Revision: Indian Economic Development >> Indian Economy 1950-1990 Economics Commerce (English Medium) Class 12 CBSE

Viticulture is grape cultivation which is speciality of the Mediterranean region.

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.

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.

1. Independence and Economic Planning:

• On 15 August 1947, India became independent after ~200 years of British rule.
• Leaders had to decide which economic system would ensure growth with social justice.
• Jawaharlal Nehru preferred a system that combined socialism and democracy.

2. Nehru’s Vision:

• Rejected both extreme capitalism (which benefits few) and extreme socialism (like in the Soviet Union with no private property).
• Favoured a mixed economy — combining public and private sectors with government planning.
• Reflected in the Industrial Policy Resolution of 1948 and Directive Principles of the Constitution.

3. Planning Commission:

• Established in 1950 with the Prime Minister as Chairperson.
• Began the era of Five Year Plans, where India’s resources were systematically planned for national development.

• India’s Five-Year Plans aimed to balance growth, modernisation, self-reliance, and equity.
• Not every plan met its targets, but overall, they improved the economy, society, and infrastructure.
• The approach ended in 2017, now replaced by medium- and long-term visions under NITI Aayog.

• ​Govt aimed at growth with equity via land reforms + Green Revolution.
• Land reforms: removed zamindars, gave land to tillers; land ceiling planned but weakly implemented, real success mainly in Kerala, West Bengal.
• Green Revolution: HYV seeds + fertilisers + irrigation → big rise in wheat/rice, richer states first, later spread → self-sufficiency in food grains and more marketed surplus.
• Subsidies (water, power, fertilisers): helped small farmers use new tech but caused waste, environmental damage, and burden on govt, so there is debate on reforming them.
• 1950–1990 problem: agri share in GDP fell, but most people still in agriculture because industry and services did not absorb extra workers → seen as policy failure.

• India needed industrialisation after independence for stable jobs and modernisation.
• Government led industry because private sector was weak and policy was socialist.
• IPR 1956: key industries with government; others with private but under control.
• Licensing to start/expand industries and promote backward regions.
• Small-scale industries: labour-intensive, help rural jobs; given protection and concessions.

• India followed import substitution: produce in India instead of importing, using tariffs and quotas to protect domestic industry.
• Logic: infant industries in a poor country need protection and foreign exchange must be saved.
• Results: industry’s GDP share rose, structure diversified, public and small-scale sectors expanded.
• Problems: loss-making public enterprises, heavy license–permit raj, and overprotection led to low quality, high prices, weak exports.
• Outcome: need for change led to 1991 economic reforms (LPG).