Indian Economy 1950-90 test - 4

Agricultural sector and industrial sector are complementary to each other as Agricultural sector provides raw material to industrial sector which is used as input in their manufacturing industries.

Import substitution  advocates replacing foreign imports with domestic production. Its objective  is to reduce domestic country's dependence on foreign country through the local production of industrialized products.

Industries Act was established in the year 1951 for the regulation and development of certain industries. Monopolies and Restrictive Trade Practices  act aims to prevent concentration of economic power, provide for control of monopolies, and protect consumer interest. FERA was established to conserve the foreign exchange resources of the country.

Subsidies refers to a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low. Its objective is to motivate the industries to increase the level of production.

Life expectancy refers to the the average period that a person may expect to live. In 1991 life expectancy was between 60 and 61 years.

The balance of trade (BOT) is the difference between a country's imports and its exports for a given time period. The balance of trade is also referred to as the trade balance or the international trade balance.

Increasing exports ranks among the highest priorities of any government wishing to stimulate economic growth.  An export subsidy reduces the price paid by foreign importers, which means domestic consumers pay more than foreign consumers. An Export Tax Relief would encourage more firms to export because eligible foreign companies would pay a competitive tax rate. Concessional bank credit also increases exports the companies get loans at a cheaper rate which induces them to increase the investment.

Infant mortality refers to deaths of young children, typically those less than one year of age. Governments can reduce the mortality rates by addressing the combined need for education, nutrition, and access to basic maternal and infant health services.

High Yielding Varieties Programme  was introduced in 1964-65 with a new dimension of agricultural production created in the community development project.  It includes 5 crops wheat,rice,jowar,bajra and maize. The objective of this programme is to adopt HYV for maximum production.

Industrial Policy Resolution of 1956 (IPR 1956) is a resolution adopted by the Indian Parliament in April 1956. It was the first comprehensive statement on industrial development of India. The 1956 policy continued to constitute the basic economic policy for a long time.