Characteristics of Indian Economy

Two Mark Questions: 1. What is Organised sector? A. Organised sector: refers to the large scale industrial and agricultural units with a defined pattern of production and employment. Industries such as automobiles, chemicals, machine tools, engineering goods, textiles, electronics etc come under this sector. This sector requires a substantial proportion of labour force and output.

2. What is Unorganised sector? A. Unorganised sector: it refers to the household based production activities, small and tiny sectors of the industry like handicrafts, handloom etc. In this sector, there are workers both in agriculture and industry whose employment pattern and wage levels do not follow a defined pattern. Example are handicrafts, khadi and village, industries such as beedi making, agarbatti making etc.

Four Mark Questions: 1. What is the role of Monsoons in Indian agriculture? Ans: Monsoon play a great role in Indian agriculture. India receives bulk of its rainfall from SouthWest monsoon and the rest from Northeast monsoon.

Role of Monsoon in Indian agriculture: 1. Indian agriculture depends mostly on rain water for cultivation through canals, tanks etc. 2. South West monsoons bring most of the rainfall to supply necessary water for cultivation. 3. The rest of the rainfall is provided by the North-east monsoon or the retreating monsoons. 4. In a given a year, if the rain fall is more than the optimum then that year is said to be a good year. 5. In a given year, if the rain fall is less than the optimum then that year is called a bad year. 6. In India, rainfall is not uniform all over the country due to different geo-tropical condition, climatic variations and terrestrial differences. This gives rise to uneven distribution of

rainfall so the rainfall varies from place to place. Hence it is said that Indian agriculture is a gamble.

2. Explain the different Land tenure systems. A. Land tenure system in India: Land tenure was one of the forms that give rise to unequal socio-economic inequalities. The British introduced three important land tenure systems in India. They were i. Zamindari system ii. Mahalwari system. iii. Ryotwari system 1. Zamindari System: In this system, the existing tax collectors were converted into the landed proprietor and the original owners of the land into tenants by Cornwallis. 2. Mahalwari System: In this system the land belonged to a small group of families who were usually the most powerful in their regions. They were responsible for paying taxes/rents to the state. 3. Ryotwari system: Under this system, land may be held in single independent holdings. The individual holder was responsible for payment of revenue to the state.

3. Distinguish various Economic systems. A. Capitalistic 1. It is organised by a number of Private enterprises. Socialistic system It is organized by the public enterprises Mixed Economy 1. It is organized by both private and public enterprises. 2. Individual owners organise production and supply 2. State ownership organises production and supply. 2. Private firms and public enterprises organize production and supply. 3. It is based on the objective of 3. Centralized planning profit maximization. There is mechanism responsible for 3. Public and Private both sectors protect the interest of

no planning mechanism.

the supply of the commodities. .

the public on large scale.

4. Market forces of supply and demand determine price, production, and distribution of goods and service. 5. It operates on the principle of free market enterprise yet state intervene to regulate economy.

4. Usually the public enterprises determine price, production and distribution of goods. 5. The state market only decides the free market conditions and price mechanism.

4. The government controls and regulates the private sector to protect the interest of the public. 5. Both the private and public enterprises organize together. Yet the government would not effectively protect the interest.

4. What were the characteristics of Indian economy during the British period? Ans: Characteristic of Indian Economy:1. During the British period, there was a continuous and enormous exploitation of economic resource and material wealth, which resulted in the permanent loss of Indias National wealth. 2. The British plunder of Indian wealth assumed various forms Chief among them were : - Modified land tenure system - Improved irrigation systems. - Creation of railways. - Industrial transformation. 3. Agriculture became commercialized and plantation of jute and other agro-based industries were developed. 4. There was a stiff competition to indigenous products through British export of machine made goods. 5. Since the British followed discriminatory tariff policy, the local textiles and other artisan based industries were suppressed. 6. There was an enormous decline in real per capita income, decrease in wages, substantial rise in poverty and unemployment in India during British period. 7. All this led to slow growth of agro-based industries and industrialization of indigenous manufactures.

Fill in the blanks: 1. Before the colonial rule, the Indian village community republics consisted of agriculturists, artisans, menials and village officials. 2. Handicrafts, handlooms, household, manufacturing activities are included in the organised sector of economy. 3. Most of the rain water needed for cultivation comes during the month of June-September, which is known as SouthWest monsoon. 4. Under the Mahalwari system, land is owned by a small group of families who pay rent to the state. 5. Income earned through the wealth and property is known as unearned income. 6. Firms operating under the ownership of the state as known as public sector. 7. Supply and demand forces determine the price in Capitalistic economic system.

Match the Following: 1. 2. 3. 4. 5. Dadabhai Nauroji D.R. Gadgil Urbanisation Public sector Centralised planning a) Growth of towns [3]

b) Socialistic system [ 4 ] c) Plunder of wealth [ 1 ] d) Mixed Economy e) Economic drain [5] [2]