Q8 of 10 Page 62

State the main arguments in the debate that ensued between industrialisation and agricultural development at the time of the second Five Year Plan.

At the time of 2nd FYP many controversies arose like:


1. 2nd FYP was more concentrated on industries than agriculture or rural India


2. Private public conflicts. After Independence India formed its own development model called mixed economy, where both Private and Public sector played a major role. But there were heated arguments that private sector were given not enough space and the stimulus to grow.


3. Whereas there were some who criticized planners for not providing enough means to public like the public investment including education and health were provided in those regions where private sector was not prepared to go.


4. Besides there were arguments like if government invested more in rural India then the massive agricultural problems would have sorted.


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6

What was the major thrust of the First Five Year Plan? In which ways did the Second Plan differ from the first one?

 7

What was the Green Revolution? Mention two positive and two negative consequences of the Green Revolution.

 9

“Indian policy makers made a mistake by emphasising the role of state in the economy. India could have developed much better in private sector was allowed a free play right from the beginning”. Give arguments for or against this proposition

 10

Read the following passage and answer the questions below:

“In the early years of Independence, two contradictory tendencies were already well advanced inside the Congress party. On the one hand, the national party executive endorsed socialist principles of state ownership, regulation and control over key sectors of the economy in order to improve productivity and at the same time curb economic concentration. On the other hand, the national Congress government pursued liberal economic policies and incentives to private investment that was justified in terms of the sole criterion of achieving maximum increase in production. “ — Francine Frankel


(a) What is the contradiction that the author is talking about? What would be the political implications of a contradiction like this?


(b) If the author is correct, why is it that the Congress was pursuing this policy? Was it related to the nature of the opposition parties?


(c) Was there also a contradiction between the central leadership of the Congress party and its Sate level leaders?