AGRICULTURE

Types of Farming

The cultivation methods depend upon the characteristics of the physical environment, technological
know-how and socio-cultural practices. Farming varies from subsistence to commercial type. In
different parts of India, the following farming systems are practised.

Primitive Subsistence Farming

It is a ‘slash and burn’ agriculture. Farmers clear a patch of land and produce cereals and other
food crops. When the soil fertility decreases, the farmers shift and clear a fresh patch of land for
cultivation. It is known by different names in different parts of the country. It is known
as jhumming in the northeastern states.
Land productivity is low in this type of agriculture.
This type of farming depends on monsoon.
This farming is practised in a few parts of India.

Intensive Subsistence Farming

This type of farming is practised in areas of high population pressure on land.

It is labour-intensive farming, where high doses of biochemical inputs and irrigation are used for
higher production.

Commercial Farming

This type of farming uses higher doses of modern inputs such as high-yielding variety (HYV) seeds,
chemical fertilisers, insecticides and pesticides to obtain higher productivity.
Plantation is a type of commercial farming in which a single crop is grown in a large area.
Plantations cover large tracts of land, using capital-intensive inputs with the help of migrant
labourers. All the produce is used as a raw material in industries.
E.g., Tea, coffee, rubber, sugarcane, banana.

Cropping Pattern

India has three cropping seasons:

Rabi Kharif Zaid

Sowing Winter from Beginning of the In between the Rabi and the
Season October to rainy season Kharif seasons, there is a short
December between April season during the summer months
and May known as the Zaid season (in the
months of March to July)
Harvesting Summer from September-
Season October
April to June

Important Wheat, Paddy, Maize, Watermelon, Muskmelon,

Crops Barley, Peas, Jowar, Bajra, Tur Cucumber,
Gram and (Arhar),
Mustard. Vegetables and Fodder crops
Moong, Urad,
Cotton, Jute,
Groundnut and
 Soyabean.

Major Crops in India

A variety of food and non-food crops are grown in different parts of India, depending upon the
variations in soil, climate and cultivation practices. Major crops grown in India are:

Rice

It is a Kharif crop.
It requires high temperature and high humidity with annual rainfall above 100 cm.
India is the second largest producer of rice in the world after China.
It is grown in the plains of north and north-eastern India, coastal areas and the deltaic regions.

Wheat

This is a Rabi crop.

It requires a cool growing season and bright sunshine at the time of ripening.
It requires 50 to 75 cm of annual rainfall evenly distributed over the growing season.
The Ganga-Satluj plains in the northwest and the black soil region of the Deccan are two main
wheat-growing zones in India.
It is the second most important cereal crop and main food crop in the north and north-western part
of India.

Millets

Jowar, Bajra and Ragi are the important millets grown in India.
These are known as coarse grains and have very high nutritional value.

Jowar Bajra Ragi

3rd most important Grows well on sandy It is a crop of dry regions.

food crop with respect soils and shallow black
to area and soil.
production.

It is a rain-fed crop Grows well on red, black,

mostly grown in moist sandy, loamy and shallow
areas. black soils.

Mainly produced in Major producing states Major producing states are

Maharashtra, are Rajasthan, Uttar Karnataka, Tamil Nadu,
Karnataka, Andhra Pradesh, Maharashtra, Himachal Pradesh,
Pradesh and Madhya Gujarat and Haryana. Uttarakhand, Sikkim,
Pradesh. Jharkhand and Arunachal
Pradesh.

Maize

It is a Kharif crop.
It requires temperature between 21°C to 27°C and grows well in old alluvial soil.
It is used both as food and fodder.
Major maize-producing states are Karnataka, Madhya Pradesh, Uttar Pradesh, Bihar, Andhra
Pradesh and Telangana.

Pulses

India is the largest producer and consumer of pulses in the world.

Pulses are the major source of protein in a vegetarian diet.
Major pulses grown in India are Tur (Arhar), Urad, Moong, Masur, Peas and Gram.
Pulses are mostly grown in rotation with other crops so that the soil restores fertility.
Major pulse-producing states are Madhya Pradesh, Rajasthan, Maharashtra, Uttar Pradesh and
Karnataka.

Food Crops other than Grains

Sugarcane

It is a tropical as well as a subtropical crop.

It grows well in hot and humid climates with a temperature of 21°C to 27°C and annual rainfall
between 75cm to 100cm.
It can be grown on a variety of soils.
Needs manual labour from sowing to harvesting.
India is the second largest producer of sugarcane only after Brazil.
Sugarcane is the main source of Sugar, Gur (Jaggery), Khansari and molasses.
The major sugarcane-producing states are Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu,
Andhra Pradesh, Telangana, Bihar, Punjab and Haryana.

Oil Seeds

Different oil seeds are grown, covering approximately 12% of the total cropped area of India. The
main oil-seeds produced in India are:
Groundnut: is a Kharif crop and accounts for half of the major oilseeds produced in India. Gujarat is
the largest producer of groundnuts.
Mustard: is a rabi crop.
Sesamum (til): is a Kharif crop in the north and rabi crop in south India.
Castor seeds: It is grown as both Rabi and Kharif crop.
Linseed: is a rabi crop.
Coconut, Soyabean, Cotton seeds, Sunflower

Tea

It is also an important beverage crop introduced by the British in India.

The tea plant grows well in tropical and sub-tropical climates with deep and fertile well-drained
soil, rich in humus and organic matter.
Tea bushes require a warm and moist frost-free climate all through the year.
Tea is a labour-intensive industry.
Major tea-producing states are Assam, hills of Darjeeling and Jalpaiguri districts, West Bengal,
Tamil Nadu and Kerala.

Coffee

Yemen coffee is produced in India, and this variety of coffee is in great demand all over the world.
Its cultivation was introduced on the Baba Budan Hills and is confined to the Nilgiri in Karnataka,
Kerala and Tamil Nadu.

Horticulture Crops
India is a producer of tropical as well as temperate fruits. Major crops produced are pea,
cauliflower, onion, cabbage, tomato, brinjal and potato. Some of the famous horticulture crops
grown in India are:
Mangoes of Maharashtra, Andhra Pradesh, Telangana, Uttar Pradesh and West Bengal Oranges of
Nagpur and Cherrapunjee (Meghalaya), bananas of Kerala, Mizoram, Maharashtra and Tamil Nadu.
Lichi and Guava of Uttar Pradesh and Bihar
Pineapples of Meghalaya
Grapes of Andhra Pradesh, Telangana and Maharashtra
Apples, pears, apricots and walnuts of Jammu and Kashmir and Himachal Pradesh

Non-Food Crops

Rubber Fibre Cotton Jute

It is an equatorial Cotton, Jute, It is a Kharif crop. It is known as the

crop. Hemp and golden fibre.
Natural Silk are
the four major
fibre crops.

It requires a moist Cotton, Jute and It requires high It grows well on

and humid climate Hemp are well-drained fertile
with rainfall of more grown in the temperature, light soils in the flood
than 200cm and soil. rainfall, 210 frost- plains. A high
temperature above free days and bright temperature is
25°C. sunshine for its required for its
growth. growth.

It is an important Natural Silk is Cotton grows It is used in making

industrial raw obtained from gunny bags, mats,
material cocoons of the well in the black ropes, yarn, carpets
silkworms fed cotton soil of the and other artefacts.
on green leaves Deccan plateau.

Mainly grown in Rearing of Major cotton- Major jute-

Kerala, Tamil Nadu, silkworms for producing states are producing states
Karnataka and the production Maharashtra, are West Bengal,
Andaman and of silk fibre is Gujarat, Madhya Bihar, Assam,
Nicobar islands and known as Pradesh, Karnataka, Odisha and
Garo hills of Andhra Pradesh, Meghalaya.
Meghalaya. Sericulture.
Telangana, Tamil
Nadu, Punjab,
Haryana and

Uttar Pradesh.

Technological and Institutional Reforms

Agriculture provides a livelihood for more than 60% of its population, so this sector needs some
serious technical and institutional reforms. The Green Revolution and the White Revolution were
some of the reforms initiated by people to improve agriculture.
Some initiatives taken by the Government are:
Schemes introduced by Government such as Kissan Credit Card (KCC), Personal Accident Insurance
Scheme (PAIS).
Special weather bulletins and agricultural programmes for farmers on the radio and television were
introduced.
The government also announces minimum support price, remunerative and procurement prices for
important crops to check the exploitation of farmers by speculators and middlemen.

Contribution of Agriculture to the National Economy, Employment and Output

In 2010-11, about 52% of the total workforce was employed by the farm sector.

The share of agriculture in the GDP is declining.

Indian Council of Agricultural Research (ICAR), agricultural universities, veterinary services and
animal breeding centres, horticulture development, research and development in the field of
meteorology and weather forecast, etc. are a few of the initiatives introduced by the government to
improve Indian agriculture.

MINERAL AND ENEGRY RESOURCES

What is a Mineral?

A mineral is defined as a “homogenous, naturally occurring substance with a definable internal

structure.” Minerals are found in varied forms in nature, ranging from the hardest diamond to the
softest talc. Rocks are combinations of homogeneous substances called minerals.

Mode of Occurrence of Minerals

Minerals are usually found in “ores”. The term ore is used to describe an accumulation of any
mineral mixed with other elements. Minerals generally occur in the following forms:
In igneous and metamorphic rocks, minerals may occur in the cracks, crevices, faults or joints.
In sedimentary rocks, a number of minerals occur in beds or layers.
The decomposition of surface rocks and the removal of soluble constituents also form the minerals.
Minerals also occur as alluvial deposits in the sands of valley floors and the base of hills.
The ocean waters contain vast quantities of minerals.

Classification of Minerals

Ferrous Minerals

Ferrous minerals account for about three-fourths of the total value of the production of metallic
minerals.

Iron Ore

India is endowed with fairly abundant resources of iron ore.

Magnetite is the finest iron ore with a very high content of iron, up to 70%. It has excellent
magnetic qualities.
Hematite ore is the most important industrial iron ore. It contains 50 to 60% iron.
The major iron ore belts in India are:
Odisha-Jharkhand belt
Durg-Bastar-Chandrapur belt
Ballari-Chitradurga-Chikkamagaluru-Tumakuru belt
Maharashtra-Goa belt

Manganese

It is mainly used in the manufacturing of steel and ferro-manganese alloy.

Nearly 10 kg of manganese is required to manufacture 1 tonne of steel.
It is also used in manufacturing bleaching powder, insecticides and paints.

Non-Ferrous Minerals

Non-ferrous minerals include copper, bauxite, lead, zinc and gold. These minerals play a vital role
in a number of metallurgical, engineering and electrical industries.

Copper

A malleable, ductile and good conductor of heat and electricity.

Mainly used in electrical cables, electronics and chemical industries.
The Balaghat mines in Madhya Pradesh, the Khetri mines in Rajasthan and the Singhbhum district
of Jharkhand are leading producers of copper.

Bauxite

Bauxite deposits are formed by the decomposition of a wide variety of rocks rich in aluminium
silicates.
Aluminium is obtained from bauxite. Aluminium has good conductivity and great malleability.
Deposits are mainly found in the Amarkantak plateau, Maikal hills and the plateau region of
Bilaspur-Katni.

Non-Metallic Minerals

Mica is a mineral made up of a series of plates or leaves. It can be clear, black, green, red, yellow or
brown.
Mica is the most indispensable mineral used in the electric and electronic industries.
It has excellent di-electric strength, low power loss factor, insulating properties and resistance to
high voltage.
Mica deposits are found on the northern edge of the Chota Nagpur plateau.

Rock Minerals
Limestone is found in rocks composed of calcium carbonates or calcium and magnesium
carbonates.
It is the basic raw material for the cement industry and essential for smelting iron ore in the blast
furnace.

Conservation of Minerals

Minerals are a non-renewable resource. It takes thousands of years for the formation and
concentration of minerals. Continued extraction of ores leads to the depletion of minerals. So, it’s
important to take the necessary steps so that mineral resources can be used in a planned and
sustainable manner.

Energy Resources

Energy resources can be classified as

Conventional Sources: It includes firewood, cattle dung cake, coal, petroleum, natural gas and
electricity.
Non-Conventional Sources: It includes solar, wind, tidal, geothermal, biogas and atomic energy

Conventional Sources of Energy

Coal:

It is the most abundantly available fossil fuel.

It is used for power generation, to supply energy to the industry as well as for domestic needs.
Lignite is a low-grade brown coal, which is soft with high moisture content.
Coal that has been buried deep and subjected to increased temperatures is bituminous coal.
Anthracite is the highest quality of hard coal.
Jharia, Raniganj, and Bokaro are important coalfields.

Petroleum

It provides fuel for heat and lighting, lubricants for machinery and raw materials for a number of
manufacturing industries.
Petroleum refineries act as a “nodal industry” for synthetic textile, fertiliser and numerous chemical
industries.
Mumbai High, Gujarat and Assam are major petroleum production areas in India.

Natural Gas

Natural gas is an important clean energy resource. It is considered an environment-friendly fuel.

The power and fertilizer industries are the key users of natural gas.

Compressed Natural Gas (CNG ) is used in vehicles to replace liquid fuels.

Large reserves of natural gas have been discovered in the Krishna-Godavari basin

Electricity

Electricity is generated mainly in 2 ways:

By running water which drives hydro turbines to generate Hydro Electricity. It is a renewable
resource of energy. India has a number of multi-purpose projects like the Bhakra Nangal, Damodar
Valley Corporation, the Kopili Hydel Project.

By burning other fuels such as coal, petroleum and natural gas to drive turbines to
produce Thermal Power. It uses non-renewable fossil fuels for generating electricity.

Non-Conventional Sources of Energy

Renewable energy sources like solar energy, wind, tide, biomass and energy from waste material
are called Non-Conventional Energy Sources. Let’s discuss them one by one.

Nuclear or Atomic Energy

Nuclear Energy is obtained by altering the structure of atoms. Uranium and Thorium are used for
generating atomic or nuclear power.

Solar Energy

Solar energy is produced by the Sun’s light. Photovoltaic technology converts sunlight directly into
electricity.

Wind Power
Wind Energy or Power is the use of wind to generate electricity. Wind turbines are used for this
purpose. The largest wind farm cluster is located in Tamil Nadu from Nagercoil to Madurai.

Biogas

Biogas is a type of biofuel that is naturally produced from the decomposition of organic waste.
Biogas is the most efficient use of cattle dung. It improves the quality of manure.

Tidal Energy

Tidal energy is the form of hydropower that converts the energy obtained from tides into useful
forms of power, mainly electricity. In India, the Gulf of Khambhat, the Gulf of Kachchh in Gujarat on
the western coast and the Gangetic Delta in the Sunderban regions of West Bengal provide ideal
conditions for utilising tidal energy.

Geo-Thermal Energy

When heat and electricity are produced by using the heat from the interior of the earth, it is known
as Geo-Thermal Energy. In India, geothermal energy is harnessed from Parvati Valley near
Manikarn in Himachal Pradesh and from Puga Valley, Ladakh.

Conservation of Energy Resources

Every sector of the national economy – agriculture, industry, transport, commercial and domestic –
needs inputs of energy. There is an urgent need to develop a sustainable path for energy
development. Here are some ways that each one of us can contribute to saving energy resources:
Using public transport systems instead of individual vehicles
Switching off electricity when not in use
Using power-saving devices.
Using non-conventional sources of energy

MANUFACTURING INDUSTRIES

Importance of Manufacturing

The manufacturing sector is considered the backbone of development due to the following reasons.
Manufacturing industries help in modernising agriculture as it provides jobs in secondary and
tertiary sectors.
It helps in the eradication of unemployment and poverty.
Export of manufactured goods expands trade and commerce and brings in much-needed foreign
exchange.
It helps in prospering the country by giving a boost to the economy.

Contribution of Industry to National Economy

The trend of growth rate in manufacturing over the last decade has been around 7 percent per
annum.

Industrial Location
Industrial locations are influenced by the availability of:
Raw material
Labour
Capital
Power
Market

Government policies
Manufacturing activity tends to locate at the most appropriate place where all the factors of
industrial location are either available or can be arranged at a lower cost. The figure below shows
the industry market linkage.

Agro-Based Industries
Cotton, jute, silk, woollen textiles, sugar and edible oil, etc. industries are based on agricultural raw
materials. Let’s know about each of them, one by one.

Textile Industry
It is the only industry in India which is self-reliant and complete in the value chain, i.e., from raw
materials to the highest value-added products. It contributes to industrial production, employment
generation and foreign exchange earnings.

Cotton Textiles
This industry has close links with agriculture and provides a living to farmers, cotton boll pluckers
and workers engaged in ginning, spinning, weaving, dyeing, designing, packaging, tailoring and
sewing. It supports many other industries, such as chemicals and dyes, packaging materials and
engineering works.

Jute Textiles
India is the largest producer of raw jute and jute goods. Most of the mills are located in West
Bengal, mainly along the banks of the Hugli River.

Sugar Industry
India stands second as a world producer of sugar but occupies first place in the production of Gur
and Khandsari. This industry is seasonal in nature.

Mineral-Based Industries

Industries that use minerals and metals as raw materials are called mineral-based industries. Let’s
discuss some industries that fall under this category.

Iron and Steel Industry

Iron and steel is the basic industry as all the other industries – heavy, medium and light, depend on
it for their machinery. It is considered a heavy industry because all the raw materials, as well as
finished goods, are heavy and bulky entailing high transportation costs.
India is an important iron and steel producing country in the world, yet, we are not able to perform
to our full potential largely due to the following reasons.
High costs and limited availability of coking coal
Lower productivity of labour
Irregular supply of energy
Poor infrastructure

Aluminium Smelting
Aluminium Smelting is the second most important metallurgical industry in India. It is used to
manufacture aircraft, utensils and wires. Bauxite is the raw material used in the smelters.
Aluminium smelting has gained popularity as a substitute for steel, copper, zinc and lead in a
number of industries. It exhibits the following properties:
Light in weight
Resistant to corrosion
A good conductor of heat
Malleable
Becomes strong when it is mixed with other metals

Chemical Industries
The chemical industry comprises both large and small-scale manufacturing units. Rapid
Growth has been recorded in both inorganic and organic sectors.
Inorganic chemicals include sulphuric acid, nitric acid, alkalies, soda ash and caustic soda.
Organic chemicals include petrochemicals, which are used for manufacturing synthetic fibres,
synthetic rubber, plastics, dye-stuffs, drugs and pharmaceuticals.

Fertilizer Industry
The fertilizer industries are centred around the production of nitrogenous fertilizers (mainly urea),
phosphatic fertilizers and ammonium phosphate (DAP) and complex fertilizers, which have a
combination of nitrogen (N), phosphate (P), and potash (K). Gujarat, Tamil Nadu, Uttar Pradesh,
Punjab and Kerala contribute towards half of the fertilizer production.

Cement Industry
Cement is essential for construction activities such as building houses, factories, bridges, roads,
airports, dams and other commercial establishments. This industry requires bulky and heavy raw
materials like limestone, silica and gypsum.

Automobile Industry
This industry deals with the manufacturing of trucks, buses, cars, motorcycles, scooters, three-
wheelers and multi-utility vehicles. These industries are located around Delhi, Gurugram, Mumbai,
Pune, Chennai, Kolkata, Lucknow, Indore, Hyderabad, Jamshedpur and Bengaluru.

Information Technology and Electronics Industry

The electronics industry covers a wide range of products, from transistor sets to television,
telephones, cellular telecom, telephone exchange, radars, computers and other equipment required
by the telecommunication industry. This industry has generated employment in India. Bengaluru is
known as the electronic capital of India.

Industrial Pollution and Environmental Degradation

Industries are responsible for 4 types of pollution:

Air
Water
Land
Noise
Air pollution is caused by the presence of a high proportion of undesirable gases, such as sulphur
dioxide and carbon monoxide. Smoke is emitted by chemical and paper factories, brick kilns,
refineries and smelting plants, and the burning of fossil fuels leads to air pollution. It adversely
affects human health, animals, plants, buildings and the atmosphere as a whole.
Water pollution is caused by organic and inorganic industrial wastes and effluents discharged into
rivers. The industries which are mainly responsible for water pollution are paper, pulp, chemical,
textile and dyeing, petroleum refineries, tanneries and electroplating industries.
Thermal pollution of water occurs when hot water from factories and thermal plants is drained into
rivers and ponds before cooling.
Noise pollution is the propagation of noise with a harmful impact on the activity of human or animal
life. It results in irritation, anger, cause hearing impairment, and increased heart rate and blood
pressure.

Control of Environmental Degradation

Here are some ways through which industrial pollution can be reduced:
Minimising the use of water by reusing and recycling it.
Harvesting rainwater to meet water requirements.
Treating hot water and effluents before releasing them in rivers and ponds.
Particulate matter in the air can be reduced by fitting smoke stacks to factories with electrostatic
precipitators, fabric filters, scrubbers and inertial separators.
Smoke can be reduced by using oil or gas instead of coal in factories.
Machinery can be redesigned to increase energy efficiency and reduce noise.

GLOBALISATION HISTORY

The Pre-Modern World

Globalisation refers to an economic system that has emerged in the last 50 years or so. But, the
making of the global world has a long history – of trade, of migration, of people in search of work,
the movement of capital, and much else. From ancient times, travellers, traders, priests and
pilgrims travelled vast distances for knowledge, opportunity and spiritual fulfilment or to escape
persecution. As early as 3000 BCE, an active coastal trade linked the Indus Valley civilisations with
present-day West Asia.

Silk Routes Link the World

Silk routes are a good example of vibrant pre-modern trade and cultural links between distant parts
of the world. Several silk routes have been identified by historians, overland and sea, connecting
vast regions of Asia and linking Asia with Europe and northern Africa. In exchange for textiles and
species from India, precious metals – gold and silver – flowed from Europe to Asia.

Food Travels: Spaghetti and Potato

Food offers many examples of long-distance cultural exchange. New crops were introduced by
traders and travellers. Ready foodstuff such as noodles travelled west from China to become
spaghetti. Our ancestors were not familiar with common foods such as potatoes, soya, groundnuts,
maize, tomatoes, chillies, sweet potatoes, and so on about five centuries ago. Many of our common
foods came from America’s original inhabitants – the American Indians.

Conquest, Disease and Trade

The Indian Ocean, for centuries before, had known a bustling trade, with goods, people, knowledge,
customs, etc., crisscrossing its waters. The entry of Europeans helped redirect these flows towards
Europe. America’s vast lands and abundant crops and minerals began to transform trade and live
everywhere. The Portuguese and Spanish conquest and colonisation of America were decisively
underway by the mid-sixteenth century.
Europeans’ most powerful weapon was not a conventional military weapon, but germs such as those
of smallpox that they carried on their person. It proved to be a deadly killer. Until the nineteenth
century, poverty and hunger were common in Europe. Until well into the eighteenth century, China
and India were among the world’s richest countries. However, from the fifteenth century, China is
said to have restricted overseas contacts and retreated into isolation. Europe now emerged as the
centre of world trade.

PRINT CULTURE

The First Printed Books

China, Japan and Korea developed the earliest kind of print technology, which was a system of hand
printing. Books in China were printed with rubbing paper from AD 594, and both sides of the book
were folded and stitched. China, for a long time, was the major producer of printed material. China
started conducting civil service examinations for its bureaucrats and its textbooks were printed in
vast numbers. Print was no longer confined to scholar-officials. Merchants used print while
collecting their trade information. Reading became a part of leisure activity, and rich women
started publishing their own poetry and plays. This new reading culture attracted new technology.
In the late 19th century, Western printing techniques and mechanical presses were imported.

Print in Japan
Hand-printing technology was introduced by Buddhist missionaries from China into Japan around
AD 768-770. The Buddhist Diamond Sutra is the oldest Japanese book, printed in AD 868,
containing six sheets of text and woodcut illustrations. Printing of visual material led to interesting
publishing practices. In the late 19th century, illustrative collections of paintings depicted an
elegant urban culture and libraries and bookstores were packed with hand-printed material of
various types – books on women, musical instruments, etc.

Print Comes to Europe

Marco Polo returned to Europe after exploring China, and along with him, he brought the
knowledge of woodblock printing, and soon the technology spread to other parts of Europe.
Gradually, the demand for books started increasing, so booksellers began exporting books to many
different countries. But the production of handwritten manuscripts could not satisfy the ever-
increasing demand for books. Europe widely started using woodblocks to print textiles, playing
cards, and religious pictures with simple, brief texts. Johann Gutenberg developed the first-known
printing press in the 1430s.

Gutenberg and the Printing Press

Gutenberg was an expert in the art of polishing stones, and with this knowledge, he adapted
existing technology to design his innovation. The first printed book with the new system was the
Bible. With the adaption of new technology, the existing art of producing books by hand was not
entirely displaced. Books printed for the rich left blank space for decoration on the printed page. In
the hundred years between 1450 and 1550, printing presses were set up in most countries of
Europe. The shift from hand printing to mechanical printing led to the printing revolution.

The Print Revolution and Its Impact

The Print Revolution is not only a new way of producing books; it transformed the lives of people,
changing their relationship to information and knowledge and with institutions and authorities.

A New Reading Public

The cost of books was reduced due to the print revolution. Markets were flooded with books
reaching out to an ever-growing readership. It created a new culture of reading. Earlier, elites were
only permitted to read books and common people used to hear sacred texts read out. Before the
printing revolution, books were expensive. But, the transition was not as simple as books could only
be read by the literate. Printers started publishing popular ballads and folk tales illustrated with
pictures for those who did not read. Oral culture entered print, and printed materials were orally
transmitted.

Religious Debates and the Fear of Print

Print introduced a new world of debate and discussion. Printed books are not welcomed by
everyone and many were apprehensive of the effects that the wider circulation of books could have
on people’s minds. There was a fear of spreading rebellious and irreligious thoughts. In 1517, the
religious reformer Martin Luther wrote Ninety-Five Theses, criticising many of the practices and
rituals of the Roman Catholic Church. His textbook printed copy led to a division within the Church
and to the beginning of the Protestant Reformation.

Print and Dissent

In the sixteenth century, Menocchio began to read books available in his locality. He reinterpreted
the message of the Bible and formulated a view of God and Creation that enraged the Roman
Catholic Church. Menocchio was hauled up twice and ultimately executed. From 1558, The Roman
Church began to maintain an Index of Prohibited Books.

The Reading Mania

In most parts of Europe, literacy rates went up through the seventeenth and eighteenth centuries.
Schools and literacy spread in European countries, due to which people wanted the production of
more books. Other forms of reading, mainly based on entertainment, began to reach ordinary
readers. Books were of various sizes, serving many different purposes and interests. From the early
18th century, periodical press developed, which combined information related to current affairs
with entertainment. Journals and newspapers carried information related to wars, trade and
developments in other places. Issac Newton’s discoveries were published, which influenced
scientifically-minded readers.

‘Tremble, therefore, tyrants of the world!’

Books were considered a means of spreading progress and enlightenment by the mid-eighteenth
century. According to Louise-Sebastien Mercier, a novelist in eighteenth-century France said that
‘The printing press is the most powerful engine of progress and public opinion is the force that will
sweep despotism away.’ Convinced of the power of print in bringing enlightenment and destroying
the basis of despotism, Mercier proclaimed: ‘Tremble, therefore, tyrants of the world! Tremble
before the virtual writer!’

Print Culture and the French Revolution

Historians argued that print culture created the conditions for the French Revolution. Three types
of arguments were put forward.
Print popularised the ideas of the Enlightenment thinkers. Their writings provided a critical
commentary on tradition, superstition and despotism. The writings of Voltaire and Rousseau were
read widely, and people saw the world through new eyes, eyes that were questioning, critical and
rational.
Print created a new culture of dialogue and debate. Within this public culture, new ideas of social
revolution came into being.
By the 1780s, there was an outpouring of literature that mocked royalty and criticised their
morality.
Print helps in spreading ideas. They accepted some ideas and rejected others, and interpreted
things their way. Print did not directly shape their minds, but it did open up the possibility of
thinking differently.

The Nineteenth Century

Large numbers of new readers among children, women and workers were added to the mass
literacy in Europe during the 19th century.

Children, Women and Workers

From the late 19th century, primary education became compulsory. In 1857, a children’s press was
set up in France devoted to literature for children. Traditional folk tales were gathered by Grimm
Brothers in Germany. Rural folk tales acquired a new form. Women became important as readers as
well as writers. Magazines were published especially dedicated to women, as were manuals
teaching proper behaviour and housekeeping. In the nineteenth century, lending libraries in
England became instruments for educating white-collar workers, artisans and lower-middle-class
people.

Further Innovations
The press came to be made out of metal by the late eighteenth century. Printing technology saw a
series of further innovations by the 19th century. During that century, a power-driven cylindrical
press was perfected by Richard M, which was particularly used for printing newspapers. The offset
was developed, which was capable of printing six colours at a time. By the 20th century, electrically
operated presses accelerated printing operations, followed by other series of development.
Methods of feeding paper improved.
The quality of the plates became better.
Automatic paper reels and photoelectric controls of the colour register were introduced.

India and the World of Print

Manuscripts Before the Age of Print
India is a country rich in old traditions of handwritten manuscripts – in Sanskrit, Arabic, and
Persian, as well as in various vernacular languages. These handwritten manuscripts were copied on
palm leaves or on handmade paper. The production of the manuscript continued well after the
introduction of print. It is considered highly expensive and fragile. In Bengal, students were only
taught to write, due to which many became literate without ever actually reading any kind of text.

Print Comes to India

In the mid-sixteenth century, the first printing press came to Goa with Portuguese missionaries.
Catholic priests printed the first Tamil book in 1579 at Cochin, and in 1713 the first Malayalam
book was printed by them. The English press grew quite late in India, even though the English East
India Company began to import presses in the late seventeenth century. A weekly magazine named
the Bengal Gazette was edited by James Augustus Hickey. Advertisements were published by
Hickey and he also published a lot of gossip about the Company’s senior officials in India. By the
close of the eighteenth century, a number of newspapers and journals appeared in print.

Religious Reform and Public Debates

Religious issues became intense in the early nineteenth century. People started criticizing existing
practices and campaigning for reform, while others countered the arguments of reformers. Printed
tracts and newspapers spread new ideas and shaped the nature of the debate. New ideas emerged,
and intense controversies erupted between social and religious reformers and the Hindu orthodoxy
over matters like widow immolation, monotheism, Brahmanical priesthood and idolatry. In 1821,
Rammohun Roy published the Sambad Kaumudi. In 1822, two Persian newspapers published Jam-i-
Jahan Nama and Shamsul Akhbar. In the same year, a Gujarati newspaper, the Bombay Samachar,
was established. The Deoband Seminary, founded in 1867, published thousands upon thousands of
fatwas telling Muslim readers how to conduct themselves in their everyday lives and explaining the
meanings of Islamic doctrines.
Print encouraged the reading of religious texts, among Hindus, especially in the vernacular
languages. Religious texts reached a very wide circle of people, encouraging discussions, debates
and controversies within and among different religions. Newspapers conveyed news from one place
to another, creating pan-Indian identities.

New Forms of Publication

New kinds of writing were introduced as more and more people got interested in reading. In
Europe, the novel, a literary firm, was developed to cater to the needs of people who acquired
Indian forms and styles. New literary forms entered the world of reading, such as lyrics, short
stories, and essays about social and political matters. New visual culture took shape by the end of
the nineteenth century. Cheap calendars were available in the bazaar, which could be bought even
by the poor to decorate the walls of their homes or places of work. These prints began shaping
popular ideas about modernity and tradition, religion and politics, and society and culture.
Caricatures and cartoons were being published in journals and newspapers, commenting on social
and political issues by the 1870s.

Women and Print

Women’s reading increased enormously in middle-class homes. Schools were set up in cities for
women. Journals also started carrying writings by women and explaining why women should be
educated. But, Conservative Hindus believed that a literate girl would be widowed and Muslims
feared that educated women would be corrupted by reading Urdu romances. Social reforms and
novels created a great interest in women’s lives and emotions. In the early twentieth century,
journals written and edited by women became extremely popular. In Bengal, an entire area in
central Calcutta – the Battala – was devoted to the printing of popular books. By the late nineteenth
century, a lot of these books were profusely illustrated with woodcuts and coloured lithographs.
Pedlars took the Battala publications to homes, enabling women to read them in their leisure time.

Print and the Poor People

Cheap books were bought at markets. Public libraries were set up mostly located in cities and
towns. In the late 19th century, caste discrimination started coming up in many printed tracts and
essays. Factory workers lacked the education to write much about their experience. In 1938,
Kashibaba wrote and published Chhote Aur Bade Ka Sawal 1938 to show the links between caste
and class exploitation. In the 1930s, Bangalore cotton millworkers set up libraries to educate
themselves.

Print and Censorship

Censorship was not a concern under the East India Company. The Calcutta Supreme Court passed
certain regulations to control press freedom and in 1835, Governor-General Bentinck agreed to
revise press laws. Thomas Macaulay formulated new rules that restored earlier freedom. The
freedom of the press changed after the revolt of 1857. In 1878, the Vernacular Press Act was
passed, modelled on the Irish Press Laws, which provided the government with extensive rights to
censor reports and editorials in the vernacular press. The government started keeping track of the
vernacular newspapers. Nationalist newspapers grew in numbers all over India. In 1907, Punjab
revolutionaries were deported; Bal Gangadhar Tilak wrote with great sympathy about them in his
Kesari, which led to his imprisonment in 1908

GENDER RELIGION AND CASTE

Gender and Politics

The gender division tends to be understood as natural and unchangeable. It is not based on biology
but on social expectations and stereotypes.

Public/Private Division
The result of this division of labour is that though women constitute half of humanity, their role in
public life, especially politics, is minimal in most societies. Earlier, only men were allowed to
participate in public affairs, vote and contest for public offices. Gradually the gender issue was
raised in politics. It demanded to enhance the political and legal status of women and improve their
educational and career opportunities. The movements which were raised by women to get equality
in personal and family life are called Feminist movements.
The political expression of gender division and political mobilisation helped to improve women’s
role in public life. As India is a male-dominated, PATRIARCHAL society, women face disadvantage,
discrimination and oppression in various ways:
The literacy rate among women is only 54 per cent compared with 76 per cent among men.
On average, an Indian woman works one hour more than an average man every day and yet much
of her work is not paid. The Equal Remuneration Act of 1976 provides that equal wages should be
paid to equal work.
In India, sex-selective abortion led to a decline in the child-sex ratio (number of girl children per
thousand boys).
Urban areas have become particularly unsafe for women.

Women’s Political Representation

Issues related to women are not given adequate attention. This has led many feminists and women’s
movements to the conclusion that unless women control power, their problems will not get
adequate attention. In India, the percentage of elected women members in Lok Sabha touched 12
percent of its total strength for the first time in 2014. Their share in the state assemblies is less
than 5 per cent.
One way to solve women’s problems is to have a fair proportion of women in the elected bodies. In
Panchayats and Municipalities, one-third of seats in local government bodies are reserved for
women. Now there are more than 10 lakh elected women representatives in rural and urban local
bodies. Gender division is an example that some form of social division needs to be expressed in
politics. This also shows that disadvantaged groups do benefit when social divisions become a
political issue.

Religion, Communalism and Politics

Religion
The division based on religious differences is often expressed in the field of politics. In India, there
are followers of different religions. People should be able to express in politics their needs, interests
and demands as a member of a religious community.

Communalism
The use of religion in politics is called communal politics:
When beliefs of one religion are presented as superior to those of other religions
When the demands of one religious group are formed in opposition to another
When state power is used to establish the domination of one religious group over the rest.
Communalism can take various forms in politics, as mentioned below:
The most common expression of communalism is in everyday beliefs that involve religious
prejudices, stereotypes of religious communities and belief in the superiority of one’s religion over
other religions.
A communal mind often leads to a quest for political dominance of one’s own religious community.
Political mobilisation on religious lines involves the use of sacred symbols, religious leaders,
emotional appeal and plain fear in order to bring the followers of one religion together in the
political arena.
Sometimes communalism takes its ugly form of communal violence, riots and massacre. India and
Pakistan suffered some of the worst communal riots at the time of the Partition.

Secular State
India is a secular state. Some of the features of India’s Secular states are:
There is no official religion in the Indian state.
The Constitution provides to all individuals and communities the freedom to profess, practice and
propagate any religion or not to follow any.
The Constitution prohibits discrimination on grounds of religion.
The Constitution allows the state to intervene in matters of religion in order to ensure equality
within religious communities. For example, it bans untouchability.

Caste and Politics

Caste and politics both have some positive and some negative aspects. Let’s look at them:

Caste Inequalities
In most societies, occupations are passed on from one generation to another. The caste system is an
extreme form of this. In this system, members of the same caste group were supposed to form a
social community that practised the same or similar occupation, married within the caste group and
did not eat with members from other caste groups.
With economic development, large-scale urbanisation, growth of literacy and education,
occupational mobility and the weakening of the position of landlords in the villages, the old notions
of Caste Hierarchy are breaking down. The Constitution of India prohibited any caste-based
discrimination and laid the foundations of policies to reverse the injustices of the caste system.

Caste in Politics
Caste can take various forms in politics:
When parties choose their candidate or when governments are formed, political parties usually take
care that representatives of different castes and tribes find a place in it.
Political parties and candidates in elections make appeals to caste sentiment to win the elections.
To gain support, political parties raise caste-based issues during elections to get political support,
as the ‘one man, one vote’ system or adult franchise has made the voter very powerful.
Political Parties have made people belonging to lower castes conscious about their rights to vote
and their powers.
During elections, caste matters, but it is not everything. There are many other factors that impact
the elections. People’s assessment of the performance of the government and the popularity rating
of the leaders are considered during elections. Just have a look at the below points:
Candidates and parties need to win the confidence of more than one caste and community to win
elections.
No party wins the votes of all the voters of a caste or community.
Some voters have more than one candidate from their caste, while many voters have no candidate
from their caste.
The ruling party and the sitting MP or MLA keep changing whenever fresh elections take place.

Politics in Caste
Politics also influence the caste system and caste identities by bringing them into the political
arena. Here are a few points that support this;
Each caste group tries to become bigger by incorporating within its neighbouring castes or sub-
castes.
Various caste groups are formed with other castes or communities, and then they enter into a
dialogue and negotiation.
New kinds of caste groups have come up in the political arena, like ‘backward’ and ‘forward’ caste
groups.
Thus, caste plays different kinds of roles in politics. In some cases, caste division leads to tensions,
conflict and even violence.

POLITICAL PARTIES

Why Do We Need Political Parties?

A Political Party is a group of people who come together to contest elections and hold power in
the government. They agree on some policies and programmes for society with a view to promoting
the collective good. Parties reflect fundamental political divisions in society. Thus, a party is known
by which part it stands for, which policies it supports and whose interests it upholds. A political
party has three components:
The leaders
The active members
The followers

Functions of Political Parties

Political parties fill political offices and exercise political power. Parties do so by performing a
series of functions mentioned below:
Parties contest elections.
Parties put forward different policies and programmes, and the voters choose from them.
Parties play a decisive role in making laws for a country.
Parties form and run governments.
Those parties that lose in the elections play the role of opposition to the parties in power by voicing
different views and
criticising the government for its failures or wrong policies.
Parties shape public opinion.
Parties provide people access to government machinery and welfare schemes implemented by
governments.

The Necessity of Political Parties

We need political parties because they perform all the functions which are mentioned above. Apart
from this, political parties help represent different views on various issues to the government. They
bring various representatives together so that a responsible government can be formed. They work
as a mechanism to support or restrain the government, make policies, and justify or oppose them.
Political parties fulfil the needs that every representative government has.

How Many Parties Should We Have?

In a democracy, any group of citizens is free to form a political party. More than 750 parties are
registered with the Election Commission of India. But not all these parties are serious contenders in
the elections.
In some countries, only one party is allowed to control and run the government. These are
called one-party systems. This system is not considered as a good option for democracy.
In some countries, power usually changes between the two main parties. Such a party system is
called a two-party system. E.g., The United States of America and the United Kingdom.
If several parties compete for power, and more than two parties have a reasonable chance of
coming to power either on their own strength or in alliance with others, it is called a multiparty
system. E.g., India.
When several parties in a multi-party system join hands for the purpose of contesting elections and
winning power, it is called an alliance or a front.

National Parties
Every party in the country has to register with the Election Commission. It offers some special
facilities for large and established parties. The Election Commission has laid down detailed criteria
for the proportion of votes and seats that a party must get in order to be a recognised party.
A party that secures at least 6% of the total votes in an election to the Legislative Assembly of a
State and wins at least 2 seats is recognised as a State Party.
A party that secures at least 6% of the total votes in Lok Sabha elections or Assembly elections in 4
States and wins at least 4 seats in the Lok Sabha is recognised as a National Party.

State Parties

The Election Commission has classified some of the major parties of the country as ‘state parties’.
These are also referred to as regional parties. Some of these parties are:
Biju Janata Dal
Sikkim Democratic Front
Mizo National Front
Telangana Rashtra Samithi

Challenges to Political Parties

Popular dissatisfaction and criticism have focused on 4 problem areas in the working of political
parties. These are:
Lack of internal democracy within parties. Parties do not keep membership registers, do not hold
organisational meetings, and do not conduct internal elections regularly.
Most political parties do not practice open and transparent procedures for their functioning, so
there are very few ways for an ordinary worker to rise to the top of a party. In many parties, the top
positions are always controlled by members of one family.
The third challenge is about the growing role of money and muscle power in parties, especially
during elections. Since parties are focused only on winning elections, they tend to use shortcuts to
win elections. In some cases, parties support criminals who can win elections.
People do not find parties to be a meaningful choice for their votes. Sometimes people cannot even
elect very different leaders either because the same set of leaders keeps shifting from one party to
another.

How Can Parties Be Reformed?

Have a look at some of the recent efforts and suggestions to reform political parties and their
leaders in India. Some efforts are listed below:
The Constitution was amended to prevent elected MLAs and MPs from changing parties.
The Supreme Court passed an order to reduce the influence of money and criminals. Now, it is
mandatory for every candidate who contests elections to file an AFFIDAVIT giving details of his
property and criminal cases pending against him.
The Election Commission passed an order making it necessary for political parties to hold their
organisational elections and file their income tax returns.
Besides these, many suggestions are made to reform political parties. These suggestions have not
yet been accepted by political parties.
A law should be made to regulate the internal affairs of political parties.
It should be made mandatory for political parties to give a minimum number of tickets, about one-
third, to women candidates. Similarly, there should be a quota for women in the decision-making
bodies of the party.
There should be state funding of elections. The government should give parties money to support
their election expenses.
There are two other ways in which political parties can be reformed.
People can put pressure on political parties. This can be done through petitions, publicity and
agitations.
Political parties can improve if people who want change can join political parties. It is difficult to
reform politics if ordinary citizens do not take part in it and simply criticise it from the outside.

OUTCOMES OF DEMOCRACY

How Do We Assess Democracy’s Outcomes?

Democracy is a better form of government than dictatorship in the following respects:
Promotes equality among citizens.
Enhances the dignity of the individual.
Improves the quality of decision-making.
Provides a method to resolve conflicts.
Allows room to correct mistakes.

Democracy Produces Accountable, Responsive and Legitimate Government

People have the right to choose their rulers, and they have control over their rulers. Citizens can
participate in decision-making. Thus, democracy produces a government that is accountable to the
citizens and responsive to the needs and expectations of the citizens.
Democracy ensures that decision-making is based on norms and procedures. So, a citizen who
wants to know if a decision was taken through the correct procedures can find out this information.
Citizens can take part in decision-making whenever they want.
A democratic government is the people’s own government. People wish to be ruled by
representatives elected by them.

Economic Growth and Development

Economic development depends on several factors: the country’s population size, global situation,
cooperation from other countries, economic priorities adopted by the country, etc. There is a
significant difference in the rates of economic growth between countries under dictatorship and
democracy. So, democracy is preferred as it has several positive outcomes.

Economic Outcomes of Democracy

The following points show the relationship of democracy with economic growth and economic
inequalities.
The dictatorial regime has had a slightly better record of economic growth. But when we compare
their record only in poor countries, there is virtually no difference.
There can be a very high degree of inequality within democracies.
There is often inequality of opportunities available to the poorer sections of the society.

Reduction of Inequality and Poverty

All individuals have equal weight in electing representatives. In the process of bringing individuals
into the political arena on an equal footing, we find growing economic inequalities.
A small number of ultra-rich enjoy a highly disproportionate share of wealth and incomes. Their
share in the total income of the country has been increasing.
Those at the bottom strata of society have very little to depend upon. Their incomes have been
declining.
In actual life, democracies do not appear to be very successful in reducing economic inequalities.

Accommodation of Social Diversity

No society can fully and permanently resolve conflicts among different groups. However, we can
learn to respect these differences and we can evolve mechanisms to negotiate the differences.
Democracy is best suited to produce this outcome. The ability to handle social differences, divisions
and conflicts is a plus point of democratic regimes. But democracy must fulfil 2 conditions in order
to achieve this outcome:
The majority always needs to work with the minority so that governments function to represent the
general view.
Rule by majority means that in the case of every decision or in the case of every election, different
persons and groups may and can form a majority.

Dignity and Freedom of the Citizens

Democracy stands much superior to any other form of government in promoting the dignity and
freedom of the individual. The passion for respect and freedom is the basis of democracy. Let’s take
the case of the dignity of women. The long struggles of women have created some sensitivity that
respect and equal treatment of women are necessary ingredients of a democratic society. The same
is true of caste inequalities. Democracy in India has strengthened the claims of the disadvantaged
and discriminated castes for equal status and equal opportunity.
Most individuals today believe that their vote makes a difference in the way the government is run
and in their own self-interest. Democratic examination never gets over. As it passes one test, it
produces another test. As people get some benefits of democracy, they ask for more and want to
make democracy even better. The fact that people are complaining is itself a testimony to the
success of democracy.

MONEY AND CREDIT

Money as a Medium of Exchange

Money acts as an intermediate in the exchange process, it is called a medium of exchange. A person
holding money can easily exchange it for any commodity or service that he or she might want.

Modern Forms of Money

In the early ages, Indians used grains and cattle as money. Thereafter came the use of metallic
coins – gold, silver, copper coins – a phase which continued well into the last century. Now, the
modern forms of money include currency – paper notes and coins. The modern forms of money –
currency and deposits – are closely linked to the workings of the modern banking system.

Currency
In India, the Reserve Bank of India issues currency notes on behalf of the central government. No
other individual or organisation is allowed to issue currency. The rupee is widely accepted as a
medium of exchange in India.

Deposits in Banks
The other form in which people hold money is as deposits with banks. People deposit their extra
cash with the banks by opening a bank account in their name. Banks accept the deposits and also
pay an amount as interest on the deposits.
The deposits in the bank accounts can be withdrawn on demand, these deposits are called demand
deposits. The payments are made by cheque instead of cash.
A cheque is a paper instructing the bank to pay a specific amount from the person’s account to the
person in whose name the cheque has been issued.

Loan Activities of Banks

Banks keep only a small proportion of their deposits as cash with themselves. These days banks in
India hold about 15% of their deposits as cash. This is kept as a provision to pay the depositors who
might come to withdraw money from the bank on any given day. Banks use the major portion of the
deposits to extend loans. There is a huge demand for loans for various economic activities. Banks
charge a higher interest rate on loans than what they offer on deposits. The difference between
what is charged by borrowers and what is paid to depositors is their main source of income for
banks.

Two Different Credit Situations

Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods
or services in return for the promise of future payment.
Here are two examples which help you to understand how credit works.

Festive Season:
In this case, Salim obtains credit to meet the working capital needs of production. The credit helps
him to meet the ongoing expenses of production, complete production on time, and thereby
increase his earnings. In this situation, credit helps to increase earnings, and therefore, the person
is better off than before.

Swapna’s Problem:
In Swapna’s case, the failure of the crop made loan repayment impossible. She had to sell part of
the land to repay the loan. Credit, instead of helping Swapna improve her earnings, left her worse
off. This is an example of debt-trap. Credit, in this case, pushes the borrower into a situation from
which recovery is very painful. Whether credit would be useful or not depends on the risks in the
situation and whether there is some support in case of loss.

Terms of Credit
Every loan agreement specifies an interest rate that the borrower must pay to the lender along with
the repayment of the principal. In addition, lenders also demand collateral (security) against loans.
Collateral (Security) is an asset that the borrower owns (such as land, building, vehicle, livestock,
deposits with banks) and uses this as a guarantee to a lender until the loan is repaid. If the
borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain
payment.
Interest rate, collateral and documentation requirement and the mode of repayment, together, are
called the terms of credit. It may vary depending on the nature of the lender and the borrower.

Formal Sector Credit in India

Cheap and affordable credit is crucial for the country’s development. The various types of loans can
be grouped as follows:

Formal sector loans:

These are the loans from banks and cooperatives. The Reserve Bank of India supervises the
functioning of formal sources of loans. Banks have to submit information to the RBI on how much
they are lending, to whom, at what interest rate, etc.

Informal sector loans:

These are the loans from moneylenders, traders, employers, relatives and friends, etc. There is no
organisation which supervises the credit activities of lenders in the informal sector. There is no one
to stop them from using unfair means to get their money back.

Formal and Informal Credit

The formal sector meets only about half of the total credit needs of rural people. The remaining
credit needs are met from informal sources. It is important that formal credit is distributed more
equally so that the poor can benefit from cheaper loans.
It is necessary that banks and cooperatives increase their lending, particularly in rural areas, so
that the dependence on informal sources of credit reduces.
While the formal sector loans need to expand, it is also necessary that everyone receives these
loans.

Self Help Groups for the Poor

Poor households are still dependent on informal sources of credit because of the following reasons:
Banks are not present everywhere in rural India.
Even if banks are present, getting a loan from a bank is much more difficult as it requires proper
documents and collateral.
To overcome these problems, people created Self Help Groups (SHGs). SHGs are small groups of
poor people who promote small savings among their members. A typical SHG has 15-20 members,
usually belonging to one neighbourhood, who meet and save regularly.

Advantages of Self Help Groups (SHG)

It helps borrowers to overcome the problem of lack of collateral.
People can get timely loans for a variety of purposes and at a reasonable interest rate.
SHGs are the building blocks of the organisation of the rural poor.
It helps women to become financially self-reliant.
The regular meetings of the group provide a platform to discuss and act on a variety of social issues
such as health, nutrition, domestic violence, etc.

GLOBALIZATION ECONOMICS

Production Across Countries

Trade was the main channel connecting distant countries. Large companies, which are now called
Multinational Corporations (MNCs), play a major role in trade. An MNC is a company that owns or
controls production in more than one nation. MNCs set up offices and factories for production in
regions where they can get cheap labour and other resources so that the company can earn greater
profits.

Interlinking Production Across Countries

The money that is spent on buying assets such as land, building, machines and other equipment is
called investment. An investment made by MNCs is called a foreign investment. MNCs are
exerting a strong influence on production at these distant locations. As a result, production in these
widely dispersed locations is getting interlinked.
There are a variety of ways, as mentioned below, in which MNCs are spreading their production
and interacting with local producers in various countries across the globe.
By setting up partnerships with local companies
By using the local companies for supplies
By closely competing with local companies or buying them up
MNCs set up production jointly with local companies, which benefits local companies in the
following ways:
First, MNCs can provide money for additional investments, like buying new machines for faster
production.
Second, MNCs might bring with them the latest technology for production.

Foreign Trade and Integration of Markets

Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Producers can sell their products not only in markets located within the country but can also
compete in markets located in other countries of the world. Similarly, buyers have the options to
choose among various goods beyond domestically produced goods. Thus, foreign trade results in
connecting the markets or integration of markets in different countries.

What Is Globalisation?
Globalisation is the process of rapid integration or interconnection of countries. MNCs are playing a
major role in the globalisation process.
More and more goods and services, investments and technology are moving between countries.
There is one more way in which the countries can be connected. This is through the movement of
people between countries.

Factors That Have Enabled Globalisation

Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation
process. This has made possible much faster delivery of goods across long distances at lower costs.
The developments in information and communication technology have made information instantly
accessible.

Liberalisation of Foreign Trade and Foreign Investment Policy

Trade barriers are some restrictions that have been set up by governments. The government can
use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of
goods and how much of each should come into the country. Tax on imports is an example of a trade
barrier.
Removing barriers or restrictions set by the government on trade is known as liberalisation. When
the government imposes fewer restrictions than before, it is said to be more liberal.

World Trade Organisation

World Trade Organisation (WTO) is an organisation whose aim is to liberalise international trade. At
present, 164 countries of the world are currently members of the WTO. It has established rules for
developed countries regarding international trade so that these countries can allow free trade for
all.

Impact of Globalisation on India

Globalisation has impacted the lives of people in India in the following manner:
It has provided greater choices to consumers who now enjoy improved quality and lower prices on
several products.
It has resulted in higher standards of living.
Globalisation has also created new opportunities for companies providing services, particularly in
the IT sector.

The Struggle for a Fair Globalisation

Fair globalisation creates opportunities for all and also ensures that the benefits of globalisation are
shared better. The government can play a major role in making this possible.
Some of the steps that the government take are:
It can ensure that labour laws are properly implemented and the workers get their rights.
It can support small producers to improve their performance.
If necessary, the government can use trade and investment barriers.
It can negotiate at the WTO for ‘fairer rules’.
It can also align with other developing countries with similar interests to fight against the
domination of developed countries in the WTO.