Indian Economy 1950-1990 Test - 2

On 4th October, the government of India approved the 12th five year plan (2012-17) that aims to achieve annual average economic growth rate of 8.2 per cent, down from 9 per cent (Eleventh plan 2007-12). The aim of the 12th Five Year plan is to achieve “faster, sustainable and more inclusive growth ”.

The first Factories Act was enacted in 1881.
The Factories Act is a legislation that aims to regulate the working conditions in factories and protect the rights of workers. The first Factories Act was enacted in 1881 in response to the need for improved working conditions during the Industrial Revolution. Here are some key points about the Act:
- Objective: The main objective of the Factories Act was to ensure the health, safety, and welfare of workers in factories.
- Provisions: The Act included various provisions to regulate the working conditions, including working hours, employment of women and children, and safety measures.
- Working hours: The Act specified the maximum number of working hours for adults and prohibited the employment of children under a certain age.
- Employment of women and children: The Act introduced restrictions on the employment of women and children in certain hazardous industries.
- Safety measures: The Act mandated the implementation of safety measures in factories, such as fencing of machinery, provision of adequate ventilation, and precautions against fire and accidents.
- Inspections: The Act empowered factory inspectors to visit and inspect factories to ensure compliance with the regulations.
- Subsequent amendments: The Factories Act has been amended several times since its enactment to keep up with the changing needs and advancements in industrial practices.
Overall, the first Factories Act, enacted in 1881, marked an important milestone in the history of labor legislation, as it aimed to protect the rights and well-being of workers in factories.

Planning Commission was set up in:
- 15th March 1950
- 5th March 1951
- 20th March 1951
- 25th March 1951
Explanation:
The correct answer is option A: 15th March 1950.
Here is a detailed explanation:
1. The Planning Commission was established in India to formulate and implement comprehensive economic plans for the country's development.
2. It was set up on 15th March 1950 by a resolution of the Government of India.
3. The first Prime Minister of India, Jawaharlal Nehru, played a crucial role in the formation of the Planning Commission.
4. The main objective of the Planning Commission was to promote balanced and rapid economic development in the country.
5. It prepared five-year plans, which outlined the priorities and strategies for economic growth and development.
6. The Planning Commission was responsible for coordinating and monitoring the implementation of these plans.
7. It played a central role in the allocation of resources and guiding the development efforts of various sectors.
8. The Planning Commission was replaced by the NITI Aayog (National Institution for Transforming India) on 1st January 2015.
In conclusion, the Planning Commission was set up on 15th March 1950 to oversee and drive India's economic development.

Who presented the first five year plan?
The correct answer is Jawaharlal Nehru.
Explanation:
Jawaharlal Nehru, the first Prime Minister of India, presented the first five year plan in 1951. The plan was formulated to develop the Indian economy and bring about rapid industrialization and economic growth. Here are some key points about the first five year plan:
- This plan aimed to achieve self-sufficiency in agriculture and increase agricultural production.
- The plan focused on the development of basic industries like steel, coal, and power.
- It aimed to improve the standard of living by focusing on education, healthcare, and housing.
- The plan also aimed to promote the growth of small-scale industries and reduce poverty and unemployment.
- The first five year plan was successful in achieving its objectives and laid the foundation for future economic planning in India.
Jawaharlal Nehru, with his vision and leadership, played a crucial role in formulating and implementing the first five year plan, which paved the way for India's economic development in the years to come.

The objective of 11th Five-year plan is to Increase agricultural GDP growth to 4% per year to ensure a wider spread of benefits. Create 70 million new work opportunities. Augment minimum standards of education in primary school and to increase GDP up to 10%. Health and infrastructure were also the priority areas in 11th Five Year Plan.

First Five Year Plan:
- The first five year plan in India was implemented from 1951 to 1956.
- It aimed to achieve rapid industrialization and economic development in the country.
- The focus of the plan was on the agricultural sector as it was the primary source of livelihood for the majority of the population.
- The plan aimed to increase agricultural production, improve irrigation facilities, and promote land reforms.
- The plan also focused on developing basic infrastructure such as roads, railways, and power generation.
Shift in Focus in the Second Five Year Plan:
- The second five year plan in India was implemented from 1956 to 1961.
- The focus of the plan shifted from agriculture to industry.
- This shift was made to accelerate the pace of industrialization and reduce the dependence on agriculture.
- The plan aimed to promote the establishment of heavy industries and expand the manufacturing sector.
- It also focused on improving infrastructure related to industries, such as power generation and transportation.
- The second plan also emphasized on increasing exports to boost foreign exchange reserves.
Overall, the first five year plan focused on agriculture production, while the second plan shifted the focus to industry development.

Twelfth Five Year Plan:
The Twelfth Five Year Plan refers to the five-year period of planning in India that took place from 2012 to 2017. It was the country's twelfth such plan and aimed to achieve sustainable and inclusive growth. Here is a detailed explanation of the Twelfth Five Year Plan:
Key Points:
- Duration: The Twelfth Five Year Plan spanned from 2012 to 2017.
- Objectives: The plan aimed to achieve a sustainable growth rate of 8-9% annually, with a focus on inclusive development.
- Priority Sectors: The plan emphasized several key sectors that required attention and investment, including agriculture, infrastructure, education, healthcare, and skill development.
- Employment Generation: The plan aimed to create employment opportunities for the rapidly growing population, particularly in sectors such as manufacturing and services.
- Inclusive Growth: The plan emphasized the need to reduce poverty and inequality, with a focus on social welfare programs and inclusive policies.
- Infrastructure Development: The plan recognized the importance of infrastructure development for economic growth and aimed to increase investments in areas such as power, transportation, and urban development.
- Environmental Sustainability: The plan acknowledged the importance of sustainable development and promoted initiatives for environmental conservation and renewable energy.
- Regional Imbalances: The plan aimed to address regional disparities and promote balanced development across different states and regions of India.
- Monitoring and Evaluation: The plan emphasized the importance of regular monitoring and evaluation of its progress to ensure effective implementation and course correction if needed.
Conclusion:
The Twelfth Five Year Plan, which took place from 2012 to 2017, aimed to achieve sustainable and inclusive growth in India. It focused on key sectors, employment generation, inclusive policies, infrastructure development, environmental sustainability, and addressing regional imbalances. Regular monitoring and evaluation were also crucial aspects of the plan's implementation.

Primary Objective of Economic Planning in India:
- Growth with Social Justice: The primary objective of economic planning in India is to achieve economic growth while ensuring social justice. This means that the focus is not only on increasing the overall GDP and promoting economic development but also on ensuring that the benefits of this growth are distributed equitably among all sections of society.
- Reduction of Poverty: Economic planning aims to address the issue of poverty in the country. It involves implementing policies and programs that aim to uplift the economically weaker sections of society and provide them with better opportunities for education, healthcare, and employment.
- Unemployment Reduction: Another objective of economic planning is to reduce unemployment. This is achieved by promoting industrialization, encouraging entrepreneurship, and creating job opportunities through various initiatives such as skill development programs and the promotion of small and medium enterprises.
- Income Inequality Reduction: Economic planning also focuses on reducing income inequalities within the society. It aims to bridge the gap between the rich and the poor by implementing redistributive policies, progressive taxation, and providing social welfare schemes to uplift the marginalized sections of society.
- Overall Development: Economic planning in India aims to achieve overall development by focusing on various sectors such as agriculture, industry, infrastructure, education, healthcare, and rural development. The objective is to create a balanced and sustainable growth model that benefits all sections of society.
In conclusion, the primary objective of economic planning in India is to achieve growth with social justice by reducing poverty, unemployment, and income inequalities. The aim is to ensure that economic development is inclusive and benefits all sections of society.

GDP
Definition: GDP stands for Gross Domestic Product, which is a measure of the total value of all final goods and services produced within a country's borders in a given time period.
Explanation:
To determine the correct answer, let's analyze each option:
A: Market value of all the final goods and services produced by the residents
- This option implies that GDP includes all goods and services produced by residents, regardless of the location of production. However, GDP only considers goods and services produced within a country's borders, irrespective of the nationality of the producers.
B: Market value of all the final goods and services produced within a domestic territory
- This option correctly states that GDP measures the market value of all final goods and services produced within a country's domestic territory. It takes into account both goods and services produced by residents and non-residents within the country's borders.
C: Factor value of all the final goods and services produced by the residents
- This option refers to the factor value, which takes into account the costs of production, including labor, capital, and raw materials. However, GDP is based on the market value of goods and services, not the factor value.
D: Factor value of all the final goods and services produced within a domestic territory
- Similar to option C, this option also mentions the factor value rather than the market value, so it is not the correct answer.
Therefore, the correct answer is B: Market value of all the final goods and services produced within a domestic territory .

The Committee on Vision 2020 was constituted by the Planning Commission in June, 2000, under the chairmanship of SP Singh, for crystallising the country ’s vision for the future in the year 2020.The vision will reflect people ’s aspirations, the full potentials of growth and development, and lay out the efforts needed to fulfill this vision.
The objective of this committee was, as described by Dr. Abdul Kalam, "Transforming the nation into a developed country, five areas in combination have been identified based on India 's core competence, natural resources and talented manpower for integrated action to double the growth rate of GDP and realize the Vision of Developed India ”