricultural
products, due to increase international competition India faced adverse effect.
- Export oriented policy strategies in agriculture; there has been a shift from production for the
domestic market focusing on cash crops in lieu of production of food grains. This puts
pressure on prices of food grains.
IV) Current Scenario:
- Agriculture sector provides livelihoods to 65% to 70% of total population. This sector
provides employment to 48.9% of country’s workforce and is the single largest private sector
occupation.
- The share of agriculture and allied sector in the Gross domestic product has registered a
steady decline from 56.4% in 1982-83 to 16.34% in 2020-21 at constant price (2011-12 =
100%).

INDUSTRY:

The economic policies pursued by the colonial government in India transformed the country
into supplier of raw materials and consumer of finished industrial products from Britain. The
main points are mentioned below.
I) At the eve of independence:
- The handicraft industrial in the fields of cotton and silk textiles, metal and precious stone
works etc. of India declined during British rule. It was reduced to mere supplier of raw
materials to Britain’s modern industries and India was transformed as new market for English
finished goods.
 Handicraft Industry

Cotton Jute

West Bengal
Gujarat and Maharashtra

- Limited public sector operations like railways, power generation, communication, ports and
some other departmental undertakings were established for smooth administration of colonial
government.
- Few private sectors were in existence like TISCO (1907) and industries like cement, sugar
and others.

II) Industrial Development-

- India adopted a socialist pattern of economy which incorporated mixed economic system.
Under this public/ government and private sectors will co-exist.
- In accordance with the goal of the state controlling the commanding heights of the economy,
various industrial policies were adopted.

a) Industrial Policies: Industrial policy seeks to provide a framework of rules, regulations and
reservation of spheres of activity for the public and private sectors.

Industrial Policies

Industrial Policy Industrial Policy New Industrial Policy,

Resolution, 1948 Resolution, 1956 1991

i) Industrial Policy Resolution, 1948: The resolution accepted the importance of both private
and public sector in the industrial economy of India. It divided the Industries into 4 categories.
 INDUSTRIES

INDUSTRIES WITH MIXED SECTOR UNDER PRIAVTE

STATE MONOPOLY GOVERNMENT ENTERPRISES
CONTROL

COAL, IRON AND

ARMS AND
STEEL
AMMUNITION AUTOMOBILE ANY INDUSTRY
AIRCRAFT OTHER THAN
ATOMIC ENERGY HEAVY CHEMICALS MENTIONED IN
SHIPBUILDING THE THREE
RAIL TRANSPORT HEAVY MACHINERY CATEGORIES.
TELEPHONE
MACHINE TOOLS
TELEGRAPH
FERTILISERS
WIRELESS
ELECTRICAL
APPARATUS
ENGINEERING
MINERAL OIL
MACHINE TOOLS

SUGAR

PAPER

CEMENT

COTTON

WOLLEN TEXTILES

ii) Industrial Policy Resolution, 1956: Revised the IPR, 1948 and divided the industries into
three categories.

INDUSTRIES

SCHEDULE A SCHEDULE B SCHEDULE C

GOVERNMEN MIXED SECTOR OWNED BY BOTH PRIVATE SECTOR

T SECTOR PUBLUC AND PRIVATE
OWNED ENTERPRISES

iii) New Industrial Policy, 1991: In the line with the liberalisation measures, this policy
deregulated the industrial economy. This policy was initiated with respective policies:
A. Industrial Licensing: To enable the entrepreneurs to make investment decisions on the basis of
their own commercial judgement, the 1991 industrial policy abolished industrial licensing for
all but 18 industries.

Licensing was kept necessary

i)Coal and lignite ii) petroleum (other than crude) and its distillation products iii) distillation
and brewing of alcoholic drinks iv) sugar v) animal fats and oil vi)cigars and cigarettes
vii)asbestos and asbestos- based products viii) plywood and wood-based products and
others

Now licensing is compulsory for

Alcohol

Cigarettes

Five Industries Specified hazardous chemicals

Electronic aerospace and defence equipment

Industrial Explosives

B. Public Sector Policy: The role public sector was diluted. 1991 industrial policy reserved eight
industries public sector.
- Arms and ammunition
- Atomic Energy
- Coal and Lignite
- Mineral Oils
- Mining of copper, lead, zinc, tin, molybdenum and wolfram
- Minerals specified in the schedule to the atomic energy (control of
production and use order), 1953.
- Rail Transport

At present there are two industries are reserved- i) Atomic energy and ii) Railway operations
(excluding construction, operation and maintenance of certain through PPP, high speed train
project, dedicated freight lines, mass rapid transport systems, etc.)

C. MRTP: Under MRTP Act (1969), all firms with assets above a certain size (Rs. 100 crore since
1985) were classified as MRTP firms. Such firms were permitted to enter selected industries
only and on a case-by-case approval basis. The new industrial policy therefore scrapped the
 threshold limit of assets in respect of firms are at par with others and do not require prior
approval from the government for investment in the delicensed industries.

D. Free Entry to Foreign Investment and Technology: The new industrial policy prepared a
specified list of high technology and high investment priority industries wherein automatic
permission was to be made available for direct foreign investment upto 51 percent foreign
equity.

b. Developmental phases: There are four industrial development phases viz.

Phase I (1951--65): Building up of strong industrial base.
Phase II (1965-80): Industrial Deceleration and Structural Retrogression.
Phase III (1981-91): The period of industrial recovery.
Phase IV (1991-92): Covering the post reform period.

III) Current Scenario:

i) Announcement of National Manufacturing Policy (2014)
- A roadmap to create 100 million new jobs in manufacturing and
promote its GDP construction to more than 25% by 2022.
- A focused move to improve infrastructure and gradual technology
development including green technologies.
ii) The eight core industries that support infrastructure such as coal, crude oil, natural gas,
refinery products, fertilizers, steel, cement and electricity have a total weight of nearly 40%
of Index of Industrial Production (IIP).

FOREIGN TRADE:

I) At the Eve of Independence (Till 1947):

- The restrictive policies of commodities production trade and tariff by the colonial
government adversity affected the incentive, composition and volume of India trade.
- India became an exporter of primary products such as raw silk, cotton, wool, sugar,
indigo, jute etc. and importer of finished consumer goods like light machinery produced in
the factories of Britain.
- Britain maintained a monopoly control over India’s exports and imports.
- More than half of India’s foreign trade was restricted to Britain while the rest was
allowed with a few other countries like China, Ceylon (Sri Lanka) and Persia (Iran).
- Opening of the Suez Canal further intensified Britain control over India’s foreign
trade.
II) Planning Period (1951-91):
- Trade was characterised as an inward looking trade strategy.
- This strategy is called import substitution.
- Policy aimed at replacing or substituting imports with domestic production.
- Government followed protectionist policy.
- Protection from imports took two forms:
 a) Tariffs- tax on imported goods and
b) Quotas- quantity of goods to be specified.
III) Reform Period (1991 onwards):
- In 1991, India met with an economic crisis related to its external debt, the government was
not able to make repayments on its borrowings from abroad, foreign exchange reserves which
is generally maintain to import petrol and other important items, dropped to levels that were
not sufficient for even a fortnight.
- New Economic Policy was adopted to rectify the balance of payment crisis.

Balance of payment crisis in India was caused by

the country’s foreign exchange reserves failing
to a level where the government could no
longer severe its external debt.

IV) Current Scenario:

- Foreign Trade policy (2015-20)
Aiming to nearly double India’s export of goods and services to $900 billion by 2020, the
government has announced several incentives in the five year foreign trade policy for
exporters and units in the Special Economic Zones (SEZ).

SERVICES

This sector includes trade and commerce, transport, storage and communication and other
services.
YEAR 1951 1961 1971 1981 1991 2001 2011-12
OCUPATION 17.2 16.0 16.8 17.6 20.5 25.1 26.7
%

- The proportion of workers employed in the services sector increased over the period 1951 to
2011 from 17.2 percent to 26.7 percent.
- The occupational structure within the planning period revealed there prominent factors
behind this change have been:
a) A rapid decline in the rate of population growth.
b) Considerable increase in labour productivity.
c) A spurt in the growth of industries.
- The workers are classified into two categories main workers and marginal workers.
- Main workers are the ones who work for more than six months in a year and marginal
workers are the one who work for less than six months in a year.
- The census of India, over the years, has shown that the marginal workers have been growing
way faster than the main workers in the country and have gone on to account for one- fourth
of the total working population in India, as stated by the 2011 census.
EDUCATION:

A sound educational system is a reflection of the country’s literacy rate. UNESCO

defines Literacy rate as the percentage of the population of a given age group that can
read and write. According to Census 2011, the literacy rate is 74.4 percent as against
18.33 percent in 1951. Kerala has the highest literacy rate of 93.91 per cent. Jharkhand
being one of the low performing states with literacy rate to be 66.41 percent. And lowest
literacy rate was recorded in Bihar with 61.80 percent.
The poor performance of India on the literacy front has affected its overall development
performance.
The government felt the need to revamp the educational system which led to the
formation of Education Commission under the chairmanship of Professor D.S. Kothari. It
submitted its report to the government in 1966.
The government on the basis of the recommendations made by the Education
Commission announced its National Education Policy in 1968.
The following are the important features of this policy:
(1) All children up to the age of fourteen should get compulsory education. Due to
widespread poverty in the country, elementary education should be free.
(2) To improve the standard of education, the condition of teachers should be improved
and particular attention should be given to their salary scale.
(3) In order to meet the requirements of agriculture and industry, curriculums at different
levels should be modified.
(4) Due to recognition should be given to the work done in specialised institutes of
scientific research.
(5) In order to bring uniformity in the character and standard of education in all the
States, a fifteen years educational system should be introduced. This system of
education of education is quite often called as 10+2+3 system.
(6) For national integration, study of three languages was recommended English and
Hindi were considered necessary for all students and in addition to these two
languages, a student was expected to study one of the regional languages.
National Policy on Education, 1986:
It envisaged universalization of primary education and adult literacy by 1990. It
accorded a high priority to the qualitative improvement of education, especially
technical and higher education, Vocationalisation of secondary education,
development of regional languages, strengthening of monitoring and evaluation
machinery for effective implementation of plan programmes, etc.
National Policy on Education, 1992:
The modified policy envisages a National System of Education to bring about
uniformity in education, making adult education programmes a mass movement,
providing universal access, retention and quality in elementary education, special
emphasis on education of girls, establishment of pace- setting schools like Navodaya
Vidyalayas in each district, Vocationalisation of secondary education, starting more
Open Universities in the States, strengthening of the All- India Council of Technical
Education (AICTE), encouraging sports, physical education, etc.
 NPE is based on a national curricular framework which envisages a common core
along with other flexible and region specific components.
It widen of opportunities for the people, its calls for consolidation of the existing
system of higher and technical education.
It also emphasises the need for a much higher level of investment in education of at
least 6 per cent of the national income.
The highest advisory body to advise the Central Advisory Board of Education
(CABE) reconstituted in 2004.

Right of Children to Free and Compulsory Education Act, 2009 (RTI Act):
The Constitution (86th Amendment) Act,2002 inserted Article 21A in the
Constitution which provides for free and compulsory education of all children in the
age group of 6-14 years as a Fundamental Right in such a manner as the State may,
by law, determine.
Act are as follows:

(1) Every child of the age 6-14 years shall have a right to free and compulsory education
in a neighbourhood school till completion of elementary education,
(2) The appropriate government and the local authority shall establish, within such area
or limits of neighbourhood , a school where it is not so established, within a period of
three years,
(3) The central and state governments shall have concurrent responsibility for providing
funds for carrying out the provisions of the Act,
(4) It shall be the duty of every parent or guardian to admit or cause to be admitted his or
her child or ward to an elementary education in the neighbourhood school,
(5) No school or person shall while admitting a child, collect any capitation fee and
subject the child or his or her parent or guardian to any screening procedure
(6) No teacher shall engaged himself or herself in the private teaching activity,
(7) The Central government shall constitute by notification a National Advisory Council,
consisting of members to be appointed from amongst persons having knowledge and
practical experience in the field of elementary education and child development for
advising the Central government on implementation of the Act in an effective manner.

Elementary and Secondary Education Schemes:

(1) Sarva Shiksha Abhiyaan (SSA):
- Launched in 2001
- Flagship programmes for universalization of elementary education
- Goals include universal access and retention, bridging of gender and social
category gaps in elementary education, and achieving significant enhancement
in learning levels of children.
- Norms have been revised/modified to align them with the requirement of RTE
Act, 2009.
 - Under SSA, India has not only been able to improve access to 99 per cent of
primary level but has also been able to reduced out-of-school children to 3-4
percent of the age cohort of 6-14 years.
- Under this programme, special focus is on girls, children, belonging SC/ST
communities, other weaker sections, minorities and urban deprived children.
- To bring out-of-school children into fold of elementary education, Education
Guarantee Scheme (EGS), Alternative Innovation Education (AIE), and
Bridge Course Strategies have been adopted.
(2) Padhe Bharat-Badhe Bharat
- Launched in 2014
- Twin approach (i) to improve language development by creating an enduring
interest in reading in reading and writing comprehension; (ii) to create a
natural an positive interest in mathematics related to the physical and social
world.
(3) Rashtriya Madhyamik Shiksha Abhiyan
- Launched in the year 2009.
- To enhance the access to secondary education and improve its quality.
(4) National Programme of Mid-day Meals in Schools
- 1995
- To enhance the enrolment, retention and attendance and simultaneously
improving nutritional levels among children.
- It covered all children studying in Classes I- VIII in government, government
–aided, local body, NCLP (National Child Labour Project), EGS (Education
Guarantee Scheme) and AIEC (Advanced Institution of Education) centres,
including Madarasas and Maqtabs supported under SSA.

(5) National Educational Policy 2020:

- Launched on 29th July 2020.
- Replaced the NEP 1986.
- This policy is a comprehensive framework for elementary education to higher
education as well as vocational training in both rural and urban India.
- The policy aims to transform India’s education system by 2030.
- New education policy is based on 5+3+3+4 system.

Directive Principles of State Policy, Fundamental Rights and Duties.

Fundamental Rights:
Part III of the Constitution from Article 12 to 35.
It is inspired from the Constitution of USA (Bill of Rights).
The Fundamental Rights are guaranteed by the Constitution to all persons without any
discrimination. They uphold the equality of all individuals, the dignity of the individuals, the
larger public interest and unity of the nation.
They are justiciable, allowing persons to move the courts for their enforcement, if and when
they are violated.
Category Consists
Right to equality (a) Equality before law and equal protection of law (Art.14)
(Article 14-18) (b) Prohibition of discrimination on grounds of religion, race,
caste, sex or place of birth (Art. 15)
(c) Equality of opportunities in matters of public employment
(Art.16)
(d) Abolition of untouchability and prohibition of its practice
(Art.17)
(e) Abolition of titles except military and academic (Art. 18)
Right to freedom (a) Protection of six rights regarding freedom of: (i) speech and
(Article 19-22) expression, (ii) assembly, (iii) association, (iv) movement, (v)
residence, and (vi) profession (Art.19)
(b) Protection in respect of conviction for offences (Art. 20)
(c) Protection of life and personal liberty (Art. 21)
(d) Right to elementary education (Art. 21A)
(e) Protection against arrest and detention in certain cases (Art.
22)
Right against (a) Prohibition of traffic in human beings and forced labour
exploitation (Art.23)
(Article 23-24) (b) Prohibition of employment of children in factories, etc.
(Art. 24)
Right to freedom of (a) Freedom of conscience and free profession, practice and
religion (Article 25-28) propagation of religion (Art. 25)
(b) Freedom to manage religious affairs (Art. 26)
(c) Freedom from payment of taxes for promotion of any
religion (Art. 27)
(d) Freedom from attending religious instruction or worship in
certain educational institutions (Art. 28)
Cultural and (a) Protection of language, script and culture of minorities (Art.
educational rights 29)
(Article 29-30) (b) Right of minorities to establish and administer educational
institutions (Art. 30)
Right to constitutional Right to move the supreme Court for the enforcement of
remedies (Article 32) fundamental rights including the writs of (i) habeas corpus, (ii)
mandamus, (iii) prohibition, (iv) certiorari and(v) quo warranto
(Art. 32)

Directive Principles of State Policy:

Part IV of the Constitution from Articles 36 to 51.
Constitution of India borrowed this idea from Irish Constitution of 1937 which had been
copied by the Spanish Constitution.
The DPSP denotes the ideals that the state should keep in mind while formulating policies
and enacting laws. These are the constitutional instructions or recommendation to the state in
legislative, executive and administrative matters.
The Directive Principles are non-justiciable in nature, that is, they are not legally enforcement
by the courts for their violation.
Article 38: State to secure a social order for the promotion of welfare of the people
Article 39: Certain principles of policy to be followed by the State
Article 39A: Equal justice and free legal aid
Article 40: Organisation of village panchayats
Article 41: Right to work, to education and to public assistance in certain cases
Article 42: Provision for just and humane conditions of work and maternity relief
Article 43: Living wages, etc., for workers
Article 43A: Participation of workers in management of industries
Article 43B: Promotion of co-operative societies
Article 44: Uniform Civil Code
Article 45: Provision for early childhood care and education to children below the age of six
years
Article 46: Promotion of educational and economic interests of Scheduled Castes, Scheduled
Tribes and other weaker sections
Article 47: Duty of the state to raise the level of nutrition and the standard of living and to
improve public health
Article 48: Organisation of agriculture and animal husbandry
Article 48A: Protection and improvement of environment and safeguarding of forests and
wildlife
Article 49: Protection of monuments and places and objects of national importance
Article 50: Separation of judiciary from executive
Article 51: Promotion of international peace and security
 Classification of the Directive
Principle

Socialistic Principles Gandhian Principles Liberal-Intellectual

Principles
Lay down the framework of They represent the Ideology off liberalism
democratic socialist state, programme of reconstruction Article 44, 45, 48, 48A, 49, 50,
aim at providing social and enunciated by Gandhi during 51
economic justice, and set the the national movement.
path towards welfare state. Article 40, 43, 43B, 46, 47, 48,
Article 38, 39, 39A, 41, 42,
43,43A, 47

Fundamental Duties:
Part IV A (Article 51 A)
The article 51 A containing fundamental duties were inserted by the constitution (42 nd
Amendment Act, 1976). It is inspired by the Constitution of erstwhile USSR.
At present it contains eleven sets of duties to be performed by the citizen of India.
(a) To abide by the Constitution and respect its ideals and institutions, the National Flags
and the National Anthem;
(b) To cherish and follow the noble ideals that inspired the national struggle for freedom;
(c) To uphold and protect the sovereignty, unity and integrity of India;
(d) To defend the country and render national service when called upon to do so;
(e) To promote harmony and the spirit of common brotherhood amongst all the people of
India transcending religious, linguistic and regional or sectional diversities and to
renounce practices derogatory to the dignity of women.
(f) To value and preserve the rich heritage of the country’s composite culture;
(g) To protect and improve the natural environment including forests, lakes, rivers and
wildlife and to have compassion for living creatures.
(h) To develop scientific temper, humanism and the spirit of inquiry and reform;
(i) To safeguard public property and to adjure violence;
(j) To strive towards excellence in all spheres of individual and collective activity so that
the nation constantly rises to higher levels of endeavour and achievement; and
(k) To provide opportunities for education to his child or ward between the age of six and
fourteen years. This duty was added by the 86th Constitutional Amendment Act, 2002.