Definitions [3]
Define viticulture.
Viticulture is grape cultivation which is speciality of the Mediterranean region.
Define truck farming.
It is the type of farming where farmers specialize in and grow vegetables only. The distance of truck farms from the market is governed by the distance a truck can cover overnight.
Define factory farming.
Factory farming is a modern development in the industrial regions of West Europe where livestock especially poultry and cattle rearing is done installs and pens and fed on manufactured feedstuff and carefully supervised against diseases.
Key Points
Key Points: Post-Independence Economic Systems and Planning
- India became independent in 1947 and had to choose a development path.
- Nehru favoured socialism but rejected full Soviet-style nationalisation.
- India chose a mixed economy — public + private sectors with democratic planning.
- The Industrial Policy Resolution (1948) and Directive Principles guided economic policy.
- The Planning Commission was set up in 1950 to oversee Five-Year Plans.
- Three economic systems: capitalism, socialism, and mixed economy.
- Plans involve trade-offs — e.g., technology vs. employment.
Key Points: Five Year Plans
- India adopted the Five Year Plan model from the USSR (Russia); the Planning Commission was established in 1950 under Jawaharlal Nehru.
- The main aims were agricultural & industrial development, employment generation, poverty reduction, and self-reliance.
- The four goals of planning were Growth, Modernisation, Self-reliance, and Equity.
- The First Plan focused on agriculture, while the Second Plan focused on heavy industries under the Mahalanobis Model.
- Wars, famines, the oil crisis, and political instability affected the success of several plans.
- The Planning Commission was replaced by NITI Aayog (2015), and the Twelfth Plan (2012–17) was the last Five Year Plan.
Key Points: Agriculture
- Agriculture depends on physical, institutional, infrastructural, and technological factors.
- Farming includes subsistence, plantation, and market gardening, based on local conditions.
- Land reforms aimed to reduce unequal land ownership.
- The Green Revolution increased crop production using HYV seeds, fertilizers, and pesticides.
- Agricultural subsidies support farmers but remain debated.
- Tamil Nadu has different agro-climatic zones with specific crops and a declining net sown area.
- Across India, urbanization has reduced the net sown area as the economy shifts away from agriculture.
Key Points: Industry and Trade
- The industrial sector provides employment stability unlike agriculture.
- The public sector was given "commanding heights" — control over key economic industries.
- The Industrial Policy Resolution 1956 divided industries into three categories based on government vs. private sector ownership.
- A licensing system was used to regulate private sector industries.
- The Karve Committee (1955) underscored the importance of small-scale industries.
- SSIs are defined by their investment limit and are labour-intensive.
- Government support to SSIs included product reservation and concessions.
Key Points: Trade Policy: Import Substitution
- Import substitution = replacing imports with domestic production using tariffs and quotas.
- Tariffs make imports costlier; quotas limit import quantity.
- Industrial GDP share grew from 13% to 24.6% between 1950–51 and 1990–91, with ~6% annual growth.
- Public sector enterprises were often inefficient and loss-making.
- Licensing misuse by big businesses created the notorious "Permit Licence Raj".
- The policy caused poor-quality goods, limited consumer choice, and a weak export sector.
- These failures were key drivers behind India's 1991 economic liberalisation reforms.
