Class 12 NIOS Economics Notes: Chapter 2 Economic Planning in India
Economic Planning in India
Introduction: When India gained independence, its economic situation was poor. After independence, India adopted economic planning to accelerate economic development and reduce poverty, unemployment, and inequality. In 1947, the country’s economic situation was extremely weak, so the government had to adopt a planned development path to ensure proper development. Note: In 1950, the Planning Commission was established and five-year plans were introduced.
Very Short Answer Questions
Q. What is economic planning?
Answer: Economic planning is the process by which a country’s government formulates economic development plans using the resources available in that country.
Q. What is a five-year plan?
Answer: Development plans made for a period of five years are called five-year plans.
Q. What is the Green Revolution?
Q. What is the Green Revolution?
Answer: Increasing productivity in agriculture with the help of scientific techniques is called the Green Revolution.
Q.: What is the LPG policy?
Answer: The policy of liberalization, privatization, and globalization.
Q.: What is a mixed economy?
Answer: When both the government and private sectors work together, it is called a mixed economy.
Short-Answer Questions
Q.: 1. What is economic planning?
Answer: Economic planning is the process by which a country’s government sets economic goals by utilizing resources.
Main objectives: ① Alleviating poverty ② Increasing employment
③ Industrial development ④ Promoting employment ⑤ Increasing agriculture ③ Achieving self-reliance
Q.: Why was planning necessary in India?
Answer: We know that India was under British rule, which devastated the entire economy.
④ There was no heavy industry in India.
② The population was 70% dependent on the state’s funds.
③ All agriculture was backward. This was the reason for the need for planning in India.
Q. Why were the Five-Year Plans introduced in India?
Ans. After India’s independence, India’s economy was not moving on a straight path. The government introduced Five-Year Plans in India.
*The Five-Year Plan was introduced in India in 1951.
(1) First Five-Year Plan
(2) The Five-Year Plan in India ran from 1951 to 1956. All the goals set in this plan were achieved.
*Development of agriculture
*Construction of irrigation and power dams
No. The Bhakra Nangal Dam was built during this time.
Results: Agricultural production increased, the plan was successful.
① Second Five-Year Plan:
The Second Five-Year Plan ran from 1956-1961.
Its goal was to develop industrialization and heavy industries. This plan is known as the Mahalanobis model.
The Bhali Steel Plant was built during this time.
Third Five-Year Plan – The Government of India launched the Third Five-Year Plan from 1961 to 1966. During this plan, India fought wars with two countries.
Fourth Five-Year Plan: The Fourth Five-Year Plan was from 1969 to 1974. The main objective of this plan was to achieve economic growth as well as stability and self-reliance.
Its main objectives were: ① Economic development ② Price stability ② Self-reliance ② Poverty reduction ③ Development of agriculture and industry.
Fifth Five-Year Plan: The Five-Year Plan was from 1974 to 1979. Indira Gandhi was the Prime Minister at this time.
Main objectives:
① Alleviate poverty ② Achieve self-reliance ③ Increase employment ④ Achieve economic development.
Not – This The plan was prematurely terminated because the Janata Party came to power at the time. This was due to political changes.
