NIOS Economics (318) Notes/Answer| Chapter-23|Need for planning in India

NIOS Economics (318) Notes/Answer| Chapter-23|Need for planning in India. Important questions for NIOS Economics (318) Questions Answers brings you latest queries and solutions with accordance to the most recent pointers SOS . Students will clear all their doubts with regard to every chapter by active these necessary chapter queries and elaborate explanations that area unit provided by our specialists so as to assist you higher. These queries can facilitate students prepare well for the exams thanks to time constraint . NIOS Economics (318) Notes/Answer| Chapter-23|Need for planning in India.

HS 2nd years Solutions (English Medium)

NIOS Economics (318) Notes/Answer| Chapter-23|Need for planning in India

Intext Questions

1. Tick (v) mark the correct answer:

(a) Per capita income in India in 1950-1951 was:

  1. Rs.2238
  2. Rs.1238
  3. Rs.238 
  4. Rs.38

Ans. (3) Rs.238

(b) In 1950-51 Per capita income of USA as compared to India was more than:

  1. 30 times
  2. 23 times
  3. 13 times
  4. 3 times

Ans. (1) 30 times

3. Fill in the blanks with suitable words out of those given in the bracket: (equally, low, inequality, more, advanced, backward, literacy, illiteracy)

(a) The Indian economy was marked by a high degree of ___________ at the time of independence.

Ans. inequality

(b) Incomes in India were not only ___________ they were also unequally distributed. 

Ans. low

(c) Technology in India was ___________

Ans. backward

(d) In 1951___________ Rate was only 16.7 per cent in India.

Ans. literacy

4. Tick() mark the correct answer: 

  1. Economic growth is the same thing as economic development.
  2. Economic growth includes economic development.
  3. Economic development includes economic growth. 
  4. Economic growth and economic development are not related at all.

Ans. (3) Economic development includes economic growth. 

5. Mention two changes which must take place if economic development is taking place in a country.


  1. Reduction in inequality 
  2. Reduction in poverty

6. Mention two ratios which must decline if the level of living is to improve in an area.


  1.  Infant mortality rate 
  2. Illiteracy rate

7. Choose the correct alternative.

(a) Economic planning in India was adopted because – 

  1. it was considered superior to the market system. 
  2. there was a desire to eliminate the market system.
  3. it was the only system that existed in the developed economies.
  4. it was required to remove certain defects of the free market. 

Ans. (4) it was required to remove certain defects of the free market.

(b) Which of the following is an advantage of economic planning?

  1. It enables maximisation of the satisfaction of the consumers.
  2. It enables the producers to maximise their profits, 
  3. It enables the country to quickly build its productive capacity.

Ans. (3) It enables the country to quickly build its productive capacity.

8. Fill in the blanks with appropriate words out of those given in the bracket: (objectives, planning, control, market-system) a means

(a) Government prepared to adopt___________ as of achieving rapid economic development.

Ans. planning 

(b) Economic planning was considered helpful in keeping___________ under control.

Ans. market system

(c) Five year plans were prepared to fulfil the ___________ of economic planning.

Ans. objectives

9. Tick mark the correct statement:

  1.  Growth with equity was the most important objective of economic planning in India.
  2. Self-reliance means that country will not have trade with other countries.
  3. Reducing population growth rate was an important objective of planning in India.
  4. Reducing population growth rate was an important objective of economic planning in India. 

Ans. (1)  Growth with equity was the most important objective of economic planning in India.

10. Which of the following is not the objective of economic planning in India?

  1. Improving technology
  2. Raising the levels of living of the poor
  3. Balance of trade. 

Ans. (3) Balance of trade.

11. Fill in the blanks with appropriate words out of those given in the bracket: (imports, exports, more, low, per capita income, national income)

(a) The Indian economy is not only market by___________ per capita income but also by a considerable degree of inequality.

Ans. low

(b) Per capita income can rise if the rate of growth of production is___________than the rate of growth of population. 

Ans. more

(c) Self-reliance implies that the country would use its raw materials and minerals to manufacture the goods that it ___________ from other countries.

Ans. imports

Terminal Exercise) 

1. Give a brief account of the state of the Indian economy at the time of Independence. 

Ans. The state of Indian economic at the time of Independence are as follows

(i) Mass poverty

Let us begin by noting that the per capita income of an Indian around the time of Independence (1950-51) was estimated to be Rs.238 in terms of the then prevailing prices. In other word the average income of an Indian per day was nearly 65 paisa (i.e. Rs.238/365). This was an average. There were many who were getting much more than the average income. Also there were large numbers who were getting less than this average income. We can easily conclude that not only was the overall level of per capita income low in India but was also accompanied by a large number of people getting much less than was this low average income. The Indian economy would obviously be characterised as a poor country with mass poverty.

(ii) Inadequate medical facilities

The country had been experiencing famines. Expected average age was low. There was a high infant mortality rate. The incidence of communicable and contagious disease was also very high.

(iii) High growth rate of population

Population was increasing at a rapid rate. Birth was quite high.

(iv) Industrial growth was negligible. 

The economy derived more than half of its domestic product from agriculture and nearly 70% of the working people derived their income from agricultural activities. Industrial growth was negligible.

(v) Backward technology

Technology was backward. Techniques of production were old and traditional. Productivity was therefore low. 

NIOS Class 12th Economics (318) Notes/Question Answer

Chapter Chapters NameLink
Chapter 1Economy and Its ProcessClick Here
Chapter 2Basic Problems of an EconomyClick Here
Chapter 3Economic Development and Indian EconomyClick Here
Chapter 4Statistics: Meaning and ScopeClick Here
Chapter 5Making Statistical Data MeaningfulClick Here
Chapter 6Presentation of Statistical DataClick Here
Chapter 7Statistical MethodsClick Here
Chapter 8Index Numbers (Meanings and Its Construction)Click Here
Chapter 9Index Numbers (Problem and Uses)Click Here
Chapter 10Income FlowsClick Here
Chapter 11National Income: ConceptsClick Here
Chapter 12National Income: MeasurementClick Here
Chapter 13Uses of National Income EstimatesClick Here
Chapter 14What micro EconomicsClick Here
Chapter 15What affects demandClick Here
Chapter 16What affects supplyClick Here
Chapter 17Price determinationClick Here
Chapter 18CostClick Here
Chapter 19RevenueClick Here
Chapter 20Profit maximizationClick Here
Chapter 21Government budgetingClick Here
Chapter 22Money supply and its regulationClick Here
Chapter 23Need for planning in IndiaClick Here
Chapter 24Achievements of planning in IndiaClick Here
Chapter 25Recent economic reforms and the role of planningClick Here

Optical Module – I

Chapter 26AgricultureClick Here
Chapter 27IndustryClick Here
Chapter 28Independence of Agriculture and IndustryClick Here
Chapter 29Transport and CommunicationClick Here
Chapter 30EnergyClick Here
Chapter 31Financial InstitutionsClick Here
Chapter 32Social Infrastructure (Housing, Health and Education)Click Here

Optical Module – II

Chapter 33Direction and composition of India’s Foreign tradeClick Here
Chapter 34Foreign exchange rateClick Here
Chapter 35Balance of trade and balance of paymentsClick Here
Chapter 36Inflow of capital (Foreign Capital and Foreign Aid)Click Here
Chapter 37New trade policy and its implicationsClick Here
Chapter 38Population and economic developmentClick Here
Chapter 39Population of IndiaClick Here

2. State the impact of partition on the economy of divided India.

Ans. The artificial political division not only created social tensions but also aggravated some economic problems. Scarcity of food was increased because some of the food surplus arrears were now in Pakistan. Similarly jute growing areas were in East Pakistan (now Bangladesh) but the jute factories were on the Indian side. Railway system was also suddenly disrupted. There was also the immediate and huge problem of rehabilitation of a huge mass of population which migrated from one part of the undivided India to the other parts after division. 

3. Distinguish between economic growth and economic development.

Ans. The term economic growth is defined as the process whereby the country’s real national and per capita income increases over a long period of time. Economic growth is a narrow term. It involves increase in output in quantitative terms but economic development includes changes in qualitative terms such as social attitudes and customs along with quantitative growth of output or national income.

Economic growthEconomic development
MeaningEconomic growth refers to an increase in the real output of goods and services in the country.Economic development implies changes in Income, savings and investment along with progressive changes in socio economic structure of country (Institutional and technological changes).
FactorsGrowth relates to a gradual increase in one of the components of Gross Domestic Product: consumption, government spending. Investment, net exportsDevelopment relates to growth of human capital, decrease in Inequality figures, and structural changes that improve the quality of life of the population
MeasurementEconomic Growth is measured by quantitative factors such as Increase in real GDP or per capita incomeThe qualitative measures such as
HOI (Human Development Index), gender-related Index, Human poverty index (HPI), infant mortality, literacy rate etc. are used to measure economic development.
EffectEconomic growth brings quantitative changes in the economyEconomic Development leads to qualitative as well as quantitative changes In the economy.
RelevanceEconomic growth reflects the growth of national or per capita income.Economic development reflects progress in the quality of life in a country

4. Did India need economic growth or economic development at the time of Independence? Explain.

Ans. India needed economic development at the time of Independence because India needed to raise the levels of living of its people. But it was not merely a rise in real per capita income that was needed but also a more equitable or less unequal distribution of income which was also necessary.

Moreover, for better levels of living there are several other things that should also happen. There should be an increase in literacy. There should be easier and quicker access to drinking water, postal services, telephone services, banking services, medical and sanitation services, transport services, educational facilities etc. Economic development result not only from an easier and quicker access to all these and similar services but also from an improvement in the quality of these services over time. 

5. State the major objective of economic planning in India.

Ans. Following are major objective of economic planning in India

(a) Accelerating economic growth

As we know the per capita income in India was low. It had to be raised. This required an increase in production at a rate faster than that of the growth of population. The Planning Commission had expected that the rate of growth would be fast enough in the economy so that the real per capita income will double in about 20 years.

(b) Reduction of economic inequality

The Indian economy is not only marked by low incomes but also by large inequality in the distribution of incomes. Those who are rich are very rich. The poor are so poor that they could not even meet their food requirements. They either remain hungry and die of hunger and malnutrition or live on the charity of others. Economic planning aims at reducing the inequalities of income by raising the income levels of the poor.

(c) Self-Reliance

One of the very important objectives of Indian Planning is to attain economic self-reliance. Self-reliance means to stand on one’s own legs. In the Indian context, it implies that dependence on foreign aid should be as minimum as possible. The objective also includes expansion and diversification of exports so that we are able to earn enough foreign exchange to pay for imports from our own earnings of foreign exchange.

(d)Balanced regional development 

Economic planning also aims at reducing inequalities in the levels of development of different regions. Some regions were more advanced industrially whereas others were very backward. There was a need to build up the infrastructure which was necessary for industrial growth in the backward regions. Economic planning aims at reducing the inequalities between different regions of the country. 

(e) Modernization

Another very important objective of economic planning was the modernisation of various sectors and more specifically the modernisation of agricultural and industrial sectors.

(f) Increase Employment:

Another objective of the plans is better utilization of manpower resources and increasing employment opportunities. Measures have been taken to provide employment to millions of people during plans.

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