DAV FERTILIZER PUBLIC SCHOOL,

BABRALA

INDIAN ECONOMIC
DEVELOPMENT
QUESTION BANK

SESSION 2023-24

Srivastava Vinita

FOR SENIOR SECONDARY SCHOOL CERTIFICATE EXAM 2023-24

 INDIAN ECONOMIC DEVELOPMENT
Part B: Indian Economic Development
Unit 6: Development Experience (1947-90) and Economic Reforms since 1991:28 Periods
A brief introduction of the state of Indian economy on the eve of independence.

OBJECTIVE TYPE QUESTIONS

Question 1:When was the 1st census data compiled during the British Raj? ( Choose the correct alternative)
a)1882 b)1881 c)1981 d)1985 Answer: 1881
Question 2: Worst Bengal Famine occurred in _____________. ( Fill up the blank with correct answer)
Answer: 1943
Question 3: Tata Iron and Steel company (TISCO) was incorporated in India in year______. Answer: 1907
Question 4: During British Period India’s life expectancy was______ years and now it is--------- years.
Answer: As per the government issued data, life expectancy during British India was 44 years and today it
is 68 years.
Question 5: Swez Canal was opened in year______. ( Fill in the blank with correct answer) Answer: 1869
Question 6: Identify the correct sequence of alternatives during British period given in Column II by
matching them with respective terms in Column I:
COLUMN I COLUMN II
a)Export of Goods i)cotton, silk and woollen clothes and capital goods
b)Import of Goods ii)Raw silk, raw cotton, wool, Indigo, Jute
c)Modern Domestic Industries iii)Jute , Cotton, metal work, precious stones
d)Handicraft industries iv)Jute, Cotton, Iron Steel, Cement
a)iii, i, iv, iii b)ii, i, iv, iii c)iv, iii, ii, I d)ii, iv, iii, i
Question 7: Which of the following is not true about Suez canal
a)Suez canal connects Mediterranean Sea with red sea
b)It reduced the transportation cost as the distance was reduced
c)It was a natural canal in north eastern Egypt
d)It connects Port Said to Suez
Answer: (c)
Question 8: When were the Railways introduced in India?
a)1830 b)1860 c)1853 d)1900 Answer: 1853
Question 9: IMR (Infant Mortality Rate) during British India was________ children per thousand live birth.
Answer: It was 218 per 1000
Question 10: Which of the following was not correct about muslin? ( Choose the correct option)
a)A world fame exquisite type of cotton textile
b)Finest quality of muslin was called malmal
c)It originated in Pakistan
d)foreign travellers refer to the cloth as malmal shahi and malmal khas
Answer: (c)
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Question 11: India was particularly well known for which of its handicraft industries at the advent of
British period:
i)cotton textiles, ii) silk textiles iii) metal work iv) precious stone works
Choose the correct option
a)i) & iv only b)i), ii) & iv) c) i), ii) & iii) d) all the above
Answer: d) all the above
Question 12: ________ and __________industries were adversely affected during the partition of India?
Answer: The Textile and Jute industries
Question 13: Excess of export over import is called as ________________.
Answer: export surplus. Export Surplus = Export – Import (In positive)
Question 14: Most of the studies disclosed that India’s growth of aggregate real output during the first half
of the twentieth century was less than___________. ( Fill in the blanks with correct options)
a) >0.5% b) >5% c) >2% d) >1.5%
Answer: c)
Question 15: During British rule ___________ percent growth was recorded in Per capita output per year.
Answer: 0.5%
Question 16: The year1921 is described as the “Year of Great Divide ”because of
a) High birth rate and high death rate
b) High birth rate and low death rate
c) Low birth rate and high death rate
d) Low birth rate and low death rate
Answer: b)
Question 17: Who introduced Zamindari system in India?
Answer: Zamindari system was introduced by Lord Cornwallis in India, in the year 1793 via the Permanent
Settlement Act (PSA). It was introduced in the provinces of Varanasi, Bihar, Bengal and Orissa. The
Zamindars were considered and recognised as the landlords as long as they paid the revenue to the East
India Company regularly.
Question 18: Who was NOT among few individuals who tried to estimate colonial India’s per capita
income.
a) R.C. Desai b)V.K.R.V. Rao c)Johnson Digboy d)Findlay Shirras Answer: c)
Question 19: From the set of statements given in column I and column II, choose the correct pair :
Column I Column II
a) Zamindari System i) Farmer was the owner of the land
b) Mahalwari system ii) Land lord was the owner of the land
c) Ryotwari system iii) Ownership of land was with village
d) Permanent Settlememt iv) Rent is fixed permanently

Question 20: Whether the following statement is true or false?

‘The overall literacy level was less than 16 per cent. Out of this, the female literacy level was at a
negligible low of about seven percent.’ Answer: True
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Question 21: Tata Airlines, a division of Tata and Sons, was established in year ___________
inaugurating the aviation sector in India. ( Fill up the blank with correct answer)
Answer: 1932
Question 22: From the set of statements given in column I and column II, choose the correct pair of
statement:
Column I Column II
a) Undeveloped country i) High birth rate & low death rate
b) Developing country ii) High birth rate & high death rate
c) Developed country iii) low birth rate & low death rate
d) 4th stage of demographic transition iv) High birth rate & low death rate
Question 23: Which of the following were NOT the causes of low productivity in the agricultural sector
during Independence?
a)Low levels of technology
b) Lack of Investment
c)Decline of handicrafts
d) Zamindari System
Question 24: ‘Export surplus lead to an economic drain of wealth during the colonial rule’. Which of the
following statement does not explain the correct reason?
a)Used for military payment
b)expenses on administrative office in Britain
c)Remittances to Britishers
d)to invest in Indian industries
Answer: d)
Question 25: _____& _____% of labour that was employed in the manufacturing and service sector in pre-
independent India. Fill up the blank with correct answer)
Answer: 10% of the workforce was engaged in manufacturing and 18 % was engaged in the service sector.
Question 26: Tata Iron & Steel company was set up at __________________ which is now in Jharkhand.
Answer: Jamshedpur
Question 27: Book ‘ Poverty and Famines’ was written by Nobel Laureate in economics______________.
Answer: Amartya Sen
Question 28: State whether the following statement is true or false?
‘The concept of ‘ Economic Drain was given by Dadabhai Naoroji in his book ‘ Economic drain’ ( True)
Question 29: According to French Traveller, Bernier who described seventeenth century Bengal, which of
the statements are not true: ( Choose the correct alternative)
a)India exported abundance of cotton, silk, rice, sugar and butter.
b)Produced abundance of gold and diamonds
c)huge production of vegetable, grains, wheat, fowls, duck, geese, pigs, sheep, goats, fish etc.
d)endless number of canals were there for navigation and irrigation. Answer: b)
Question 30: First Railway bridge linking Bombay with Thane was constructed in
year_______.(1850/1853/1854) Answer: 1854
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 ASSERTION AND REASON BASED QUESTIONS:
Q.1 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): India was more a consumer of British products rather than a supplier of material for
finished goods
Reason (R):British policies were more directed towards their own economic interests.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true*.

Q.2 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): Zamindars in colonial era were also responsible for the misery of cultivators.
Reason (R):The terms of revenue settlement system introduced were harsh on zamindars.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)*
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

Q.3 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): India’s foreign trade throughout the colonial period generated a large export surplus,
but this surplus came at a huge cost to the country’s economy.
Reason (R):This was used to make payments for the expenses incurred by an office set up by the
colonial government in Britain, expenses on war, again fought by the British government.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)*
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

Q.4 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): Both Maternal Mortality Rate and Infant Mortality Rate were very high during British
Rule.
Reason (R):Population growth rate and economic growth rate was also very high at that time.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false*.
d. Assertion (A) is false but Reason (R) is true.

Q.5 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): There was hardly any capital goods industry to help promote further industrialization
in India.
Reason (R):Machinery and manufacturing equipment fall under the category of capital goods.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)*
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

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 BOARD QUESTIONS
ECONOMIC DEVELOPMENT AT THE EVE OF INDEPENDENCE
Q.1: Read the following statements carefully: (1) 2023
Statement 1: Commercialization of agriculture under the British rule was responsible for frequent famines
between 1875 and 1900.
Statement 2: During British rule, India began to export food grains.
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true.
(d) Both Statements 1 and 2 are false.
Ans. (c) Both Statements 1 and 2 are true.

Q.2. During the British rule in India, Indian agricultural output witnessed stagnation due to_____ (1) 2023
(a) Decline in handicrafts (b) Drain of Indian wealth (c) Land settlement (d) Introduction of railways
Ans. (c) Land settlement

Q.3. Under the British Rule, commercialisation of agriculture resulted in shifting of agricultural
production from ______ crops to ________ crops. (1) 2023
(a) Cash, Food (b) Cotton, Jute (c) Food, Cash (d) Jute, Food Ans. (c) Food, Cash

Q.4. In 1951, agricultural contribution to India's National Income was ____________. (1) 2023
(Choose the correct alternative to fill up the blank)
(a) Highest among the three sectors
(b) Lowest among the three sectors
(c) Lower than the industrial sector
(d) Lower than the service sector
Ans. (a) Highest among three sectors.

Q.5. “Despite being the main occupation of about 85% of the country's population during British rule,
agricultural sector continued to experience stagnation” Briefly explain any two reasons responsible for the
backwardness of Indian agriculture on the eve of independence. (4) 2023 c
Ans. Two reasons responsible for the backwardness of Indian agriculture on the eve of independence were:
• Land Settlement System: The colonial government introduced the Zamindari system. The zamindars used
to exploit cultivators by extracting a major portion of the produce in the form of rent leading to misery among the
farmers.
• Lack of infrastructure facilities: Lack of irrigation facilities and low level of technology contributed to
the dismal level of agricultural productivity, which added up to aggravate the plight of the farmers.

Q6. Study the following statements — Assertion (A) and Reason (R): (1) 2021
Assertion(A): During colonial rule, both mortality rates and infant mortality rates were very high.
Reason (R): British never paid any heed towards improvement of public health facilities in India.
A. Both Assertion (A) and Reason (R) are true.
B. Both Assertion (A) and Reason (R) are false.
Answer: - (A) Both Assertion (A) and Reason (R) are true.

Q.7. (a) Opening of_______canal significantly reduced the cost of transportation of goods between Britain and
India. (Fill in the blank by correct answer) Answer: - Suez (1) 2021
OR (b)Define "Tariffs".

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Answer:- Tariffs are defined as a tax imposed on the goods imported from abroad so as to make them expensive and
discourage their usage in the domestic market.

Q.8. During India’s first seven five- year plans, the Government of India adopted ______ policy to protect domestic
industries. (Fill in the blank with the correct answer) (1) 58/1/1/ 2020
Answer: Import Substitution (or any other relevant term)
Q9 : State any one positive contribution made by the British in India. (1)58/1/1/ 2020
Answer: Introduction of Railways (any other valid positive contribution).
Q10 : Indicate the volume and direction of foreign trade of India at the time of Independence. (3)58/1/1/ 2020

Answer: The restrictive policies of commodity production, trade and tariff pursued by the colonial rule adversely
affected the volume and direction of India’s foreign trade, as:
i. British maintained monopoly control over India’s exports and imports.
ii. More than half of India’s foreign trade was restricted to Britain while while the rest was allowed with a few other
countries like China, Ceylon(Sri Lanka) and Persia (Iran)
iii. India had huge export surplus during the colonial rule. (any other valid argument to be allotted marks) (data is only
indicative, no marks should be deducted if not data not given by student)
Q.11: Comment upon any two salient features of occupational structure of India on the eve of Independence.
(4) 58/2/1 2020
Answer-The occupational structure of India on the eve of independence had the following two main features:
i) Predominance of agriculture sector: The agricultural sector accounted for the largest share of workforce
with approximately three-forth of the workforce depending on agriculture, directly or indirectly.
ii) Growing regional variation- Due to rise of manufacturing and services sector in some parts of India (like the
then Madras, Bombay and Bengal Presidencies) the dependency ratio of workforce on agricultural sector
declined. (any other relevant argument to be allotted marks )

Q.12: Comment upon any two salient features of foreign trade policy of India, on the eve of Independence.
(4) 58/2/1 2020
Answer- Two salient features of foreign trade policy of India, on the eve of Independence, were:
a) Britain’s monopoly over trade
b) India as exporter of raw material and importer of finished goods.(with valid explanation)
Question.13: State the two –fold motive for the systematic destabilisation of indigenous Indian industries in the
British era. (4) 58/5/2 2020
Answer- Two fold motive behind systematic destabilisation of indigenous Indian industries in the British era
was: -
-To get raw material from India at cheaper rates to be used for upcoming modern industries in Britain.
-To sell finished product produced by the British industries in Indian market at higher prices.

Question.14: Opening of ___________ Canal significantly reduced the cost of transportation of goods between
Britain and India. (Fill in the blank) (1) 58/c/1 2020
Answer: Suez
NCERT SOLUTIONS:
Question 1: Name some notable economists who estimated India’s per capita income during the
colonial period.

Answer: Some notable economists who estimated India’s per capita income during the colonial period are
as follows:
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 • DadabhaiNaoroji
• William Digbi
• Findlay Shirras
• V K R V Rao
• R C Desai

Question 2: What was the focus of the economic policies pursued by the colonial government in
India? What were the impacts of these policies?

Answer: The colonial rulers were more interested in pursuing their own economic goals rather than that
of India. They focused on making India a net supplier of raw materials, so that the British industry could
get plenty of raw materials. Moreover, they deliberately worked on destroying the local industry so that a
huge market for British manufactured goods could be created in India. Some of the impacts of such
policies are as follows:

• The handicraft sector came to be in a terminal decline. This resulted in large scale
unemployment.
• British manufactured goods flooded the Indian market and people lapped them up because they
were cheaper.
• The GDP of India reduced drastically during the colonial rule.
• No domestic modern industry could grow during the colonial period.

Question 3: What were the main causes of India’s agricultural stagnation during the colonial
period?

Answer: Following are the main causes of India’s agricultural stagnation during the colonial period:

• Various land settlement systems which were introduced by the British from time to time were
faulty. The system ensured that zamindars only focused on collecting the revenue but paid no
attention to land development.
• The British rulers paid no attention to develop irrigation system and hence agriculture was
highly dependent on monsoon.
• No upgradation in technology could take place during this period and as a result, farming
remained at the level of subsistence farming.
• No Land development methods followed.

Question 4: Name some modern industries which were in operation in our country at the time of
independence.

Answer: Following are some of the modern industries which were in operation on our country at the time
of independence:

• Textiles Industry
• Iron and Steel Industry
• Sugar Industry
• Cement Industry

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 Question 5: What was the two-fold motive behind the systematic deindustrialization effected by the
British in pre-independent India?

Answer: The two-fold motive behind the systematic deindustrialization effected by the British in pre-
independence India is as follows:

• To make India are the net supplier of raw materials

• To make a huge market for British manufactured goods in India

Question 6: The traditional handicrafts industries were ruined under the British rule. Do you agree
with this view? Give reasons in support of your answer.

Answer: This is a correct statement that the traditional handicrafts industries were ruined under the
British rule. This is due to thefollowing reasons:

i) Policy of discriminating protection: After gaining strategical dominance over Indian political
administration, Britishers imposed various trade barriers in their own interest in such a way that
India became cheap exporter of raw material to Britain & a big market of manufactured goods.
Britishers used this as a tool to remove their European competitors from international trade.
ii) Non-Availability of raw material: cheap export of raw material for British industries has reduced
availability of raw material in India. Consequently, handicraft industries declined leaving artisans
and most of the workers in handloom and handicraft industries unemployed.
iii) Western Influence on consumption pattern:This was also evident from the fact that more and
more people were preferring machine made refined clothes from Manchester over the clothes
made by the local weavers. Similarly, most of the goods consumed by people were made in
Britain as Indian made goods could not compete with them.
iv) Decline of Princely States: Indian rulers were encouraging the artisans by providing good reward
of their work. So,in the absence of motivating emperors, handicraft industry declined.
v) Contract System: Britishers overtook the handicraft industry in their hands and gave contract to
the artisans. This policy deprived the workers of the freedom of work and getting profits.

Question 7: What objectives did the British intend to achieve through their policies of
infrastructure development in India?

Answer: It is beyond doubt that the British developed a lot of infrastructure in India:

ROADWAYS: - Roads constructed in India prior to the advent of the British rule were not fit for modern
transport. The roads that were built primarily served the purposes of mobilising the army within
India and drawing out raw materials from the countryside to the nearest railway station or the port.
There always remained an acute shortage of all weather roads to reach out to the rural areas during
the rainy season. Naturally, therefore, people mostly living in these areas suffered grievously during
natural calamities and famines.
RAILWAYS:- The most important contribution is introduction of railways in India in 1850.
Impact:

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  i) It enabled people to undertake long distance travel and thereby break geographical and cultural
barriers.
 ii) It fostered commercialisation of Indian agriculture which adversely affected the self-sufficiency of
the village
 iii) The volume of India’s exports expanded but its benefits rarely accrued to the Indian people.
INLAND WATERWAYS:- The inland trade and sea lanes were developed, but these measures were
not satisfactory.
 The inland waterways, at times, also proved uneconomical as in the case of the Coast Canal on the
Orissa coast. Though the canal was built at a huge cost to the government exchequer, yet, it failed
to compete with the railways, which soon traversed the region running parallel to the canal, and had
to be ultimately abandoned.
TELEGRAPH:- The introduction of the expensive system of electric telegraph in India, similarly,
served the purpose of maintaining law and order.
POSTAL SERVICES:- postal services despite serving a useful public purpose, remained all through
inadequate .

But while doing so, their goal was never to serve the people of India. They built infrastructure to serve
their own interests. Roads were developed so that the armed forces could be mobilized and raw materials
could be transported to the nearest railway station. The rail network was developed so that raw materials
and finished goods could be easily transported across the country. Telegraph services were developed for
security purposes.

Question 8: Critically appraise some of the shortfalls of the industrial policy pursued by the British
colonial administration.

Answer: The industrial policy pursued by the British colonial administration was having many shortfalls.

• No promotion policy of Indian Industry: Their policy never promoted the development of
indigenous industry. This led to continuous decline of the Indian industry.

• Indian entrepreneur’s initiatives: Some new industries; like cotton textiles and iron and steel
began to come up at the beginning of the 20th century, but it was not because of any friendly
British policy. Most of the industries came up through private capital which was invested the
Indian entrepreneurs.

• Fulfilling war time requirements from Indian industries: However, the jute textiles industry
was mainly dominated by the British entrepreneurs. The Second World War created a good demand
for Indian manufactured goods in Britain and this led to some development of industries in India.

• Modernisation of Indian industries required: The industrial sector was crying for modernisation,
diversification, capacity building and increased public investment.

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 • No promotion to the Public Sector Units: But the British rulers never tried to develop any public
sector enterprise; except the railways. Nevertheless, railways helped a lot in developing various
industries in India.

Question 9: What do you understand by the drain of Indian wealth during the colonial period?

Answer: Drain of resources from India to Britain was called as economic drain. Throughout the
colonial rule, India became a net exporter of raw materials and a net importer of finished goods.

1.Britain maintained a monopoly control over India’s exports and imports. Foreign trade from India
was mainly restricted to Britain and to some other countries; like China, Ceylon and Iran.

2.Export surplus did not increase inflow of wealth in India. During the colonial period, India was an
export surplus country, but this did not mean any foreign exchange earnings or inflow of gold or silver to
India.

3. Maintaining Office in Britain : Whatever wealth came to India; in the form of bullion was utilized
by the British rulers to maintain their offices in India. Thus, in spite of surplus exports, Indian did not get
any benefit from the inflow of bullion or foreign exchange.

4. Expenditure on war: The export surplus was used to incur expenses on war fought by the British
government against various countries. This resulted in a huge drain of Indian wealth during the colonial
period.

Question 10: Which is regarded as the defining year to mark the demographic transition from its
first to the second decisive stage?

Answer: The year 1921 is regarded as the defining year to mark the demographic transition from its first
to the second decisive stage.

Question 11: Give a quantitative appraisal of India’s demographic profile during the colonial
period.

Answer: Following is the quantitative appraisal of India’s demographic profile during the colonial
period:

• Demographic Transition: Before 1921, India was in the first stage of demographic transition.
The second stage of transition began after 1921. However, neither the total population of India
nor the rate of population growth at this stage was very high.
• Rural Population: Around 85% of the country’s population lived mostly in villages and
derived livelihood directly or indirectly from agriculture.
• Overall literacy level was less than 16%
• Female literacy was less than 7%.
• Infant mortality was very high at 218 per 1000 live births.
• Life expectancy was 44 years.

Question 12: Highlight the salient features of India’s pre-independence occupational structure.

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Answer: occupational Structure means distribution of working population across various industries and
sectors. It showed little sign of change which was as follows:

i) Agricultural sector: employed the largest portion of the workforce; at the level of 70 to 75%.
ii) Manufacturing sector employed about 10% of the workforce.
iii) Services sector employed about 15 to 20% of the workforce.

But the occupational structure was full of regional variations.

• Decline in dependence on agriculture: For example; in Madras Presidency, Bombay and Bengal;
dependence on agriculture had significantly reduced. Development of various industries in these
regions can be attributed to such variations. In these regions, more and more people were joining
the manufacturing and services sector as they were port areas and a lot of trade occurred there.

• Increase in the share of agriculture: However, there had been an increase in the share of
workforce in agriculture during the same time in states such as Orissa, Rajasthan and Punjab.

Question 13: Underscore some of India’s most crucial economic challenges at the time of
independence.

Answer: Some of the most crucial economic challenges at the time of independence were as follows:

• Growth of the country with equity- to reduce poverty

• Development and public orientation of railways and roadways.
• Development of basic industries; like iron and steel.
• Improvement of private capital.
• Increasing employment opportunities.
• Increasing various aspects of human development index; like literacy, child mortality, life
expectancy, etc.
• Technology upgradation in agriculture and land reforms.

Question 14: When was India’s first official census operation undertaken?

Answer: India’s first official census operation was undertaken in 1881.

Question 15: Indicate the volume and direction of trade at the time of independence.

Answer: India has been an important trading nation since ancient times. But the restrictive policies of
production, trade and tariff pursued by the colonial government adversely affected the structure ,
composition and volume of India’s foreign trade. Following are the main points:

Structure and composition:

Exporter of primary products: At the time of independence, India was an exporter of primary products;
like raw silk, cotton, wool, sugar, indigo, jute etc.

Importer of finished products:

India was a net importer of finished goods like Cotton cloths, silk clothes, woollen clothes, and light
machinery, capital goods etc. from Britain.
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 Direction and volume of trade:

Monopoly control of Britain in India’s Foreign Trade: Britain maintained monopoly control over
India’s foreign trade. Britain was the main trading partner of India. Trade was mainly restricted to Britain
.However, trade also continued with China, Sri Lanka and Iran.

Question 16: Were there any positive contributions made by the British in India? Discuss.

Answer: While we discuss all the negatives associated with the British rule in India, we often tend to
forget many positives which came to India due to colonial rule. The biggest contribution by the British
was the construction of the railways. Railways connected almost the whole country which facilitated
inland trade and cross-cultural exchange. The British also introduced postal and telegraph services which
helped in communication and thus supported business activities. The British also made fundamental
changes in the laws of the land which further helped in enhancing the business environment in India.
Extra Questions:
1. What was the condition of agriculture sector at the time of Independence?
Ans : 1) Low level of agricultural productivity :-
Agricultural productivity became very low and this stagnation in agriculture sector was mainly due to
systems of land settlement that were introduced by the British Government. The Zamindari system, the
profit accruing out of the agriculture sector went to Zamindaris instead of the cultivators. This lead to
discouragement amongst the cultivators to produce less.
2. High dependence on Monsoon :-
Agriculture sector was mainly dependent on monsoon. No effort was ever made under the British rule to
develop permanent means of irrigation.
3. Lack of Proper Input:-
Low level of technology, lack of irrigation facility and negligible use of fertilizers, added to aggravate the
plight of the farmers and contributed to the dismal level of agricultural productivity.
Q.2 What was the condition of Industrial sector at the time of Independence?
Ans :- 1) Discriminatory Tariff Policy:-
The British Government allowed tariff free export of raw materials from India and tariff free import of
British industrial products into India. But a heavy duty on the export of Indian handicrafts products. It leads
to decay of handicrafts industry in India.
(ii) Competition from machine made goods:-
Industrial revolution in Britain gave a stiff competition to the handicraft industries in India. Due to low cost
and better quality product produced by machine forced the Indian craftsmen to shut down the handicraft
Industry in India.
(iii) New Patterns of Demand:-
Owing to British rule in India, a new class of people emerged in India. This changed the pattern of demand
in India against the Indian products and in favour of British products. As a result, the Indian Industry tended
to Perish
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(iv) More market for British Goods:-
An introduction of railways facilitated the transportation of the British products to different parts of the
country. As a result, the size of the market for the low cost British product expanded while it started
shrinking for the high cost Indian products. This lead to decay of Industry in India.
Q3. What was the condition of foreign trade under the British rule?
Ans 1) Due to discriminative tariff policy adopted by the British Government, India became net exporter of
raw materials and primary products.
On the other hand, it became net importer of finished goods reproduced by the British Industry.
(ii) Composition of exports and imports showed the backwardness of Indian economy. Exports and imports
were largely restricted to Britain only due to monopoly control of India‟s foreign trade.
(iii) Surplus profit made and account of foreign trade during the British rule was distributed on
administrative and as well as on war expenses. It was only used to increase the pursuits of the British
Government.
Q 4 Mention the demographic profile during the British rule.
Ans : 1) High birth and High death rate implied low survival rate, which was nearly 8 per thousand per
annum.
2) Life expectancy was as low as 32 years which shows the lack of health care facilities, lack of awareness
as well as lack of means for health care.
3) Literacy rate was as low as 16 percent, which reflects the social and economic backwardness of the
country.
Q5. Mention the condition of occupation structure at the time Independence.
Ans:- (i) Agriculture was the principal source of occupation and about 72.7 percent of working population
was engaged in agriculture.
(ii) Only 10.1% of the working population was engaged in the manufacturing sector, which showed the
backwardness of Indian Industry at the time of Independence.
(iii) Only 17.2 percent of the working population were engaged in the service sector, which also proved the
slow growth of tertiary sector at the time of Independence.
(iv) There was an unbalanced growth of Indian economy at the time of Independence

Q6 What was the condition of Infrastructure at the time of Independence.

Ans : 1) There was some infrastructural development during the British in the area of transport and
communication.
2) Introduction of railways was a major breakthrough followed by the development of some ports and the
construction of some roads.
3) But the main motive of the British government was to foster the interest of the British Government rather
than to accelerate the growth of Indian economy.

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 4) There was transition from barter system of exchange to monetary system of exchange, which facilitated
division of labour&large scale production.
Q7. Evaluate Indian economy on the eve of independence.
OR
Which sort of Indian economy Britishers left at the time of Independence?
Ans.
1.Colonial Economy: Colonial character of trade is shown in two things
i) India became cheap exporter of raw material and importer of manufactured material
ii) British capital gained control over large part of Indian economy.
2. Backward economy: Backwardness of the economy was reflected in low agricultural growth, poverty,
illiteracy, famine, hunger, high mortality rate, low life expectancy etc. Decline of handicraft industry led the
workers unemployed and slow growth of modern industry prevented the progress in the economy.In the
middle 18thcentaury India which was known as a golden bird and self reliant economy, transformed into a
poor & backward economy.
3. Stagnant Economy: GDP and National income estimates during British period were done by some
economists & considered very significant. Most studies did find that the country’s growth of aggregate real
output during the first half of the twentieth century was less than two per cent coupled with a meagre half
per cent growth in per capita output per year. This shows stagnant growth in India.
4. Partitioned Economy: Partition of India, Pakistan and Bangladesh was a great loss to the Indian
economy. Most of the raw material centres were left with these countries due to which our industries faced
the problem of lack of raw material.
5. Depleted Economy:Our country’sresourceswere draining to Britain. Export surplus was there but it did
not result in any flow of gold or silver into India. Rather, this was used to make payments for the expenses
incurred by an office set up by the colonial government in Britain, expenses on war, again fought by the
British government, and the import of invisibleitems, all of which led to the drain of Indian wealth.
6. Semi Feudal Economy: Zamindari system was dominating in India where zamindars were acting as
feudal lords and cultivators were exploited. Their situation was little bit better than serfs in feudal system, so
it was called as semi feudal economy.

Chapter: 2
INDIAN ECONOMY ( 1950-1990)
Question 1
What type of economy is followed in India?
a)Communist
b)Capitalist
c)Mixed
d)Socialist

Question 2: Planning Commission has been established in India in year____________. Answer: 1950
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Question 3: ______________ was the first chairman of planning commission.( Dr. Rajendra Prasad/ Pt.
Jawahar lal Nehru) ( Fill up the blank with correct opton)
Answer: Pt Jawahar lal Nehru
Question 4: Whether the following statement is true or false?
‘Industrial Policy resolution came in 1948 and 1956’ Answer: True
Question 5 : What does HYVP stand for?
a)High Yeilding Varieties Products
b)High Yeilding Various Programme
c)High Yeilding Varieties Programme
d)High Yeilding Various Products
Answer: High Yeilding Varieties Programme
Question 6: State whether the following statement is true or false
‘Five Year Planning has been borrowed by India from Europe’.
Answer: False; It is borrowed from Former Soviet Union.
Question 7: Our plan documents not only specify the objectives to be attained in the five years of a plan but
also what is to be achieved over a period of twenty years. This long-term plan is called as ______________.
( Fill up the blank with correct answer)
Answer: ‘perspective plan’.
Question 8: What is the year of India’s 12th 5-year plan?
a)1997 – 2002
b)2002 – 2007
c)2007 – 2012
d)2012 – 2017
Answer: 2012 – 2017
Question 8: Identify the correct sequence of alternatives during British period given in Column II by
matching them with respective terms in Column I:
COLUMN I COLUMN II
a)Act has been passed by which lakhs of i)Consolidation of land
tiller got the ownership of land
b)Maximum limit on the ownership of land ii)Redistribution of land
has been fixed
c)Beyond the ceiling the person owing iii)Abolition of Zamindari
excess land has been taken by the
government and distributed to land less
d)Giving compact plots instead of small iv)Fixing land ceiling
and scattered ones
a)iii, iv, ii, I b)i, ii, iv, iii c)i, iv, ii, iii d)ii, iv, iii, i
Question 9: Former Soviet Union, the pioneer in National Planning failed in________.
a)Achieving the economic growth
b)Achieving the fixed production targets
c)fulfilling the needs of the people of the country
d) emerging the country as a super power Answer: b)
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Question 10. Second Five Year Plan leading to rapid industrialisation was based on the ideas
of_____________. ( Fill up the blank with correct answer)
Answer: Prasanta.Chandra Mahalanobis
Question 11 : Which of the following statements are not correct about P.C. Mahalanobis?
a)he was born in 1893 in Calcutta,
b)His education was from Presidency college Calcutta and Cambridge University.
c)In 1947 he became the fellow member of Britain’s Royal Society.
d)He established Indian Statistical Institute in Calcutta.
Answer: c) became fellow member in 1946.
Question 12: State whether the following statement is true or false?
“In a capitalist society the goods produced are distributed among people not on the basis of what people
need but on the basis of Purchasing Power—the ability to buy goods and services”.
Answer: True
Question 13: Identify the correct sequence of alternatives during British period given in Column II by
matching them with respective terms in Column I:
COLUMN I COLUMN II
a)Adopting latest technology along with i)Self Reliance
change in mental outlook of the society
b)Sustained increase in country’s GDP ii)Equity
over a long period of time
c) Filling up the gap between rich and poor iii)Growth
d)Sufficient production and timely import iv) modernisation
if required
a)iv, iii, i, ii b)i, ii, iv, iii c)iv, iii, ii, i d)ii, iv, iii, i
Question 14: Contribution of each sector in total GDP is called as ______________. ( Fill up the blank
with correct answer)
Answer: Structural composition
Question 15: Which one of the following is NOT among the basic idea behind the policy of “ land to the
tillers”. ( Choose the correct alternative)
a)Increase in output
b)Incentive to cultivators
c) loss to the zamindars
d)land improvement Answer; c)
Question 16: What was the % of India’s population that was dependent on agriculture in 1950-51 and 1990?
a)75% to 70% b)50% to 55% c)85% to 70% d)68% to 65%
Answer: d) ( 67.5% to 64.9%)
Question 17: The portion of agricultural produce which is sold in the market by the farmers is known
as_____________. ( Fill up the blank with correct answer) Answer: Marketed surplus
Question 18: Who presented the 1st 5-year plan of the country? Answer: Pandit Jawaharlal Nehru

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Question 19 : _______________ refers to the size (dimension) of the land that an individual or family can
possess. ( Fill in the blank with correct answer)
Answer: Land ceiling. In India, this act was passed during the year 1961-62 and it was controlled by all the
state governments. However, the ceiling limits vary from state to state.
Question 20 : _____________is the father of high yielding variety seed. ( Fill up the blank with correct
alternative) ( M.S. Swaminathan/ Norman Borlaug) Answer: Norman Borlaug.
Question 21: High price is a signal of _____________ of goods. ( scarcity/ abundance) Answer: Scarcity
Question 22: The planning commission was set up in which year in India?
a)5th March 1951 b)25th April 1951 c)20th March 1951 d)15th March 1950
Answer: The planning commission was set up in the year 15th March 1950.
Question 23: What were the priorities in the 11th five-year plan?
Answer: The primary focus areas in the 11th 5-year plan was – infrastructure development, health,
agriculture and education.
Question 24: Define small scale industries.
Answer: Small scale industries are those which have fixed investment in plant and machinery, whether hold
on ownership basis or lease basis or hire purchase basis not more than Rs. 1 crore.
Question 25: Focus points of 1st Five year plan was __________ growth and 2nd five-year plan was
__________. ( Agriculture/ Industry/ Infrastructure) ( Fill up the blank with correct alternative)
Answer: Agriculture was the focal point for the 1st five-year plan whilst Industries was the focal point for
the 2nd five-year plan.
Question 26 : Green revolution is also known as_____________. Answer : Wheat revolution

Question 27 : __________________ is a type of economic system in which direct regulation and

management of the property and enterprise and workers are done through government. ( Capitalism/
Socialism) ( Fill up the blank with the correct option) Ans: socialism
Question 28 : __________ seeds are called as miracle seeds. Answer: HYV

Question 29: State whether the following statement is true or false?

‘ Comprehensive planning is pursued under socialistic and mixed economy’. Answer: True

Question 30: Choose the correct pair from Column I and Column II
COLUMN I COLUMN II
a)Green revolution i)Milk
b)White revolution ii)Horticulture
c)Blue revolution iii) Fish
d)Golden revolution Iv Food grains
Answer : c), iii)

Question 31: Import substitution has replaced imports with the__________ produced goods. ( Fill
up the blank with correct answer) Answer: Domestically

Question 32: Industrial policy resolution lays more emphasis on ______________ sector. ( public// private)
( fill up the blank with correct answer) Answer: Public sector

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 ASSERTION AND REASON BASED QUESTIONS:
Q.1 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): the goal of equity was not fully served by abolition of intermediaries by abolition of Zamindari act.
Reason (R): Zamindaars continued to own large areas of land by making use of some loopholes in the legislation.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)*
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true

Q.2 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): India no longer had to be at the mercy of America, or any other nation, for meeting its food requirements.
Reason (R): the use of HYV seeds primarily benefited the wheat growing regions only.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true & Reason (R) is not the correct explanation of Assertion (A)*
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Q.3 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): permit license raj prevented certain firms from becoming more efficient.
Reason (R): More time was spent by industrialists in trying to obtain a license or lobby with the concerned
ministries rather than on thinking about how to improve their products.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)*
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

Q.4 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): Indian policies were ‘inward oriented’ that failed to develop a strong export sector.
Reason (R): Indian producers were protected against foreign competition and this did not give them the
incentive to improve the quality of goods that they produced.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)*
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false
d. Assertion (A) is false but Reason (R) is true.

Q.5 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): Many public sector firms incurred huge losses
Reason (R): Government invested very less amount in infrastructure.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false*
d. Assertion (A) is false but Reason (R) is true.
BOARD QUESTIONS
ECONOMIC DEVELOPMENT 1950-1990
Q.1: Read the following statements carefully: (1) 2023
Statement 1: The purchase of food grains made by the Government on the Minimum Support Price (MSP) is
maintained as buffer stock.
Statement 2: Minimum Support Price safeguards the farmers against any sharp fall in farm product prices.

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In light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true.
(d) Both Statements 1 and 2 are false.
Ans. (c) Both Statements 1 and 2 are true.

Q. 2. Identify the incorrect statement from the following: (1) 2023

(a) Import substitution was the strategy used to save foreign exchange.
(b) License policy ensured regional equality.
(c) Russian economic model was the base for the Indian economic system.
(d) Small Scale Industries are one of the essential tools for employment generation.
Ans. (c) Russian economic model was the base for the Indian economic system.

Q.3. Which of the following is not the feature of economic policies pursued under economic planning of India
till 1991? (Choose the correct alternative) (1) 2023 c
(a) Import substitution (b) Self-reliance (c) Unrestricted flow of foreign capital (d) Land reforms
Ans. (c) Unrestricted flow of foreign capital

Q.4. In terms of the sectoral contribution to GDP, economy of India is relying more on _________ sector.
(1) 2023 c
(a) Primary (b) Secondary (c) Tertiary (d) Financial Ans. (c) Tertiary

Q.5. Explain briefly the rationale behind the 'License Raj' under the Industrial Policy Resolution,1956.(3)2023
Ans. The aim of License Raj under the Industrial Policy Resolution 1956, was to keep the private sector
under control. No new industry was allowed unless a license was obtained from the Government. This
policy was used for ensuring regional equality.

Q.6. Define Multilateral trade. (1) 2023

Ans. Multilateral trade refers to exchange of goods and services between more than two nations.

Q.7. Read the following text carefully:

According to NITI Aayog, India has a technological advantage to facilitate digital banks. There is a need for
creating a regulatory framework for promoting this.
NITI Aayog, in its report titled "Digital Banks: A Proposal for Licensing and Regulatory Regime for India",
offers a template and roadmap for a digital bank licensing and regulatory regime for a country. India's
public digital infrastructure, especially Unified Payments Interface (UPI) has successfully faced this.
With Aadhar, India is at the cusp of operationalizing its own open banking framework. This demonstrates
that India has the technology stock to fully facilitate digital banks. Digital banking allows a user to set up
automatic payments for regular utility bills.
Digital banking enables fund transfers to reduce the risk of counterfeit currency. By promoting a cashless
society, digital banking restricts the circulation of black money.
On the basis of the given text and common understanding, answer the following questions:
(a)Which institution has been replaced by NITI Aayog in India? Who is the ex-officio Chairman of NITI
Aayog?
Ans. Planning Commission has been replaced by NITI Aayog. Prime minister is the ex-officio Chairman of
NITI Aayog.
(b) State and discuss any two main advantages of digital banking.
Ans: Two main advantages of digital banking are:
(i) Cashless Society: By promoting a cashless society, digital banking restricts the circulation of black
money. Since all transactions are routed through banks, it eliminates the use of unaccounted money.

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(ii) Convenience: It enable users to set up automatic payments for regular utility bills. Thus, it provides a
convenient method for customers to settle payments.

Q8. Under the Industrial Policy Resolution of 1956, industries were classified in …………. (two/three) categories.
(Fill in the blank by choosing the correct alternative) Answer: - three (1) 2021

Q.9. Choose the correct pair : (1) 2021

a. Subsidies i. Maximum quantity of goods that can be imported

b. Karve Committee, 1955 ii. Using small-scale industries to promote rural development
c. Import Substitution Policy iii. To encourage farmers for adopting new technology
d. Quota iv. To protect domestic firms

A. a-i B. b-ii C. c-iii D. d- iv Answer: - B. b-ii or d-iv (Marks to be allotted to either of the options)
Q.10. (a) Discuss briefly the rationale behind the "License Raj" under the industrial policy Resolution
1956. (4) 2021
Answer: The policy of ‘license raj’ was implemented under the Industrial Policy Resolution 1956, in accordance with
the goal of the ‘state controlling commanding heights’ of the economy. No new industries were allowed without
approval from the authorities so as to benefit the backward regions of the country.
The need to obtain a license to start an industry was misused by industrial houses; a big industrialist would get a
license not for starting a new firm but to prevent competitors from starting new firms.
(Any other valid argument with correct explanation should be allotted marks accordingly)

Q.11. First Industrial Policy Resolution of Independent India was announced in the year ___.(1)58/1/1 2020
(A) 1947 (B) 1948 (C) 1951 (D) 1956 Answer: (B) 1948
Question.12: State the meaning of import substitution. Explain how import substitution can protect the domestic
industries. (4) 58/1/1 2020
Answer: Import substitution refers to a policy of replacement or substitution of imports by domestic production. The
domestic industries of India were not in a position to compete against the goods produced by developed economies.
So, the policy of import substitution helped in protecting them in two ways:
i. The tariff on imported goods, and
ii. Fixation of quotas helped in restricting the level of imports. As a result, the domestic firms could expand without
fear of competition from the foreign market. (Students may also discuss infant industry argument, to be allotted
marks).
Question.13: State whether the following statement is true or false:
“Land ceiling means fixing the minimum limit of land holding for an individual.” (1) 58/2/1 2020
Answer- False.

Question.14: _________policy was implemented in the first seven five-year plans of India, to protect domestic
industries. (Fill in the blank with correct answer) (1) 58/2/1 2020
Answer- Import substitution /inward looking trade.

Question.15: Name any one Maharatna company. (1) 58/2/1 2020

Answer- Indian Oil Corporation Limited or Steel Authority of India Ltd. (or Any other relevant example)

Question.16: Discuss briefly, how institutional reforms (land reforms) have played a significant role in
transforming Indian agriculture. (4) 58/2/1 2020
Answer- After independence the government of India took several institutional/land reforms to ensure
transformation of Indian agriculture, such as:
i) Land ceiling – It ensured reduction of concentration of land ownership in few hands.

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ii) Abolition of Zamindari system – It focused on elimination of farmers’ exploitation and promotion of
agricultural growth.
These reforms have led to stability of farming as an occupation and promoted equity. (any other relevant
argument/explanation to be allotted marks)

Question.17: “Import restrictions were imposed in India with the dual objective to save foreign exchange
reserves and to be self- sufficient.” Justify the given statement with valid arguments. (4) 58/2/1 2020
Answer- The given statement is appropriate as the policy aimed at:
i) Protecting the domestic industries from foreign competition by substituting imports with domestic production.
ii) Saving scarce foreign exchange by restricting the volume of imports.
Thus, in the early post-independence era the dual objectives helped India to move towards the goal of self-
reliance. (any other relevant argument to be allotted marks)

Question.18: Fixing of maximum land holding (ownership) for an individual is known as_______. (Fill in the
blank with correct answer) (1)58/3/1 2020
Answer- land ceiling

Question.19:The second Industrial Policy Resolution in Independent India was introduced in the year _____ (1)
58/3/1 2020
(A) 1948 (C)1954 (B) 1950 (D)1956 Answer- (A) 1956

Question.20: Discuss briefly the rationale behind choosing ‘Modernisation’ as a planning objective for the
Indian economy. (4) 58/3/2 2020
Answer – Modernisation aimed at increasing the production of goods and services by way of adopting newer
technologies. In the post independence era, modernisation was chosen as an objective of planning for the Indian
economy with a view to raise the standard of living of the people by adopting new technology, change in social
outlook etc. (any other valid argument should be allotted marks) (to be marked as a whole)

Question.21: Define mixed economy. (1) 58/4/1 2020

Answer: Mixed economy is a market system will provide whatever goods and services it can provide well, and
the government will provide essential goods and services which the market fails to do. (any other correct
definition to be allotted marks)

Question.22: Define Marketed Surplus (1) 58/4/1 2020

Answer: The portion of agricultural produce which is sold in the market by the farmers is called marketed
surplus.

Question.23: Discuss briefly the rationale behind choosing „self-reliance‟ as a planning objective for the Indian
economy. (3) 58/4/1 2020
Answers- The main rationale behind choosing „self-reliance‟ as a planning objective for the Indian economy
were-
i. To reduce foreign dependence: Planning objective of „self-reliance‟ targeted to promote economic growth
and modernisation, the Indian five year plans in the early years of post independence era stressed on the use of
domestic resources in order to reduce our dependence on foreign countries.

ii. To avoid foreign interference: In the post-independence era it was feared that the dependence on the
imported food supplies, foreign technology and foreign capital may increase foreign interference in the policies
of our country.

Question.24: Distinguish between : (4) 58/42 2020

i) Tariff and non-tariff barriers
Answer: (i) The barriers which are imposed on imports of goods and services to make them relatively costlier
and to protect the domestic producers from the stiff international competition are known as tariff barriers e.g.
Import Duties.

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Where as; Non-tariff barriers are those barriers which are imposed on quantity of import and export of goods and
services e.g. quota and import licensing.

Distinguish between : ii) Bilateral and multilateral trade

Answer: (ii) The trade (export and import) between two countries is known as bilateral trade. Whereas, The
trade (export and import) among more than two countries is known as multi- lateral trade.

Question.25: Policy of ‘Import Substitution’ was targeted to protect ________ industries. (Fill up the blank with
correct answer) (1) 58/5/1 2020
Answer- domestic

Question.26: State the meaning of ‘Subsidy’. (1) 58/5/1 2020

Answer-Subsidy is the financial assistance provided by the government to producers to fulfil its social welfare
objectives.

Question.27: Discuss briefly, the rationale behind “equity with growth” as planning objectives for Indian
Economy. (4) 58/5/1 2020
Answer – Growth refers to increase in country’s capacity to produce the output of goods and services in an
economy. Equity refers to reductions in inequality of income and wealth. When the objective of economic
growth and equity are achieved, it may lead to development with social justice, which may increase the per capita
availability of goods and services. (To be marked as a whole) (Marks to be awarded for any other relevant
explanation)

Question.28:Define ‘Quota’ (1) 58/5/2 2020

Answer- Quota refers to non-tariff barriers imposed on the quantity of imports and exports.

Question.29: Economic growth combined with ___________ (equity/disparity) was the principal goal of
planning in India. (Fill in the blank with the correct alternative) (1) 58/C/1 2020
Answer: equity.

Question.30: In the Industrial Policy Resolution of 1956, industries were classified in ___________(two/three)
categories. (1) 58/c1 2020
(Fill in the blanks with the correct alternative)
Answer: three

Question.31: What is meant by Agricultural Productivity? (1) 58/c/1/ 2020

Answer: Agricultural Productivity refers to output per hectare of land.
Question.32: Discuss briefly the rationale behind choosing ‘self-reliance’ as an objective for the planning
process of the Indian economy. 4) 58/c/1/ 2020
Answer: ‘Self-reliance’ as an objective for the planning process of the Indian economy was promoted by the
policy makers to avoid dependence on the foreign countries on account of goods, capital and technology. It was
feared that dependence on imported food supplies, foreign technology and foreign capital may make India’s
sovereignty vulnerable to foreign interference in our policies.
Question.33: Define the following (Any two) : (2) 58/c/1 2020
(i) Golden Revolution
(ii) White Revolution
(iii) Green Revolution

ANSWER:
i. Golden revolution- A significant increase in the production of horticulture in India is termed as Golden
Revolution.
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ii. The movement for massive rise in the milk production in India is termed as white revolution; it is a system
whereby milk producers of an area may pool their milk to take advantages of cooperative sale system.

iii. Green Revolution refers to large scale increase in production of food grains (like wheat, rice etc.) resulting
from the use of high yielding variety seeds, chemical fertilizers, modern sophisticated agricultural
machines/tools/equipments etc.

Question.34: State and discuss any two reasons for the poor performance of the industrial sector in the reforms
period. (4) 58/c/3 2020
Answer: The two main reasons for the same may be quoted as under:
i. Cheaper imports,
ii. Inadequate investment in infrastructure.
(any other valid argument and explaination to be allotted marks)

NCERT SOLUTION:

Question 1: Define a plan.

Answer: A plan is a long term strategy which spells out how the resources of a nation are going to be
used. A plan should have some general goals and some specific goals which are to be achieved within a
specified time period.

Question 2: Why did India opt for planning?

Answer: Indian policy makers have opted mixed economy for the country where public sector as well as
private sector both coexist. Following were the reasons for opting planning.

i)Poor, Backward and stagnant economy: At the time of independence, Indian economy was in very
poor shape. All indicators, GDP, Per capita income, health, education etc were showing low and poor
performance.

Low Private Capital: The private capital was at a low level. Private sector was not so strong to invest
huge amount for the economic development of the country. So development responsibilities lies with the
government.

Building the basic Industries and other sectors: Basic industries were very few in numbers. The whole
economy was dependent on a few sectors. Government has to take up the responsibility of development ,
so planning was required. Agriculture was done through primitive methods and needed a lot of
improvement to feed a growing population. The first Prime Minister and other thinkers of the time
thought it suitable to opt for a planned economy.

Question 3: Why should plans have goals?

Answer: For any plan to succeed you need to have some goals. Without a goal, one does not know where
to reach. It is similar to setting a destination before beginning a journey. Without a preset destination, you
will reach nowhere at the end of a journey.

Question 4: What are High Yielding Variety (HYV) seeds?

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Answer: High Yielding Variety (HYV) seeds are new variety of seeds which are produced after cross
breeding or genetic engineering. As the name suggests; HYV seeds give higher yields per acreage than
the conventional seeds.

Question 5: What is marketable surplus?

Answer: Excess of production over consumption is marketed surplus. If a farmer produces so much of
farm produce that a surplus amount can be saved after his own consumption, this surplus amount can be
sold in the market. This surplus amount is called market surplus.

Question 6: Explain the need and type of land reforms implemented in the agriculture sector.

Answer: There were some land reforms introduced in the agriculture sector.

1.Abolition of Zamindari: The first reform was related to the ownership of land. The actual tillers; who
were not the owners of the land were given the ownership of land. It was assumed that ownership would
give them motivation to invest in improvement of land and it would help in better farm productivity.

2.Fixing Land Ceiling: The second reform was related to the land ceiling. This put a ceiling on
maximum land holding which a farmer could have. This reform helped in equitable distribution of land.
Previously, a few farmers held the ownership of biggest chunks of land; while most of the farmers were
marginal farmers or landless farmers.

3.Redistribution of land: excess of land which was taken from zamindars after ceiling was announced
as surplus land which was distributed among the land less.

4.Consolidation of Landholdings: If a farmer has many land pieces scattered over here and there,
consolidation provided one compact plot of larger size instead of many small plots.

Question 7: What is Green Revolution? Why was it implemented and how did it benefit the farmers?
Explain in brief.

Answer: In mid 1960’s a new agricultural strategy for agricultural development. The package of
following three was used for increasing production:

i)HYV Seed: Using HYV seeds for higher yield in quantity and quality both. Government has provided
these seeds to the farmers for getting good quality crops.

ii)Use of Chemical fertilizer: Using chemical fertilizers as per the soil conditions. Farmers are supposed
to test the soil and use chemical fertilizer as per requirement.

iii)Appropriate use of water: HYV seeds and chemical fertilizer need plenty of water. Modern methods
of irrigation were to be used for better yield.

Government has implemented Green Revolution for large increase in food grain production.

BENEFITS OF GREEN REVOLUTION:

i) High foodgrains production specially wheat & rice.

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ii) India became self sufficient in food grains. The dependence of the country on other countries for
foodgrains has reduced.
iii) Income of farmers increased as they have more surplus of foodgrains.

i) The risk of the small farmers being ruined when pests attack their crops was considerably reduced
by the services rendered by research institutes established by the government.

Question 8: Explain ‘growth with equity’ as a planning objective.

Answer: Equity was one of the major goals of planning. Growth, modernization and self-reliance (the
other goals of planning) could not be enough if the fruits of these developments did not reach a large
section of the society. If the issue of equity is not taken care of, then the rich would become richer and
the poor would become poorer. Prosperity would be concentrated in only a few hands and a vast section
of the society would be devoid of the quality of life which a prosperous economy can give. Thus, equity
should be a major objective of planned economy. Government is trying to fulfil the basic needs of every
Indian like food, decent house, education, health care etc. Government imposes high tax on rich and
launches various welfare schemes for the poor, deprived sections of population.

Question 9: Does modernisation as a planning objective create contradiction in the light of employment
generation? Explain.

Answer: It is a wrong notion that modernization as a planning objective creates contradiction in the light
of employment generation. Modernization not only involves adoption of new technology but also
changes in social norms. Many early thinkers thought that new machines can reduce employment
opportunities because one machine can do the work of hundreds of people in less time. But we should not
forget that a new machine can help in opening up new employment opportunities which could not have
been even thought of. Following example illustrates this in a relevant way.

When our former Prime Minister, Rajiv Gandhi talked about computerization to modernize various
sectors; there were huge protest. People thought that since a computer can do the work of thousands of
people in a fraction of time, it would result in mass unemployment. But current scenario tells a different
story. Thanks to the advent of computer and IT, many new employment opportunities have opened up
about which people could not even imagine in the past.

Question 10: Why was it necessary for a developing country like India to follow self-reliance as a
planning objective?

Answer: This policy was considered a necessity in order to reduce our dependence on foreign countries,
especially for food. It is understandable that people who were recently freed from foreign domination
should give importance to self-reliance. Further, it was feared that dependence on imported food supplies,
foreign technology and foreign capital may make India’s sovereignty vulnerable to foreign interference in
our policies.

For a developing country, it is very important that local business grows to a size that develops the ability
to compete with companies from other nations. Moreover, at the time of independence; it was feared that
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overdependence on other countries may lead to interference in domestic policies. Self-reliance was
desirable at least in those products and services which catered to the basic needs such as food and
clothing.

For this government should try to increase production of the country and able to import the goods which
are in short supply.

Question 11: What is sectoral composition of an economy? Is it necessary that the service sector should
contribute maximum to GDP of an economy? Comment.

Answer: An economy can be divided into three main sectors, viz. primary, secondary and tertiary
sectors. Agriculture and related activities come under primary sector, industries come under secondary
sector and services come under tertiary sector.

Relative share in GDP and in employment opportunities of different sectors shows the sectoral
composition of an economy. Traditionally, it has been seen that an economy remains over-dependent on
agriculture during initial stages of development. It gradually progresses to being dependent on the
industries. In case of developed economies, dependency on services sector is the highest. This is not a
rule but experience from most of the developed economies suggests that a higher contribution by services
sector is an indication towards a developed economy.

Question 12: Why was public sector given a leading role in industrial development during the planning
period?

Answer: Following were the reasons for giving leading role to public sector :-

i)Poor, Backward and stagnant economy: At the time of independence, Indian economy was in very
poor shape. All indicators, GDP, Per capita income, health, education etc were showing low and poor
performance. India was a totally depleted, backward, stagnant, poor and partitioned economy that
required immediate revival. That was possible only when government taked initiatives.

ii)Low Private Capital: The private capital was at a low level. Private sector was not so strong to invest
huge amount for the economic development of the country. So development responsibilities lies with the
government. Most of the sectors which required huge investments could not be operated by private
businesspersons.

iii)Building the basic Industries and other sectors: Basic industries were very few in numbers. The
whole economy was dependent on a few sectors. Government has to take up the responsibility of
development , so planning was required. Agriculture was done through primitive methods and needed a
lot of improvement to feed a growing population. The basic industries; like iron and steel and heavy
machinery needed immediate infusion of capital and technology. Infrastructure needed to be built. All of
this could not have been possible without the intervention of the government. Hence, public sector was
given a leading role in industrial development during the planning period

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iv)Welfare of the people: Our constitution described socialistic pattern of the society as the main goal,
which was possible only by the public sector. Private sector works for profit, so the objective was not
possible .

Question 13: Explain the statement that green revolution enabled the government to procure sufficient
food grains to build its stocks that could be used during times of shortage.

Answer: Before the beginning of the Green Revolution, the government had to depend on American
imports to fulfil the demand of food during times of shortage. Green Revolution helped in creating
market surplus of food grains; especially wheat and rice. This resulted in falling prices of food grains.
There was so much surplus food available that the government got enough food grains to build buffer
stocks. This buffer stock could be used during the times of shortage. There was no more dependency on
imports to meet the need during times of shortage.

Question 14: While subsidies encourage farmers to use new technology, they are a huge burden on
government finances. Discuss the usefulness of subsidies in the light of this fact.

Answer: Subsidies to farmers has always been a debatable issue. It is beyond doubt that subsidies result
in huge financial burden on the government. But subsidies are important also in the following respects:

i) Affordable cost of cultivation for small farmers. Subsidizing HYV seeds, fertilizers, farm
equipments, etc. helps even small farmers to afford the inputs for cultivation. Prices are reduced
for the inputs used in cultivation that helps small farmers adopt new agricultural technology. They
can also buy subsidised goods from PDS, that improves the standard of consumption of poor
people.

ii) Improving Productivity of Small Farmers: Subsidy enables the farmers to improve their
productivity. This helps poor farmers increase their income.In the absence of subsidy, only the
rich farmers would be benefited from new technologies; like HYV, fertilizers, pesticides and
irrigation facilities. This will make the rich farmers more prosperous but the poor farmers would
become even worse.

iii) Benefits for the country: In the long run, good farm output benefits not only the farmers but the
whole nation. Hence, in spite of putting some financial burden on the government, subsidies
definitely help the farming community in particular and the whole society in general.

Question 15: Why, despite the implementation of green revolution, 65 per cent of our population
continued to be engaged in the agriculture sector till 1990?

Answer: During 1950s, the contribution of agriculture to the GDP was 59%; which decreased
substantially to 35% by 1990. Contribution of other sectors in the GDP increased sharply during this
period. But employment generation in secondary and tertiary sectors did not increase at the same pace.
As a result, even after about four decades of the planned economy, contribution of agricultural sector in
employment generation remained more or less same. 65% of the total population still continued to be
engaged in agriculture till 1990.
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Question 16: Though public sector is very essential for industries, many public sector undertakings incur
huge losses and are a drain on the economy’s resources. Discuss the usefulness of public sector
undertakings in the light of this fact.

Answer: Public Sector undertakings are useful in following respects;

i)Public Welfare: Public sector undertaking’s main goal is public welfare rather than profit making. It
gives all the dues to the employees.

ii) Employment in Organised sector: The workers in PSUs are getting all benefits that organised sector
gets, while private sector mostly work in unorganised sector, so does not keep the interest of workers in
mind and workers are exploited.

iii)Production of Public Utility goods: Public sector undertakings usually produce goods or services
which are needed by people so that even the poor can afford such goods and services.

In light of above benefits of PSU’s government should continue the PSU’s as the organised sector is only
around 7% now. Excessive loss making units may be burden on the economy, so it may be sold to
private sector.

Question 17: Explain how import substitution can protect domestic industry?

Answer: If domestic industry can grow to such a level then it will be able to substitute the imports.
Imports are always costlier than locally produced goods, because importing something involves
transportation costs and tariffs. Apart from reducing the cost of a particular product, import substitution
also gives an opportunity to local players to gain expertise and to grow in terms of revenue. Thus, import
substitution helps in protecting the domestic industry as well.

Question 18: Why and how was private sector regulated under the IPR 1956?

Answer: Under the IPR 1956, private sector was regulated through licensing system. To start a business,
a company had to obtain a license from the government. The government also put limit on the quantity of
goods produced so that production should not be more than what the economy needed. Certain sectors
were exclusively reserved for small scale sector. It was believed that small scale sector would provide
more employment to people. If a company wished to open a factory in backward area, then obtaining a
license was very easy. Thus, opening a new venture or capacity expansion was strictly controlled by the
government.

Question 19: Match the columns

a. Prime Minister: Chairperson of the Planning Commission

b. Gross Domestic Product: The money value of all the final goods and services produced
within the economy in one year.
c. Quota: Quantity of goods that can be imported.
d. Land Reforms: Improvements in the field of agriculture to increase its productivity.
e. HYV Seeds: Seeds that give large proportion of output.
f. Subsidy: The monetary assistance given by government for production activities.

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Question: 20 ‘Soviet Farmers used to pack rotten fruits along with fresh fruits in the same box. Each farmer
knew that the rotten fruits will spoil the fresh fruits if they are packed together.’

Why did the Soviet farmers do something that incur loss for them?

Answer: The answer lies in the incentives facing the farmers. Since farmers in the former Soviet Union did
not own any land, they neither enjoyed the profits nor suffered the losses. In the absence of ownership, there
was no incentive on the part of farmers to be efficient, which also explains the poor performance of
the agricultural sector in the Soviet Union despite availability of vast areas of highly fertile land.

Question 21: “Development Goals may be conflicting” Explain the statement by giving an example.
OR
“It will be unrealistic to expect all the goals of a plan to be given equal importance”. Explain
Answer: It will be unrealistic to expect all the goals of a plan to be given equal importance in all the plans.
In fact the goals may actually be in conflict. For example, the goal of introducing modern technology may
be in conflict with the goal of increasing employment if the technology reduces the need for labour. The
planners have to balance the goals, a very difficult job indeed. We find different goals being emphasised in
different plans in India.

. ECONOMIC REFORMS : SINCE 1991

Chapter 3
OBJECTIVE TYPE QUESTIONS:
Question 1: What is the other name of the World Bank? ( Choose the correct alternative)
a)Federal Bank
b)ICICI Bank
c)IBRD
d)Bank of America
Answer: International Bank for Reconstruction and Development
Question 2: WTO stands for __________________. ( Fill in the blank with correct answer)
Answer: World Trade Organisation.
Question 3: _______________involves the procedure of de-reservation and disinvestment. ( Fill up the
blank with correct answer)
Answer: Privatisation
Question 4: Economic Crisis in 1990 states_______________. ( Fill up the blank with correct option)
a)High BOP deficit
b)High poverty and backwardness
c)Burden Of external borrowings
d)Low foreign exchange reserves
Answer: b)

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Question 5: Choose the correct pair from Column I and Column II
Column I Column II
a)Reducing government controls from all fields of economy i)Globalisation
b)Integration of the economy of a country with rest of the world ii)Liberalisation
c)Selling public sector shares to Individual household iii)Disinvestment
d)Export- Import duty, Exim Licensing, Tariff, Quota iv)New economic Policy

Answer: c,iii
Question 6: Which of the following is not a Mini Ratna Company?
a)Indian Oil Corporation (IOC)
b)Airport Authority of India (AAI)
c)Indian Catering and Tourism Corporation ltd.
d)None
Answer: a)
Question 7: World Trade organisation was established in year_____________. ( Fill up the blank with the
correct answer)
Answer:
Question 8: Whether the following statements are true or false?
‘Dr. Reddy Laboratories, HCL Technologies, ONGC, TISCO etc. Are the Indian companies that have
expanded their production in various countries’.
Answer: True
Question 9: Which of the following is not the benefit that the domestic industries get by reducing the tariff?
a)Imports become cheaper
b)increase in profit margin
c) get cheap technology
d) Exports become expensive
Answer: d)
Question 10: During 1997, the Government of India gave the status of _________ to 9 Public Sector
Enterprises (PSEs). Navratna/ Maharatna/ Miniratna) ( Fill in the blank with correct option)
Question 11: Role of RBI has been changed from controller to facilitator when Foreign Exchange
Regulation Act has been changed to _______________Act. ( Fill up the blank with correct answer)
Answer: Foreign Exchange Management Act( FEMA)

Question 12: The government identifies PSEs and declare them as maharatnas, navratnas and miniratnas.
Which of the following are the main objective of the policy.

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 a) improve efficiency,
b) infuse professionalism
c) enable them to compete more effectively
d) All the above
Answer: d)
Question 13: Name the predecessor organization of WTO.
Answer: General Agreement on Trade and Tariff
Question 14: GATT was established in ____________with 23 countries as the global trade organization to
administer all multilateral trade agreements by providing equal opportunities to all countries in the
international market for trading purposes. ( Fill in the blank with correct answer)
Answer: 1948

Question 15: ‘50 powerloom workers committed suicide in a small town called ‘Siricilla’ in Andhra
Pradesh.
The main reason behind it is ______ ( Fill in the blank with correct answer)
Answer: Steep rise in power tariff

Question 16: Match the column I with Column II

COLUMN I COLUMN II
a)tax on imports i) Foreign Direct Investment
b)Fixing maximum limit on export and import ii)Tariff
c) Permission of quantity exported or imported iii)export import Quota
d)Foreign companies purchasing assets in India iv)export import Licensing
ASSERTION AND REASON BASED QUESTIONS:
Q.1 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): The financial sector in India is regulated by the Reserve Bank of India (RBI).
Reason (R): In 1991, India met with an economic crisis relating to its external debt — the government was not able to
make repayments on its borrowings from abroad.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)*
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true

Q.2 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): Liberalisation of trade and investment policy aimed at enhancing efficiency of local industries.
Reason (R): Rupee was devalued in against foreign currencies that led to increase in inflow of foreign
exchange.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true & Reason (R) is not the correct explanation of Assertion (A)*
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

Q.3 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): Government declared the profit making PSUs as Maharatnas, Navratnas and miniratnas.
Reason (R): Government wanted the Public sector units to be converted to Private sector unts.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false. d. Assertion (A) is false but Reason (R) is true.

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Q.4 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): Indian government has turned the world into one whole borderless world by globalization.
Reason (R): Indian producers were protected against foreign competition.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false d. Assertion (A) is false but Reason (R) is true.

Q.5 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): The foreign investment, which includes foreign direct investment (FDI) and foreign
institutional investment (FII), has increased from about US $100 million in 1990-91 to US $ 30 billion in
2017-18.
Reason (R): Government invested very less amount in infrastructure.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false* d. Assertion (A) is false but Reason (R) is true.

BOARD QUESTIONS
ECONOMIC DEVELOPMENT 1990 ONWARDS
Q.1 : Read the following statements carefully: (1) 2023 c
Statement 1: Economic reforms of 1991 created a growth path for all the sectors simultaneously.
Statement 2: Economic reforms of 1991 ensured accelerated growth rate in agriculture sector.
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true.
(d) Both Statements 1 and 2 are false.
Ans. (d) Both Statements 1 and 2 are false.

Q2. "Agriculture sector appears to be adversely affected by the economic reforms process" Explain.
(4) 2021
Answer:- The agriculture sector was adversely affected by the economic reform process in the following
manner;
(ii) Public investment in the agriculture sector especially in infrastructure like irrigation power etc
has been reduced in the reform period.
(iii) Production of fertilizer subsidies has increased the cost of production affecting the small and
marginal farmers.
(iv) Increased International competitiveness due to liberalization and reduction of import duties.
(v) Shift from food crops to cash crops due to export-oriented policy in agriculture led to a rise in
price of food grains.
Q.3. State and discuss any two major "Tax Reforms" taken under the new economic Policy of 1991.
(4) 2021
Two major tax reforms undertaken by the Government of India in 1991 were:
• Simplification of tax payment procedures in order to encourage better compliance on the part of taxpayers,
many procedures have been simplified and the rates also substantially lowered.
• Rationalisation of direct tax as it was felt that high rates of income tax were an important reason for tax
evasion. It is now widely accepted that moderate rates of income tax encourage savings and voluntary
disclosure of income.

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Q.4. __________ was the predecessor organisation to World Trade Organisation. (Choose the correct
alternative) (1) 58/1/1/ 2020
(A)International Bank for Reconstruction and Development(IBRD)
(B)International Monetary Fund(IMD)
(C)Reserve Bank of India(RBI)
(D)General Agreement on Tariffs and Trade(GATT)
Answer- (D) General Agreement on Tariffs and Trade(GATT)
Question.5: State any one outcome of implementation of Economic Reforms in India in 1991. (1) 58/1/1
2020
Answer: Greater inflow of investment. (or any other relevant outcome to be allotted marks)
Question. 6: - India is often called the ‘Outsourcing Destination’ of the World. Discuss the prime reasons
for this name given to India. (4)58/1/1
2020
Answer- Reasons for India as outsourcing destination- (i) Availability of skilled manpower- India has vast
skilled manpower which enhances the faith of MNCs. (ii) Favourable Government policies- MNCs get
various types of lucrative offers from the Indian government such as tax holidays, tax concessions etc. (any
other valid argument should be allotted marks)
Question.7: Identify and match the correct sequence of alternatives of organisations given in Column I with
the respective functions in column II: (1) 58/2/1
2020
COLUMN I COLUMN II
(a) WTO (i)provides short term loans to BOP problem
(b) RBI (ii)is a multilateral trade negotiating body
(c) IMF (iii) facilitates lending for reconstruction and development
(d) IBRD (iv)is central bank of India

Choose the correct alternative from the following:

(A) a-(ii),b-(i),c-(iii),d-(iv)
(B) a-(ii),b-(iv),c-(iii),d-(i)
(C) a-(ii),b-(iii),c-(iv),d-(i)
(D) a-(ii),b-(iv),c-(i),d-(iii)

Answer- (D) a-(ii),b-(iv),c-(i),d-(iii)

Question.8: “Recently the Government of India has decided to merge MTNL and BSNL on account of
rising losses.” Justify the step taken by the Government of India. (3) 58/2/1
2020
Answer- The decision taken by the Government of India to merge BSNL and MTNL is quite appropriate.
The Government has merged the two loss incurring businesses, with a motive to:
i) achieve higher economic and functional efficiency.
ii) minimise possible losses (any other relevant reason to be allotted marks)

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Question.9:_____________ is one of the taxes eliminated after implementation of Goods and Services Tax
(GST). (Fill in the blank with correct answer) (1) 58/3/1
2020
Answer-Value Added Tax (Any other valid example)

Question.10:_________ and _______ currency notes of old Mahatma Gandhi series were banned as legal
tender money on 8th November, 2016. (Choose the correct alternative) (1) 58/3/1 2020
(A) ₹ 50 and ₹ 100
(B) ₹ 500 and ₹ 1000
(C) ₹ 500 and ₹ 2000
(D) ₹ 500 and ₹ 200

Answer-(B) ₹ 500 and ₹ 1000

Question.11. “Agriculture sector appears to be adversely affected by the economic reform process.” Explain
the given statement. (4) 58/3/1
2020
Answer- The agricultural sector was adversely affected by the reform process in the following manner-
(i) Public investment in agriculture sector especially in infrastructure like irrigation, power etc. has been
reduced in the reform period
(ii) Removal of fertilizer subsidy has increased the cost of production affecting thereby the small and
marginal farmers
(iii) Increased international competitiveness due to liberalisation and reduction of import duties.
(iv) Shift from food crops to cash crops due to export-oriented policy in agriculture led to a rise in prices of
food-grains

Question.12.India is often called the ‘Outsourcing Destination’ of the World. Discuss the prime reasons for
this name given to India. (4) 58/1/1 2020
Answer- Reasons for India as outsourcing destination-
(i) Availability of skilled manpower- India has vast skilled manpower which enhances the faith of MNCs.
(ii) Favourable Government policies- MNCs get various types of lucrative offers from the Indian
government such as tax holidays, tax concessions etc. (any other valid argument should be allotted
marks)

Question.13. State whether the following statement is true or false: ‘World Bank is known as International
Bank for Registration and Delimitation (IBRD).’ (1) 58/4/1/
2020
Answer: False

Question.14. Discuss briefly any two major steps taken by the Government of India on ‘Financial Sector’
front under the Economic Reforms of 1991. (4) 58/5/1
2020
Answer – Two steps taken by the government of India on financial sector under the Economic Reforms of
1991 were:
a. Change in the role of Reserve Bank of India (RBI): The role of RBI was reduced from regulator
to facilitator of financial sector. This means that financial sector was given greater autonomy (to take
decisions) on many matters independent of RBI.
b. Origin of Private Banks: The reform process led to establishment of private sector banks of Indian
as well as foreign origin. (marks to be awarded for any other relevant measure)

Question.15. State, whether the following statement is true or false : (1) 58/5/2 2020
“GATT was established in 1923 with 48 member countries.”
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Answer-False

Question.16. The policy of liberalisation changed the role of Reserve Bank of India (RBI) from ‘a regulator’
to ‘a facilitator’ in the financial sector. Defend or refute the given statement with valid arguments.
(4) 58/c/1/
2020
Answer: The given statement is defended. Financial institutions in India are regulated through various
norms of the Reserve Bank of India (RBI).
As a regulator (prior to liberalisation), RBI used to fix interest rate structure for the commercial banks,
however, as a facilitator (post-liberalisation) the RBI now facilitates the free market forces to act
accordingly. In the post liberalisation era, greater autonomy has been ensured for financial institutions for
their functioning.
(to be marked as a whole) (Any other valid argument to be marked accordingly)
Question.17. ‘‘India is often called as ‘outsourcing hub’ of the world.’’ State and discuss the prime reasons
for this name given to India. (4) 58/c/1 2020
Answer: Reasons for India as outsourcing destination-
i. Availability of skilled manpower- India has vast skilled manpower which enhances the faith of MNCs for
investment in India.
ii. Favourable Government policies- MNCs get various types of lucrative offers from the Indian government
such as tax holidays, tax concessions etc. (any other valid argument should be allotted
marks)

Question.18. Discuss any two reforms which have been initiated recently to meet the energy crisis in India.
(2) 58/c/1 2020
Answer: Two reforms to meet energy crisis in India are as follows:
i) Improvement in Plant Load Factor has increased the operational efficiency of the power stations.
ii) Check on transmission and distribution losses have reduced the transmission losses and saved a lot of
funds for the power distribution companies. (any other valid argument should be allotted marks)
Question.19. Define devaluation of currency. (1) 58/c/3
2020
Answer: A deliberate reduction in the value of domestic currency vis-a-vis any foreign currency by the
government of a country is known as devaluation of the currency.
NCERT SOLUTIONS:

Question 1. Why were reforms introduced in India?

Ans. 1. Huge Fiscal Deficit: A fiscal deficit occurs when the total expenditure of the
government exceeds its total revenue.
Factors that led to huge fiscal deficit were:
(a) Expenditure on development programmes : Development policies required that even though the
revenues were very low, the government had to overshoot its revenue to meet challenges like
unemployment, poverty and population explosion. The continued spending on development
programmes of the government did not generate additional revenue.
(b) Insufficient revenue : The government was not able to generate sufficiently from internal sources such as
taxation.Expenditure was incurred on those programmes like social sector and defence which
did not provide sufficient returns.
(c) Poor performance of PSUs: Despite the heavy investments made in the PSUs they failed to generate
sufficient returns to ensure financial viability. Their poor performance made them a liability.
2. Adverse Balance of Payments (BOP): When the imports of a country are more than its
exports, the BOP become adverse as forex is needed to pay for the imports.
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 Reasons for adverse balance payments:
(a) Slow growth of exports: Though our exports were increasing, this increase was less than the increase in
imports.
(b) Gulf crisis: Price of petroleum products became very high due to gulf crisis in 1991. Moreover the Iraq
war in 1990-91, resulted in a decline in the remittances (by NRIs) from the gulf countries
which further worsened the BOP.
(c) Wasteful Spending of foreign exchange: Foreign exchange borrowed earlier from
other countries and financial institution was spent on meeting consumption
needs.
3. Rise in Prices: There was a sharp rise in the prices of essential goods leading to an increase in the cost of
living as well as the cost of production so that the domestic and foreign demand for our
products was adversely affected. The increasing pressure of inflation further worsened the
country’s economic position (around 16%)

Question 2. How many countries are members of the WTO?

Answer: At present there are 164 countries which are members of WTO.

Question 3: How was RBI controlling the commercial banks?

Ans. Prior to 1991, banking institutions were subject to too much control by the RBI through high bank
rate, high cash reserve ratio and statutory liquidity ratio.
In India, financial sector is regulated and controlled by the RBI (Reserve Bank of
India).
There was a substantial shift in role of the RBI from ‘a regulator’ to ‘a facilitator’ of the financial
sector. Earlier as a regulator, the RBI would itself fix interest rate structure for the commercial
banks. After liberalisation in 1991, RBI as a facilitator would only facilitate free play of the market
forces and leave it to the commercial banks to decide their interest rate structure.
i) RBI checks that banks deposit CRR timely
ii) Checks all the records of banks
iii) Reviews the lending activities of banks, that if it is as per the guidelines.
iv) Follow the guidelines of RBI
Question 4. What do you understand by devaluation of rupee?
Ans. Devaluation refers to lowering in the official value of a currency with respect to gold or foreign
currency by the government and monetory authority. It results in costlier imports and cheaper
exports.
Question 5. Distinguish between the following:
(i) Strategic and Minority sale
(ii) Bilateral and Multi-lateral trade
(iii) Tariff and Non-tariff barriers
Ans. (i)
(a) Strategic Sale (b) Minority Sale
1. It involves the sale of It involves the sale of
minimum 51% stake of a maximum 49% stake of a
PSU to the private sector. PSU to the private sector.
2. Control and management of The control and management
PSU is transferred to the of PSU remains with
private sector. government as it holds the
majority stake.
3. PSU’s are pr ivat ized by Share of PSU’s are sold
auctioning to the highest through public offer.
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bidder.
(ii) Bilateral : Trade agreements involving more than two countries are referred to as multilateral trade
agreements.
Multi-lateral trade :Trade agreements involving two countries are referred to as bilateral trade agreements.
(iii) Tariff Barriers. Tariff barriers are imposed on imports to make them relatively costly as a measure to
protect domestic production.
Non-Tariff Barriers. They are imposed on the amount of imports and exports.

Question 6: Those public sector undertakings which are making profits should be privatised. Do you
agree with this view? Why?
Ans. No, if profit making PSUs are privatised then there will be only loss making PSUs left. Government
needs the profit of the profit making PSUs to modernise them, to make them more competitive and
more efficient.
Question 7: . Do you think outsourcing is good for India? Why are developed countries opposing it?
Ans. Outsourcing is good for India because it provides employment to large number of unemployed
Indians. Developed countries oppose it because:
(a) it causes unemployment in their countries.
(b) It would narrow down the income disparity between the two countries.
Question 8. India has certain advantages which makes it a favourite outsourcing destination. What
are these advantages?
Ans. (a) Growth of Information Technology: Due to growth of fast modes of communication many of the
services such as voice-based business processes (popularly known as BPO or call centres),
record keeping, accountancy, banking services, music recording, film editing, book
transcription, clinical advice or even teaching are being outsourced by companies in
developed countries to India.
(b) Digitisation: With the help of modern telecommunication links including the Internet, the text, voice
and visual data in respect of these services is digitised and transmitted in real time over
continents and national boundaries.
(c) Low Wage Rate: Wage rates in India are relatively much lower as compared to the developed world.
Most multinational corporations, and even small companies, are outsourcing their services to
India where they can be availed at a cheaper cost with reasonable degree of skill and accuracy.
(d) Skilled Manpower: Large number of young and educated people fluent in English is gradually
transforming India as an important ‘back office’ destination for the global outsourcing of
customer services and technical support.

Question 9. Do you think the navratna policy of the government helps in improving the
performance of public sector undertakings in India? How?
Ans. The government has decided to give special treatment to some of the important profit making PSUs
and they were given the status of navratnas.
These navratnas were granted financial and operational autonomy in the working of the companies.
The granting of navratna status resulted in better performance of these companies. The government partly
privatised these companies through disinvestment.

Question 10. What are the major factors responsible for the high growth of the service sector?
Ans. There has been high growth of the service sector in India. There is too much demand’ for services
because:
(a) It is more profitable to contract services from developing countries.
(b) There is easy availability of skilled manpower at lower wage rate.

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The service sector continued to witness a high level of growth — higher than the overall GDP growth in
2014–15, this sector witnessed the highest ever growth rate of 10.3 per cent. The industrial sector
witnessed a steep decline during 2012–13, it began to show a continuous positive growth.

Question 11. Agriculture sector appears to be adversely affected by the reform process. Why?
Ans. Agricultural crisis.
(i) More Emphasis to Industries: Due to LPG, focus shifted from agriculture to industry.
(ii) Fall in Public Investment: Public investment in agriculture sector especially in infrastructure which
includes irrigation, power, roads, market linkages and research was reduced in the reform
period.
(iii) Removal of Fertiliser Subsidy: Subsidies in agriculture were reduced which led to increase in cost of
production. Farmers, therefore, found it difficult to compete in global markets.
(iv) Policy Changes: Reduction in import duties on agricultural products, removal of minimum support
price and lifting of quantitative restrictions on agricultural products have adversely affected
Indian farmers as they now have to face increased international competition.
(v) Export-oriented Production: There has been a shift from production for the domestic market towards
production for the export market focusing on cash crops in lieu of production of food grains. This puts
pressure on prices of food grains.

Question 12. Why has the industrial sector performed poorly in the reform period?
Ans. The post-reform period shows that industrial growth has slowed down. This was due to:
(i) Lack of Infrastructure: There was inadequate investment in infrastructural facilities
such as power supply.
(ii) Decrease in demand of domestic products: Globalisation led to decrease in demand for domestic
industrial products due to cheaper imports. In a globalised world, developing countries are
compelled to open up their economies to greater flow of goods and capital from developed
countries and rendering their industries vulnerable to imported goods.
(iii) Hampering growth of local industries: Globalisation is, thus, often seen as creating conditions for the
free movement of goods and services from foreign countries that adversely affect the local
industries and employment opportunities in developing countries.
(iv) Inaccessibility of foreign markets: A developing country like India still does not have the access to
developed countries’ markets because of high non-tariff barriers. For example, although all quota
restrictions on exports of textiles and clothing have been removed in India, USA has not removed their quota
restriction on import of textiles from India and China.

Question 13. Discuss economic reforms in India in the light of social justice and welfare.
Ans. Economic reforms have been criticised on the following grounds:
(a) Privatisation encourages growth of monopoly power in the hands of big business houses. It results in
greater inequalities of income and wealth.
(b) Globalisation has devastated local producers since they are unable to compete with cheap imports.
(c) Economic reforms have led to mounting workers unrest. Workers have protested against low wages,
poor working conditions, autocratic management rule, long work days and fall in social
benefits.
(d) Small business class is adversely affected by fall of public subsidies, de-industrialisation and floods of
cheap imports.
(e) Due to reduction in taxes, government receipts became inadequate to meet welfare expenditures.

Question: Read this excerpt of a news item from a daily newspaper describing something that is now
becoming increasingly common.
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“On a morning, a few minutes before 7 A.M., Greeshma sat in front of her computer with her headset on and
said in accented English ‘Hello, Daniella’. Seconds later, she gets the reply, ‘Hello, Greeshma’. The two
chatted excitedly before Greeshma said that ‘we will work on pronouns today’. Nothing unusual about this
chat except that Greeshma, 22, was in Kochi and her student Daniella, 13, was at her home in Malibu,
California. Using a simulated whiteboard on their computers, connected by the Internet, and a copy of
Daniella’s textbook in front of Greeshma, she guides the teenager through the intricacies of nouns,
adjectives and verbs. Greeshma, who grew up speaking Malayalam, was teaching Daniella English
grammar, comprehension and writing.”
i)How has this become possible? Why can’t Daniella get lessons in her own country? Why is she getting
English lessons from India, where English is not the mother tongue?
ii) India is benefiting from liberalisation and integration of world markets. Do you agree?

CURRENT CHALLENGES FACING THE INDIAN ECONOMY

HUMAN CAPITAL FORMATION IN INDIA

OBJECTIVE TYPE QUESTIONS:

Question 1: What does AICTE stand for? ( Choose the correct option)
a)All India Council for Technology Education
b)All India Council for Technical Education
c)All India Commission for Technology Education
d)All India Commission for Technical Education
Answer: All India Commission for Technical Education
Question 2: Human capital is called an investment that brings_________. ( Choose the correct option)
a)Qualitative improvement in labour
b)Quantitative improvement in labour
c)Both
c)None
Answer: Qualitative improvement in labour
Question 3: Literate refers to___________. ( Choose the correct option)
a)Ability to read, write and understand any one language
b)All educated people working and producing goods or services
c)Ability to read and write any script
d)Ability to read, write and understand any one literature
Answer: Ability to read, write and understand any one language
Question 4: ____________ is the stock of productive knowledge, skills, ethical and moral values, training
and good health. ( Fill up the blank with correct answer)
Answer: Human Capital
Question 5: Which of the following is not the source of human capital formation?
a)Expenditure on medical facilities
b) On job Training
c) Migration
d) Brain Drain Answer: d)
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Question 6: What is the Indian literacy rate? Answer: 74.04%
Question 7: Which of the below-mentioned institution guides higher education?
a)NCERT
b)IGNOU
c)UGC
d)ICMR
Answer: UGC
Question 8: Whether the following statement is true or false?
‘The ministries of health at the union and state level, departments of health and various organisations like
Indian Council for Medical Research (ICMR) facilitate institutions which come under the health sector’. (T)
Question 9: Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a)Preventive medicine i)Off campus skill enhancement
b)Curative medicine ii)Vaccination
c)Social Medicine iii)Medical intervention during illness
d)On job Training iv) Health literacy
a)iii, i, iv, iii b)ii, i, iv, iii c)iv, iii, ii, I iv)ii, iii, iv, i
Question 10: Human capital is___________; it is endogenously built in the body and mind of its
owner.(tangible / in tangible) ( Fill in the blank with correct alternative)
Answer: intangible
Question 11: Stocks and shares of the companies are known as______. ( Financial/Physical/Human)
Answer: Financial capital
Question 12: What is the name of the movement started by the national literacy mission?
Answer: The movement started by the national literacy mission is ‘Education for all’.
Question 13: Whether the following statement is true or false?
The Seventh Five Year Plan says, “Human resources development (read human capital) has necessarily to be
assigned a key role in any development strategy.
Answer: True
Question 14: What is human capital formation?
Answer: Human capital formation is the procedure of transforming the people in a nation into the workers
who are capable of producing commodities and services.
Question 15: ______ and ______ are the twin pillars of economic development and social sector reforms.
a)Education and infrastructure
b)Education and health
c)Education and poverty
d)Education and employment
Answer: Education and health
Question 16: Deutsche Bank, a German bank, in its report on ‘Global Growth Centers’ (published on
1.7.05) identified that India will emerge as one among four major growth centers in the world by the year
2020. Between 2005 and 2020 we expect a ________% rise in the average years of education in India, to
just above 7 years...” ( Fill in the blank with correct answer)
Answer: 40 per cent

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Question 17: __________ has the least literacy rate in India. Answer: Bihar
Question 18: Which state in India has the highest literacy rate? Answer: Kerala

Question 19: According to World Bank- ‘India should make a transition to the knowledge economy and if
it uses its knowledge as much as _____________does. (England/ Ireland) ( Choose the correct option)
Answer: Ireland
Question 20: Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a) National Council of Educational i)A statutory body for determination and maintenance of
Research and Training standards of higher education
b) University Grants Commission ii)Apex body in India for coordination and promotion of
biomedical research
c) All India Council of Technical iii)Autonomous organisation to promote, conduct educational
Education research and experiments the innovative ideas
d) Indian Council for Medical Research iv) A statutory body that plan, coordinate and develop
technical education in India.
Choose the correct option
a)iii, i, iv, ii b)ii, i, iv, iii c)iv, iii, ii, I iv)ii, iii, iv, i
Answer: a)

Question 20: Tapas Majumdar Committee appointed by the government of India in 1998, aims at improving
___________________. ( Health/ Education/ Infrastructure) (Fill up the blank with correct option)
Answer: Education
Question 21: Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a) Education Commission recommended at least 6% of GDP to be spent on i) 2010
education.
b) Tapas Majumdar Committee recommended Rs. 1.37 lakh cr. Expenditure ii) 2001
over 10 years to bring all children (6-14 yrs) under school education
c) Enactment of ‘Right to Education Act’ to make free education to all iii)1998
children of 6 to 14 years of age.
d) Sarv Shiksha Abhiyan- Universalisation of elementary education iv) 1964
Choose the correct option
a)iii, i, iv, ii b)ii, i, iv, iii c)iv, iii, ii, d)iv, iii, i, ii Answer: c)

BOARD QUESTIONS
HUMAN CAPITAL
Q.1: “Skill India” programme launched by the Government is not an attempt to increase _________ in
India. (Choose the correct alternative to fill up the blank) (1) 2023
(a) human capital formation
(b) efficient utilisation of inputs

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(c) increase in GDP growth
(d) inadequate spread of vocational education
Ans. (d) inadequate spread of vocational education
Q.2. Rohan, the owner of a land, grows only two crops in a year. He works for 8-9 months and for the rest of
the year he remains unemployed. In the remaining part of the year, Rohan faces __________ unemployment.
(a) Disguised (b) Seasonal (c) Frictional (d) Cyclical (1) 2023 c
Ans. (b) Seasonal
Q.3. The Government of India enacted the ‘Right to Education’ as a fundamental right for all children in the
age group of _________ years. (1) 2023 c
(a) 6-14 (b) 6-12 (c) 5-13 (d) 5-14 Ans. (a) 6-14

Q.4. Read the following statements carefully: (1) 2023 c

Statement 1: Human capital benefits only individuals and not the society.
Statement 2: There are positive externalities of investment in human capital as society.
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true.
(d) Both Statements 1 and 2 are false.
Ans. (b) Statement 1 is false and Statement 2 is true.

Q.5. Dr. Khurana, a dentist, ran his clinic in an economically backward area. He was earning a
comparatively low income. So, he decided to move to a city and spent a huge amount for the same." Identify
and explain the type of expenditure incurred by Dr. Khurana, which directly contributed to the process of
human capital formation. (3) 2023
Ans. The expenditure incurred by Dr. Khurana on shifting his clinic from economically backward area to the
city comes under the category of “Expenditure on migration”.
Expenditure on migration is the source of human capital formation. People migrate in search of jobs that
fetch them higher salaries. Technically qualified persons like engineers and doctors, migrate to other areas
because of higher incomes and better opportunities.

Q.6. Distinguish between human capital and physical capital. (3) 2023
Ans. Human capital refers to the stock of knowledge, skill and ability imbibed in the owner of the same, i.e.,
human capital is inseparable from its owner. It cannot be sold in the market, only its services can be sold in
the market. Whereas; Physical capital are the assets (plant and machinery, building etc.), which are tangible
in nature. It is separable from its owner. It can be transacted in the
market.
Q.7. Discuss briefly the importance of micro credit programme in rural India. (3) 2023
Ans. Micro-credit programmes have emerged to fill the gap in the formal credit system. The formal credit
delivery mechanism has not been fully integrated into the rural social structure. Since, some collateral is
required, vast proportion of poor rural households go out of the credit network. Micro-credit system has
brought these poor households in the ambit of formal credit system by providing
them loans at the concessional rate of interest. (To be marked as whole)
Q.8. Read the following text carefully and answer the given questions on the basis of the same and common
understanding: (6) 2023 c

Goods and Service Tax collections rose almost 20% in April 2022 to reach a fresh high of nearly ₹ 1.7 lakh
crore, pointing to a continued buoyancy in revenue due to higher economic activity and tighter regulation.
For the first time gross GST collection has crossed the ₹ 1.5 lakh crore mark. Total number of e-way bills

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generated in the month of March 2022 was ₹ 7.7 crore, which is 13% higher than ₹ 6.8 crore e-way bills
generated in the month of February 2022, which reflects recovery of business activity at a faster pace.
During April 2022, ₹ 1.1 crore GST returns were filed. The filing percentage for GSTR-3B in April 2022
was 84.7% as compared to 78.3% in April 2021.
(i) “Goods and Services Tax (GST) is a comprehensive indirect tax”. Elucidate.
Ans. Goods and Services Tax (GST) is a unified single comprehensive indirect tax levied upon goods
and services. It has subsumed different types of taxes such as Excise Duty, Service Tax, Sales Tax etc.
It is a destination-based consumption tax
that is applicable throughout the nation with a single rate of tax for a particular good or service. GST
has reduced the cascading nature of indirect taxes.
(To be marked as a whole)
(ii) “Buoyancy in revenue reflected recovery of business activities at a faster pace.” Justify the given
statement with a valid explanation.
Ans. In April 2022, the tax collection recorded a 20% hike and reached the level of ₹1.7 lakh crore.
This buoyancy in revenue was an outcome of rising economic activities and tighter regulation by the
government. A 13% rise in the number of e-way bills generated and ₹ 1.1 crore GST returns filed in
the country is the clear indication of recovery of business activity at a faster pace.
(To be marked as a whole)
Q9. Study the following information and fill in the blank by choosing correct alternative: (1) 2021
Human Development Country A Country B Country C
Index (HDI) Value 0.648 0.759 0.562
Country___________(A/B/C) can be termed as the best on the HDI indicator.
Answer: - B
Q10. (i) Capital formation is the key to eradication of poverty. (3+3)2021
Answer: - The given statement is true. Capital formation is defined as an addition made to the stock of
capital in an economy. It enhances the productivity and production in an economy. Any addition to the
productive capacity may lead to greater employment opportunities and higher income. This may prove to be
the key to eradication of poverty.
(To be marked as a whole) (Any other valid explanation should be allotted marks accordingly)
(ii) Skill formation is a key factor of ensuring 'economic development'.
Ans. The given statement is true because addition to the skills have a direct relation with the earning
capacity of the masses. Skill-rich population of a nation may enhance the standards of living of the people.
Skill formation improves the rate of participation in the process of growth. Benefits of economic growth are
shared by a larger percentage of the population which may lead to greater economic development.
(To be marked as a whole) (Any other valid explanation should be allotted marks accordingly)

Q11. ‘Human Capital Formation gives birth to innovation, invention and technological improvements.” Do
you agree with the given statement? Support your answer with valid arguments. (3) 58/1/1 2020
Answer: The given statement is correct. Human Capital Formation not only increases the productivity of
available human resources but also stimulates innovation and creates ability to adopt new technologies.
Investment in education creates ability to adopt newer technologies, facilitates invention and innovation
since educated workforce generally adapts to modern technologies and innovation. (any other valid
argument to be allotted marks) (to be marked as whole)
Question.12: In the year _________ the Indian Government made education free and compulsory for all
children between 6 – 14 years. (Choose the correct alternative) (1) 58/2/1 2020
(A) 2001 (B) 2009 (C) 2003 (D) 2007 Answer- (B) 2009 OR
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Question.13: Which one of the following organisations regulates the health sector in India?
(A) ICMR (B) UGC (C) AICTE (D) RBI Answer-(A) ICMR
Question.14: “India has failed to implement the recommendations of Education Commission of 1964 -66.”
Give valid arguments in support of the given statement. (3)58/2/1 2020
Answer- The given statement is appropriate. Over the years India has not been able to raise the educational
standards to the desired level. Education Commission of 1964-66 had recommended that at least 6 % of
GDP should be spent on education so as to make a noticeable rate of growth in educational achievements.
However, the current expenditure level has been quite inadequate. Thus, necessary steps must be taken by
the government in this direction. (To be marked as a whole)

Question.15: Define ‘Human Capital Formation’. 3/1 2020

Answer- Human Capital Formation refers to the process of addition made to the stock of skilled and capable
people in the country over a period of time. (any other valid definition)

Question.16: State, whether the following statement is true or false : “As per the Human Development
Report, 2018, India was ranked at 180th position.” (1) 58/5/1 2020
Answer- False

Question.17: (a) Explain, how does ‘Investment in Human Capital’ contributes to growth of an economy.
(4) 58/5/1 2020
Answer Investment in Human Capital may contribute to growth of economy in the following ways:
I. Generally, the productivity of an educated, skilled and healthy workforce is relatively higher than an
uneducated, unskilled and unhealthy worker. Such investment may increase the productivity of the economy
as a whole.
II. Human Capital Formation may promote inventions, innovations and technological improvements. This
may create the ability to adopt new technologies which increase the production and productivity in the
economy. (Any two points)

Queston.18: “Economists believe that India should spend at least 6% of its GDP on Education for achieving
desired results.” Justify the statement with valid reason. (3) 58/5/1 2020
Answer: The given statement is appropriate as it was recommended by the Education Commission of 1964-
64. The government is spending 4 percent (approx.) of GDP on education, which is quite inadequate.
Education is an important component of human capital formation as it helps in increasing the availability of
skilled and educated labour force in the country which may result in greater production and economic
growth. (to be marked as a whole) (any other relevant argument should be marked) (data is only
supportive, marks should not be deducted is not given)

Question.19: Discuss the need for on –the –job training for an employee. (3) 58/5/2 2020
Answer- (a) Employers use on the job training methods for its employees to target an overall increase in the
skills and efficiencies of the workers. On the job trainings leads to an increase in productivity of labour and
production of goods. Such trainings keep the employees updated with the latest changes in their field of
working.
(to be marked as a whole) (any other relevant argument should be marked)

Question.20: State whether the following statement is true or false :

‘‘Elementary education covers both primary and middle level education.’’ (1) 58/C/1 2020
Answer: False

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NCERT Solution

Question 1: What are the two major sources of human capital in a country?

Answer: Investments in education and health are the two major sources of human capital.

Question 2: What are the indicators of educational achievement in a country?

Answer: Some of the indicators of educational achievement in a country are;

i)Gross Enrolment Ratio ( GER)

ii)Adult Literacy Rate (ALR)

iii)Primary education completion rate

iv) Literacy rate

v)Net Attendance Ratio ( NAR)

Question 3: Why do we observe regional differences in educational attainment in India?

Answer: The per capita education expenditure differs from one state to another. In 2009-10, it was as
high as Rs. 12,500 in Himachal Pradesh and as low as Rs. 2200 in Punjab. Disparity in per capita
educational expenditure is the reason for regional differences in educational attainment in India.

In 2014-15, the per capita public expenditure on elementary education differs considerably across states
From as high as Rs 34,651 in Himachal Pradesh to as low as Rs 4088 in Bihar. This leads to differences in
Educational opportunities and attainments across states.

Question 4: Bring out the differences between human capital and human development.

Answer: Human capital and human development may sound similar but there are differences between
them. Human capital considers education and health as a means to increase labour productivity. Human
development is based on idea that education and health are integral to human well being because only
when the people have ability to read and write and can live a healthy and longer life, they will be in a
better position to make choices. Human capital considers human beings as a means to an end. In this
case, improved productivity is the end. Human development considers human beings as an end. From the
perspective of human capital, if investment in education and health does not result in improved
productivity then that investment is unproductive. Human development considers investment in health
and education should be increased even if it does not result in apparent productivity.

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Question 5: How is human development a broader term as compared to human capital?

Answer: Human capital looks at only one aspect, i.e. productivity of labour. Human development looks
at various other aspects which encompass quality of life of individual and of society. Human capital
looks at short term gains, while human development looks at long term gains. Hence, it is apparent that
human development is a broader term as compared to human capital.

Question 6: What factors contribute to human capital formation?

Answer: i)Investment in education,

ii)Expenditure on health care

iii) on the job training,

iv) migration,

v) Awareness/ Information

Question 7: How government organisations facilitate the functioning of schools and hospitals in India?

Answer: The government organizations see to it that the private providers of these services adhere to
certain standards and charge standard prices. Moreover, government institutions also facilitate opening
and running of government owned educational institutions and hospitals so that the masses can be
provided the benefits of these services.

NCERT: National Council of Educational Research and Training (1961): It is an autonomous

organisation of the Government of India. (headquarters-New Delhi: Director: Hrushikesh Senapaty)

The NCERT was established with the agenda to design and support a common system of education
which is national in character and also enables and encourages the diverse culture across the country.
Based on the recommendations of the Education Commission(1964-66), the first national policy
statement on education was issued in 1968. The policy adopted of a uniform pattern of school education
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 across country consisting of 10 years of general education program followed by 2 years of diversified
schooling.
UGC: The University Grants Commission of India (UGC India) is a statutory body set up by the
Government of India in accordance to the UGC Act 1956, and is charged with coordination, determination
and maintenance of standards of higher education. It provides recognition to universities in India, and
disbursements of funds to such recognised universities and colleges. Its headquarters is in New Delhi.
AICTE: The All India Council for Technical Education (AICTE- Established in November 1945) is the
statutory body and a national-level council for technical education. AICTE is responsible for proper
planning and coordinated development of the technical education and management education system
in India. The AICTE accredits postgraduate and graduate programs under specific categories at Indian
institutions as per its charter.
ICMR: The Indian Council of Medical Research (ICMR), the apex body in India for the formulation,
coordination and promotion of Biomedical Research, is one of the oldest and largest medical research bodies
in the world. The ICMR is funded by the Government of India through the Department of Health
Research, Ministry of Health and Family Welfare.
The council's research priorities coincide with National health priorities such as control and management
of communicable diseases, fertility control, maternal and child health, nutrition, developing alternative
strategies for health care, occupational health problems; research on major non communicable diseases like
cancer, cardiovascular diseases, blindness, diabetes, mental health research and drug research (including
traditional remedies). These efforts are undertaken with a view to reduce the total burden of disease and to
promote health and well-being of the population

Question 8: Education is considered to be an important input for the development of a nation. How?

Answer: It is a fact that an educated person earns higher income than an uneducated manual labourer. In
a factory, a shop-floor worker earns much less than people at managerial level and this difference is
because of difference in skills and education. To understand it better, we can compare the situation in
India with that in Ireland. It is said that Ireland is a country which uses its knowledge economy very
efficiently. If India begins to use its knowledge economy as efficiently as Ireland does then its per capita
income would improve from current level of $ 1,000 to $ 3,000 by 2020. This illustrates why education is
considered to be an important input for the development of a nation.

Question 9: Discuss the following as a source of human capital formation

a. Health infrastructure

Answer: Investment on health infrastructure helps in making healthy citizens which can
lead a long life. A healthy worker would be in a position to utilize maximum number of
working days and hence his productivity would be better than an unhealthy worker. Thus,
health infrastructure is an important source of human capital formation.
b. Expenditure on migration

Answer: People often migrate in search of better employment opportunities. Migration

involves various costs. One of the costs involved in migration is the cost of travel. Another
cost is the higher cost of living in a bigger place. Additionally, migration also involves
psychological costs of settling in an alien cultural environment.

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Question 10: Establish the need for acquiring information relating to health and education expenditure for
the effective utilisation of human resources.

Answer: Information relating to health and education expenditure reveals many aspects. It shows relative
number of people who can afford education and healthcare expenses and those who cannot. This figure
can be utilized in deciding the current number of available human resources. This figure also helps in
deciding about the section of the society which needs help from government agencies. Thus, information
relating to health and education expenditure is essential for effective utilization of human resources.

Question 11: How does investment in human capital contribute to Economic Growth?

Answer: Human capital is a means to achieve and improve economic productivity. Investment in human
capital means promoting Education and health sectors of the economy.

Investment in education:

i)Educational Qualification: It provides formal certificates and degrees of educational qualification

which are minimum eligibility criteria to get a good job.

ii)Provides skills: A person can acquire various skills which makes a person capable of performing their
jobs efficiently. Communication skills, Decision making, scientific skills, analytical skills etc. It helps in
preparing qualified and skilled human resources.

iii) Instils moral values: Education in real sense makes strong foundation of personality. It Strong
character building is the base for economic development of the country.

Investment in Health:

i)Better Productivity: A healthy person has more concentration level. He can do more work in less time.
Investment in health helps in preparing healthy human capital which can be better at productivity.

ii)Economic Growth: A better productivity of the human resources helps in economic growth of the
nation. A productive contribution helps in increasing GDP and National Income of the country.

iii)More innovative and creative: A healthy person is more innovative and creative which will improve
he overall production in quantity and quality both. It improves overall quality of life.

Question 12: ‘There is a downward trend in inequality world-wide with a rise in the average education
levels’. Comment.

Answer: Education opens new avenues of employment. It is beyond doubt that an educated person has
better chances of landing a high paying job. Even if a person decides to become an entrepreneur,
education level helps in doing a business in a better way. Throughout the world, education levels have
risen over the years. This has resulted in participation of more people in the workforce. Rising number of
women in the workforce can be a clear indicator of benefits which education can impart towards
employability. In case of India, many sections of the society which were downtrodden and oppressed

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 since ages have been able to improve their socio-economic status because of education. All these
developments have helped in reducing the inequality between the rich and the poor.

Question 13: Examine the role of education in the economic development of a nation.

Answer:

i)Educational Qualification: It provides formal certificates and degrees of educational qualification

which are minimum eligibility criteria to get a good job.

ii)Provides skills: A person can acquire various skills which makes a person capable of performing their
jobs efficiently. Communication skills, Decision making, scientific skills, analytical skills etc. It helps in
preparing qualified and skilled human resources.

iii)Instils moral values: Education in real sense makes strong foundation of personality. It Strong
character building is the base for economic development of the country.

iv)More innovative and creative: An educated person is innovative and creative which will improve he
overall production in quantity and quality both. It improves overall quality of life.

v)Economic Growth: A better productivity of the human resources helps in economic growth of the
nation. A productive contribution helps in increasing GDP and National Income of the country.

Question 14: Explain how investment in education stimulates economic growth.

Answer: If we carefully analyse the data given in this chapter, it is clear that literacy level has risen from
about 17% in 1951 to 74.04% in 2010. During this period, life expectancy has increased and child
mortality has reduced substantially. In view of these figures, it can be inferred that better education level
has helped in achieving better quality of life and more productive workforce. Per capita income which
was Rs. 5,700 in 1951 has risen to 38,000 in 2010 & 92,565 in 2019; a whopping growth of 400%. Per
capita income is a good indicator of economic development of a nation. Hence, it can be said that
education has an important role to play in the economic development of a nation.

Question 15: Bring out the need for on-the-job-training for a person.

Answer: On the job training is very important for any job. It involves training the person suitable skills
which are relevant to the job. Responsibilities and challenges keep on changing in a job and hence, on the
job training is a continuous process. By providing on the job training an organization ensures that the
employee becomes more skillful and thus more productive.

Question 16: Discuss the need for promoting women’s education in India.

Answer: Education among women needs to be promoted due to following reasons.

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 i)Less literacy among females: Literacy rate in India is 74.04% . literacy among females is 65.5 per
cent whereas the literacy rate among males is 82.1 per cent in India.

ii)Patriarchal System of Society: India is a patriarchal society in which there is too much gender-based
discrimination. Women’s participation in economic development is required to be increased. As the
example of developed nations show, greater participation of women in the workforce helps in economic
growth of the nation

iii)Educated women are asset for the family: Most of the thinkers believe that educating a woman
helps in educating the family and subsequently the society. Women’s education is found to have positive
effect on reducing the family size as it helps in reducing fertility.

iv)Better health Status of family: If the women are educated, can take care of health and hygiene of the
family. She takes care of the balanced diet of the family members. She is well aware of the diseases and
symptoms and help the family members to get rid of it.

Question 17: Argue in favour of the need for different forms of government intervention in education and
health sectors.

Answer:

i)Controlling Fee structure: Government must interfere to control the high fee charged by private
hospitals and school, colleges.

ii)Controlling unethical practices: by implementation of laws strictly the unlawful activities in health
and education must be controlled by the government.

iii)Control monopoly: But normal consumers usually do not have enough information about the
institutions which provide these services. Private providers of these services often acquire the monopoly
status.

Question 18: What are the main problems of human capital formation in India?

Answer: Some of the problems of human capital formation in India are discussed as follows.

i)Poverty: A large section of the population is so poor that is cannot afford even the basic education and
healthcare facilities. Most of the people cannot afford to get treatment at super speciality hospitals.
Similarly, most of the people cannot afford to get higher education.

ii)More burden of Government Finances: The government expenditure on education and healthcare
has been increasing over the years but in terms of percentage of GDP it is not adequate.

iii)Increasing Population: Rising population is a burden on resources if the human beings are not
educated and healthy. In fact they become liability.

Question 19: In your view, is it essential for the government to regulate the fee structure in education and
health care institutions? If so, why?

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 Answer: Profit maximization is a major goal of most of the private institutions. More often than not,
private institutions in education and healthcare sector indulge in exploitation of their consumers. As we
know most of the people are not in a position to afford the expenses for these institutions. Moreover,
education and healthcare not only provide benefit to the individual but to the whole society. Hence, it is
essential for the government to regulate the fee structure in education and healthcare institutions.

Extra Questions:
Question 20 : Explain the importance of Information as a source of Human Capital formation?
i)Updated Knowledge: People spend to acquire information relating to the labour market and other markets
like education and health. For example, people want to know the level of salaries associated with various
types of jobs,
ii)Helps in Decision Making: It provides knowledge about educational institutions that whether they
provide the right type of employable skills and at what cost. This information is necessary to make decisions
regarding investments in human capital as well as for efficient utilisation of the acquired human capital
stock.

Question: Distinguish between Human Capital and Physical Capital

BASIS FOR
PHYSICAL CAPITAL HUMAN CAPITAL
COMPARISON

Meaning Physical capital implies the non-human Human capital refers to stock of productive
assets such as plant and machinery, tools and knowledge, talent, skills and abilities
equipment, office supplies etc. that help in brought in by the employee, to the
the process of production. organization.

Nature Tangible Intangible

Formation Economic and technical process. Social process and conscious decision of
the possessor.

Tradability It can be traded in the market. Only the services of human capital can be
hired.

Separability It is separable from its owner. Do not have It is not separable from its owner. Has brain
brain or heart and heart.

Financial Shown in financial statement. Not shown in financial statement.

Statement

Restriction Occurs due to trade barriers. Occurs out of nationality and culture.
on mobility

Nature of Constant use, results in depreciation. Ageing leads to depreciation, but it can be
depreciation minimized.
Question 21 : From the following table answer the questions:

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i)Analyse the changes in the status of health and education in India over a period of 1951 to 2015-16.

Question 22: From the above table discuss the gender inequality in education sector in India.
Question 23: Who can work better—a sick person or a person with sound health?
OR
‘Health expenditure directly increases the supply of healthy labour force’. Explain the statement
showing expenditure on health as an important source of human capital formation.
Answer: A sick labourer without access to medical facilities is compelled to abstain from work and there is
loss of productivity. Hence, expenditure on health is an important source of human capital formation.

Question 24: How does government measures the expenditure on education?

Answer: Expenditure by the government is expressed in two ways
(i)as a percentage of ‘total government expenditure- The percentage of ‘education expenditure of total
government expenditure’ indicates the importance of education in the scheme of things before the govt.
(ii) as a percentage of Gross Domestic Product (GDP)- The percentage of ‘education expenditure of GDP’
expresses how much of our income is being committed to the development of education in the country.

Question 25: Analyse the Indian Government’s expenditure on education.

Education expenditure as percentage of total government expenditure:

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i)Increase in Expenditure: During 1952-2014, education expenditure as percentage of total government
expenditure increased from 7.92 to 15.7 and as percentage of GDP increased from 0.64 to 4.13.
Throughout this period the increase in education expenditure has not been uniform and there has been
irregular rise and fall. To this if we include the private expenditure incurred by individuals and by
philanthropic institutions, the total education expenditure should be much higher.
ii)Share of expenditure at different levels: Elementary education takes a major share of total education
expenditure and the share of the higher education (institutions of higher learning like colleges, polytechnics
and universities) is the least. Though, on an average, the government spends less on tertiary education,
‘expenditure per student’ in tertiary education is higher than that of elementary level. This does not mean
that financial resources should be transferred from tertiary education to elementary education. As we expand
school education, we need more teachers who are trained in the higher educational institutions; therefore,
expenditure on all levels of education should be increased.
iii)Inadequate expenditure on education: One can understand the inadequacy of the expenditure on
education if we compare it with the desired level of education expenditure as recommended by the various
commissions. It is recommended that at least 6% of GDP must be spent on education in India.

Question 26 ‘School dropouts are giving way to child labour’. Discuss how this is a loss to human
capital.
Answer: School drop outs refer to a situation when the children leave their studies after class V or VIII or
after X classes. It is total wastage of resources. It is loss of human capital as the child is not studying later.

CHAPTER : 6 RURAL DEVELOPMENT

OBJECTIVE TYPE QUESTIONS:
QUESTION 1: _____________ is a comprehensive term that focuses on action for the development of
areas that are lagging behind in the overall development of village economy. ( fill up the blank with correct
answer) Answer: Rural development
QUESTION 2: What does the Micro Credit programme mean? (choose the correct option)
1) Credit provision made by small farmers
2) Credit provision made by self-help group to its members
3) Credit provision made by large farmers
4) None of the above
Answer. 2) Credit provision made by self-help group to its members.
QUESTION 3: What is NABARD full form? ( Choose the correct option)
1) National Bank of Agriculture and Rural Development
2) National Bureau of Agriculture and Rural Development
3) Native Bank of Agriculture and Regional Development
4) National Bank of Agriculture and Regional Development
Answer. 1) National Bank of Agriculture and Rural Development.
QUESTION 4: _______________ & _____________ are Non-institutional sources of agriculture
credit.(Cooperative bank/Trader) ( Fill up the blank with correct alternative)
Answer. 4) Traders.

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QUESTION 5: National Bank for Agriculture and Rural Development (NABARD) was set up in year
____________ as an apex body to coordinate the activities of all institutions involved in the rural
financing system. ( Fill up the blank with correct answer)
Answer. 1982
QUESTION 6: Agriculture marketing does not comprise of ……………..(Choose the correct alternative)
a) Transportation of the produce to the market place for sale.
b) Grading of the produce according to the quality.
c) Storage of the produce for sale in future.
d) Credit taken to meet expenditure on agriculture.
Answer: d)
QUESTION 7: Below-mentioned are the major producers of the marine product except
1) Gujarat
2) Punjab
3) Maharashtra
4) Kerala
Answer. 2) Punjab.
QUESTION 8: Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a) Apni Mandi i) Tamil Nadu
b) Hadaspur Mandi ii) Haryana
c) Rythu Bazar iii)Pune
d) Uzhawar Sandies iv) Andhra Pradesh
Choose the correct option
a)iii, i, iv, ii b)ii, iii, iv, c)iv, iii, ii, d)iv, iii, i, ii Answer: b)
Question 9: Write two instruments to safeguard the interest of farmers by the government.
Answer: The two instruments are a fixation of minimum support price (MSP) and Buffer stock.
QUESTION 10: Whether the statement is true or false?
‘Milk production in the country has increased by more than eight times between 1951-2014. This
can be attributed mainly to the successful implementation of ‘Operation Flood’. Answer: True

QUESTION 11: In Oct, 2014 the government of India introduced a scheme ‘Saansad Adarsh Gram
Yojna’(SAGY) which aims at: ( Choose the correct option)
a)Development plan of Member of Parliament’s own village.
b)Identify a most backward village and develop it by building infrastructure
c)MPs to adopt any village from their constituency and develop health, education etc
d) to develop the villages around sansad and motivate villagers to take up activities.
Answer: c)

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QUESTION 12:What is agriculture marketing?
Answer: Agricultural marketing is a process that involves the assembling, storage, processing,
transportation, packaging, grading and distribution of different agricultural commodities across the country.

QUESTION 13:
Producing crops such as fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices
and plantation crops is called as____________. ( Floriculture/Arboriculture/ Horticulture) ( Fill in the
blank with correct option) .Answer: Horticulture

QUESTION 14: Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a.NABARD i)M.S.Swaminathan
b. Saansad Adarsh Gram Yojna ii)Apex body for Rural finance
c. Green Revolution iii)Women Credit society
d. Kadambshree iv)Adoption of Village
Write the correct sequence. Answer: (ii, iv, i, iii)
QUESTION 15: Full form of TANWA.
a)Training and Nurturing of Wild Animals
b)Technical Advancement & National Women Education
c)Tamil Nadu Women in Agriculture
d)Tamil Nadu Women Association Answer: c)
QUESTION 16: Whether the following statement is true or false?
‘There are many retail chains and supermarkets which are accorded with green status to sell organic food’.
Answer: True
Question 17: Which of the following statement is false about TANWA?
a)it trains women in latest agricultural techniques
b)making and selling vermicompost
c) promote small-scale household activities
d)Gives loan to the small farmers Answer: d)
Question 18: Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a.Distributing essential goods at subsidised prices i)Minimum Support Price
b. Fixing higher price of foodgrains ii)Buffer Stock
c. Procuring foodgrains by Food Corporation of India iii)Regulated Market
d. Government controls demand, supply and price iv)Public Distribution System
a)ii, iv, i, iii b)iv, i, ii, iii c)iv, ii, i, iii d)iv, ii, iii, i

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Question 19:Whether the following statement is true or false?
‘Organically produced cotton in Maharashtra is tested by the German Accredited Agency, AGRECO, and
found to be of poor quality’.
Answer: False
Question 20: Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a.Green Revolution i)Fish Production
b. Golden Revolution ii)Milk Production
c. White Revolution iii)Horticulture Production
d. Blue Revolution iv)Agriculture Production
Choose the correct sequence.
a)ii, iv, i, iii b)iv, i, ii, iii c)iv, ii, i, iii d)iv, iii, ii, i Answer: d)

BOARD QUESTIONS
RURAL DEVELOPMENT
Q.1: Production of diverse varieties of crops rather than one specialized crop is called_______. (1) 2023
(a) diversification of crops (b) diversification of agricultural production
(c) diversification in sectors (d) diversification of employment
Ans. (a) diversification of crops
Q.2. “In order to reduce over-dependence on agriculture sector, it is necessary to opt for diversification.”
With reference to the given statement, diversification includes ________. (1) 2023
(i) Change in cropping pattern
(ii) Shift of workforce to agriculture allied activities
(iii) Shift of workforce to non-agriculture sector
Alternatives :
(a) (i) and (ii) (b) (i), (ii) and (iii) (c) (i) and (iii) (d) Only (i) Ans. (b) (i), (ii) and (iii)

Q.3. State and discuss any two obstacles that hinder the mechanism of agricultural marketing. (1) 2023 c
Ans. Two obstacles that hinder the mechanism of agricultural marketing are:
• Private trade (by moneylenders, rural political elites, big merchants, and rich farmers)
predominates agricultural markets. Thereby, the benefits of government policy instruments cannot be
extended to all farmers while marketing their produce.
• Inadequate infrastructural facilities generally become an obstacle to meet the growing
demand for effective agricultural marketing.

Q.4. Explain any two objectives behind providing more and more institutional credit to farmers. (3) 2023 c
Ans. Two objectives behind providing more and more institutional credit to farmers:
• Moneylenders and traders might exploit small and marginal farmers and landless labourers
by lending to them at high rates of interest.
• Private money lenders may exploit small and marginal farmers by manipulating their
accounts.
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Q. 5 (i) How did horticulture encourage rural development in India? (3) 2023 c
Ans. In India, farmers adopted diverse horticultural crops such as fruits, vegetables, tuber crops,
flowers etc. It played a vital role in enhancing socio-economic conditions of farmers. It led to creation
of employment opportunities for women and underprivileged classes as well.
Thus, horticulture has emerged as a successful sustainable livelihood option, promoting rural
development in India.

Q6. (i) Distinguish between ‘Green Revolution’ and ‘Golden Revolution’. (3) 2023 c
Ans. A significant increase in the production of horticulture products in India is termed as Golden
Revolution. Whereas, Green Revolution refers to large scale increase in production of food grains
(like wheat, rice etc.) resulting from the use of high yielding variety seeds, chemical fertilizers, modern
sophisticated agricultural equipments etc.

Q.7. Critically evaluate the role of rural banking system in the process of rural development in India.(3)
2023
Ans. Rapid expansion of the banking system had positive effect on rural farm and non-farm output,
income and employment. However, following problems have been faced in the rural banking :
• The volume of rural credit in the country is still insufficient in comparison to its demand and
institutional sources have failed to cover the nation.
• Less attention has been given on the credit requirements of small and marginal farmers and the
problems of overdues in agricultural credit. (To be marked as a whole)

Q.8. (ii) State any three limitations of organic farming. (3) 2023 c
Ans. Three limitations of organic farming are as follows:
• Yields from organic farming are relatively less than the modern agricultural farming.
Therefore, small and marginal farmers may find it difficult to adapt to large-scale production.
• Produce from organic farming has a relatively shorter shelf life.
• Possibilities of off-season cropping is limited in organic farming.

(Any other valid limitation to be allotted marks)

OR
Q.9. Case study 2
Study the following text carefully an answer question below: (1x4) 2021
This is the story of Simran Agro Ltd’s Project Simran. Project simran was aimed at strengthening farmers
capacity for enhancing productivity by ensuring usage of high-quality inputs. Project Simran used
agricultural best practices for the same. Simran Agro works towards providing fair price markets to the
farmers. tomato is the major crop of the area.
Objectives of Project Simran:
· To set up an ideal tomato crop management system for farmers.
· To implement modern technology.
· To provide marketing support to the farmers.
Project Simran used the soil testing technique for selection of seeds. It procured all the inputs for farmers, to
reduce the production cost. Training by agro-scientists has also helped in reducing crop failures.
i)Project Simran adopted agriculture best practices for ensuring_________ (Fill in the blank )
Answer:- farmers capacity for enhancing productivity
ii) State any one objective associated with project Simran.
a. To set up an ideal tomato crop management system for farmers.
b. To implement modern technology.
c. To provide marketing support to the farmers. (any one)

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iii) Contribution of____________(agro-scientists/agro-engineers) played an important role in reducing crop
failure. (Fill in the blank with the correct alternative)
Answer: - agro-scientists
iv) ____________(Use of better technology/use of costly technology) may not generally lead to higher
income for the farmers. (Fill in the blanks by choosing the correct alternative)
Answer: - Use of better technology
Q10. (a) "Infrastructure contributes positively to the economic development of a country" Do you
agree with the given statement? explain with a valid argument.
(3) 2021
Answer: - A well-established infrastructure of a nation contributes positively to the economic development
of a country. It is an important factor responsible for ensuring higher growth rate.
According to economists, it raises productivity, induces investment, increases market size, facilitates
employment and generates more income. Thus, it works as an essential support system for economic
development of the country. (To be marked as a whole) (Any other valid explanation should be allotted
marks accordingly)

Q11. (a) Comments upon the following statements: (3+3) 2021

i. Traditional knowledge and practices are still applicable in ensuring sustainable development.
ii. A well-structured rural banking system is important for the development of a nation.
Answer: -
i. The given statement holds valid grounds as traditionally, Indian people have been following environment
friendly practices. They have been more a component of the environment and not its controller. For ages our
agriculture system, healthcare system, housing, transport etc. were knitted with steps to protect and preserve
the environment. Only recently we have drifted away from the traditional systems and caused large-scale
damage to the environment.
We must look back and work in the direction of reconnecting to the traditional knowledge and practices to
ensure sustainable development.
(To be marked as a whole) (Any other valid explanation should be allotted marks accordingly)
ii. Mahatma Gandhi once said that the real progress of India did not mean simply the growth and expansion
of industrial urban centres but mainly the development of villages. Growth of the rural economy depends
primarily on infusion of capital, as the time gestation between crop sowing and realisation of income after
production is quite long.
Informal sources of credit exploited small and marginal farmers leading to debt- trap. Thus, the expansion
and promotion of rural banking is important for the development of a nation.
(To be marked as a whole) (Any other valid explanation should be allotted marks accordingly)

Q.12. State whether the following statement is true or false : ‘‘Self-Help Groups (SHGs) are an example of a
microcredit organisation.’’ (1) 58/1/1 2020
Answer: True
Question.13: Mention any one advantage of Organic farming. (1) 58/1/1 2020
Answer: Safe and Healthy food (or any other valid advantage)
Question.14: Critically evaluate the role of rural banking system in the process of rural development in
India. (3) 58/1/1 2020
Answer- Rapid expansion of the banking system had positive effect on rural farm and non farm output,
income and employment. In spite of it, following problems have been faced in the rural banking such as- 
The volume of rural credit in the country is still insufficient in comparison to its demand and institutional

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sources have failed to cover the entire rural farmers of the country.  Less attention has been given on the
credit requirements of needy (small and marginal farmers) and the problem of overdue in agricultural credit
continues. (any other valid argument to be allotted marks)
Question.15: State whether the statement is true or false. “In the past few decades, primary sector has
created maximum jobs in India” Answer: False 58/1/1 2020
Question.16: Name the apex institution for rural financing in India. (1) 58/2/1
2020
Answer-NABARD

Question.17: Which of the following is not an advantage of organic farming? (Choose the correct
alternative) (1) 58/2/1
2020
(A) Cheap inputs
(B) Attractive returns on investment
(C) Greater possibilities for import
(D) High nutritional value Answer- (C) Greater possibilities for import

Question.18: State the meaning of the term ‘livestock’. (1) 58/3/2

2020
Answer- Livestock is defined as domesticated animals raised (generally in an agricultural set up) to produce
labour and commodities such as cattle, goats etc. (any other valid meaning to be allotted marks)

Question.19: Discuss the importance of credit in rural development. (3) 58/4/2 2020
Answer: Growth of rural economy depends primarily on infusion of capital, from time to time, to realise
higher productivity in agriculture and non-agriculture sectors. As the gestation gap between crop sowing and
realisation of income after production is quite long, farmers borrow from various sources (formal and
informal) to meet their requirements on seeds, fertilisers etc. and other family expenses of marriage,
religious ceremonies etc.

Question.20: State the meaning of ‘Agricultural Marketing’. (2) 58/5/1 2020

Answer: Agricultural marketing is a process that involves assembling storage, processing, transportation,
packaging, grading and distribution of different agricultural commodities across the country.

Question.21: State any three challenges facing rural development in India. (3) 58/5/2 2020
Answer – Three challenges faced by rural development in India are:
a) development of human resource.
b) development of infrastructure
c) Measures for alleviation of poverty (any other valid point to be allotted marks)

Question.22:Discuss the role played by horticulture in the direction of rural development in India.
(3)58/5/2-2020
Answer- In rural India, horticulture plays a vital role in providing food and nutrition to the rural population.
It also addresses the problem of unemployment (particularly disguised and seasonal unemployment) in the
villages. Various horticultural activities in Indian villages have improved the economic condition of many
farmers. Such activities have become a lucrative source of livelihood for many women in the rural India.

Question.23: Distinguish between ‘Green Revolution’ and ‘Golden Revolution’. (2) 58/5/3 2020

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Answer: Green Revolution refers to the large increase in production of food grain resulting from the use of
high yield variety (HYV) seeds of food crops (like wheat and rice) and supportive technology during mid
1960s to mid 70s. Whereas,
Golden Revolution refers to the process where India has emerged as a leader in producing a variety of
horticulture crops.
Advantages of Organic farming: (1) 58/c/1 2020
i. Provides healthy food grown through natural processes.
ii. Generates higher income through exports, as demand for these organically grown crops is rising at a
faster rate than chemical grown food. (any other valid answer should be allotted marks)

Question.24: “The Prime Minister urged to increase the rural income by increasing non-farm activities”.
Explain how non-farm activities can lead to rise in income of people of rural sector.
Answer: a. Non-farm activities (agro-processing industries, poultary, craft, handloom) provide alternative
avenues for sustainable livelihood and may raise the level of income as the risks due to fluctuations in
production and market prices is generally less. Agriculture in India is mainly a seasonal occupation,
however, during off seasons, it becomes difficult to find employment and stabilize farmer’s income. Thus,
the Prime Minister has urged appropriately in the best interest of the farmers of the rural India. (to be
marked as whole)

NCERT Solution

Question 1: What do you mean by rural development? Bring out the key issues in rural development.

Answer: Rural development is a comprehensive term which includes various aspects of economic
development. It mainly focuses on those areas which are lagging behind in the overall development of the
rural economy. The key issues in rural development are as follows:

• Development of human resources

• Land reforms
• Development of productive resources
• Infrastructure development
• Special measures for poverty alleviation

Question 2: Discuss the importance of credit in rural development.

Answer:

i)Buying inputs for Agriculture: The gestation period between crop sowing and income realization is
quite long for farmers. Farmers need infusion of capital at various stages of the farm cycle. This capital
need is usually met by borrowings from various sources. Hence, credit is very important for rural
development.

ii)For Investing in Non Farm Activities: Availability of cheap credit is used to set up small and cottage
units, dairy, poultry, shop keeping, or small business.

iii)For buying assets: Rural people may buy tractors, thresher, pump set, construct well, house,
warehouse, cold storage, purchase vehicle etc.

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Question 3: Explain the role of micro-credit in meeting credit requirements of the poor.

Answer: Lending by organized sector; like banks and cooperative banks has its own limitations. As
collateral is required for availing loans from banks, the poor are automatically excluded from its ambit.
Micro-credit works on the involvement of SHGs (Self Help Groups). Such groups pool money from their
members and grant loan to a member who is in need. SHGs promote spendthrift so that loan recovery can
be realized. As experience of many villages shows, micro-credit has definitely helped in improving the
status of rural poor.

Question 4: Explain the steps taken by the government in developing rural markets.

Answer: The government has taken following steps in developing rural markets:

• Regulation of markets to create orderly and transparent marketing conditions

• Provision of physical infrastructure facilities; like roads, railways, warehousing, cold storage,
etc.
• Cooperative marketing for realizing fair prices for farm produce
• Policy instruments; like ensuring MSP (minimum support price), maintaining buffer stocks for
wheat and rice and distribution of food grains and sugar through PDS (Public Distribution
System).

Question 5: Why is agricultural diversification essential for sustainable livelihoods?

Answer: There are two major problems in agriculture; when ensuring sustainable livelihood is
concerned. The first problem is over-dependency on cropping to earn livelihood. The second problem is
over supply of labour to the farming sector. In India, while most of the farm labourers get engaged during
kharif season, many of them remain unemployed during rabi season; especially in areas with poor
irrigation facilities. Due to overcrowding of labourer in farming, many people suffer from disguised
unemployment and seasonal unemployment. This does not ensure sustainable livelihoods for many.
Hence, diversification in agriculture is essential.

Question 6: Critically evaluate the role of the rural banking system in the process of rural development in
India.

Answer: The rural banking system has a positive effect on rural development.

Especially after the green revolution, the rural banking system helped farmers to avail loans for various
farm inputs. This ensured better farm productivity and as a result famines are a thing of the past.
However, the formal credit system has failed to ensure that credit reaches to poor farmers. With some
exception of the commercial banks, most of the financial institutions have failed to ensure availability of
loans to the rural poor. High default rate is another major problem among rural farmers. The banking
sector needs to turn into customer relationship specialist to ensure proper disbursal and recovery of loans.
This will help in better development in rural India.

Question 7: What do you mean by agricultural marketing?

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Answer: Agricultural marketing is a process that involves the assembling, storage, processing,
transportation, packaging, grading and distribution of different agricultural commodities across the
country.

Question 8: Mention some obstacles that hinder the mechanism of agricultural marketing.

Answer: Some obstacles that hinder the mechanism of agricultural marketing are as follows.

• Very high involvement of private players in procurement means that many farmers are still at
the mercy of moneylenders and merchants.
• Lack of proper connectivity through roads and railways debars the farmers from proper access
to the market.
• Lack of cold storages and cold supply chain results in huge wastage of fruits, vegetables and
other perishable items.
• Lack of information on real time prices prevents farmers from ensuring optimum profits.

Question 9: What are the alternative channels available for agricultural marketing? Give some examples.

Answer: There are two types of alternative channels available for agricultural marketing. In many states;
like Punjab, Himachal Pradesh and Andhra Pradesh; mandis are available where farmers can directly sell
to the buyers. This helps the farmers in earning good profit. Another trend has recently developed and
that is of contract farming. Large MNCs make contracts with farmers. As per the contract, a farmer has to
grow a particular crop exclusively for the MNC. The company provides seeds and inputs and ensures that
all the farm produce would be bought by the company. This has helped many farmers in getting a steady
source of income.

Question 10: Distinguish between ‘Green Revolution’ and ‘Golden Revolution’.

Answer: While Green Revolution is related to improved production of wheat and rice, Golden
Revolution is related to horticulture, i.e. production of fruits and vegetables.

Question 11: Do you think various measures taken by the government to improve agricultural marketing
are sufficient? Discuss.

Answer: The government has taken various measures to improve agriculture marketing. Let us look at
them from a critical perspective. To ensure fair price for farm produce, the government announces MSP
(Minimum Support Price) for some farm produce; like wheat, rice and sugarcane. On behalf of the
government, the FCI (Food Corporation of India) procures farm produce from the farmers at MSP. The
system of MSP helps in negating the impact of moneylenders and merchants to some extent but they still
have a stranglehold on the major market share. Roads have been built but still a major part of the rural
India needs to be connected with all weather road. Rail network has reached most parts of the country but
lack of dedicated freight corridor means that farm produce often lie rotting in the warehouse of the
railways. Number of cold storages is bare minimum which results in wastage of a huge quantity of
perishable items.

Question 12: Explain the role of non-farm employment in promoting rural diversification.

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Answer: We know that there is problem of over-dependency on farming activity which creates the
problem of disguised unemployment and seasonal unemployment. This necessitates that farmers should
diversify into non-farm activities; like food processing or beekeeping. Promotion of non-farm activities
will help farmers in acquiring new skills and alternate sources of income. This will help in diversifying
the rural economy.

Question 13: Bring out the importance of animal husbandry, fisheries and horticulture as a source of
diversification.

Answer: Animal husbandry, fisheries and horticulture can be very important as a source of
diversification in rural economy. While animal husbandry and horticulture can be practiced in almost
every village, fishery can be practiced only at select locations. However, these activities will help in
ensuring alternate sources of income to the farmers. These activities are also more sustainable compared
to farming which involves just two major cropping seasons in a year. The success of Operation Flood has
shown that dairy farming can help in making the farmers prosperous. At present, about 70 million small
farmers earn their livelihood from animal husbandry. Animal husbandry can be especially helpful in
ensuring livelihood for landless farmers. Similarly, the success of Blue Revolution has helped in
improving the condition of the fishing community. Today, the total fish production accounts for 0.7% of
the GDP.

Question 14: ‘Information technology plays a very significant role in achieving sustainable development
and food security’ — comment.

Answer: Many modern thinkers believe that IT can play a significant role in achieving sustainable
development and food security. IT by itself cannot bring change but proper use of IT as a tool can help in
changing the scenario. The government can use information technology to disseminate timely
information about areas susceptible to food insecurity so that timely action could be taken. Farmers can
get real time information regarding weather, seed price and farm produce price. They can also get
relevant information about best practices of farming if they can be connected through internet. Today,
mobile phone has reached to most of the villages in India and it can be used as a tool to reach the benefits
of information technology to the farmers.

Question 15: What is organic farming and how does it promote sustainable development?

Answer: Farming which is done without use of synthetic fertilizers and pesticides is called organic
farming. We know that excess use of chemical fertilizers and pesticides has resulted in soil pollution and
groundwater pollution. It has also resulted in many harmful chemicals reaching our biological system
through food chain. Organic farming, on the other hand, does not carry the risk of soil pollution or
groundwater pollution. Risk of harmful chemicals reaching our body through food is also minimized if
we use organic farm produce. Thus, organic farming is the way which can be sustained in the long run. It
can be said that organic farming promotes sustainable development.

Question 16: Identify the benefits and limitations of organic farming.

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 Answer: Benefits of Organic Farming: Organic farming is more environment friendly than modern
farming. It helps in preventing pollution of soil and groundwater. Organic farming helps in promoting
sustainable development. Organic farming has the potential of generating income through exports
because organic farm produce are in high demand in many countries. Organic farming is highly labour
intensive and hence can create more employment opportunities.

Limitations of Organic Farming: There is a need for increasing awareness about organic farming among
the farmers. Proper infrastructure facilities need to be provided so that farmers can be encouraged to go
for organic farming. Produce from organic farming may have shorter life span and more quality issues.
Growing more crops or getting large yields is not possible through organic farming; unlike modern
farming. Small and marginal farmers are not in a position to adapt to organic farming on a larger scale.

Question 17: Enlist some problems faced by farmers during the initial years of organic farming.

Answer: Some of the problems faced by farmers during the initial years of organic farming can be as
follows:

• Lack of finance to buy farm inputs

• Fear of losing revenue because of low farm output
• Risk of losing farm produce because of shorter shelf life

CHAPTER - 7 : EMPLOYMENT : GROWTH, INFORMALISATION

AND OTHER ISSUES
OBJECTIVE TYPE QUESTIONS
QUESTION 1: A person who contributes to the production of goods and services is called as a
__________. ( Labour/ Worker) ( Fill up the blank with correct option)
Answer: Worker
QUESTION 2: Labour force comprises worker + __________ people in a country. ( Employed /
Unemployed)
Answer: Unemployed
QUESTION 3: What is the female worker’s participation rate in rural areas in India?
1) Lower
2) Higher
3) Equal
4) Earlier higher bur lower now
Answer: 2) Higher
QUESTION 4: In which sector workers enjoy job security? (choose the correct option)
1) Unorganized Sector

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2) Organized Sector
3)Agriculture sector
4) Private Sector
Answer: 3) Organized Sector
QUESTION 5:In a tertiary sector which of the following economic activity does not exist?
1) Bee-keeping
2) Teaching
3) Banking
4) Working in the Call Center
Answer: 1) Bee-keeping
QUESTION 6: Which type of unemployment is not found in rural India?
1) Disguised Unemployment
2) Frictional Unemployment
3) Seasonal Unemployment
4) Structural Unemployment
Answer: 2)
QUESTION 7: What is Worker participation ratio?
Answer: Worker Participation Ratio refers to the total percentage of the total population who is truly
engaging in a fruitful activity. It is also known as workers population ration.
Worker Participation Ratio = Total Workers x 100
Total Population
QUESTION 8: What are the three sources that collect data on unemployment?
Answer: 1) Census reports of India
2) National sampler survey organization reports of employment and unemployment situations
3) Directorate general of employment and training date of registration with employment exchange.

QUESTION 9: Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a. An eligible person who is searching for the job but fails to get it i)Cyclical Unemployment
b. A situation when people are working lesser than potential ii)Structural unemployment
c. More population than the capital formation of a country iii)Involuntary unemployment
d. Unemployment due to natural phenomenon of inflation and iv)Disguised unemployment
deflation

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Choose the correct sequence.
a)iii, iv, i, ii
b)iii, iv, ii, i
c)iv, ii, i, iii
d)iv, ii, iii, i
Answer: b)
QUESTION 10: In last four decades (1972-2012), people have moved from self employment and regular
salaried employment to casual wage work. This phenomenon is called as_________________ of workforce.
( Fill up the blank with correct answer)
Answer: Casualisation

QUESTION 11: An establishment with four hired workers is known as which sector establishment.
1) Informal
2) Formal
3) Both
4) None
Answer: Informal sector
QUESTION 12: Which of the following is false regarding disguised unemployment
1) The mounting pressure of population in rural areas with no alternative employment
2) The marginal productivity of a worker is high
3) A feature of the agrarian economy
4) Worker works less than its potential
Answer: The marginal productivity of a worker is high
QUESTION 13: If there are about 473 million workers in the country out of which about 30 million
workers in the formal sector. Estimate the percentage of people employed in the formal sectors.
a)15.8 b)6.3 c)0.63 d)none

Answer: 6.3%

QUESTION 14: In the early 1980s, textile mills all over the country began to close down spread over 10 years.
Over this period, approximately over 80,000 permanent workers and over 50,000 non-permanent workers lost their
jobs and were driven to the informal sector. This process is called as _______________ of work force.
(Fill up the blank with correct answer)

Answer: Informalisation
QUESTION 15: Tick ( ) mark against those which are in the informal sector
i)Worker in a hotel which has seven hired workers and three family workers
ii)A private school teacher in a school which has 25 teachers
iii)A police constable
iv) Nurse in a government hospital
v) Cycle-rickshaw puller
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vi) The owner of a textile shop employing nine workers
vii) Driver of a bus company which has more than 10 buses with 20 drivers, conductors and other workers
viii) Civil engineer working in a construction company which has 10 workers
ix) Computer operator in the state government office working on a temporary basis
x) A clerk in the electricity office.
Answer: i), v), vi)
QUESTION 16: Choose the correct pair from column I and column II
COLUMN I COLUMN II
a)NABARD i)Set up in 1984
b)Regional Rural Banks ii)Set up under RRB Act of 1976
c)Land Development Banks iii)Micro credit needs of rural people
d)Self Help Group iv)provide long term loans on security of land
Answer: b), ii)
QUESTION 17: Supply of labour is measured in terms of_______________.

Ans.-man days of work.

Board questions
EMPLOYMENT
Q.1: An arrangement in which a worker uses his own resources to make a living is known as ____ employment.
(a) Self (b) Regular-salaried (c) Casual (d) Wage (1) 2023 c
Ans. (a) Self
Q.Workers who are on the permanent pay-roll of their employer are called _________ workers. (1) 2023
(a) self-employed (b) casual (c) regular (d) hired ` Ans. (c) regular
OR
Jobless growth leads to unemployment because __________ .
(a) Labour refuses to migrate (b) Labour is very expensive
(c) Growth rate is low (d) Growth is due to technological development
Ans. (d) Growth is due to technological development.
Q.2. Why are less women found in regular salaried employment? (3) 2023
Ans. Less women are found in regular salaried employment in India as such jobs require skills and a higher
level of literacy. Moreover, due to a lot of social constraints, mobility of women is generally restricted.
(To be marked as a whole) (Any other valid argument to be allotted marks)

Q.3. State and elaborate whether the following statement is true or false, with valid arguments: (4) 2023
"Indian economy has showed satisfactory progress towards formalization of workforce in the recent past."
Ans. False. As in the recent years, India has witnessed an unprecedented shift of the workforce from the
formal sector to informal sector. This may be primarily due to decline in job opportunities in formal (both
public and private) sector. (To be marked as a whole)
OR
"In India, the self-employed constitute around 60% employees. The possible incidence of under employment
is the highest among the self-employed." As an economist, suggest and elaborate any two measures that may
be taken to ensure more productive employment for the self-employed.
Ans. Two measures to ensure more productive employment for the self-employed are:

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i. Skill development - Skill development and training will provide people with the required expertise and
skills to undertake new ventures.
ii. Financial and technical support by Govt - Financial and technical support by govt agencies, along with
fulfilling the capital requirements will also enhance the productivity of the new production units.

Q4. “Casual workers often work in very poor working conditions.” Justify the given statement. (3) 2023
Ans. Casual workers are the most vulnerable category of the workforce. They are generally not protected
by the regulations of the government. Hence, such workers face a continued threat to job security. They
may also not be entitled to regular income and any social security measures. (To be marked as a whole)

Q5. "In India women participation rate is lower in urban areas than in the rural areas." Explain with
valid arguments. (2) 2022
Ans; The given statement is appropriate, as in the urban areas male workers are generally able to earn reasonably
good income. Thus, urban families generally discourage females to work. Whereas, in the rural areas, due to poor
economic conditions, more females are involved in farm and non-farm activities. (to be marked as a whole)
Q6. "Despite women participation in family farm activities, they are not categorised as workers." Explain
why? (2) 2022
Ans; Women participate actively in the family farm activities, however this participation is not recognized as
productive activity. They are not paid wages for their services and thus are not categorized as workers.

Q7. “Workers working in formal sector earn more than those in informal sector.” Defend or refute the
given statement with valid arguments. (2) 2022
The given statement can be defended as the formal workers are protected through various labour laws. They have
better bargaining power for higher wages and other social security benefits with the presence of trade unions.
On the other hand, informal workers are generally low paid with lesser job security. They also do not get social
security benefits. (Any other valid argument to be award marks accordingly) (to be marked as a whole)

Q8. i)Compare and analyse the sector-wise trends in employment, based on following information: (2)2022

Ans: The given schedule represents that:

The workforce engaged in primary sector has declined from 60% (1999–2000) to 49% (2011–12). It may be
due to greater number of job opportunities available in the other two sectors.
Secondary sector and Tertiary sector exhibit increase from 16% to 24% and from 24% to 27%, respectively. It
may be because of rapid industrialisation and improvement of infrastructural facilities.
ii)Ram is an owner of a salon. He is temporarily absent from work due to injury. Can he be considered as
a worker? Explain. (2) 2022
Ram is a self-employed worker. Since he is involved in productive activity he would be considered as a worker in
spite of his temporary absence from the work. (to marked as a whole)
Q9. 'Casualization of workforce has became a perennial problem of the Indian economy.’ Justify the
given statement with valid arguments. (3) 2022
Ans: Casualisation of workforce has become a perennial problem for India because of:
o Slower growth rate of employment in the organised sector.
o Rapidly expanding construction and allied services have led to increase in demand for casual labour.
o Self-employed small and marginal farmers are becoming casual workers due to lower earnings in
agricultural activities. (to be marked as a whole)

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Q10. Explain why regular salaried employees are generally more in urban areas than in rural areas. (3) 2022
Regular salaried employees are more in urban areas as they have variety of employment opportunities due to
presence of more industries and as compared to the rural areas.
Higher level of literacy and skills are required in regular salaried jobs which are available in urban areas.
Moreover enterprises in urban areas require workers on a regular basis. (to be marked as a whole)
Q. From the data given below, compare and analyse the status-wise distribution of workforce in India:
Trends in Employment Pattern (Status-wise) (in %) 1972 – 73 and 2011-12 (3) 2022

Over the last few decades, the trend in distribution of workforce in Indian economy has changed drastically. The
percentage of self-employed workers have declined from 61.4% (1972-73) to 52% (2011-12). Correspondingly
regular salaried employees have increased from 15.4% to 18% over the same period. Similarly, the casual wage
workers have increased moderately from 23.2% to 30% over the given period of time.
Analysis of the given text shows a general shift of workforce towards the casual wage structure often known as
‘casualisation of workforce’. This makes the workers highly vulnerable to any socio-economic change.

Q11. The following diagram shows distribution of workforce in India. Analyse and compare the nature of
workforce distribution. (3) 2021

i. Self-employment is the major source of livelihood in both rural areas (56%) and urban areas (43%). It is because
rural people work on their own fields and cultivate independently. In urban areas both self-employment and regular
wage salaried jobs are greater.
ii. Casual wage workers are the second major source of employment in rural areas with 35% as compared to 15% in
urban areas. It is due to lack of availability of regular jobs in rural areas.
iii. Regular salaried workers are a major source of employment in urban areas with 42% as compared to just 9%
in rural areas. It is because there are more organised job opportunities in urban areas.

Q12. Why are less women found in regular salaried employment? (3) 58/1/1, 58/3/1,2, 2020
Answer-(i) Lesser women are found in regular salaried employment in India, as such jobs require
skills and high level of literacy.
(ii) Lack of mobility among women in India due to social constraints.
Question.13: Analyse the recent trends in sectoral distribution of workforce in India: (3) 58/1/1 2020

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Answer- The given data indicates that over the given period, the proportion of workforce in primary sector has gone
down rapidly. Whereas, the employment share of both secondary sector and the services sector has increased. While
the share of secondary sector has gone up by approximately 9% recently, the corresponding figure for services sector
has gone up by approximately 7%. (to be marked as a whole)
Question.14: Comment upon the informalisation of labour force in India. (4) 58/2/1 2020
Answer- In the recent years India has witnessed an unprecedented growth of informal sector or unorganised
sector. In India almost the entire agricultural sector and a very large number of industrial and service sector units
fall in informal sector. Those employed under this sector, generally, are not entitled to get regular salary and
other social security benefits. Thus, Informalisation of labour force refers to a situation where by the proportion
of workforce in the informal sector to total workforce increases. Keeping in view the growth of this sector and
disadvantages attached to it, the Indian government, in recent times, has initiated the modernisation of this sector
and provision of social security measures to the workers in this sector.

Question.15:“Google in India has hired 4000 graduate students.” (Pick the correct type of employment)
The given statement deals with formal sector/ informal sector employment. (1) 58/3/1 2020
Answer- formal sector
Question.16: “It is necessary to create employment in the formal sector rather than in the informal sector.”
Defend or refute the given statement with valid arguments.
Answer- The given statement is true and can be defended on the following arguments: (3) 58/3/1 2020
(i) Formal sector of employment provides greater job security as compared to informal sector of employment.
(ii) Under the formal sector of employment people are entitled to better social security benefits. (Marks are to
be awarded to any other valid argument)

Question.17: Define disguised unemployment. (1) 58/4/1 2020

Answer: Disguised unemployment is a situation where in the number of workers engaged in a work is more than
actually/optimally required.

Question.18: Define Worker- Population ratio. What does it signifies? (3) 58/4/1 2020
Answer: Worker Population Ratio refers to the ratio of total number of workers to the total population. It is
generally expressed in percentage.
Worker population = 𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 /𝑇𝑜𝑡𝑎𝑙 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 x 100
This ratio signifies the proportion of population that is actively contributing to the production of goods and
services of a country Worker-population ratio is an indicator which is used for analysing the employment
situation in the country. This ratio is useful in knowing the proportion of population that is actively contributing
to the production of goods and services of a country.

Question.19: Analyse the trends in sectoral distribution of workforce in India on the basis of data: (3) 58/4/`1 20
Trends in Employment Pattern (Sector-wise), 1972 – 2012 (in %)

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Answer: The given data indicates that over the given period, the proportion of workforce in primary sector has
gone down rapidly. Whereas, the employment share of both secondary sector and the services sector has
increased. While the share of secondary sector (between 1993-94 and 2011-12) has gone up by approximately
9%, the corresponding figure for services sector has gone up by approximately 7%. (to be marked as a whole)
(any other relevant explanation to be awarded marks)

Question.20: Greater proportion of women workers are found in (urban/rural) areas as a component of Indian
work force. (Choose the correct alternative) (1) 58/5/2 2020
Answer- rural

Question.21: If a construction site Manager hires two workers on daily wages basis, such a situation is covered under
(formal/informal) sector. (1) 58/5/2/ 2020
(Fill up the blank with correct alternative)
Answer- informal

Question.22: Discuss briefly the concept of ‘Informalisation of workforce’ in India. 3 58/5/2 2020
Answer – In the recent years India has witnessed an unprecedented shift of the workforce from the formal sector to
informal sector. This process whereby, the proportion of informal worker in the total workforce increases is known as
informalisation of workforce. The government has initiated the modernization of the informal sector and provision of
social security of measure to the worker in the informal sector. (to be marked as a whole)

Question.23: In which of the following type of unemployment, is the marginal productivity of the worker zero?
(Choose the correct alternative) (1) 58/c/1 2020
(A) Structural unemployment
(B) Involuntary unemployment
(C) Seasonal unemployment
(D) Disguised unemployment
Answer: (D) Disguised unemployment

Question.24: Define ‘Jobless Growth’ (1) 58/c/2 2020

Answer: Jobless growth refers to the situation, when an economy is able to produce more goods and services
without a proportionate increase in employment opportunities

NCERT Solution

Question 1: Who is a worker?

Answer: All people who are engaged in economic activities in whatever capacity are called workers.

Question 2: Define worker-population ratio.

Answer: The percentage of number of workers in respect to total population is called worker-population
ratio.

Question 3: Are the following workers — a beggar, a thief, a smuggler, a gambler? Why?

Answer: These are not examples of workers because although they are earning their livelihood but they
are not doing economic activities. Activities of a thief, a smuggler and a gambler are illegal activities and
thus they are doing crimes. A beggar is proving to be a liability for the society as he is not contributing
towards economic development of the society.

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Question 4: Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in Mother Dairy (iv) a
tuition master (v) transport operator (vi) construction worker.

Answer: A cashier in Mother dairy is different from all others because the cashier is working in a regular
salaried job.

Question 5: The newly emerging jobs are found mostly in the sector (service/manufacturing).

Answer: Service Sector

Question 6: An establishment with four hired workers is known as (formal/informal) sector

establishment.

Answer: Informal sector

Question 7: Raj is going to school. When he is not in school, you will find him working in his farm. Can
you consider him as a worker? Why?

Answer: Raj can be considered as a worker because he is contributing towards productivity of his farm.

Question 8: Compared to urban women, more rural women are found working. Why?

Answer: Women in rural areas often work in various farming processes; like harvesting and threshing.
We know that farming processes need more number of workforce and this need can only be met with
participation of women workers as well. Following are the reasons:

i)Poverty: In rural areas people are more poor, so in order to feed the family women are bound to work.
Only one person’s income is insufficient.

ii)Illiteracy among women: Sometimes, it is cost saving for the farm owner to hire a female worker
because female workers are paid less than male workers.

In urban areas women work less as compared to women. Main reasons are

iii)Patriarchal system: In urban areas, most of the people work in regular salaried jobs and as self
employed. In well off families, women do not prefer to do the job, so urban women restrict themselves
doing job.

iv)Social Stigma: Another important fact is the prevalent mindset which sees women in their traditional
role of a housewife. These are the reasons, more rural women are found working compared to urban
women.

Question 9: Meena is a housewife. Besides taking care of household chores, she works in the cloth shop
which is owned and operated by her husband. Can she be considered as a worker? Why?

Answer: When she is working in the cloth shop, she is doing an economic activity and hence she can be
considered as a worker.

Question 10: Find the odd man out (i) rickshaw puller who works under a rickshaw owner (ii) mason (iii)
mechanic shop worker (iv) shoeshine boy.
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 Answer: The shoeshine boy is different because he is a self-employed person.

Question 11: Why are regular salaried employees more in urban areas than in rural areas?

Answer: In most of the villages, offices or factories are not established and hence there are negligible
regular salaried jobs in rural areas. The situation is just opposite in urban areas. Hence, regular salaried
employees are more in urban areas than in rural areas.

Question 12: Why are less women found in regular salaried employment?

Answer: There are many reasons for low representation of women in regular salaried employment.

i)Division of work: Deep rooted social beliefs are the main reason which segregate women’s work as
homemakers who are not supposed to venture out of their homes. Even though women are educated they
prefer work at less wages.

ii)Low female literacy: Female literacy level is still below the male literacy level which means a less
number of women are properly qualified and skilled to get a regular salaried job.

iii) Patriarchal System of Society: On the other hand, a male is expected to earn a livelihood so that he
can support his family and thus a boy is mentally conditioned since his childhood to do something. A
regular salaried job usually ensures a better social recognition and hence most of the unemployed first try
to land a regular salaried job.

Question 13: Analyse the recent trends in sectoral distribution of workforce in India.
Answer: Distribution of workforce by industrial sectors shows substantial shift from farm work to non-farm
work (see Table 7.3).
• Primary sector: In 1972-73, about 74 per cent of workforce was engaged in primary sector and in
2011-12, this proportion has declined to about 50 per cent.
• Secondary sector’s contribution was about 11% in 1972-73 , its share has increased from 11 to 24%
in 2011-12. It showed at least 12% increase, which is a good transformation.

• Tertiary sector’s contribution raised tremendously from 15% to 27% from 1972-73 to 2011-12. .

Since independence, distribution of workforce in primary sector has declined to some extent but this
decline is not significant. While the share of secondary sector in the GDP has grown, this sector has
failed to generate employment in that ratio. The tertiary sector has grown quite significantly both in terms
of contribution to GDP and employment generation. However, even the tertiary sector has failed to
generate enough employment so that the load on primary sector could be reduced.

Question 14: Compared to the 1970s, there has hardly been any change in the distribution of workforce
across various industries. Comment.

Answer: There have been major changes in terms of share of different sectors in employment generation;
as shown by data discussed in previous question’s answer. However, self-employment continues to be the
major employment provider. The ratio of self employed workers to total population has reduced
marginally from 61% in 1970s to 51% 2010. The ratio of regular salaried employees has remained static
at 15% during this period. But the most disheartening fact is the increase in ratio of casual workers which
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increased from 23% to 33% during this period. This shows that although the economy has grown but we
are moving from salaried employment and self employment towards casual employment. Some
economists argue this as jobless growth.

Question 15: Do you think that in the last 50 years, employment generated in the country is
commensurate with the growth of GDP in India? How?

Answer: In the last 50 years, employment generation in India is not commensurate with the growth of
GDP. This can be understood by one of the graphs given in this chapter. The GDP growth was about
3.5% during 1950s and it grew at a healthy rate of more than 8% in 2010. Employment generation was
0.39% in the 1950s and it maintained some semblance of growth between 1960s and 1990s. But by the
second half of the 2010s, employment generation nosedived to very low rate.

Question 16: Is it necessary to generate employment in the formal sector rather than in the informal
sector? Why?

Answer: The formal sector not only provides employment but also several social security benefits. A
worker in the formal sector gets higher salary and social security benefits. Various social security
benefits that the worker can be assured of better quality of life when he becomes old or physically
disabled. After the life of a worker, his family members can be assured of a decent life. The situation is
totally opposite in the informal sector where even regular salary is a dream for most of the workers.
Hence, it is necessary to generate employment in the formal sector rather than in the informal sector.

Question 17: Victor is able to get work only for two hours in a day. Rest of the day, he is looking for
work. Is he unemployed? Why? What kind of jobs could persons like Victor be doing?

Answer: According to definition, if a person is able to get at least two hours job in a day then that person
is considered as an employed person. Hence, Victor cannot be termed as unemployed. But since he is
looking for work for the rest of the day, it can be assumed that he is not getting enough from two hours’
work. Another definition terms the unemployed as person who keeps on looking for work because he
does not have enough work. According to this definition, Victor is unemployed. Victor may be doing
some part time job; like supplying milk in the morning or distributing newspaper or pamphlets.

Question 18: You are residing in a village. If you are asked to advice the village panchayat, what kinds of
activities would you suggest for the improvement of your village which would also generate
employment.

Answer: I will suggest increasing the scope for alternate sources of livelihood. The farmers should be
educated and trained in food processing or in animal husbandry or horticulture. People can also be trained
in various handicrafts so that cottage industry can be started in the village. These steps would help in
improving employment opportunities in the village.

Question 19: Who is a casual wage labourer?

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 Answer: A worker who does not get a regular salaried job and is neither self employed is termed a casual
wage labourer. A casual wage labourer may not get work on a regular basis. Although the government
prescribes minimum wages for such workers but most of them are unable to get even the minimum
wages.

Question 20: How will you know whether a worker is working in the informal sector?

Answer: If the worker is not getting social security benefits then it is clear that he working in the
informal sector. Pension, gratuity and provident fund are the major tools for providing social security net.

Question 21: The following table shows distribution of workforce in India for the year 1972-73. Analyse
it and give reasons for the nature of workforce distribution. You will notice that the data is pertaining to
the situation in India 30 years ago!

Workforce (in millions)

Place of residence
Male Female Total

Rural 125 69 195

Urban 32 7 39

Answer: This table reveals some interesting facts about workforce composition in India during 1970s. A
very high proportion of the workforce (about 80%) is in rural areas, compared to just 20% of the
workforce in urban India. This can be correlated to the fact that during this period, a majority of Indians
lived in villages. Participation of female workers if much better in rural areas compared to in urban areas.
This is in tune with the prevailing situation in our country. Various data in this chapter shows that women
workforce is in better ratio in rural areas than in urban areas.

Question 22: The following table shows the population and worker population ratio for India in 1999-
2000. Can you estimate the workforce (urban and total) for India?

Estimates of population (in Worker population Estimated number of workers (in

Region
crores) ratio crores)

Rural 71.88 41.9 41.9% of 71.88 = 30.12

Urban 28.52 33.7 ?

Total 100.4 39.5 ?

Answer: Urban (9.6 crores), total (39.6 crores)

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CHAPTER - 9 : ENVIRONMENT AND SUSTAINABLE
DEVEELOPMENT

OBJECTIVE TYPE QUESTIONS:

QUESTION 1: Which of the following factors does not contribute to global warming?
1) Deforestation
2) Air pollution
3) Burning of petroleum and coal products
4) Hydrogen gas released in animal waste
Answer: 4) Hydrogen gas released in animal waste
QUESTION 2: Ozone depletion refers to the phenomenon of reduction in the amount of ozone in the?
1) Exosphere
2) Stratosphere
3) Troposphere
4) Mesosphere
Answer: 2) Stratosphere
QUESTION 3: __________________is the total planetary inheritance and the totality of all resources that .
It includes all the biotic and abiotic factors that influence each other. ( Fill up the blank with correct answer)
Answer: Environment
QUESTION 4: ______________ resources refers to that type of resources that can be utilized without
being exhausted. Such as trees, fish etc. ( fill up the blank with correct answer)
Answer: Renewable
QUESTION 5: _______________resources are those resources which get exhausted with extraction. Such
as coal, fuel, etc. ( Renewable/Non renewable) ( Fill up the blank with correct option)
Answer: Non renewable
Answer: Renewable resources are those resources which get exhausted with extraction. Such as coal, fuel,
etc.
QUESTION 6: The problem of ozone depletion is caused by high levels of ________ and __________
compounds in the stratosphere. ( Fill up the blanks with correct options)
1) Chlorine and Bromine
2) Chlorine and Carbon
3) Silicon and Bromine
4) Silicon and Hydrogen
Answer: 1) Chlorine and Bromine
QUESTION 7: What is the full form of CFCs?
1) Chlorofluorocarbons
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2) Chloridefluorocarbons
3) Chlorine-florine-carbons
4) Carbo Fluorocarbons
Answer: 1) Chlorofluorocarbons
QUESTION 8: Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a. Emphasis on protecting future generation i)Montreal Protocol
b. Protecting Trees from cutting ii) Un conference Kyoto, Japan
c.Fighting Global warming by reducing greenhouse iii)Brundtland Commission
gases
d. Banned the use of CFCs to protect ozone layer iv)Appiko
Choose the correct sequence.
a)ii, i, iv, iii
b)iii, iv, ii, i
c)iii, ii, iv, iii
d)ii, iv, iii, i
Answer: b)
QUESTION 9: As a result of depletion of the ozone layer, more ________________radiation comes to
Earth and causes damage to living organisms. ( Choose the correct answer)
Answer: Ultra Violet

QUESTION 10: Which of the following is not the function of environment?

1)Supply of resources
2) assimilating waste
3)Extraction of resources
4) Sustains life
Answer:3)
QUESTION 11: The Deccan Plateau black sol is particularly suitable for the cultivation of?
1) Jute
2) Maize
3) Textile
4) Cotton
Answer: 4) Cotton
QUESTION 12

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The Chipkoo Movement, for protection of the forest, was in which part of India?
1) Kerala
2) Himalaya
3) Karnataka
4) Maharashtra
Answer: 2) Himalaya
QUESTION 13: Which of the following is not the factor responsible for land degradation?
1) Shifting Cultivation
2) Deforestation
3) Poaching
4) Unsustainable fuelwood and fodder extraction
Answer: 3) poaching
QUESTION 14: Give two examples of resources overuse.
Answer: The two examples of resources overuse are.

•Excessive of tree demolishing

• Excessive exploitation of fossil fuel
QUESTION 15: Give two examples of misuse of resources.
Answer: The two examples of misuse of resources are.

• Use of river to absorb industrial effluents

• Use of wood as household fuel
QUESTION 16: The per capita forest land in the India is only ____________hectare against the
requirement of 0.47 hectare to meet basic needs. ( Fill up the blank with correct answer)

Answer: 0.08

QUESTION 17: In order to address two major environmental concerns in India, viz. water and
air pollution, the government set up the Central Pollution Control Board (CPCB) in year ___________. ( Fill
up the blank with correct answer)

Answer: 1974

QUESTION 18: Solar energy is captured through special kind of material called _____________ cells and
convert solar energy into electricity. ( Fill up the blank with correct option)

Answer: photovoltaic cells

QUESTION 19: Whether the following statements are true or not?

‘In recent years India is taking efforts to increase the power generation through solar. India is also leading an
International body called International Solar Alliance (ISA).’
Answer: True
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QUESTION 20: Whether the following statements are true or false?

‘In Delhi, the use of Compressed Natural Gas (CNG) as fuel in public transport system has increased air
pollution and the air quality has reduced in the last few years’.
Answer : False
QUESTION 21: According to Herman Daly - The carrying capacity of the environment is like a ‘plimsoll
line’ of the ship. In the absence of the plimsoll line for the economy, human scale grows beyond the carrying
capacity of the earth and deviates from sustainable development. What does the Plimsoll line mean here?

Answer: load limit mark beyond which ship will not be loaded, Similarly population/pollution should also
be controlled with in the carrying capacity of the earth.

BOARD QUESTIONS
ENVIRONMENT
Q. 1. Mini-hydel plants are good for the environment because: (1) 2023
(i) they generate electricity only for local areas.
(ii) they do not change the land use pattern.
(iii) they rely on the perennial streams. (Choose the correct alternative)
Alternatives:
(a) (i), (ii) and (iii)
(b) (ii) and (iii)
(c) (i) only
(d) (i) and (ii) Ans. (a) (i), (ii) and (iii)

Q.2. Interpret the given picture, on account of current environmental challenges: (3) 2023

Ans. Deforestation is defined as large scale cutting down of trees for executing
developmental projects. It is a serious environmental concern, since it can result in the loss of biodiversity,
damage of natural habitats, disturbances in the water
cycle, soil erosion etc. Deforestation is also the main contributor to the environmental problems like climate
change and global warming.

Q.3. State and discuss any one strategy involved in attaining sustainable development in India. (3) 2023
Ans. Mini-hydel Plants- In mountainous regions, streams can be found almost everywhere. A large
percentage of such streams are perennial. Mini-hydel plants use the energy of such streams to move small
turbines. The turbines generate electricity which can be used locally. Such power plants are more or less
environment-friendly as they do not change the land use pattern.
(any other valid strategy of sustainable development)

Q.4. Elaborate any two ill-effects of Deforestation as depicted in the given picture. (3) 2023 c
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Ans. Two ill-effects of deforestation are:
• Deforestation leads to loss of vegetation and biodiversity. Encroachment of forest land disturbs the
natural habitat of various species of flora and fauna. Deforestation results in the breakdown of the
normal functioning of the ecosystem.
• Large-scale cutting down of trees may lead to an increase in the amount of greenhouse gases such as
carbon dioxide, methane, etc. in the atmosphere. Subsequently increasing the Earth's average
temperature gradually i.e. Global Warming.

Q5. “Economic development in India has been accompanied by environmental concerns.” (2) 2022
Do you agree with the given statement? Give valid reasons in support of your answer.
• The pressure on natural resources is increasing along with deforestation and wildlife extinction.
• Rapidly rising Industrial sector is leading to air pollution, water contamination, soil erosion etc.

Q6. Explain how the opportunity costs of negative environment impacts are high. (3) 2022
Opportunity costs of negative environmental impacts are high as it leads to:
Increased financial commitments of the government due to global warming and ozone depletion etc.
Rise in expenditure on health due to decline in air and water quality.

Q7. Is environmental crisis a recent phenomenon? if so why? (3) 2021

Answer:- Yes, it is a recent phenomenon. In the early days, demand for environmental resources was less
than their supply. In other words, the rate of resource extraction was less than the rate of regeneration of
resources.
Hence environmental problem did not arise. But with population explosion and with advent of industrial
revolution and increasing urbanisation, demand for resources is more than their supply. Shortage of supply
is because of overuse and misuse of resources. It is a reversal of supply-demand relationship.

Q8. Case Study

Read the following text carefully and answer question given below:
Green investment and sustainability are priorities in public policy. India has emerged as a global leader at
the front of the climate change. India has pledged to seek solutions for the future.
Government schemes and policies such as Swachh Bharat Mission, Pradhan Mantri Awas Yojana, Smart
Cities, Deen Dayal Upadhyay Gram Jyoti Yojana among other, all contribute towards achieving sustainable
development goals. The government has contributed to maintain economic growth by introducing and
implementing various policies and measures relating to sustainable development, climate change, energy
efficiency and air pollution.
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Pradhan Mantri Ujjwala Yojana Scheme, has actively contributed to cleaner air. It has resulted in drastic
reduction of respiratory diseases and ultimately death as per recent medical report.
The Jal Jeevan Mission was launched with the objective of achieving water security. We have seen 68 per
cent decline in the size of population of various animal species and amphibian over the last 60 years. The
issue of greenhouse gases and rising temperature of the earth are a global concern. India is one of those
countries that will be affected by the over 2 degree Celsius rise in global temperature.
'India has already taken a lot of steps in the area of innovation and development of different production
methodologies which are environmentally friendly in the long run.'
Source: The Economic Times; Oct. 27, 2021
i)State and discuss any two steps involved in attaining sustainable development in India. (2)2022
Two steps involved in attaining sustainable development in India are:
(i) Pradhan Mantri Ujjwala Yojana Scheme has contributed to cleaner air and resulted in a drastic reduction
of respiratory diseases.
(ii) Government schemes such as Swachh Bharat Mission, Pradhan Mantri Awas Yojana, Smart Cities, etc.
are all contributing towards achieving sustainable development goals.
ii) From the given text, state any two factors which challenged the carrying capacity of the
environment.
Two factors which challenged the carrying capacity of the environment are:
(i) Rise in the temperature of the earth.
(ii) Issue of greenhouse gases
(iii) Decline in the size of the population of various animal species and amphibian (Any two) (2) 2022

Q9. Case/ Source Based Question (5) 2022

Read the following text carefully. Answer questions on the basis of the given text and common
understanding:
The NITI Aayog Index developed in collaboration with German cooperation, ranks 56 urban areas on 77
Sustainable Development Goals (SDGs) indicators. In its journey of localization of the Sustainable
Development Goals (SDGs) and creating SDG’s progress monitoring system at all levels, the NITI Aayog
has developed the SDG Urban Index and Dashboard in 2021-22.
The index will strengthen SDG localisation and institute monitoring at the various cities level. According to
the NITI Aayog, this index highlights the strengths and gaps of data monitoring and reporting systems. The
tools used in the index will contribute to the creation of an ecological system in which all stakeholders will
be equipped to adopt and implement data-driven decision-making.
The NITI Aayog is of the view that this transformative change is quite essential, given the increasing
prominence of our cities and urban areas in charting the future of development in India. Out of 56 urban
areas ranked in the index, 44 are with population above one million.
As per the NITI Aayog, for each SDG the urban areas are ranked on the scale of 0-100. A score of 100
implies that the urban area has achieved the targets set for 2030. A zero score implies that it is the farthest
from achieving the target among the selected urban areas. The areas with score between 0 and 49 have been
ranked as aspirants, those with 50-64 are termed as performers, 66-99 are called front runners and the ones
with perfect score are called achievers. Source: The Economic Times; November 3, 2021 (Modified)
(a) Outline any two steps involved by the NITI Aayog index in attaining sustainable development.
(b) “Urban areas are ranked on the scale of 0-100.” Elucidate the ranking system adopted by NITI
Aayog
(a) Two steps involved in NITI Aayog index are as follows:
(i) Localisation of Sustainable Development
(ii) monitoring progress in Sustainable Developmental Goals at all possible levels
b) Urban areas are ranked on the scale of 0-100. Ranking system adopted by NITI Aayog is as follows
(i) The areas with ranking between 0–49 have been ranked, as aspirants.
(ii) Those with 50–64 are termed as performers, 66–99 are called front runners.
(iii) Score of 100 implies the urban area has achieved the target set for 2030.

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Q.10. Define any two of the following: 2+2 58/1/1 2020
(a) Absorptive capacity of environment
(b) Carrying capacity of environment
Ans (a) Absorptive capacity of the environment- It means the ability of the environment to absorb
degradation without causing environmental damage.
(b) Carrying capacity of environment – It implies that the resources extraction is not above the rate of
regeneration of the resources and wastes generated are within the assimilating capacity of the environment.
(any other relevant definitions should be allotted marks)
Question.11: Define the following : (6) 58/2/1/ 2020
(a) Carrying capacity of environment

Carrying capacity of environment – It implies that the resources extraction is not above the rate of
regeneration of the resources and wastes generated are within the assimilating capacity of the environment.
(b) Bio- composting

Bio composting - It refers to the process of converting organic waste of various types into natural manure.
(c) Sustainable Development

Sustainable development - It refers to the development process that meets the needs of present generation
without compromising on the ability of the future generations to meet their respective needs.
(d) Absorptive capacity of the environment

Absorptive capacity of the environment- It means the ability of the environment to absorb degradation
without causing environmental damage. (any other relevant definitions should be allotted marks)
Question.12: Central Pollution Control Board (CPCB) has identified____ categories of large and medium
industries as polluting industries. (Choose the correct alternative) (1) 58/3/1 2020
(A) 15 (B) 17 (C) 19 (D) 13 Answer- (B) 17
Question.13: (6) 58/3/1 2020
(a) State the meaning of ‘Poverty Line’.
(b) Define the following:
(i) Carrying capacity of environment (ii) Absorptive capacity of environment

Answers- (a) Poverty Line is the cut off point on the line distribution which divides the population of the
country as poor and the non-poor. It can be determined in terms of calorie intake and monthly per capita
expenditure (MPCE).
b) (i) Carrying capacity of environment – It implies that the resources extraction is not above the rate of
regeneration of the resources and wastes generated are within the assimilating capacity of the environment.
(ii) Absorptive capacity of the environment- It means the ability of the environment to absorb degradation
without causing environmental damage. (any other relevant definitions should be allotted marks)

Question.14: a) State and discuss any two environmental concerns faced by India in the present times. (3)
58/4/2 2020
Answer: Two environmental concerns faced by India are : (any two)
(i) Air Pollution: In India, air pollution is widespread in urban areas where vehicles and industries are major
contributors to pollution. Air pollution results in health problems and causes severe damage to the
environment.

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 ii) Global Warming: Global warming is the observed projected increases in the average temperature of
earth’s atmosphere and oceans due to increase in greenhouse gases in the recent past. This has become a
major global concern for the world. (any other relevant point with explanation)

Question.15: What is meant by sustainable development? Discuss briefly any two strategies of sustainable
development. (6) 58/4/3 2020
Answer: Sustainable development - It refers to the development process that meets the needs of present
generation without compromising on the ability of the future generations to meet their respective needs.
Use of Non-conventional Sources of Energy (any two) CNG in Urban Areas: In some cities of India, the
use of Compressed Natural Gas (CNG) as fuel in public transport system has significantly lowered air
pollution and the air has become cleaner in the last few years. Wind Power: In areas where speed of wind is
usually high, wind mills can provide electricity without any adverse impact on the environment. The initial
cost is high but the long term benefits easily absorb the cost incurred. (Any other relevant point with
explanation)

Question.16: Which of the following is not used as a strategy for Sustainable Development ?(1) 58/5/1/2020
(Choose the correct alternative)
a) Use of bio-gas b) Use of solar power (c) Use of thermal power (d) Use of hydel power
Answer- c) Use of thermal power

Question.17: State whether the following statement is true or false : (1) 58/c/1/ 2020
‘‘Smoke emitted by the industries leads to environmental pollution.’’
Answer: True

Question.18: State and discuss any two principal causes of environmental degradation. (3) 58/c/1 2020
Answer: Two principal causes behind environmental degradation:
i. Population Rise - Rising population is one of the major causes for degradation of the environment as it
adds to the burden on natural resources, leading to environmental crisis.
ii. Consumption Levels: It has been observed that the developing and developed nations have witnessed
affluent consumption levels in the past, bringing disequilibrium in the demand and supply of the natural
resources, pushing the world to the threshold of the environmental crisis. (any other valid answer should be
allotted marks)

Question.19: State whether the following statement is true or false :

‘‘Use of chlorofluorocarbons has led to ozone depletion.’’ (1) 58//c/2/ 2020
Answer: False

NCERT Solution

Question 1: What is meant by environment?

Answer: The total planetary inheritance and the totality of resources is called environment. In simple
language; our surrounding is called our environment. The environment is composed of two types of
components, viz. biotic and abiotic. The biotic components include all the living beings, while the abiotic
components include non-living things like air, water, soil, etc.

Question 2: What happens when the rate of resource extraction exceeds that of their regeneration?

Answer: When the rate of resource extraction exceeds that of their generation, the resource gets
exhausted. This diminishes the carrying capacity of environment which is a potential threat to the
existence of life.
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Question 3: Classify the following into renewable and non-renewable resources: (i) trees (ii) fish (iii)
petroleum (iv) coal (v) iron-ore (vi) water.

Answer: Trees, fish and water are renewable resources, while coal, petroleum and iron-ore are non-
renewable resources.

Question 4: Two major environmental issues facing the world today are ____________ and __________.

Answer: Global warming and ozone depletion

Question 5: How do the following factors contribute to the environmental crisis in India? What problem
do they pose for the government?

a. Rising population

Answer: About 17% of the world population lives in India which has only 2.5% of the total
land in the world. This means there is more pressure on land resources which results in
large scale deforestation.
b. Air pollution

Answer: Air pollution is very high in most of the cities and towns. Increased vehicular
population is the major reason of air pollution in cities. Even in villages, burning of
firewood and cow dung cakes contributes to air pollution.
c. Water contamination

Answer: Most of the sewage is discharged into the water bodies without being treated. This
contributes to water pollution. Most of the rivers and ponds in India are heavily polluted.
Increased use of chemical fertilizers and pesticides has polluted the groundwater as well.
d. Affluent consumption standards

Answer: Over the six decades after independence, India has progressed a lot. The
disposable income has grown significantly among the middle classes; which has resulted in
increased consumption. This has also resulted in increased levels of air pollution.
e. Illiteracy

Answer: Many people continue to pollute the environment because of ignorance. The
illiterates comprise a major section of such people.
f. Industrialisation

Answer: India is now among the top ten industrialized nations in the world. While
industrialization has resulted in developments in various aspects, it has also resulted in
increased levels of pollution. The major industrial belts in India have highly polluted air.
g. Urbanisation

Answer: Urbanisation has increased in India. Many places which had rural characters in
the past have become urbanized. More and more people are migrating towards cities and
towns in search of livelihood. This has created pressure on cities which are major economic
hubs.
h. Reduction of forest coverage

Answer: Due to increased population, forest has been continuously cleared to make way

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 for human settlements and activities. At present per capita forest land is just 0.08 hectare,
while it should have ideally been 0.47 hectares.
i. Poaching

Answer: In spite of many rules and regulations and active vigilance by the forest
department, poaching still continues in Indian forests. Killing of wild animals disturbs the
environmental balance.
j. Global warming

Answer: High level of air pollution means high level of carbon dioxide in the atmosphere.
Carbon dioxide is one of the greenhouse gases and hence results in global warming. The
effects of global warming can be seen in changing weather patterns, flash floods and
droughts in our country also.

Question 6: What are the functions of the environment?

Answer: Following are the functions of the environment:

• Environment supplies resources

• It assimilates wastes
• It sustains life by providing biodiversity
• It also provides aesthetic services like scenery

Question 7: Identify six factors contributing to land degradation in India.

Answer: Six factors responsible for land degradation are as follows:

• loss of vegetation due to deforestation

• unsustainable firewood and fodder extraction
• shifting cultivation
• encroachment into forest lands
• non-adoption of adequate measures for soil conservation
• improper crop rotation

Question 8: Explain how the opportunity costs of negative environmental impact are high.

Answer: Negative environmental impact has long term opportunity costs involved. When the rate of
resource extraction is higher than that of its renewal, many resources get exhausted or become on the
verge of extinction. As a result, we are forced to invest too much in exploration of alternate resources.
The environmental pollution results in bad quality of air and water which results in many diseases; like
asthma and cholera. Prevention and treatment of these diseases involved huge cost to the society. Thus, it
can be said that the opportunity costs of negative environmental impact are high.

Question 9: Outline the steps involved in attaining sustainable development in India.

Answer: Following are the steps involved in attaining sustainable development in India:

• Use of non-conventional sources of energy: This will help in reducing our dependency on
thermal power and hydel power. Thus, use of non-conventional sources of energy will help in
ensuring sustainable development.

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 • LPG, Gobar gas in rural areas: Use of LPG and gobar gas in rural areas will help in reducing
the extraction of firewood for fuel. Thus, it will help in reducing air pollution and felling of
trees.
• CNG in urban areas: As the example of Delhi shows, increased use of CNG in urban areas can
help in improving air quality.
• Wind power: Wind power is a renewable source of energy and can be harnessed with available
technology. Many wind farms are already operational in India.
• Solar power through photovoltaic cells: Solar panels are being used for powering traffic lights
and hoardings in many cities. Solar cells are also being used in water heaters and for lightning
purposes.
• Mini-hydel plants: Mini hydel plants can be ideal for hilly areas which have large number of
streams. Mini hydel plants can help in supplying electricity to remote areas and also in
preventing transmission losses.

Question 10: India has abundant natural resources—substantiate the statement.

Answer: India has a unique geographical location and hence it is endowed with plenty of natural
resources. Most of the minerals are found in abundance in India; except petroleum. Some of the major
rivers are in India and thus a vast portion of India has highly fertile land. India gets plenty of sunshine
throughout the year which makes it an ideal place for harnessing solar energy. The vast area of the Thar
desert is ideal of harnessing wind energy. A very long coastline of India means we can get plenty of
resources from the ocean.

Question 11: Is environmental crisis a recent phenomenon? If so, why?

Answer: Before the industrial revolution, the rate of extraction of resources was very low and it was less
than that of renewal of resources. But after so many years of industrial revolution and subsequent
development, the rate of extraction of resources has grown manifold. This has resulted in exhaustion of
resources in many countries. It has also resulted in high levels of environmental pollution. Hence, it can
be said that environmental crisis is a recent phenomenon.

Question 12: Give two instances of

a. Overuse of environmental resources Answer: Overuse of fossil fuels and minerals

b. Misuse of environmental resources Answer: Wastage of drinking water, wastage of paper

Question 13: State any four pressing environmental concerns of India. Correction for environmental
damages involves opportunity costs—explain.

Answer: The four pressing environmental concerns of India are; air pollution, groundwater pollution,
pollution of rivers and soil erosion.

It is indeed true that correction of environmental damages involves opportunity costs. Let us take
example of air pollution. For minimizing air pollution, we need to fit vehicles with catalytic converters
which means increased cost of the vehicle. For rectifying the pollution of water bodies, we need to clean
up our rivers which is a gargantuan task.

Question 14: Explain the supply-demand reversal of environmental resources.

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Answer: Before the beginning of the Industrial Revolution the supply of natural resources was higher
than demand. But after many years of Industrial Revolution there has been a role reversal. At present, the
demand of natural resources is higher than supply.

Question 15: Account for the current environmental crisis.

Answer: The current environmental crisis is because of our unsustainable practices. We are overusing
and misusing the natural resources. As a result, many resources have either exhausted or are on the verge
of exhaustion. The excess use of natural resources has created a huge amount of waste which is beyond
the waste absorption capacity of the environment. This has resulted in a situation in which our
environment’s ability to sustain life has been compromised. This situation is called environmental crisis.

Question 16: Highlight any two serious adverse environmental consequences of development in India.
India’s environmental problems pose a dichotomy — they are poverty induced and, at the same time, due
to affluence in living standards—is this true?

Answer: One of the serious consequences of development in India is air pollution and another is heavily
polluted rivers. Ganga; the holiest river of India; resembles a dirty drain near most of the cities is passes
through. It is absolutely true that India’s environmental problems are poverty induced as well as due to
affluence in living standards. The poor people continue to fell tree to obtain firewood because they
cannot afford LPG. Felling of trees has serious environmental consequences. On the other hand, the
affluent lifestyle means increased consumption of fossil fuels which also causes serious damage to the
environment.

Question 17: What is sustainable development?

Answer: The development which ensures a good quality of life for the current generation and also
ensures that the future generation would get at least the same quality of life is called sustainable
development.

Question 18: Keeping in view your locality, describe any four strategies of sustainable development.

Answer: The following strategies can help in ensuring sustainable development for any locality:

• Switching to alternate sources of energy; like solar energy and wind energy
• Promoting afforestation to recover the loss of greenery.
• Promoting the use of CNG in vehicles
• Building better public transport facilities

Question 19: Explain the relevance of intergenerational equity in the definition of sustainable
development.

Answer: Intergenerational equity means whatever natural resources are available to our generation
should also be available to the coming generations. In fact, this is the basic premise of sustainable
development. If the development can be sustained in a way that many generations to come would be in a
position to enjoy the bounty of nature then only we can say that we are practicing sustainable
development.
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 CHAPTER – 9: DEVELOPMENT EXPERIENCES OF INDIA:
A COMPARISON WITH NEIGHBOURS

OBJECTIVE TYPE QUESTIONS:

QUESTION 1: Which one of the following is not true for China?
1) Sex ratio is biased
2) The density of population is low
3) The population is very small
4) The fertility rate is low
Answer: 3) The population is very small
QUESTION 2: Infant mortality rate in China is ______ per thousand and _______ per thousand in India?
1) 30,60 2) 30,35 3) 35,65 4) 35, 09 Answer: 4) 34.6, 8.5 ( actual)
QUESTION 3: The production process engaged in transforming one good to another is known as
_________ sector. ( Primary/Secondary/Tertiary) ( Fill up the blank with correct option).
Answer: Secondary Sector
QUESTION 4: The highest fertility rate is in __________ ( India/China/Pakistan) ( Fill up the blank with
correct option)
Answer: Pakistan ( 3.7, India-2.3, China - 1.6)
QUESTION 5: ___________percentage of the workforce are engaged in agriculture in China. ( Fill up the
blank with correct answer)
Answer: 17.5% workforce is engaged in agriculture in China, 42.7% in India and 42% in Pakistan.
QUESTION 6: China follows __________ economy structure however, India and Pakistan follow______
economy. ( Socialist/ Capitalist/ Mixed) ( fill up the blanks with correct option)
Answer: socialist, Mixed economy.
QUESTION 7: China is working on ____________ Five year plan (2016-2020). ( 12th/ 13th/14th ) (Choose
the correct option)
Answer: 13th
QUESTION 8 Arrange the following events of Pakistan in chronological order and choose the correct
alternative:
i)Introduction of Economic Reforms
ii)First five year plan
iii)Nationalisation of capital goods industries
iv)Independence
a)iv) , ii), i) , iii) b)iv), iii), ii) , i) c)iv), ii), iii), i) d)ii), i), iii), i) Answer: c)

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QUESTION 9: : Identify the correct sequence of alternatives given in Column II by matching them with
respective terms in Column I:
COLUMN I COLUMN II
a. Great Proletarian Cultural Revolution i)1953
b. Great Leap Forward Campeign ii)1978
c.Economic Reforms iii)1958
d. Economic Planning ( Five Year Plan) iv)1966
Choose the correct sequence.
a)ii, i, iv, iii
b)iv iii, i, ii
c)iii, ii, iv, iii
d)iv, iii, ii, i
Answer: d)
QUESTION 10: Full form of UNDP
1) United Nation Development Policy
2) United Nation Development Programme
3) Union Nation Development Programme
4) None of the above
Answer: 2) United Nation Development Programme
QUESTION 11: To attract foreign investors China has set up ___________. ( Write the correct answer)
Answer: Special Economic Zones
QUESTION 12: The service sector is in which sector?
1) Primary Sector
2) Secondary Sector
3) Tertiary Sector
4) None
Answer: 3) Tertiary Sector
QUESTION 13: Between India, China, and Pakistan which country has the highest life expectancy at birth
Answer: China has the highest life expectancy at birth ( 76.4) ( India -68.8, Pak- 66.6)
QUESTION 14: The number of deaths per 1,000 live births with in one year of age is called as _________.
( Fill up the blank with correct answer)
Answer: infant mortality rate is calculated by the number of infant deaths under one year of age, divided by
the number of live births during the year, multiplied by 1,000 for a given area.
QUESTION 15: Five Year plan is introduced in India in year ___________ and by Pakistan in
year_________. Answer: 1951, 1956
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QUESTION 16: Match the following items given in Column I with column II.
COLUMN I COLUMN II
1.Great Leap Forward a)Worker were sent to countryside for training
2.Great Proletarian Cultural Revolution b) to establish industry in each courtyard
3.One Child Policy c)Public Sector Units
4.State Owned Enterprises d) Reducing population growth
Answer: 1b, 2a, 3d, 4c
QUESTION 17: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and
_____________are the members of SAARC. (Myanmar/ Sri lanka) ( Fill up the blank with correct option)
Answer: Sri Lanka

QUESTION 18: Fixing the price of same commodity in two ways refers to ______. Answer: Dual Pricing

QUESTION 19: Manufacturing sector of the economy is considered as the engine of growth of _________.
( China/ India/ Pakistan) ( Fill up the blank with correct option) Answer: China

QUESTION 20: Maternal mortality Rate is higher in________, followed by__________ and ______
(India/China /Pakistan) ( Fill up the blank with correct option) Answer: Pakistan, India, China

QUESTION 22: Among India, Pakistan and China ________has the highest urbanization. ( Fill up the
blank with correct answer) Answer: China

Question 23: Whether the following statement is true of false

” Pakistan’s economy, as scholars put it, are agricultural growth and food supply situation were based on
an institutionalised process of technical change.” Answer: False ( It was based on good harvest)

QUESTION 24: Which of the following is not correct regarding Pakistan’s external Sector?
a)most foreign exchange earnings came from remittances from Pakistani workers in the Middle-east
b)the exports of highly volatile agricultural products
c) there was also growing dependence on foreign loans
d)Pakistan was able to pay back the loans as foreign exchange earnings were high from middle east.
Answer: d)
QUESTION 25: Which of the following was not the impact of one child policy norm?
a)Population growth reduced
b)Burden of old aged people increased
c)Working population reduced in China arresting the economic growth
d)There was an unrest among the people Answer: d)

Question.3: Arrange the following events in chronological order and choose the correct
(i) Establishment of People’s Republic of China (1) 58/1/1 2020
(ii) Creation of Pakistan
(iii) First Five-Year Plan of India
(iv) First Five-Year Plan of China
(A) (i), (iv), (ii), (iii) (B) (iii), (ii), (i), (iv) (C) (ii), (i), (iii), (iv) (D) (iv), (iii), (ii), (i) Answer: (C) (ii), (i), (iii),(iv)
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 BOARD QUESTION
INDIA CHINA PAKISTAN
Q.1. The Great Leap Forward (GLF) campaign in China focused on _________. (1) 2023
(Choose the correct alternative to fill up the blank)
(a) Widespread industrialisation
(b) New agricultural strategy
(c) Privatisation
(d) Economic reforms
Ans. (a) Widespread industrialisation
OR
India is not a member of which of the following regional / global economic groups?
(a) European Union
(b) BRICS
(c) G20
(d) SAARC
Ans. (a) European Union

Q.2. Identify the correct alternative with reference to the following statement: (1) 2023
“Between 1966-76, Mao introduced this movement under which professionals and students were asked to
work and learn from real life situations prevailing in the countryside of China.”
(a) Commune System
(b) Great Leap Forward
(c) Open Door Policy
(d) Great Proletarian Cultural Revolution
Ans. (d) Great Proletarian Cultural Revolution

Q.3. Read the following statements carefully: (1) 2023

Statement 1: In both India and Pakistan, the service sector has been emerging as a major source of
development.
Statement 2: Amongst the neighbours of India, China has the highest life expectancy rate.
(a) Statement 1 is true and Statement 2 is false. (b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true. (d) Both Statements 1 and 2 are false. Ans. (c)

Q.4. Read the following statements carefully: (1) 2023

Statement 1: India announced its First Five Year Plan in 1951.
Statement 2: India, Pakistan and China adopted economic planning as the core development strategy.
(a) Statement 1 is true and Statement 2 is false. (b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true. (d) Both Statements 1 and 2 are false.
Ans. (c) Both Statements 1 and 2 are true.

Q.5. Read the following statements : Assertion (A) and Reason (R). Choose the correct alternative: (1)
2023 c
Assertion (A) : China has the highest life expectancy in the world.
Reason (R) : Maternal Mortality Rate of India is higher than that of China.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of the Assertion
(A).
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the (A).
(c) Assertion (A) is true, but Reason (R) is false. (d) Assertion (A) is false, but Reason (R) is true.
Ans. (d) Assertion (A) is false, but Reason (R) is true.
OR
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In China, reforms were introduced in phased manner. In the second and later phases, reforms were
introduced in ___________ sector.
(1) 2023 c
(a) Agriculture (b) Industrial (c) Foreign Trade (d) Demographic
Ans. (b) Industrial

Q.6. In the 1970s, Pakistan nationalised the industries related to ____________ goods. (1) 2023 c
(a) Consumer (b) Sports (c) Capital (d) Defence Ans. (c) Capital

Q.7. India is not a member of which of the following regional/global economic groups? (1) 2023 c
(a) SAARC (b) BRICS (c) G-7 \(d) G-20 Ans. (c) G-7

Explain valid reasons for the slow growth and re-emergence of poverty in Pakistan. (4) 2023
Ans. The reasons for the slow growth and re-emergence of poverty in Pakistan are:
• Agricultural growth and food supply situation were not based on institutional process of technical
change but on good harvest. Hence, Pakistan faced a volatile performance in the agriculture sector.
• Overdependence on remittances and foreign aid on the one hand and increasing difficulty in paying
back the loans on the other. (To be marked as a whole) (Any other valid argument)

Q8. “Post-1947 India and Pakistan adopted similar developmental strategies for their respective
development paths. Do you agree with the given statement? Give valid reason for your answer.
(4) 2023 c
Ans. Yes. Similar developmental strategies were adopted by India and Pakistan for their respective
development paths as:
(i) Both the nations have followed the path of mixed economic structure involving the public as well as
the private sector.
(ii) Both India and Pakistan adopted import substitution policy in order to protect their domestic
industries from foreign competition.

Question.9 : a) State any two harmful effects of Global warming. (2) 2022
Two harmful effects of global warming are:
(i) Melting of Polar ice, resulting in rise in sea level and coastal flooding.
(ii) Increase in incidence of tropical diseases.(any other valid point/reason/argument be awarded marks)
Or
(b) State any two advantages of ‘sustainable development’. (2) 2022
Two advantages of sustainable development are:
(i) Minimises environmental problems.
(ii) Provides better potential average quality of life to all future generations.
(any other valid point/reason/argument should be awarded marks accordingly)

Q10. Define ‘liberty indicator’ with the help of an example and state its importance. (3)2022
Liberty indicator may be defined as the measure of the extent of demographic participation in the social and
political decision making.
For example: Measure of the extent of the constitutional protection rights, given to citizens.
It is important to include the liberty indicators. Without these the construction of a human development
index may be said to be incomplete. (any other valid example/explanation to be allotted marks)

Q11. Briefly explain any two similar developmental strategies opted by India and Pakistan for their
respective developmental path. (3) 2022
Two similar developmental strategies opted by India and Pakistan for their respective development are:
(i) Both of them have followed the path of mixed economic structure involving the participation of both
public as well as the private sector.
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(ii) Both India and Pakistan introduced import substitution policy in order to protect the domestic industries
from foreign competition

Q12. Compare and analyse the Annual Growth rate of population of India and China. (3)
2022

Ans: The given data shows that, India stands virtually more than double to China, in its annual population
growth rate of 1.2% as compared to China’s annual population growth rate of 0.5% p.a.
China could arrest its annual population growth rate with the implementation of some stringent measure in
late 1970’s, like the introduction of ‘One Child Norm’. This step was instrumental in controlling the growth
of population in China. (to be marked as a whole)

Q13. Explain briefly the problems faced by Great Leap Forward campaign. (3) 2022
Great Leap Forward campaign met with many problems like :
A severe drought caused havoc in China killing about 30 million people.
Russia withdrew its professionals from China. These experts were earlier sent to China to boost /support
the industrialization process.

Q14. Compare and analyse the health status of India and Sri Lanka, on the basis of any two indicators
from the given schedule : (4) 2022
Indicators of Health in India in Comparison with other nations, 2015-17.

1) India has a higher Infant Mortality Rate (34/1000 live births) as compared to Sri Lanka (7.5/1000 live
births) due to lack of health facilities.
2) India has as a higher Under- 5 Mortality Rate (39.4/1000 live birth) as compared to Sri Lanka (8.8/1000
Livebirths) due to malnutrition and lack of access to healthcare facilities.
3) Infant immunisation (DTP) in % is higher in Sri Lanka (99%) as compared to India (88%) because a very
low proportion of Indian population utilizes public health services.
4) Government health spending as a percentage of GDP is marginally higher in India(3.9) than Sri Lanka
(3). India is showing a higher government spending as percentage of GDP, but it is much below the
needs of the economy, given the size of its population. (any two valid points to be awarded marks)

Q15. Case Study:

Read the following text carefully and answer, Q. given below:
Chinese Economy Risks Deeper Slowdown than Markets Realise - (Bloomberg, 24th October, 2021)
China's Economy risks slowdown faster than global investors realise. It is pushing to cut its dependence on
real-estate. It has started regulating sectors from education to technology, as it is facing power shortage
and the pandemic.
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Many economists have warned that the GDP growth rate will fall to 8.2% this year and to below 5% in the
next year.
China is now planning to stabilise debt growth, curb inequality and channelise resources into hi-tech
manufacturing. Data released in last week already showed a sharp slow down in third quarter GDP growth
to 4.9% from 7.9% in the previous quarter. There is more pain likely to come as electricity shortage persist,
while new COVID 19 infections are expected to rise in coming days.
Even before the pandemic hit, China was surprising economists with slower-than-expected growth rate
caused by the easing off debt risks.
China's Premier Li Keqiang, announced in March a growth target of "above 6%" in the coming financial
year.
China has signalled, in recent weeks that it could loosen some policies like telling banks to pick up the pace
of mortgage lending as a short term stimulus. Governor of People's Bank of China Yi Gang, recently said he
sees an expansion of about 8% for this year.
China's slowdown comes as the global recovery from COVID-19 risks looses momentum. Among those at
risks from falling investments in China are commodity exporters like Australia, South Africa, Chile, Peru
and Brazil. Slower trades could also hit countries like Malaysia, Singapore and
Thailand.
The other risk is that China's policy-makers may struggle to flick the switch back to growth model if they
feel that's needed. Economists noted that the electricity shortages that are crimping industrial production
will make it harder to cushion growth by boosting investment in infrastructure.
That kind of policy could only work next year once the power crunch eases.

i)State and discuss any two reasons that exhibit slowdown in the Chinese economy. (3) 2022
Two reasons exhibiting the slowdown in Chinese economy are
(i) Investment in China is expected to fall due to fall in demand from commodity exporters such as
Australia, South Africa, Chile, Peru and Brazil.
(ii) Electricity shortages crimped industrial production; it will make it harder to cushion growth by boosting
investment in infrastructure. (any other valid point/ reason/argument to be awarded marks)
ii) Discuss briefly any two measures, which you may suggest as an economic advisor to the
Government of China. (3) 2022
Two measures to curb the situation may be quoted as:
(i) Suggesting banks to pick up the pace of mortgage lending as a short-term stimulus.
(ii) Planning to cut dependence on real estates and regulate sectors from education to technology.
(any other valid point/ reason/argument to be awarded marks)

Q16. In India the maternal mortality rate is higher_______________ (China/Pakistan). (1) 2021
(Fill in the blank by choosing the correct alternative) Answer: - China

Q17. Discuss any two similar developmental strategies followed by india and Pakistan after 1947. (4)
2021
Answer:- The two similar developmental strategies followed by India and Pakistan after 1947 were:
i. Both the countries had started planning their development strategies in similar ways – using five-year
plans. India initiated the process in 1951–56, Pakistan announced its first five-year plan (Medium-Term
Development Plan) in 1956.
ii. India and Pakistan adopted similar strategies, such as creating a large public sector and raising public
expenditure on social development. (Any other valid argument with correct explanation should be
allotted marks accordingly)

Q.18. India is not a member of which of the following regional/global economic grouping? (Choose the
correct alternative) (1) 58/1/1 2020
(A)European Union (C) G-20 (B)BRICS (D) SAARC Answer – (A) European Union
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Question .19: Pakistan introduced its economic reforms in the year ________ (1) 58/1/1 2020
(A) 1974 (B) 1976 (C) 1978 (D) 1988 Answer – (D) 1988
Question.20: The main aim of ‘Great Leap Forward’ was to ensure rapid increase in ________
(primary/secondary/tertiary) sector in China. Answer: Secondary (1) 58/1/1 2020
Question.21: Compare and analyse the given data of India and China, with valid reasons : (4) 58/1/1 2020

Answer a) The given data shows that China could arrest its annual population growth rate with the
implementation of some stringent measure in late 1970’s like the introduction of one child norm. This step
has been instrumental in controlling the growth of population in China. India stands virtually more than
double to China at its annual population growth rate of 1.2% as compared to China’s annual population
growth rate of 0.5% pa
b) The social dynamics of both the countries are similar to each other; sex ratio is low and biased in both the
countries due to preference for male child. Whereas, India stands at 929 females per 1000 males, China is
not far ahead at 941 females per 1000 males.
Question.22: Mao initiated the ‘Great Leap Forward’ in the year ____. (1) 58/2/1,2 comp 2020
(A) 1951 (B) 1955 (C) 1958 (D) 1962 Answer-(C) 1958
Question.23: - Compare and analyse the given data of India and China with valid reasons : (4) 58/2/1 2020
COUNTRY ANNUAL GROWTH RATE OF POPULATION SEX RATIO (per 000 males)
(2015)
INDIA 1.2% 929
CHINA 0.5% 941
Source: World Development Indicators, 2015 Answer-
a) The given data shows that China could arrest its annual population growth rate with the
implementation of some stringent measure in late 1970’s like the introduction of one child norm. This
step has been instrumental in controlling the growth of population in China. India stands virtually more
than double to China at its annual population growth rate of 1.2% as compared to China’s annual
population growth rate of 0.5% pa.

b) The social dynamics of both the countries are similar to each other; sex ratio is low and biased in both
the countries due to preference for male child. Whereas, India stands at 929 females per 1000 males,
China is not far ahead at 941 females per 1000 males.

Question.24: State the meaning of ‘Commune’. (1) 58/3/1/ 2020

Answer- Commune refers to a system of collective farming under which people were made to cultivate
farm land in China under Great Proletarian Cultural Revolution.

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Question.25: Arrange the following events in chronological order and choose the correct alternative:
(1) 58/3/1 2020
(i) Establishment of people’s Republic of China
(ii) Creation of Pakistan
(iii) First Five-Year Plan of India
(iv) First Five –Year plan of China

(A) (i), (iv),(ii),(iii) (B) (iii),(ii),(i),(iv) (C) (ii),(i),(iii),(iv) (D) (iv),(iii),(ii),(i) Answer- (C) (ii),(i),(iii),(iv)

Question.26: “India, China and Pakistan have travelled more than seven decades of developmental path
with varied results.” Explain the given statement with valid arguments. (4) 58/3/1 2020
Answers-
i. Till the late 1970s, all the three countries were maintaining the same level of low development.
ii. Over the last three decades, the three countries have taken different levels of development
India has performed moderately over the years. Majority of its people still depend on agriculture.
Infrastructure is lacking and more than one fourth of its population live below poverty line.
Pakistan performed low because of political instability, overdependence on remittances and foreign aid
along with volatile performance of agriculture.
China has used the market system to succeed in raising the rate of growth in economy with stress on
alleviation of poverty. (to be marked as a whole) (any other valid argument should be allotted marks)

Question.27: Introduction of Economic Reforms in China took place in the year____. (1) 58/4/1 2020
a. 1978 b. 1980 c. 1988 d. 1991 Answer: a.1978

Question.28: Which of the following countries adopted ‘One Child Policy’ as a measure to control
population? (1) 58/4/2 2020
a) India b) China c) Pakistan d) Russia Answer: b) China

Question.29: Great Proletarian Culture Revolution was introduced under the leadership of ______. a) Mao
Zedong b) J.L Nehru c) M.K. Gandhi d) M.A. Jinnah (1) 58/4/3/ 2020
Answer: a. Mao Zedong

Question.30: Maternal Mortality Rate is high in _____________ (China/Pakistan). (1) 58/5/ 1 2020
Answer-Pakistan

Question.31: Which of the following countries initiated its process of Economic Reforms in the year 1991
? (Choose the correct alternative) (1) 58/5/1 2020
a) Pakistan (b)India c) Russia (d) China Answer- (b) India

Question.32: ‘GLF’ with respect to the People’s Republic of China referred to as . (Choose the correct
alternative). (1) 58/5/1 2020
(a) Giant Leap Forward (b) Great Lead Forum (c) Great Leap Forward (d) Giant Lead Forum Answer- (c)

Question.33: In China, commune system is related to ___________ sector. (Fill in the blank with the
correct alternative) (1)58/c/1 2020
(A) agriculture (B) industry (C) service (D) informal Answer: (A) agriculture

Question.34: Compare India and Pakistan on the basis of their demography (4) 58/c/1 2020
Answer: India and Pakistan can be compared on demographic front as follows (as per the World Bank
Report 2015):

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i. The population growth rate of the two nations is growing rapidly. Indian population is growing at around
1.2% p.a. whereas that of Pakistan is growing at around 2.1% p.a.
ii. The fertility rate of the two nations depicts the clear reason for the difference in the population growth
rate. The fertility
rate on an average of India stands at 2.3 kids per female and that of Pakistan stands at 3.7 kids per female.
iii. The sex ratio of the two nations stand quite near to each other, showing preference of male child in both
the nations. India stands at 929 females per 1000 males and Pakistan stands at 947 females per 1000 males.
(any two points) (any other valid answer/argument to be marked)
(marks should not be deducted if data is not provided, as data is only indicative in nature)

NCERT Solution

Fill in the blanks

a. First Five Year Plan of ________________ commenced in the year 1956. (Pakistan/China)
b. Maternal mortality rate is high in _____________. (China/Pakistan)
c. Proportion of people below poverty line is more in __________(India/Pakistan)
d. Reforms in ______________ were introduced in 1978. (China/Pakistan)

Answer:(a) Pakistan, (b) Pakistan, (c) India, (d) China

Question 1: Why are regional and economic groupings formed?

Answer: Regional and economic groupings are formed by nations to strengthen their economies by close
cooperation and by knowledge sharing.

Question 2: What are the various means by which countries are trying to strengthen their own domestic
economies?

Answer: As the examples of India, China and Pakistan show; countries are trying various means to
strengthen their own domestic economies.

i)Five Year Planning

ii)Reforms in agriculture,

iii)improvement in industrial production

iv) promoting privatization.

Question 3: What similar developmental strategies have India and Pakistan followed for their respective
developmental paths?

Answer: Both India and Pakistan began with greater focus on public sector during the first phase of
economic development. After that, both the countries followed the path of privatization so that
productivity could be improved. In the agricultural sector, both the countries implemented Green
Revolution.

• India and Pakistan started its development process almost at the same time in the year 1947.
Whereas, the Republic of China was established in the year 1949.

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 • India launched its five-year plan in 1951-1956, while Pakistan started its plan in 1956 and China
started in the year 1953.
• India and Pakistan follow the same strategy as generating a large public sector and rising public
expenditure on social development.
• All three counties have the same growth rates and per capita income until the year 1980.
• In all the three countries economic reform started from India 1991, China 1978, and Pakistan 19

Question 4: Explain the Great Leap Forward campaign of China as initiated in 1958.

Answer: The Great Leap Forward campaign of China began in 1958. It was aimed at industrializing the
country in a big way. People were encouraged to set up industries in their backyards. Communes were
started in rural areas so that farming could be collectively done.

Question 5: China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree?
Elucidate.

Answer: China’s rapid industrial growth can be traced back to its reforms in 1978. Reforms were
introduced in phases in China.

In the first phase, reforms were initiated in agriculture, foreign trade and investment sector.

Reforms in the industrial sector were initiated in the second phase.

i)Private sector was encouraged to improve production.

ii)Village and township enterprises which were owned by the local government were also encouraged to
improve production.

iii)The State Owned Enterprises (SEOs) were made to face competition with the private sector.

iv)A policy of dual pricing was followed to improve industrial productivity.

v)Special economic zones were also created to motivate industrialists.

Question 6: Describe the path of developmental initiatives taken by Pakistan for its economic
development.

Answer: In the 1950s and 1960s Pakistan introduced many policies for import substitution in order to
protect its domestic industry. During this period,

i)Green Revolution was initiated to improve agricultural output.

ii)In 1970s the capital goods industry was nationalized.

iii)Pakistan then dramatically changed its economic policy in the late 1970s and 1980s.

iv)The new policies were aimed at greater privatization.

v)In addition to changes in policies, inflow of foreign loans and remittances helped in creating a
conducive environment of growth in Pakistan.

Question 7: What is the important implication of the ‘one child norm’ in China?
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Answer: While the ‘one child norm’ helped in arresting the growth of population in China, it has a
severe drawback.

i)After some years from now, there will more elderly people in China than young people.

ii)The cost of social security will increase

iii)while number of workers will decline significantly in China.

iv)This will result in huge economic burden on China however the burdrn of six elderly person s on one
child.

Question 8: Mention the salient demographic indicators of China, Pakistan and India.

Answer:

i)Total Population: The population of China is 1371 million, that of India is 1311 million and that of
Pakistan is 188 billion.
ii)The annual growth rate of population is highest in Pakistan (2.1) followed by India (1.2) and China comes a
distant third at 0.5.
Reason Scholars point out the one child norm introduced in China in the late 1970s as the major reason for
low population growth.

iii)Sex ratio is adverse or biased for females in all these countries with about 48% of the population
comprised of females. India has the lowest with 929 females per thousand males followed by China
(941) and Pakistan ( 947)

Reason: One child policy norm adopted in China and preference to male child due to patriarchal system
of society is the main reason in India behind adverse sex ratio.

iv)The fertility rate is highest in Pakistan at 3.7%; followed by India (2.3) and China (1.6).

Reason: China has one child policy norm , India has 2 child policy norm and Pakistan has no control.

v)The level of urbanization is highest in China at 56%; followed by Pakistan (39) and being lowest
India (33).

Question 9: Mention the various indicators of human development.

Answer: Various indicators of human development are as follows:

• Life expectancy at birth

• Adult literacy rate
• GDP per capita
• People below poverty line
• Infant mortality rate
• Maternal mortality rate
• Population with improved access to sanitation and drinking water

Question 10: Define the liberty indicator. Give some examples of liberty indicators.

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Answer: Parameters which show relative democratic liberty and freedom enjoyed by citizens in a
country can be termed as liberty indicator. The extent of democratic participation in social and political
decision making is an example of liberty indicator. Extent of constitutional protection to rights of citizens
is another example.

Question 11: Evaluate the various factors that led to the rapid growth in economic development in China.

Answer: There are many factors which led to the rapid growth in economic development in China.
Unlike India and Pakistan;

i)Chinese reforms were not initiated under compulsion from IMF and World Bank, rather reforms were
the results of an innate desire by the political establishment. Each reform measure was first implemented
at small level and then replicated at bigger level. Decentralization helped in proper analysis of successes
and failures of various reform measures

ii)Establishment of infrastructure in the areas of health and education, long existence of decentralized
planning and existence of small enterprises helped in ensuring the success of the reforms.

iii)Provision of education and healthcare in rural areas helped in developing human capital.

iv)The commune system helped in equitable distribution of food grains among the people.

Question 12: Group the following features pertaining to the economies of India, China and Pakistan
under three heads:
One-child norm, Low fertility rate, High degree of urbanization, Mixed economy, Very high fertility rate,
Large population, High density of population, Growth due to manufacturing sector, Growth due to
service sector.

Answer: India: Mixed economy, very high fertility rate, large population, high density of population,
growth due to service sector
China: One-child norm, low fertility rate, high degree of urbanization, mixed economy, large population,
growth due to manufacturing sector
Pakistan: Mixed economy, very high fertility rate, growth due to service sector

Question 13: Give reasons for the slow growth and re-emergence of poverty in Pakistan.

Answer:

i)Lack of Institutional improvement: Experts believe that agricultural growth and food supply in
Pakistan was not due to institutional improvement rather it was mainly caused by years of good harvest.
When there was good harvest the economy was in good condition, when it was nor economic indicators
showed stagnation or negative trend.

ii)External borrowing: Moreover, growth was fueled by finance from external borrowings and
remittances from the Middle East. When the crops failed the economy suffered. This also resulted in
greater inability in paying back loans.

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iii)Over dependence on remittances: In Pakistan most of foreign exchange earnings came from
remittances from Pakistani workers in middle east. Export earnings were from highly volatile agricultural
goods in place of export of manufactured goods.

iv) Floods and Political instability: The economy is under stress as floods delays implementation of
economic reforms. Massive floods took a heavy toll in agriculture. Political instability and difficult
security challenges were also adversely affecting the economy.

v) Lack of infrastructure : Infrastructural development was also not sufficient to achieve sufficient
growth. These factors led to slow growth.

Question 14: Compare and contrast the development of India, China and Pakistan with respect to some
salient human development indicators.

Answer: China is way ahead of India and Pakistan at most of the human development indicators.
Pakistan is ahead of India in terms of reducing the number of people below poverty line and in providing
better sanitation and drinking water. But both the countries perform equally badly in terms of infant
mortality and maternal mortality rates. All the three countries perform badly in sex ratio. However, in
assessing human development we should not ignore various liberty indicators which include extent of
democratization and protection of various fundamental rights.

Question 15: Comment on the growth rate trends witnessed in China and India in the last two decades.

Answer: In the last two decades, China has been able to maintain double digit growth rate. India began
with a low growth rate of 5.7% in the first decade and has fared somewhat better in the second decade
with 7.4% growth rate.

Question 16: Compare and contrast India and China’s sectoral contribution towards GDP in 2015. What
does it indicate?

Answer: The following table shows sectoral contribution in GDP in 2015-17 in India, China and
Pakistan.

i)Agriculture Sector: It is clear from the above table that agriculture is the lowest contributor to GDP in
all the three countries. Highest contribution of agriculture in GDP is in Pakistan with 25% followed by
India with 17% and China has the lowest share of agriculture 9%.

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 ii) Industry: In case of China, industry is the largest contributor to GDP with 43% and India contributes
30% from industry and lowest contribution is 21% of Pakistan. It shows China has build strong
manufacturing base.

iii)Service sector: In case of Pakistan and India, the service sector is the largest contributor to the GDP
with 54% and 53% respectively. China’s share in service sector is lowest with 48%.

Indicates: Normal structural pattern says that initially countries are agrarian economy, then transforms in
to industrial economy then tertiary sector grows. Tertiary sector supports service sector .

Above trend indicates that China is very strong in manufacturing sector however India & Pakistan are
showing their growth in tertiary sector than in manufacturing sector. It indicates that in India and
Pakistan’s service sector is not completely supported by manufacturing sector. They are dependent on
imports.
QUESTION 17: Write a few lines on the comparative development experiences of India and its
neighbouring countries.
Answer: Few lines on the comparative development experiences of India and its neighbouring countries are.

• India and Pakistan started its development process almost at the same time in the year 1947.
Whereas, the Republic of China was established in the year 1949.
• India launched its five-year plan in 1951-1956, while Pakistan started its plan in 1956 and China
started in the year 1953.
• India and Pakistan follow the same strategy as generating a large public sector and rising public
expenditure on social development.
• All three counties have the same growth rates and per capita income until the year 1980.
• In all the three countries economic reform started from India 1991, China 1978, and Pakistan 1988.

QUESTION 18: Describe the table no 10.3 and analyse the sectoral share of GDP and workforce.

Sectoral Share of GDP & Workforce:

i)Agriculture Sector:

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 a)Contribution of GDP: It is clear from the above table that agriculture is the lowest contributor to GDP
in all the three countries. Highest contribution of agriculture in GDP is in Pakistan with 25% followed by
India with 17% and China has the lowest share of agriculture 9%.

b)Contribution of Workers: In India and Pakistan about 42.7% and 42% of workforce are engaged in
Agriculture sector but in China only 17.5% worker are employed.

c)Comparison of productivity: If we compare contribution of GDP and work force, we conclude that:
in India 42.7% workers produce only 17% GDP, In Pakistan 42% workers produce 25% of GDP and in
China 17.5% workers give 9% GDP. This shows less productivity of agricultural workers in all the three
countries.

ii) Industry:

a)Contribution of GDP : In case of China, industry is the largest contributor to GDP with 43% and
India contributes 30% from industry and lowest contribution is 21% of Pakistan. It shows China has build
strong manufacturing base.

b)Contribution of workers: In China 26.5% of workforce is involved in Industries however in India it

is 23.8% and in Pakistan about 3.7% workforce are engaged in Industrial sector.

c)Comparison of productivity: In China 26.5% workers contributes 43% of GDP, In India 23.8%
workers produce 30% of GDP & in Pakistan 3.7% workers produce 21% of GDP. Productivity in
industrial sector is more as compared to agriculture.

iii)Service sector:

a)In case of Pakistan and India, the service sector is the largest contributor to the GDP with 54% and
53% respectively. China’s share in service sector is lowest with 48%.
b)Sectoral share of Workforce and comparison: Indian workers seems to be most efficient in service
sector as 33.5 % workers produce 53% of GDP. In China 56% or workers gives 48% of GDP and in
Pakistan 54% workers give 54% of GDP.
QUESTION 19: Describe the table 10.5 given below and analyse the indicators of Human Development
and compare the situation of India China and Pakistan.

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Table 10.5 shows that China is moving ahead of India and Pakistan. This is true for many indicators —
income indicator such as GDP per capita, or proportion of population below poverty line or health
indicators such as mortality rates, access to sanitation, literacy, life expectancy or malnourishment.

i)HDI Value and Rank: China is ahead of India with 0.752 and 86 rank and India is ahead of Pakistan
with 0.64 value and 130 rank as compared to 0.562 value and 150 rank.

ii)Life Expectancy: is highest in China with 76.4 followed by India with 68.8 and Pakistan is lowest with
66.6 years.

iii) Poverty Ratio: Population below 3.2$ a day is lowest in China ( 23.5), Pakistan is ahead of India in
reducing proportion of people below the poverty line with 46.4 and India has 60.4% people living below
poverty line. India has the largest share of poor among the three countries.

iv)Infant Mortality Rate: IMR is lowest at 8.5 per thousand in China followed by India with 34.6 and in
Pakistan it is 64.2 per thousand.

v)Maternal Mortality Rate: In China, for one lakh births, only 27 women die whereas in India and
Pakistan, about 174 and 178 women die respectively.

vi)Sanitation: India is having poorest sanitation with 44.2% , Pakistan is little bit better with 58.3% and
China has highest percentage with 75%.

vii)Improved Drinking Water: Surprisingly all the three countries report providing improved drinking
water sources for most of its population.

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