Maharashtra Board Class 9 History Chapter 4 Economic Development Solutions

1.A Choose Right Option and Write the Sentence:

 

Question 1. On 19th July, 1969 ______ major banks in India were nationalised.
(a) 12
(b) 14
Answer: (b) 14
In simple words: In 1969, the government took over 14 major private banks to make sure banking services reached more people across India.

🎯 Exam Tip: Memorize the year 1969 and the number 14 together, as bank nationalisation is a landmark event in India's economic history.

 

Question 1. [Choose the correct option]
(a) [Option A]
(b) 14
(c) 16
(d) 18
Answer: (b) 14
In simple words: The correct option for this question is 14.

🎯 Exam Tip: Read all options carefully before marking the correct number to avoid silly mistakes.

 

Question 2. _________ declared a 20 – point programme.
(a) Pandit Nehru
(b) Lai Bahadur Shastri
(c) Indira Gandhi
(d) P.V. Narasimha Rao
Answer: (c) Indira Gandhi
In simple words: Prime Minister Indira Gandhi announced the 20-point programme in 1975 to help develop the nation and resolve economic issues.

🎯 Exam Tip: Remember that the 20-point programme was launched during the Emergency period by Indira Gandhi to boost the economy.

B. Identify the Wrong Pair and Rewrite the Corrected One:

 

Question 1. Identify the wrong pair and rewrite the corrected one:
(1) Kawasajee Dawar – Iron and Steel factory.
(2) Dr. Datta Samant – Leadership of mill workers.
(3) N. M. Lokhande – Holiday for mill workers.
(4) Narayan Surve – Depiction of lives of workers through poems.
Answer: Wrong Pair: Kawasajee Dawar – Iron and Steel factory. Kawasajee Dawar actually started the first cotton textile mill in Mumbai in 1854.
In simple words: Kawasajee Dawar is famous for starting the first cotton textile mill, not an iron and steel factory.

🎯 Exam Tip: Always write both the identified wrong pair and its corrected version clearly to secure full marks.

2.A Complete the Following Chart:

 

Question 1. Complete the following chart:

Five Year Plan	Duration	Purposes
First	...................	Agriculture and Social Development
Second	1956 -1961	Industrialisation
Third	...................	Elimination of inequality, increasing opportunities for employment, increase in national income.

Answer:

Five Year Plan	Duration	Purposes
First	1951 - 1956	Agriculture and Social Development
Second	1956 -1961	Industrialisation
Third	1961 - 1966	Elimination of inequality, increasing opportunities for employment, increase in national income.

The first plan focused heavily on agriculture, while the third plan aimed to make the economy self-reliant.
In simple words: The first five-year plan ran from 1951 to 1956, and the third five-year plan ran from 1961 to 1966.

🎯 Exam Tip: Memorize the sequence of the first three Five-Year Plans starting from 1951, as they are frequently asked in exams.

 

Question 1. Complete the following table:

Five Year Plan	Duration	Purposes
............	1969 -1974	Scientific research, health and family planning.
Fifth	............	....................

Answer:

Five Year Plan	Duration	Purposes
First	1951 -1956	Agriculture and Social Development
Second	1956 -1961	Industrialisation
Third	1961 -1966	Elimination of inequality, increasing opportunities for employment, increase in national income.
Fourth	1969 -1974	Scientific research, health and family planning.
Fifth	1974 -1979	Making India economically self-sufficient by alleviating poverty.

In simple words: This table shows the time periods and main goals of India's first five economic plans, which helped build the nation's agriculture, industries, and health systems.

🎯 Exam Tip: Memorize the years and primary objectives of the first five plans, as they are frequently asked in match-the-following and table-completion questions.

Explain the Concepts

 

Question 1. Mixed Economy
Answer:
(i) In a capitalist system, the means of production are privately owned. In a socialist economy, the means of production are owned by the State in the name of the society.
(ii) A mixed economy works both in the private and the public sector. This approach helps maintain a balance between social welfare and individual profit.
(iii) In order to achieve economic development of modern India, we gave preference to a model of ‘mixed economy’. We can see three parts in this kind of economy:
(a) Public Sector: The industries in this sector are completely under the control and management of the government. For example, production of defence equipment.
In simple words: A mixed economy is a system that combines both private businesses and government-run industries to help the country grow balanced and fair.

🎯 Exam Tip: Clearly define the three sectors (public, private, and joint) when explaining a mixed economy to secure full marks.

 

Question 2. 20 – Point Programme
Answer: 20-Point Programme: Prime Minister Indira Gandhi announced the 20-Point Programme on 1st July 1975 and resolved to make efforts towards rapidly becoming a developed nation. This program aimed to address various social and economic challenges faced by the country. The main provisions of the 20 point programme are as follows:
• Land ceiling for cities and agricultural land, equal division of wealth, minimum wages for workers, increase in water conservation schemes.
• Workers’ participation in industry, national training scheme, freeing bonded labour.
• Prevention of tax evasion, economic crimes and smuggling.
• Regulation of prices of basic necessities, improvement in the public distribution system.
• Improvement in the textile industry by developing handloom sector, waiving loans for weaker sections, housing, communication facilities, making educational equipment available to schools.
In simple words: The 20-Point Programme was a plan launched by Prime Minister Indira Gandhi in 1975 to help India grow faster. It focused on helping workers, improving farming, stopping economic crimes, and providing basic needs to everyone.

🎯 Exam Tip: Memorize at least three to four key provisions of the 20-Point Programme, such as minimum wages and price regulation, to secure full marks in short-note questions.

3.A Give Reasons

 

Question 1. Independent India opted for mixed economy.
Answer:
(i) Our Prime Minister Pandit Nehru adopted the middle path rather than taking recourse to any extremes. Some countries had adopted Capitalism, while some had adopted Socialism. Each type of economy had its own advantages.
(ii) In a capitalist system, the means of production are privately owned. In a socialist economy, the means of production are owned by the State in the name of the society.
(iii) A mixed economy works both in the private and the public sector. In order to achieve economic development of modern India, we gave preference to a model of ‘mixed economy’. This balanced approach helped in co-ordinating both public and private initiatives for national growth.
In simple words: Instead of choosing only private business (capitalism) or complete government control (socialism), India chose a mixed economy. This allowed both the government and private individuals to run businesses together to help the country grow.

🎯 Exam Tip: Clearly define both capitalism and socialism in your answer to show why a mixed economy was the best middle path for India.

 

Question 2. Banks were nationalised in 1969.
Answer:
(i) During the tenure of Prime Ministers Pandit Nehru and Lal Bahadur Shastri, banking was a monopoly of the private sector.
(ii) These banks represented different industrial groups. The Directors of these banks were working towards developing industrial sector and increasing its profit.
(iii) In order to stop this, the government nationalised the ‘Imperial Bank’ in 1955 and it got converted into State Bank of India.
(iv) This Bank opened several branches all over the country in a short while and played a major role in development.
(v) India had adopted a mixed economy after independence. Nationalisation of banks was essential to cover the deficits if they occurred while implementing different schemes.
(vi) Also the profit of these banks would come into the government treasury once they were nationalised. Prime Minister Indira Gandhi nationalised 14 banks on 19th July, 1969. This landmark decision aimed to direct credit to rural and agricultural sectors that were previously ignored.
In simple words: Before 1969, major banks were owned by private businessmen who only focused on making profits for big industries. The government took control of these banks so that their profits could be used for public welfare and development schemes across the country.

🎯 Exam Tip: Remember to mention the specific date (19th July, 1969) and the number of banks nationalised (14 banks) to secure full marks.

Question 3. Mill workers went on strike.
Answer:
(i) During the Diwali of 1981, the workers expected to get a bonus of 20%.
(ii) The Rashtriya Mill Mazdoor Sangh, which was negotiating with the employers, agreed upon 8 to 17% bonus without taking the workers into confidence.
(iii) The cut in the bonus proved to be the cause of unrest. Some workers went to Dr. Datta Samant.
(iv) They asked him to accept their leadership. Workers of 65 mills came together and Dr. Datta Samant led the strike. On 18th January 1982, two and a half lakh workers went on strike. This massive protest completely halted the textile industry in Mumbai.
In simple words: The mill workers went on strike because they were unhappy with a lower-than-expected Diwali bonus negotiated without their consent. They chose Dr. Datta Samant as their leader, and lakhs of workers joined the protest.

🎯 Exam Tip: Clearly list the sequence of events leading to the strike, highlighting the key figures like Dr. Datta Samant and the specific dates to score full marks.

 

B. Answer the Following Questions in 25 to 30 Words

 

Question 1. Which programmes were started in the Eighth Five Year Plan?
Answer: Following programmes were started in the Eighth Five Year Plan to promote social welfare and employment:
• Pradhanmantri Rozgar Yojana
• Mahila Samriddhi Yojana
• Rashtriya Samajik, Arthik Sahayya Yojana
• Midday Meal Scheme
• Indira Mahila Scheme
• Ganga Kalyan Scheme
In simple words: During the Eighth Five Year Plan, the government launched several schemes to help people get jobs, support women, and provide meals to school children.

🎯 Exam Tip: Memorize at least four to five schemes from this list, as listing them accurately is key to getting full marks.

 

Question 2. Which heavy industries were set up under the Second Five Year Plan?
OR
Which projects were started in the Second Five Year Plan?
Answer:
(i) Iron and steel industries at Durgapur, Bhilai and Rourkela; Chemical fertilisers plant at Sindri; rail engine factory at Chittaranjan; factory of railway bogies at Perambur, Ship building factory at Vishakhapattanam and other heavy industries were set up in the Public Sector. These industries laid the foundation for India's industrial growth.
(ii) Huge dams like Bhakra-Nangal, Damodar, etc. were built to make water available for agriculture.
In simple words: Under the Second Five Year Plan, India set up major factories for steel, railway engines, and ships to boost industry. They also built large dams to supply water for farming.

🎯 Exam Tip: Divide your answer into industrial setups and agricultural projects (like dams) to show a structured understanding of the plan.

Choose the Correct Option From the Given Options and Rewrite the Statements:

 

Question 1. India removed the import restriction on several commodities for _____ countries.
(a) BRICS
(b) SAARC
(c) Third - World
(d) Middle - East countries
Answer: (b) SAARC
In simple words: India lifted trade restrictions on various goods for member countries of the South Asian Association for Regional Cooperation (SAARC) to help regional trade grow.

🎯 Exam Tip: Remember that SAARC focuses on South Asian regional cooperation, making it the correct choice for India's regional trade concessions.

 

Question 2. The efforts of _____ resulted in the weekly Sunday holiday for mill workers from 1st January 1882.
(a) Mahatma Jyotirao Phule
(b) Sane Guruji
(c) Babu Jagjeevan Ram
(d) Narayan Meghaji Lokhande
Answer: (d) Narayan Meghaji Lokhande
In simple words: Narayan Meghaji Lokhande fought hard for the rights of workers, which successfully got them a weekly day off on Sundays.

🎯 Exam Tip: Associate Narayan Meghaji Lokhande directly with the welfare and early trade union movement of mill workers in Maharashtra to score full marks.

 

Question 3. During the tenure of Prime Minister Indira Gandhi, ________ a group in the Congress Party, made a demand for nationalisation of commercial banks.
(a) Congress Socialist Party
(b) Congress Forum for Socialist Action
(c) Congress wing of Socialist Propaganda
(d) Agency of Socialist Congress
Answer: (b) Congress Forum for Socialist Action
In simple words: A group within the Congress party called the Congress Forum for Socialist Action wanted the government to take control of private banks to help the common public.

🎯 Exam Tip: Pay close attention to the exact name "Congress Forum for Socialist Action" to avoid confusion with other similarly named socialist groups of that era.

 

Question 4. In 1995, India became a member of _______.
Answer: WTO (World Trade Organisation)
In simple words: In 1995, India joined the World Trade Organisation to participate in global trade agreements and follow international trade rules.

🎯 Exam Tip: Remember that the year 1995 is a landmark year for global trade as it marks the establishment of the WTO and India's entry into it.

Question 4.
(a) World Trade Organisation
(b) International Monetary Fund
(c) GATT
(d) SAARC
Answer: (a) World Trade Organisation
In simple words: The World Trade Organisation is an international body that helps countries trade with each other smoothly and fairly.

🎯 Exam Tip: Remember that WTO replaced GATT in 1995 to manage global trade rules more effectively.

 

Question 5. In order to overcome drought and food shortages ______ undertook the experiment of Green Revolution.
(a) Chaudhary Charansingh
(b) Gulzarilal Nanda
(c) H D Deve Gowda
(d) Lal Bahadur Shastri
Answer: (d) Lal Bahadur Shastri
In simple words: Prime Minister Lal Bahadur Shastri encouraged the Green Revolution to help India grow more food and stop shortages.

🎯 Exam Tip: Associate Lal Bahadur Shastri with the slogan 'Jai Jawan Jai Kisan' to easily remember his focus on agriculture and food security.

 

Question 6. During the tenure of Prime Minister P.V. Narasimha Rao, _______ was our Finance Minister.
(a) John Mathai
(b) Yashwant Sinha
(c) P. Chidambaram
(d) Dr. Manmohan Singh
Answer: (d) Dr. Manmohan Singh
In simple words: Dr. Manmohan Singh was the Finance Minister who helped open up India's economy to the world in 1991.

🎯 Exam Tip: This is a highly important historical event; remember that Dr. Manmohan Singh introduced the economic liberalization policies of 1991.

 

Question 7. The first textile mill was started in Mumbai on 11th July, 1851 by _______.
(a) Pirojsha Burjorji Godrej
(b) Jamsedji Nusserwanji Tata
(c) Kawasjee Dawar
(d) Azim Hashim Premji
Answer: (c) Kawasjee Dawar
In simple words: Kawasjee Dawar started the very first cotton textile mill in Mumbai, which marked the beginning of India's modern industrial era.

🎯 Exam Tip: Pay close attention to the exact date (11th July, 1851) and associate it directly with Kawasjee Dawar for fill-in-the-blank questions.

 

Question 8. The new government of Janata Party ended the fifth Five Year plan by March 1978
Answer: The new government of Janata Party ended the fifth Five Year plan by March 1978. This political decision cut the plan short by one year and introduced the concept of a Rolling Plan instead.
In simple words: When the Janata Party came to power, they stopped the ongoing fifth Five-Year Plan early in March 1978 to start their own planning system.

🎯 Exam Tip: Remember that the fifth Five-Year Plan was terminated one year ahead of its scheduled completion date of 1979 due to political changes.

Question. ... and started the _______ from April 1978.
(a) Development Plan
(b) Enrolling Plan
(c) Rolling Plan
(d) Redemption Plan
Answer: (c) Rolling Plan
In simple words: The government ended the Fifth Five-Year Plan early and introduced a new flexible plan called the Rolling Plan starting in April 1978.

🎯 Exam Tip: Remember that the Rolling Plan was introduced by the Janata Party government in 1978 after terminating the Fifth Five-Year Plan.

 

Question 9. Manmohan Singh signed the agreement with the WTO and launched the policy of privatisation, ______ and globalisation.
(a) Liberalisation
(b) Industrialisation
(c) Maximisation
(d) Profitisation
Answer: (a) Liberalisation
In simple words: In 1991, India opened up its economy using three main steps: LPG, which stands for Liberalisation, Privatisation, and Globalisation.

🎯 Exam Tip: The term LPG (Liberalisation, Privatisation, Globalisation) is a crucial concept in Indian economic history; memorizing this acronym will help you easily recall the missing term.

 

Question 10. On 18th January 1982, two and a half lakh workers went on a strike under the leadership of _________.
(a) Dhondo Keshav Karve
(b) Baba Amte
(c) Dr. Datta Samant
(d) Anna Hazare
Answer: (c) Dr. Datta Samant
In simple words: Dr. Datta Samant led a massive strike of Mumbai textile mill workers in 1982 to demand better wages and working conditions.

🎯 Exam Tip: Associate the historic Mumbai textile mill strike of 1982 directly with the name of Dr. Datta Samant to score full marks on this question.

 

Question 11. The _______ plan is a reflection of the liberalisation and free market policy adopted in 1991.
(a) Seventh
(b) Eighth
(c) Fifth
(d) Sixth
Answer: (b) Eighth
In simple words: The Eighth Five-Year Plan, started in 1992, was the first plan designed to match the new free-market and open-economy policies introduced in 1991.

🎯 Exam Tip: Since the economic reforms were introduced in 1991, the very next plan—the Eighth Five-Year Plan (1992–1997)—naturally reflected these changes.

 

Question 12. The government nationalised the ‘Imperial Bank’ in 1955 and it got converted into ______
(a) Syndicate Bank
(b) Bank of India
(c) State Bank of India
(d) Reserve Bank of India
Answer: (c) State Bank of India
In simple words: In 1955, the Indian government took over the Imperial Bank and renamed it the State Bank of India to help spread banking services across the country.

🎯 Exam Tip: Remember the year 1955 as the turning point when the Imperial Bank became the State Bank of India (SBI) to score full marks on this history question.

 

Question 13. The term ‘Girangaon’ means ________.
(a) Town of hills
(b) Town of mills
(c) Group of industries
(d) Cottage industries
Answer: (b) Town of mills
In simple words: 'Giran' refers to mills and 'gaon' means village or town, so Girangaon literally translates to the town of textile mills.

🎯 Exam Tip: Associate 'Giran' with 'Girni' (mill in Marathi) to easily remember that Girangaon means the town of mills.

 

Identify and write the wrong pair in the following sets:

 

Question 1. Identify the wrong pair:
(1) Public Sector – Controlled and managed by government
(2) Mixed Economy – Coordination in private and public sector
(3) 20 point programme – Nationalisation of 13 textile mills.
(4) Increased oil prices – Invasion of Kuwait by Iraq.
Answer: Wrong Pair: 20 point programme – Nationalisation of 13 textile mills. The nationalisation of textile mills was actually done to protect the interests of the workers and was not a part of the 20 point programme.
In simple words: The 20-point programme was about general development, while the nationalisation of textile mills was a separate decision taken to help struggling workers.

🎯 Exam Tip: When writing the answer, clearly state the wrong pair first, and briefly mention the correct association to show complete understanding.

 

Question 2. Identify the wrong pair:
(1) Congress Forum for Socialist Action – demanded nationalisation of banks.
(2) Rashtriya Mill Mazdoor Sangh – negotiations with the employer.
(3) Imperial Bank – converted in State Bank of India.
(4) National Stock Exchange – existed before WTO.
Answer: Wrong Pair: National Stock Exchange – existed before WTO. The National Stock Exchange was established in 1992, whereas the WTO came into existence later in 1995, meaning they did not exist in that order.
In simple words: The National Stock Exchange did not exist before the World Trade Organization (WTO) was planned, making this pair incorrect.

🎯 Exam Tip: Double-check the historical years of establishment for institutions like the NSE (1992) and WTO (1995) to easily spot chronological errors.

 

Question 3. Identify the wrong pair:
(1) SAPTA – Preferential trade
(2) SAARC – removal of import restrictions by India
(3) SEBI – established in 1998
(4) WTO – regulate global trade
Answer: Wrong Pair : SEBI – established in 1998. The Securities and Exchange Board of India (SEBI) was actually established in 1988 and given statutory powers in 1992.
In simple words: SEBI was not established in 1998, making this the incorrect pair. It was actually set up earlier to regulate the securities market.

🎯 Exam Tip: Pay close attention to the establishment years of major financial institutions to easily spot incorrect pairs.

 

Question 4. Identify the wrong pair:
(1) Barrister A.R.Antulay – leader of Rashtriya Mill Mazdoor Sangh
(2) Dr. Manmohan Singh – Finance Minister
(3) Indira Gandhi – nationalised 14 banks
(4) V.P. Singh – waived off loans of the farmers
Answer: Wrong Pair : Barrister A.R.Antulay – leader of Rashtriya Mill Mazdoor Sangh. The Rashtriya Mill Mazdoor Sangh was led by other prominent trade unionists rather than Barrister A.R. Antulay.
In simple words: Barrister A.R. Antulay was not the leader of the Rashtriya Mill Mazdoor Sangh, so this pair is wrong.

🎯 Exam Tip: Remember the key leaders associated with major labor unions and strikes in Maharashtra's history.

 

Question 5. Identify the wrong pair:
(1) Babasaheb Bhonsale – Chief Minster of Maharashtra
(2) Namdev Dhasal – Marathi Poet
(3) Shahir Sable – Programmes of public education
(4) Chandrashekhar – Associate of Mahatma Jyotirao Phule.
Answer: Wrong Pair : Chandrashekhar – Associate of Mahatma Jyotirao Phule. Chandrashekhar was a Prime Minister of India and not associated with the 19th-century social reformer Mahatma Jyotirao Phule.
In simple words: Chandrashekhar was a modern political leader, not an associate of the historical reformer Jyotirao Phule.

🎯 Exam Tip: Match historical figures with their correct eras and contemporaries to identify wrong pairs quickly.

 

Complete the Concept Maps and Flow Charts of Various Programmes and Schemes Introduced:

 

Question 1. Complete the table:
Answer:

SECOND FIVE YEAR PLAN (1956-1961)
Iron and Steel industries	Durgapur, Bhilai, Rourkela
Chemical Fertilisers Plant	Sindri
Rail Engine Factory	Chittaranjan
Factory of railway bogies	Perambur

This plan focused heavily on heavy industries and industrialization to boost the nation's economic self-reliance.
In simple words: This table shows the major industries and their locations set up during India's Second Five-Year Plan.

🎯 Exam Tip: Memorize the key industrial projects and their locations established during the Second Five-Year Plan as they are frequently asked.

Ship building Factory

Vishakhapattanam

 

Question 2.
Answer: The main programs and projects under the Sixth Five Year Plan (1980 - 85) are:

• Integrated Rural Development Programme
• Rural Landless Employment Guarantee
• National Rural Employment Programme
• Salem Steel Plant

In simple words: The Sixth Five Year Plan focused on creating jobs in rural areas and developing industries like the Salem Steel Plant.

🎯 Exam Tip: Memorize the four main programs of the Sixth Five Year Plan as they are frequently asked in concept map questions.

 

Question 3.
Answer: The main schemes under the Seventh Five Year Plan (1985 - 90) are:

• Jawahar Rozgar Yojana
• Indira Awaas Yojana
• Scheme of 10 lakh wells

In simple words: The Seventh Five Year Plan introduced schemes for housing, employment, and water wells for rural areas.

🎯 Exam Tip: Clearly list the three major schemes of the Seventh Five Year Plan to ensure a complete answer.

 

Question 5. Complete the concept map showing the schemes started during the Eighth Five Year Plan (1992-97).
Answer: The following schemes were started during the Eighth Five Year Plan (1992-97):
• Pradhanmantri Rozgar Yojana
• Mahila Samriddhi Yojana
• Rashtriya Samajik, Arthik Sahayya Yojana
• Midday Meal Scheme
• Indira Mahila Scheme
• Ganga Kalyan Scheme
These programs were designed to uplift various sectors of society, particularly women and rural communities.
In simple words: This list shows the different welfare and employment programs started by the government between 1992 and 1997 to help citizens.

🎯 Exam Tip: Memorize at least four to five schemes with their correct names to score full marks in concept map questions.

 

Question 6. Complete the concept map showing the features of the Eighth Five Year Plan (1992-97).
Answer: The main features of the Eighth Five Year Plan (1992-97) are:
• Maintain the rate of growth in national income at 6.5%.
• To control the growth of population.
• To encourage the programme of family planning.
• To remove illiteracy by expansion of primary education.
This plan marked a significant shift towards economic liberalization and social development in India.
In simple words: The main goals of this plan were to grow the economy, control population growth, and make sure more children get basic school education.

🎯 Exam Tip: Write the key objectives clearly in bullet points, highlighting terms like 'national income', 'population control', and 'primary education'.

Question 6. Complete the concept map: Ninth Five Year Plan (1997 - 2002) Schemes
Answer:
The following schemes were started during the Ninth Five Year Plan:

• Swarna Jayanti Shahari Rozgar Yojana
• Bhagyashree Child Welfare Policy
• Rajrajeshwari Mahila Kalyan Yojana
• Swarnajayanti Gram Swarozgar Yojana
• Jawahar Gram Samruddhi Yojana
• Antyodaya Anna Yojana
• Pradhanmantri Gram Sadak Yojana

In simple words: These are the various welfare and employment schemes launched by the government during the Ninth Five Year Plan to help different sections of society.

🎯 Exam Tip: Memorize at least four to five schemes from this plan to write a complete answer in exams.

 

Question 7. Complete the concept map: Ninth Five Year Plan (1997 - 2002) Objectives
Answer:
The objectives of the Ninth Five Year Plan were:

• To increase the rate of growth of the economy.
• Create healthy competition in the infrastructure sector.
• Give a new direction to industrial policy for ensuring foreign investment.

In simple words: The main goals of this plan were to grow the economy faster, improve infrastructure through competition, and attract foreign money into industries.

🎯 Exam Tip: Presenting objectives in a neat bulleted list or diagram helps you score full marks easily.

 

Give Reasons

 

Question 1. India established the Planning Commission.
Answer: India established the Planning Commission in 1950 because the country faced severe economic exploitation, poverty, and backwardness after nearly two centuries of British colonial rule. There was an urgent need to rebuild the economy, achieve self-sufficiency, and ensure equal distribution of resources through systematic planning. This commission was designed to formulate five-year plans to guide the nation's development.
In simple words: India set up the Planning Commission to plan how to rebuild the country's economy and help people overcome poverty after the British left.

🎯 Exam Tip: Mention the year of establishment (1950) and the impact of British rule to make your answer highly impactful.

 

Question. Explain the background and objectives of the Planning Commission of India.
Answer:
(i) The colonial power had exploited India economically. The country faced severe problems like poverty, unemployment, population growth, low standards of living, low productivity of agriculture and industries and backwardness in the fields of knowledge, science and technology. Planning was essential to solve these problems. This systematic approach aimed to rebuild the nation's economy from the grassroots level.
(ii) India established the Planning Commission in 1950 with Prime Minister Pandit Jawaharlal Nehru as its Chairman.
(iii) It formulated India’s five year plans that included rural and agricultural development, balanced industrialisation, provision for a minimum standard of living and economic development consistent with democratic ideals.
(iv) It focused on people’s participation and individual development in the formulation and implementation of the five year plans.
In simple words: After gaining independence, India faced severe economic problems due to British exploitation. To solve these, the government set up the Planning Commission in 1950 to design five-year plans that focused on agriculture, industry, and improving everyone's standard of living.

🎯 Exam Tip: When explaining the Planning Commission, make sure to list the key areas of focus like agricultural development, balanced industrialisation, and public participation.

 

Read the passage and answer the questions.

 

Passage I

Issues of workers: The first textile mill was started in Mumbai on 11th July, 1851 by Kawasjee Dawar. Eventually, mills started in Dadar, Parel, Bhaykhala, Shivdi, Prabhadevi and Worli. This part came to be known as Girangaon or ‘town of mills’. In the 1980s, the increasing unrest among workers was due to the economic conditions in other sectors. In some industries the wages of the workers were increasing. They were also getting more amounts as bonus. They were getting more facilities than the textile mill workers.

In the Diwali of 1981, the workers expected to get a bonus of 20%. The Rashtriya Mill Mazdoor Sangh, which was negotiating with the employers, agreed upon 8 to 17% bonus without taking the workers into confidence. The cut in the bonus proved to be the cause of unrest. Some workers went to Dr. Datta Samant. They asked him to accept their leadership, Workers of 65 mills came together and Dr. Datta Samant led the strike. On 18th January 1982, two and a half lakh workers went on strike. Girangaon mills stopped running making it seem like Mumbai’s heart topped throbbing.

The Chief Minister of Maharashtra, Barrister A. R. Antulay set up a committee to solve this issue. Later Babasaheb Bhosale became the Chief Minister of

Maharashtra State. He insisted that as per law, he would talk only with the Rashtriya Mill Mazdoor Sangha. Dr. Datta Samant demanded that the law be revoked. In the beginning, the striking workers received help from their native villages. It was also, not very difficult for them to help each other. They set up departmental committees and distributed food grains, assistance in the form of funds, etc. The left parties had supported the strike. As the strike, dragged on, efforts were made to split the striking workers’ ranks. Even as the strike completed 6 months, the central government completely ignored it. The workers started a 'Jail Bharo Agitation'. In, September 1982, one and a half lakh workers took a march on the Legislative Assembly of Maharashtra State. It didn’t help at all. The strike completed a year. This was the first strike to have gone on for a year. In this period, about one and a half lakh workers became unemployed. As polyester had come into greater demand than cotton cloth, the sale of mill, cloth had already got affected. The mills moved from Mumbai to Surat in Gujarat. The Central government nationalised 13 textile mills. Appointment of arbitrators did not help to resolve the issue.

 

Question 1. Name the worker’s union mentioned in the passage. Why were the workers agitated with it?
Answer:
(i) The worker’s organisation mentioned in the passage is Rashtriya Mill Mazdoor Sangh.
(ii) The workers were agitated because they received less bonus and facilities in their textile mills, whereas economic conditions in the other sectors of the economy were far better. This disparity caused widespread discontent among the workforce.
(iii) The Rashtriya Mill Mazdoor Sangh that negotiated with the employers, settled at 8 to 17% of bonus as against the expectation of 20% by the workers.
(iv) The cut in the bonus led to the workers agitation.
In simple words: The workers were angry with their union, the Rashtriya Mill Mazdoor Sangh, because it agreed to a lower bonus of 8% to 17% instead of the 20% they expected. They felt they were getting fewer benefits compared to workers in other industries.

🎯 Exam Tip: When answering multi-part questions, address each part clearly using the sub-part numbers (i, ii, iii, iv) to make it easy for the examiner to award full marks.

 

Question 2. State the contribution of Dr. Datta Samant in raising workers issues in Maharashtra?
Answer:
(i) Dr. Datta Samant was the leader of two and a half lakh workers who went on strike. He championed their rights with great determination during this challenging period.
In simple words: Dr. Datta Samant was a strong leader who led over two hundred thousand textile workers when they went on strike to demand better conditions.

🎯 Exam Tip: Remember to mention key statistics like the number of workers (two and a half lakh) to show a precise understanding of historical events.

 

Question 3. What is mixed economy?
Answer:
(i) In a capitalist system, the means of production are privately owned. In a socialist economy, the means of production are owned by the State in the name of the society. This ensures a balance between private wealth and public welfare.
(ii) A mixed economy works both in the private and the public sector.
(iii) In order to achieve economic development of modem India, we gave preference to a model of ‘mixed economy’.
In simple words: A mixed economy is a system that combines both private businesses and government-run services. This helps a country grow while making sure everyone's basic needs are met.

🎯 Exam Tip: Clearly define both capitalist and socialist systems first to show how a mixed economy combines the best of both worlds.

 

Passage II
General Agreement on Tariffs and Trade (GATT) existed at the international level before the World Trade Organisation came into being. It regulated commerce. In India there were opposed, extreme views about the World Trade Organisation. Yet India decided to take its membership. The provisions of the World Trade Organisation are regarding grants, import-export, foreign investment, agriculture, technology and services. The sectors of electricity, water transportation, education and health rapidly commercialised since India became a member of the World Trade Organisation. As per the various reports of the World Trade Organisation, India has made a considerable improvement in different areas like reduction in the below poverty line (BPL) population, decline in infant mortality, availability of facilities regarding drinking water and waste water management. India signed the South Asian Preferential Trade Agreement (SAPTA) along the lines of the World Trade Organisation. India removed the import restrictions on several commodities for SAARC countries. India also gave discounts on import duties. India opened up the insurance sector to private and foreign investment.

 

Question 1. Study the passage and give the full forms of GATT and SAPTA.
Answer:
GATT – General Agreement on Tariff and Trade.
SAPTA – South Asian Preferential Trade Agreement. These international agreements were designed to make trade between countries easier and more cooperative.
In simple words: GATT stands for General Agreement on Tariff and Trade, and SAPTA stands for South Asian Preferential Trade Agreement. They are official agreements that help countries trade goods with each other smoothly.

🎯 Exam Tip: Write the full forms in capital letters and double-check the spelling of 'Tariff' and 'Preferential' to avoid losing easy marks.

Question 2. Explain, in your own words, the economic policy of “Make in India”.
Answer: ’Make in India’ is an economic policy as well as an organised progamme of the Government of India to encourage and promote various companies and enterprises to start manufacturing and producing goods in India. This initiative plays a crucial role in transforming India into a global design and manufacturing hub. The aim of this initiative is to generate employment, enhance the skill of Indians and also to attract foreign investment.
In simple words: 'Make in India' is a government plan to get companies to make their products inside India. This helps create more jobs for people and brings more money into the country.

🎯 Exam Tip: Clearly state the primary objectives of the policy, such as job creation, skill development, and attracting foreign investment, to secure full marks.

 

Question 3. What do the provisions of the WTO cater to?
Answer: The provisions of the WTO cater to grants, import -export, foreign investment, agriculture, technology and services. These regulations help establish a smooth and predictable framework for international trade.
In simple words: The WTO rules help control how countries trade with each other. They cover things like buying and selling goods, investing money, farming, and technology.

🎯 Exam Tip: Memorize the key areas regulated by the WTO, especially import-export and services, as these are highly looked for by examiners.

Answer the Following Questions in Detail:

 

Question 1. What is the fundamental principle of the Five Year Plans? Which economic goals are set forth by the Government?
Answer: Fundamental principle of planning: A general principle of planning is the proportionate distribution of the resources of a country and the appropriate use of the human resources to fulfill the needs of the people. This ensures that national wealth is utilized efficiently for the welfare of all citizens.

Goals of Plans:
The general goals of the economic planning of India are as follows:
• Increase in the national income.
• Bringing about rapid industrialisation by focusing on the basic industries.
• Bringing about an increase in agricultural production so that the country becomes self-sufficient in foodgrain production.
• Use the human resources in the country optimally by availing increasing employment opportunities.
• Remove inequality in earnings and wealth.
• Maintain stable prices of commodities.
• Controlling the growth of population through family planning.
• Improve the standard of living by eradicating poverty.
• Develop social services.
In simple words: The main idea of Five Year Plans is to share the country's resources fairly and use people's skills wisely. The goals include increasing national income, growing more food, creating jobs, and reducing poverty.

🎯 Exam Tip: When answering detailed questions, structure your response with clear subheadings like 'Fundamental Principle' and 'Goals of Plans' to make it easy to read.

 

Question 2. Describe the prolonged agitation of the mill workers under Dr. Datta Samant.
Answer:
(i) In the beginning, the striking workers received help from their native villages. It was also not very difficult for them to help each other.
(ii) They set up departmental committees and distributed food grains, assistance in the form of funds, etc.
(iii) The left parties had supported the strike. As the strike dragged on, efforts were made to split the striking workers’ ranks.
(iv) Even as the strike completed 6 months, the central government completely ignored it. The workers started a ‘Jail Bharo Agitation’.
(v) In September 1982, one and a half lakh workers took a march on the Legislative Assembly of Maharashtra State.
(vi) It didn’t help at all. The strike completed a year. This was the first strike to have gone on for a year.
(vii) In this period, about one and a half lakh workers became unemployed.
(viii) As polyester had come into greater demand than cotton cloth, the sale of mill cloth got affected. The mills moved from Mumbai to Surat in Gujarat.
(ix) The Central government nationalised 13 textile mills. Appointment of arbitrators did not help to resolve the issue. This prolonged strike ultimately changed the industrial landscape of Mumbai forever.
In simple words: The Mumbai mill workers went on a massive strike for over a year under Dr. Datta Samant. Despite protests and marches, the government ignored them, leading to massive unemployment and many mills moving away to Gujarat.

🎯 Exam Tip: Mention key milestones of the agitation, such as the 'Jail Bharo Agitation', the march in September 1982, and the shift of mills to Surat, to secure full marks.

 

Question 3. Which enterprises came under government due to the lack of capital investment?
Answer:
(i) The industries like defence, scientific research, education, roads, railways, waterways, sea port and airport development require huge capital investment but the returns are delayed.
(ii) Since private investors were hesitant to put money into these long-term projects, the government had to take charge of these basic and heavy industries to ensure national development.
In simple words: Important sectors like railways, defence, and roads need a lot of money to build, and they do not make quick profits. Because private businesses did not want to invest in them, the government took over these areas.

🎯 Exam Tip: List specific examples of these industries, such as defence, railways, and scientific research, to show a clear understanding of public sector enterprises.

 

Question 4. State the Industrial policy of 1973.
Answer:
(i) The industrial policy of 1973 increased the speed of development.
(ii) Priority was given in this policy to control the influence of heavy industries, industrial families and foreign industries and remove the imbalance in regional development.
(iii) The government focused on the development of small scale industries and cottage industries. This policy aimed to make the economy more self-reliant and balanced across different sectors.
In simple words: The 1973 policy wanted to speed up industrial growth. It tried to limit the power of very large or foreign businesses while helping small, local cottage industries grow in all regions.

🎯 Exam Tip: Make sure to list all three key aspects: increasing development speed, controlling heavy/foreign industries, and focusing on small-scale and cottage industries.

 

Question 5. What were the aims of the ‘Third Five Year Plan’?
Answer:
(i) This plan was aimed at bringing about a balance in industries and agriculture.
(ii) The other goals of the plan included increase in national income, heavy industries, development in transport and mineral industry, alleviation of poverty and to expand the opportunities for employment. It was a crucial step towards making India's economy self-generating and self-reliant.
In simple words: The Third Five Year Plan aimed to balance farming and factory growth. It also focused on raising national income, creating more jobs, and reducing poverty.

🎯 Exam Tip: Highlighting the balance between agriculture and industry is essential for scoring full marks on this question.

 

Question 6. What was the background for . the nationalisation of banks?
Answer:
(i) India had adopted a mixed economy after independence.
(ii) Nationalisation of banks was essential to cover the deficits if they occurred while implementing different schemes.
(iii) Also the profits of these banks would come into the government treasury once they are nationalised. This move was intended to ensure that credit and financial resources reached the common people and rural areas.
In simple words: India had a mixed economy and needed money to fund public welfare programs. By taking over the banks, the government could use bank profits to cover any financial shortages and help the country.

🎯 Exam Tip: Remember to mention the three main points: the mixed economy, covering budget deficits for schemes, and bringing bank profits into the government treasury.

 

Question 7. State the cultural contributions of the working class.
Answer:
(i) The working class has contributed culturally as well through folk theatre, folk art and literature. Anna Bhau Sathe, Shahir Amar Sheikh, Shahir Sable were popular for their programmes aimed at public education. These performances played a vital role in raising social awareness and inspiring social reform.
In simple words: The working class enriched culture through folk plays, art, and literature. Famous artists used their performances to educate the public and raise awareness about social issues.

🎯 Exam Tip: Always mention the names of key figures like Anna Bhau Sathe, Shahir Amar Sheikh, and Shahir Sable to secure full marks.

 

Question 8. Who took responsibility to bring the Indian economy in sync with the global mainstream?
Answer:
(i) The year 1991 is very important in the history of modern India. After the 10th General elections, P. V. Narasimha Rao became the Prime Minister of India.
(ii) With Dr. Manmohan Singh as Finance Minister, he adopted the new economic policy of linking India’s economy with the global economy. This period marked a significant shift from the previous closed-market model to a more liberalized approach.
(iii) For this, fundamental changes were brought about in the Indian economy. Indian economy was brought in tune with the global mainstream.
In simple words: In 1991, Prime Minister P. V. Narasimha Rao and Finance Minister Dr. Manmohan Singh introduced new economic policies. They connected India's economy with the rest of the world to help it grow.

🎯 Exam Tip: Mention both P. V. Narasimha Rao and Dr. Manmohan Singh, along with the year 1991, to secure full marks for this question.

 

Question 9. Which corrective measures were taken by Manmohan Singh to relieve the crisis of the Indian economy?
Answer:
(i) Dr. Singh undertook many corrective measures. The situation began to change.
(ii) He removed the restrictions on foreign investments.
(iii) He restricted the licence system to 18 industries. In view of the increasing losses in the public sector industries, he opened up the public sector for investment by private industries. These reforms collectively came to be known as economic liberalization.
(iv) In order to bring the share market under control, he established the Securities and Exchange Board of India (SEBI) in 1992.
(v) National Stock Exchange was computerised. He gave priority to remove the spectre of recession.
In simple words: Dr. Manmohan Singh made it easier for foreign companies to invest in India and reduced government control over businesses. He also set up SEBI to monitor the stock market and modernized the National Stock Exchange.

🎯 Exam Tip: Remember to list key measures like removing foreign investment limits, establishing SEBI in 1992, and computerizing the National Stock Exchange.

 

Question 10. State the impact of corrective measures taken by Dr. Manmohan Singh on the economy of our country.
Answer:
(i) Foreign Investment in India grew during the first tenure of Dr. Manmohan Singh as Finance Minister. This influx of capital helped stabilize the nation's foreign exchange reserves.
In simple words: The changes made by Dr. Manmohan Singh helped bring more foreign money into India. This boost in investment helped the country's economy recover and grow stronger.

🎯 Exam Tip: Focus on the growth of foreign investment as a primary positive outcome of these economic reforms.

 

Question 11. What were the objectives of the WTO?
Answer:
(i) In 1995, India became a member of the World Trade Organisation (WTO).
(ii) The organisation had the following objectives: to free trade between countries, to put an end to all those discriminatory laws, restrictions, rules and policies that are hurdles in the way of international free trade and to regulate global trade with the help of a formal multi – party mechanism. These measures aimed to create a more level playing field for developing nations.
In simple words: The WTO was set up to make trading between different countries easier and fairer by removing strict rules and barriers.

🎯 Exam Tip: Clearly mention the year India joined (1995) and list the core objectives like freeing trade and removing discriminatory laws to score full marks.

 

Question 12. Do you agree that membership with the WTO has ushered in changes in the economic sector of our country? State the reason for your answer.
Answer:
(i) Yes, of course. The provisions of the World Trade Organisation have included grants, import-export, foreign investment, agriculture, technology and services. This has opened up various sectors of the Indian economy to global competition.
(ii) The sectors of electricity, water transportation, education and health have been rapidly commercialised since India became a member of the World Trade Organisation.
In simple words: Yes, joining the WTO changed India's economy by opening up areas like trade, technology, and services to foreign markets, which also led to the commercialisation of basic services like education and health.

🎯 Exam Tip: Always state your agreement ("Yes") clearly at the beginning before listing the specific sectors like agriculture, technology, and health that underwent changes.

 

Question 13. State the improvements which have occurred in our economy as per the reports of WTO.
Answer: As per the various reports of the World Trade Organisation, India has made considerable improvement in different areas like reduction in the below poverty line (BPL) population, decline in infant mortality, availability of facilities regarding drinking water and waste water management. These positive trends reflect a general rise in the standard of living across the nation.
In simple words: According to the WTO, India has improved in key areas like reducing poverty, lowering infant deaths, and providing better drinking water and waste management.

🎯 Exam Tip: Memorize key indicators of improvement such as BPL reduction, lower infant mortality, and clean water facilities to write a precise answer.

 

Question 14. Which economic challenges were faced by the Government of Prime Minister Chandra Shekhar?
Answer:
(i) During the tenure of Chandra Shekhar the rate of inflation was 17%.
(ii) Economic growth rate had decreased by 1.1%. India had foreign exchange reserves only enough to last for imports for a week.
(iii) It had become difficult to pay back its loan and the interest on it.
(iv) In May 1991, the government had tried to control the situation by selling some of its gold reserves and by mortgaging some. This emergency measure was taken to avoid defaulting on international financial obligations.
In simple words: Prime Minister Chandra Shekhar's government faced a severe economic crisis with very high inflation and almost no foreign money reserves. To manage this, they had to sell and mortgage some of India's gold.

🎯 Exam Tip: To score full marks, make sure to mention the specific statistics like the 17% inflation rate and the fact that foreign reserves could only cover one week of imports.

 

Question 15. Which economic liabilities were incurred by V. P. Singh government?
Answer:
(i) The V. P. Singh government had incurred a liability of over 10 thousand crore rupees on the economy by waiving off the loans of all the farmers.
(ii) The proportion of internal loans of central and state government together to the Gross Domestic Product was 55%.
(iii) In 1980-81 foreign loan was 2350 crore dollars. It increased to 8380 crore dollars in 1990-91.
(iv) At this time, India had foreign exchange reserves of only 100 crore dollars.
(v) This also had the background of the increased oil prices due to the invasion of Kuwait by Iraq.
(vi) It became difficult for India to raise a loan. Even the non-resident Indians started withdrawing their deposits in foreign currency from India. This mass withdrawal of foreign currency deposits created an unprecedented liquidity crisis for the nation.
In simple words: The V. P. Singh government faced huge debts due to farmer loan waivers and rising foreign loans. Global events like the Gulf War also raised oil prices, making it very hard for India to borrow money.

🎯 Exam Tip: Memorize the key figures such as the 10 thousand crore farmer loan waiver and the rise of foreign debt to 8380 crore dollars to make your answer highly precise.

Identify the Picture and Give Relevant Information.

 

Question 1. Identify the picture and give relevant information.
Answer:
(i) The image shows the logo of the State Bank of India (SBI). Nationalisation of banks was essential to cover the deficits if they occurred while implementing different schemes and profit of these banks came under the government treasury.
In simple words: This is the logo of the State Bank of India. Nationalising major banks helped the government use bank profits to fund public welfare programs and cover financial deficits.

🎯 Exam Tip: Always start your answer by clearly identifying the logo as the "State Bank of India (SBI)" before explaining the concept of bank nationalisation.

 

Question 2. Identify the personalities in the pictures and write about their economic contributions.
Answer:
(i) P. V. Narasimha Rao and Manmohan Singh.
(ii) They removed the restrictions on foreign investments.
(iii) Restricted the license system to 18 industries.
(iv) Opened up the public sector for investment by private industries.
(v) Established the SEBI (Securities and Exchange Board of India) in 1992 to regulate and bring share market under control.
(vi) Foreign investment in India grew.
(vii) India could recover the gold mortgaged with the Bank of England. These landmark reforms marked the beginning of the economic liberalisation phase in India.
In simple words: Prime Minister P. V. Narasimha Rao and Finance Minister Manmohan Singh introduced major economic reforms in 1991. They opened up India's economy to foreign investments, reduced government control, and helped the country recover from a major financial crisis.

🎯 Exam Tip: Clearly identify both leaders first, and list the key economic reforms point-by-point to secure full marks.