Indian Economy Solved Question Paper 2022 PDF GU -[Gauhati University B.Com 4th Sem(Hons.)]

In this post we have shared the Gauhati University BCOM  4th SEM Indian Economy Solved Question Paper 2022. This Question Paper Solution is highly valuable for exam preparation as it provides a Complete Solution & overview of the questions asked in the Guwahati University BCom 4th Semester Indian Economy Question Paper Solution (Honours) 2022 GU.

 Download PDF

Gauhati University B.Com 4th Sem Solved Question Paper 2022

Indian Economy Solved Question Paper 2022

COMMERCE

(Honours Generic)

Answer the Questions from any one Option.

OPTION-A

Paper: COM-HG-4016

(Indian Economy)

Full Marks: 80

Time: Three hours

The figures in the margin indicate full marks for the questions.

1. Answer any ten of the following: 1x10=10

(a) Define per-capita income. 

Ans:- Per capita income is a measure of the average income earned per person in a specific area, such as a country or region. It is calculated by dividing the total income of a population by the total population.

(b) In which year the first 'Human Development Report' was published?

Ans:- The first 'Human Development Report' was published in 1990.

(c) What is 'Hindu Rate of Growth'?

Ans:- The term "Hindu Rate of Growth" refers to the low and stagnant rate of economic growth that prevailed in India during the mid-20th century. It was characterized by an average annual growth rate of around 3.5% in GDP, which was considered insufficient for meaningful development.

(d) Mention any two cash crops grown in India.

Ans:- Two cash crops grown in India are cotton and tobacco.

(e) What is sex-ratio? 

Ans:- Sex ratio refers to the ratio of the number of males to females in a population. It is typically expressed as the number of males per 100 females.

(f) Define fiscal deficit. 

Ans:- Fiscal deficit is the difference between a government's total spending (including both expenditure and transfer payments) and its total revenue (such as taxes and non-tax revenue) during a specific period. It represents the amount of borrowing needed by the government to meet its expenditure.

(g) What is decentralised planning ? 

Ans:- Decentralized planning refers to a process in which the authority and responsibility for planning and decision-making are distributed among various levels of government or local institutions. It involves empowering local communities and allowing them to participate in the planning and implementation of development initiatives.

(h) In which type of unemployment marginal productivity of the labour is zero?

Ans:- Marginal productivity of labor is zero in the case of structural unemployment. Structural unemployment occurs when there is a mismatch between the skills and qualifications of the available workforce and the requirements of available jobs.

(i) In which year National Rural Employment Guarantee Act (NREGA) was launched?

Ans:- The National Rural Employment Guarantee Act (NREGA) was launched in the year 23rd August 2005.

(j) Define budget. 

Ans:- A budget is a financial plan that outlines the projected income and expenses for a specific period, typically a year. It serves as a tool for planning and controlling financial resources.

(k) What is the 'inflation target' set by the Government of India for the period of 2021-2026 ?

Ans:-  4% Inflation Target Retained by Government of India for the period of 2021-2026.

(l) Who is called the father of 'Green Revolution' in India ?

Ans:- Dr. M.S. Swaminathan is often referred to as the father of the Green Revolution in India. He is an Indian geneticist and agricultural scientist who played a crucial role in the development and implementation of high-yielding varieties of wheat and rice, leading to increased agricultural productivity in India.

(m) As per 2011 Census of India which state has the highest literacy rate? 

Ans:- As per the 2011 Census of India, the state with the highest literacy rate is Kerala. Kerala has consistently maintained high literacy rates and has made significant progress in education and human development.

(n) Who is the chairperson of NITI Aayog ?

Ans:-  The chairperson of NITI Aayog (National Institution for Transforming India) is the Prime Minister of India Narendra Modi. 

(o) State the main objective of North Eastern Council ( NEC).

Ans:- The main objective of the North Eastern Council (NEC) is to promote balanced and coordinated development in the northeastern region of India. It aims to accelerate socio-economic development, improve infrastructure, and enhance the quality of life for the people living in the northeastern states.

 Download PDF

2.Answer any five of the following: (within 30 words) 2×5=10

(a) What is sustainable development ? 

Ans:- Sustainable development refers to the practice of meeting present needs without compromising the ability of future generations to meet their own needs. It aims to achieve economic growth, social equity, and environmental protection.

(b) Mention two important reasons for the decline of the handicraft industry in India during the British period. 

Ans:- The decline of the handicraft industry in India during the British period can be attributed to the introduction of machine-made goods and the imposition of heavy taxes and tariffs on Indian handicrafts, which led to a loss of competitiveness.

(c) Briefly explain the concept of balance of payments (BOP). 

Ans:- Balance of payments (BOP) is a record of all economic transactions between a country and the rest of the world over a specified period. It includes the balance of trade, services, and capital flows, and provides information on a country's economic relationship with other nations.

(d) Mention the main objectives of economic planning.

Ans:- The main objectives of economic planning include promoting economic growth, achieving social justice, reducing poverty and inequality, ensuring a stable price level, and attaining self-reliance and sustainability in the economy.

(e) What is privatisation ? 

Ans:- Privatisation refers to the transfer of ownership, control, and management of state-owned enterprises to private entities. It involves the sale of government assets to private individuals or corporations, often with the aim of improving efficiency, reducing the fiscal burden, and promoting competition in the economy.

(f) Distinguish between relative poverty and absolute poverty. 

Ans:- Relative poverty refers to a condition where individuals or groups have significantly lower income or resources compared to the average population within a particular society. Absolute poverty, on the other hand, refers to a state of severe deprivation in basic necessities like food, shelter, and clothing, where individuals lack the minimum standard of living.

(g) What is cyclical unemployment ?

Ans:- Cyclical unemployment is a type of unemployment that occurs due to fluctuations in the business cycle. It is characterized by job losses during economic downturns or recessions when there is a decrease in aggregate demand. Cyclical unemployment tends to rise during economic contractions and declines during periods of economic expansion.

(h) What are the three pillars of 'Act East Policy'?

Ans:- The three pillars of the 'Act East Policy' are as follows:

1. Economic Cooperation: This pillar focuses on strengthening economic ties and promoting trade, investment, and connectivity with countries in the East, particularly in Southeast Asia. It aims to boost economic growth, enhance market access, and foster regional integration.

2. Strategic Engagement: This pillar emphasizes deepening strategic partnerships with countries in the East to promote security, stability, and peace in the region. It includes enhancing defense cooperation, maritime security, and intelligence sharing, among other aspects.

3. Cultural and People-to-People Exchanges: This pillar aims to foster cultural understanding, people-to-people contacts, and exchanges in various fields like education, tourism, arts, and sports. It promotes cultural diplomacy and encourages closer ties between societies, promoting mutual understanding and goodwill.

3.Answer any four of the following: (within 250 words) 5x4 = 20

(a) Explain five common features of the underdeveloped countries.

Ans:- Five common features of underdeveloped countries are:

1. Low per capita income: Underdeveloped countries typically have a low average income per person compared to developed nations. This is often accompanied by high levels of poverty and income inequality.

2. Limited industrialization: These countries have a limited industrial base, with a majority of the population engaged in agriculture or low-skilled labor. Industrial sectors are usually underdeveloped, resulting in a reliance on imports for manufactured goods.

3. Lack of infrastructure: Underdeveloped countries often face inadequate infrastructure, including roads, transportation networks, and basic utilities such as electricity and clean water. This hinders economic development and the provision of essential services.

4. High population growth rate: Underdeveloped countries commonly experience rapid population growth, which puts pressure on limited resources and infrastructure. This makes it challenging to provide education, healthcare, and employment opportunities for the growing population.

5. Dependence on primary exports: Many underdeveloped countries heavily rely on the export of primary commodities such as agricultural products, minerals, or raw materials. This makes their economies vulnerable to fluctuations in global commodity prices and exposes them to external shocks.

(b) Write a short note on the sectoral composition of national income in India in recent times.

Ans:- The sectoral composition of national income in India has undergone significant changes in recent times. Historically, India's economy was predominantly agrarian, with agriculture being the largest contributor to the national income. However, there has been a gradual shift towards a more diversified economy. 

In recent years, the services sector has emerged as a key driver of India's national income. It includes industries such as information technology, telecommunications, banking, finance, and tourism. The services sector now contributes a significant portion of the country's GDP, reflecting the growth of knowledge-based industries and the increasing importance of services in the global economy.

While the services sector has been expanding, the industrial sector, including manufacturing and construction, has also seen growth. India has witnessed the development of industries such as automobiles, textiles, pharmaceuticals, and steel, contributing to the national income and employment generation.

(c) Discuss the role of FDI in economic growth of India.

Ans:- FDI, or Foreign Direct Investment, has played a significant role in the economic growth of India. It has been instrumental in driving various sectors, boosting infrastructure development, and fostering technological advancements. Here are some key points about the role of FDI in India's economic growth:

1. Capital Inflow and Investment: FDI brings in substantial capital inflows into the country, enabling investments in industries such as manufacturing, services, and infrastructure. This investment contributes to increased production capacities, job creation, and overall economic growth.

2. Technology Transfer and Innovation: FDI often brings advanced technologies, managerial expertise, and best practices to the domestic market. This facilitates knowledge and technology transfers, enhances productivity, improves product quality, and drives innovation within Indian industries.

3. Employment Generation: FDI creates employment opportunities by establishing new businesses and expanding existing ones. It helps alleviate unemployment and underemployment issues, improving the standard of living for many individuals and contributing to poverty reduction.

4. Export Promotion: FDI plays a crucial role in promoting exports by leveraging global market access, enhancing competitiveness, and integrating Indian companies into global supply chains. This leads to increased foreign exchange earnings, improved balance of payments, and a more robust external sector.

5. Ancillary Benefits: FDI often brings along ancillary benefits such as improved infrastructure, upgraded logistics networks, and enhanced skill development. These indirect effects support the overall economic development of the country.

(d) Explain three achievements and two failures of economic planning in India. 

Ans:- Economic planning in India has witnessed both achievements and failures over the years. Here are three notable achievements and two failures of economic planning in India:

Achievements:

1. Green Revolution: One of the most significant achievements of economic planning in India was the Green Revolution in the 1960s and 1970s. Through strategic planning, investments in agriculture, and the adoption of high-yielding crop varieties, India achieved self-sufficiency in food production. This led to increased agricultural productivity, food security, and a significant reduction in poverty and hunger.

2. Industrial Growth and Diversification: Economic planning played a pivotal role in fostering industrial growth and diversification in India. Initiatives such as the establishment of public sector enterprises, industrial policies, and infrastructure development supported the growth of manufacturing and other industries. This helped create employment opportunities, boost exports, and contribute to overall economic development.

3. Social Welfare Programs: Economic planning in India prioritized social welfare programs aimed at reducing poverty and addressing social inequalities. Schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), National Rural Health Mission (NRHM), and Mid-Day Meal Scheme have made significant contributions to poverty alleviation, healthcare accessibility, and education for the marginalized sections of society.

Failures:

1. Slow Pace of Poverty Reduction: Despite various poverty alleviation programs, economic planning in India has faced challenges in achieving a rapid reduction in poverty. Income disparities, regional disparities, and inadequate implementation of welfare schemes have hindered the effective eradication of poverty.

2. Unemployment and Underemployment: Economic planning has struggled to address the issue of unemployment and underemployment effectively. Despite industrial growth, the economy has faced challenges in generating sufficient employment opportunities, resulting in persistent unemployment and underutilization of labor resources.

(e) Explain the concept of multi dimentional poverty index (MPI). 

Ans:- The Multidimensional Poverty Index (MPI) is a measure used to assess poverty beyond income or monetary measures alone. It goes beyond the traditional approach of measuring poverty solely based on income and takes into account multiple dimensions of deprivation that people experience simultaneously. The MPI considers indicators related to health, education, and standard of living to provide a more comprehensive understanding of poverty.

The MPI identifies individuals or households that are deprived in several key areas, such as nutrition, child mortality, years of schooling, school attendance, access to clean water, sanitation, electricity, and assets. By considering these various dimensions, the MPI offers a more nuanced view of poverty, highlighting the complex interplay between different deprivations that individuals may face.

The MPI combines the different indicators into a single measure, allowing policymakers and researchers to track the progress of poverty reduction efforts. It provides a broader perspective on poverty by capturing the simultaneous deprivations faced by individuals or households, enabling policymakers to design more targeted interventions to address specific areas of deprivation and improve overall well-being.

(f) Examine the relation between economic growth and reduction in poverty.

Ans:- The relationship between economic growth and poverty reduction is complex and multifaceted. While economic growth can contribute to poverty reduction, it does not automatically guarantee a reduction in poverty rates. The impact of economic growth on poverty depends on various factors, including the quality of growth, distributional patterns, and the effectiveness of poverty alleviation policies.

Economic growth can create opportunities for income generation, employment, and improved living standards, which can help lift people out of poverty. When accompanied by inclusive policies and equitable distribution of wealth, economic growth has the potential to reduce poverty rates significantly. Increased productivity, investment in human capital, and expansion of industries can contribute to higher incomes and improved access to basic services, such as education, healthcare, and infrastructure.

To ensure that economic growth translates into poverty reduction, it is crucial to implement complementary policies and interventions targeting the most vulnerable populations. These include social safety nets, access to quality education and healthcare, land reforms, investment in infrastructure, and support for entrepreneurship and job creation. By addressing structural barriers and promoting inclusive growth, it becomes more likely that economic growth will lead to a substantial reduction in poverty rates.

(g) Discuss the difference between import substitution and export promotion.

Ans:- Import substitution and export promotion are two distinct economic strategies employed by countries to stimulate their domestic industries and achieve economic growth. Here are the key differences between the two:

1. Focus:

- Import substitution: This strategy aims to reduce a country's reliance on imported goods by fostering the growth of domestic industries that can produce those goods. The focus is on substituting imports with domestically produced goods.

- Export promotion: This strategy focuses on boosting a country's exports by supporting domestic industries to produce goods and services that can be sold in international markets.

2. Market orientation:

- Import substitution: It is typically associated with inward-looking policies where the emphasis is on developing domestic markets and reducing imports.

- Export promotion: It is associated with outward-looking policies that prioritize expanding international markets and increasing exports.

3. Trade balance:

- Import substitution: The goal is to reduce imports, which can lead to a more balanced trade position as domestic production replaces imported goods. However, there is a risk of trade deficits if the domestic industries cannot compete effectively in the global market.

- Export promotion: The focus is on increasing exports, which can improve the trade balance by generating foreign exchange earnings. However, reliance on exports may result in trade deficits if domestic demand for imported goods exceeds export earnings.

4. Industrial development:

- Import substitution: This strategy aims to develop a diverse range of domestic industries to substitute imports, with an emphasis on import-intensive sectors. It can lead to the development of a more self-reliant industrial base.

- Export promotion: The emphasis is on developing industries that have a competitive advantage in international markets. It may focus on specific sectors or products with high export potential.

5. Policy measures:

- Import substitution: Policies supporting import substitution include trade barriers (tariffs, quotas), subsidies for domestic industries, preferential treatment for domestic firms, and restrictions on foreign investment.

- Export promotion: Policies supporting export promotion include export subsidies, tax incentives for exporters, trade agreements, investment in export-oriented infrastructure, and fostering a business-friendly environment for exporters.

(h) What is food security? How is it implemented by the Govt. under the National Food Security Act, 2013? 

Ans:- Food security refers to a state where all individuals have physical, social, and economic access to sufficient, safe, and nutritious food to meet their dietary needs and preferences for an active and healthy life. It encompasses the availability, access, utilization, and stability of food.

Under the National Food Security Act (NFSA) of 2013 in India, the government aims to ensure food security for the population by providing subsidized food grains to eligible beneficiaries through the Targeted Public Distribution System (TPDS). The NFSA legally entitles priority households and eligible individuals to receive food grains at subsidized prices.

The key features of food security implementation under the NFSA include:

1. Identification of beneficiaries: The government identifies priority households and eligible individuals based on predetermined criteria such as income, occupation, and social status.

2. Coverage and entitlements: Each eligible household is entitled to receive a specified quantity of food grains at subsidized prices through fair price shops.

3. Subsidized prices: The prices at which food grains are provided to beneficiaries are significantly lower than the market prices, making them affordable for low-income households.

4. Nutritional support: The NFSA also includes provisions for nutritional support to pregnant women, lactating mothers, children under the age of six, and malnourished individuals.

5. Grievance redressal: A robust system for addressing complaints and grievances related to food distribution is established to ensure transparency and accountability.

The NFSA aims to enhance food security by reducing hunger, malnutrition, and poverty, and it provides a legal framework to safeguard the right to food for Indian citizens.

4. Answer any four of the following: (within 10×4=40 (650 words)

(a) What is human development? Why is human development necessary for a country for its overall development ? Explain the components of human development. 

Ans:-  Human development refers to the process of improving the well-being, capabilities, and opportunities of individuals. It encompasses various aspects of human life, including education, health, income, social inclusion, and personal freedom.

Human development is essential for a country's overall development for several reasons. Firstly, investing in human development leads to a more productive workforce. By improving education and skills, individuals become better equipped to contribute to the economy and drive innovation. This ultimately fosters economic growth and prosperity.

Secondly, human development enhances social cohesion and reduces inequalities. By ensuring access to education, healthcare, and basic services, countries can promote social inclusion and create a more equitable society. This can lead to greater stability, reduced crime rates, and improved overall quality of life.

Thirdly, human development empowers individuals and promotes human rights. It emphasizes the importance of personal freedoms, such as political participation, gender equality, and protection from discrimination. When people have the opportunity to fulfill their potential and exercise their rights, it contributes to a more democratic and inclusive society.

The components of human development are typically measured through various indicators. These include:

1. Education: Access to quality education, literacy rates, enrollment rates, and educational attainment.

2. Health: Measures such as life expectancy, infant mortality rate, access to healthcare, and disease prevention.

3. Income and standard of living: Factors such as income levels, employment rates, poverty rates, and access to basic amenities.

4. Gender equality: Equality between men and women in terms of opportunities, resources, and decision-making power.

5. Social inclusion: Measures of social integration, non-discrimination, and access to social services for marginalized groups.

(b) Discuss the status of agriculture and industry at the time of independence in India. 5+5=10

Ans:- At the time of India's independence in 1947, the agriculture and industry sectors had distinct characteristics and faced certain challenges.

Agriculture: 

1. Dominant sector: Agriculture was the mainstay of the Indian economy, employing a significant portion of the population and contributing to a major portion of the GDP.

2. Low productivity: Agriculture was predominantly traditional and characterized by low productivity due to outdated farming techniques, limited access to modern inputs, and lack of irrigation facilities.

3. Land ownership patterns: The majority of the agricultural land was owned by landlords and intermediaries, leading to unequal distribution and exploitation of farmers.

4. Dependence on monsoon: Agriculture heavily relied on the monsoon rains, making it susceptible to droughts and crop failures during periods of inadequate rainfall.

5. Subsistence farming: Most farmers practiced subsistence farming, growing crops primarily for their own consumption rather than for commercial purposes.

Industry: 

1. Limited industrialization: India had a relatively underdeveloped industrial sector, with limited infrastructure and a lack of modern manufacturing facilities.

2. Colonial influence: The industrial sector was primarily geared towards meeting the needs of the colonial administration, focusing on the production of raw materials for export rather than fostering domestic industrial growth.

3. Small-scale industries: The industrial landscape consisted of small-scale enterprises, with a few large-scale industries concentrated in sectors like textiles, jute, and steel.

4. Import dependence: India heavily relied on imports for machinery, technology, and industrial goods, hindering the growth of domestic industries.

5. Lack of skilled labor: There was a shortage of skilled labor and a dearth of technical education institutions, impeding industrial development.

(c) What is service sector ? Discuss the contribution of service sector towards India's GDP. Highlight the reasons for the dominance of service sector in Indian economy since 1991. 1+4+5=10

Ans:- The service sector refers to a broad range of economic activities that do not involve the production of tangible goods. It includes industries such as finance, telecommunications, healthcare, hospitality, transportation, and professional services.

The service sector has played a significant role in India's economic growth and has been a major contributor to its GDP. Over the years, the service sector's contribution to India's GDP has been steadily increasing. As of my knowledge cutoff in 2021, the service sector accounted for more than 50% of India's GDP.

There are several reasons for the dominance of the service sector in the Indian economy since 1991:

1. Economic liberalization: In 1991, India implemented economic reforms that opened up the economy, reduced government regulations, and encouraged foreign investment. This led to the growth of service industries, such as information technology (IT) and business process outsourcing (BPO), which attracted significant foreign investment and contributed to the sector's expansion.

2. Skilled workforce: India has a large pool of educated and skilled professionals, particularly in the fields of IT, engineering, finance, and management. This availability of a skilled workforce has allowed the service sector to thrive and become a significant contributor to the economy.

3. Demographic advantage: India has a young and growing population, which has created a strong demand for services such as education, healthcare, entertainment, and retail. The service sector has been able to tap into this growing consumer base, further fueling its growth.

4. Global outsourcing destination: India has emerged as a preferred destination for outsourcing services, particularly in IT and BPO. The availability of a large English-speaking workforce, cost advantages, and quality service delivery have attracted companies from around the world to outsource their business processes to India, boosting the service sector's growth.

5. Urbanization and rising middle class: The rapid urbanization and the expansion of the middle class in India have increased the demand for services such as banking, insurance, retail, entertainment, and healthcare. The service sector has been able to cater to these growing urban and middle-class consumers, contributing to its dominance in the Indian economy.

In summary, the service sector encompasses a wide range of economic activities and has been a key driver of India's GDP growth. Factors such as economic liberalization, a skilled workforce, demographic advantage, global outsourcing, and urbanization have contributed to the sector's dominance in the Indian economy since 1991.

(d)What are the reasons for failure of several public sector enterprises in India? Examine the advantages and disadvantages of privatisation. 5+5=10

Ans:- The failure of several public sector enterprises in India can be attributed to various factors, including:

1. Lack of autonomy: Public sector enterprises often face bureaucratic interference and excessive government control, which hampers their decision-making process and operational efficiency.

2. Inefficiency and corruption: Public sector enterprises are prone to inefficiencies, such as overstaffing, outdated technology, and lack of competition. Additionally, corruption and nepotism can hinder their functioning and financial performance.

3. Poor governance and accountability: Public sector enterprises often suffer from weak corporate governance structures and a lack of accountability, leading to mismanagement, financial irregularities, and a lack of transparency.

4. Political interference: Public sector enterprises are sometimes subject to political pressure, resulting in suboptimal decision-making, undue subsidies, and unsustainable expansion.

5. Limited flexibility and adaptability: Public sector enterprises may face difficulties in responding quickly to market changes, implementing innovative strategies, and adapting to evolving business environments.

Advantages of privatization include:

1. Increased efficiency: Privatization often leads to improved efficiency and productivity as private companies have stronger incentives to streamline operations, cut costs, and maximize profits.

2. Enhanced competitiveness: Privatization introduces competition in formerly monopolistic sectors, fostering innovation, improving product quality, and providing consumers with a wider range of choices.

3. Access to private capital: Privatization allows public sector enterprises to attract private investments, injecting much-needed capital for modernization, expansion, and technological upgrades.

4. Better governance and accountability: Privatization can lead to improved corporate governance practices and enhanced accountability, as private companies are subject to market pressures and scrutiny.

5. Economic growth and job creation: Privatization can stimulate economic growth by attracting domestic and foreign investments, creating new job opportunities, and increasing tax revenues for the government.

Disadvantages of privatization include:

1. Loss of public control: Privatization may result in reduced public control over essential services, potentially compromising equitable access, affordability, and quality for certain segments of the population.

2. Profit-driven approach: Private companies prioritize profit maximization, which may lead to increased prices, reduced service levels, and neglect of social objectives in sectors where public welfare is paramount.

3. Job losses and labor issues: Privatization can lead to workforce reductions, job insecurity, and deteriorating labor conditions as private companies often implement cost-cutting measures.

4. Market concentration and monopolies: Privatization may lead to the emergence of monopolies or oligopolies, resulting in limited competition, market distortions, and higher prices for consumers.

(e) Explain the objectives of monetary policy of India. Explain briefly various tools of monetary policy to achieve price stability in India. 5+5=10

Ans:- The objectives of monetary policy in India are:

1. Price Stability: The primary objective of monetary policy is to maintain price stability by controlling inflation and ensuring a stable and predictable price level in the economy.

2. Economic Growth: Monetary policy aims to promote sustainable economic growth by managing interest rates and money supply to encourage investment, consumption, and overall economic activity.

3. Exchange Rate Stability: Maintaining a stable exchange rate is another objective of monetary policy. The central bank intervenes in the foreign exchange market to manage fluctuations in the value of the domestic currency and ensure stability.

4. Financial Stability: Monetary policy seeks to maintain the stability and soundness of the financial system by regulating banks and other financial institutions, monitoring risks, and managing systemic issues.

5. Employment Generation: Promoting employment and reducing unemployment is also a goal of monetary policy. By stimulating economic growth, monetary policy indirectly contributes to creating job opportunities.

The various tools of monetary policy used in India to achieve price stability are:

1. Repo Rate: The Reserve Bank of India (RBI) adjusts the repo rate, which is the rate at which it lends to commercial banks. By increasing the repo rate, the RBI reduces the money supply, making borrowing more expensive and curbing inflation.

2. Reverse Repo Rate: The reverse repo rate is the rate at which the RBI borrows from commercial banks. By raising the reverse repo rate, the RBI absorbs excess liquidity from the banking system, reducing inflationary pressures.

3. Cash Reserve Ratio (CRR): The CRR is the portion of bank deposits that commercial banks must keep with the RBI as a reserve. Adjusting the CRR affects the amount of money available for lending by banks. Increasing the CRR reduces the money supply and helps control inflation.

4. Statutory Liquidity Ratio (SLR): The SLR requires banks to maintain a certain percentage of their deposits in specified liquid assets, such as government securities. Changes in the SLR affect the liquidity position of banks and impact lending capacity, influencing inflationary pressures.

5. Open Market Operations (OMO): Through OMO, the RBI buys or sells government securities in the open market. When the RBI sells securities, it reduces money supply, helping to control inflation. Conversely, when it buys securities, it injects liquidity into the system to stimulate economic growth.

(f) What is globalisation? Critically examine the impact of globalisation on Indian economy with reference to industry and trade. 2+8=10

Ans:- Globalisation refers to the increasing interconnectedness and interdependence of countries through the exchange of goods, services, information, and ideas across national borders. It involves the liberalization of trade, the flow of capital, the spread of technology, and the movement of labor on a global scale.

The impact of globalisation on the Indian economy has been both positive and negative. In terms of industry, globalisation has opened up new opportunities for Indian businesses to access larger markets and attract foreign investment. It has led to the growth of sectors such as information technology, business process outsourcing, and pharmaceuticals, which have become significant contributors to India's economic development.

Globalisation has also fostered technological advancements and innovation in Indian industries through knowledge-sharing and collaboration with international partners. It has facilitated the transfer of technology, leading to increased productivity and competitiveness in certain sectors.

However, globalisation has also presented challenges for the Indian economy. The opening up of trade has exposed domestic industries to intense competition from foreign companies, particularly in sectors such as manufacturing. Indian industries that were not able to compete effectively have faced job losses and decreased profitability.

Moreover, globalisation has led to concerns regarding the trade balance and the dependence on imports. India has experienced a surge in imports, especially of manufactured goods, which has contributed to a widening trade deficit. This has put pressure on domestic industries and raised issues of self-reliance and sustainability.

(g) Explain the recent measures taken by Govt. of India for poverty eradication and employment generation. 5+5=10 

Ans:- The major poverty eradication programmes suggested by the Govt. of India are as follows:

1. Integrated Rural Development Programme: It was introduced in the year 1978-79 and universalized from 2nd October, 1980. The main aim is to provide support to the rural poor in the form of subsidy and bank credit for productive work opportunities through successive plan periods. 

2. Jawahar Rozgar Yojana /Jawahar Gram Samriddhi Yojana (JGSY): Two new schemes, namely, National Rural Employment Programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP) were merged in the year1989, under Jawahar Rozgar Yojana (JRY). The purpose was to generate good work prospects for the unemployed in rural areas by creating economic infrastructure, community and social assets. From the year 1999, this old scheme started again with a new name as Jawahar Gram Samriddhi Yojana (JGSY), mainly for rural economic infrastructure programme with the purpose of employ¬ment generation. 

3. Employment Assurance Scheme: This scheme was launched in the year 1993. It mainly covers drought-prone, desert, tribal and hill area blocks. In the year1997-98, it extended to several other blocks. Employment assurance scheme was planned for creating employment opportunity in the form of manual work when there is no agricultural season. It was expected to lead to the creation of robust economic and social infrastruc¬ture and address the needs of people.

4. Food for Work Programme: In the year 2000, the Food for Work Programme was started as a component of EAS. It started with some major drought-affected states, namely Maharashtra, Rajasthan, Orrisa, Gujarat, Himachal Pradesh, Madhya Pradesh, Uttaranchal and Chhattisgarh. The main aim is to enhance food security through wage employment. 

5. Sampoorna Gramin Rozgar Yojana: The new Sampoorna Gramin Rozgar Yojana (SGRY) Scheme started in 2001 was the mix of old JGSY, EAS and Food for Work Programme. The primary aim of the scheme was the generation of wage employment, creation of good economic infrastructure in rural areas as well as food provision and nutrition security for the underdeveloped.

6. Rural Housing – Pradhan Mantri Gramin Awaas Yojana (PMGAY):

PMGAY is a government flagship programme, created for providing housing for the Indian rural poor. A similar scheme for urban poor was launched in 2015 as Housing for All. For BPL population, similar program was launched by late PM Rajiv Gandhi, known as Indira Awaas Yojana which was one of the major flagship programs.

7. National Old Age Pension Scheme (NOAPS): NOAPS came into effect from the year 1995. Providing pension to old people above now 60, who does not have any means of subsistence is the main aim of this project. It is provided by the central government. Implementation of this scheme in places is given to panchayats and municipalities. 

-The Government of India has implemented several measures to stimulate employment generation in recent times. These include:

1. National Employment Policy: The government has formulated a National Employment Policy to address the challenges of unemployment and promote job creation across various sectors. The policy focuses on skill development, entrepreneurship promotion, and labor market reforms.

2. Skill Development Initiatives: The government has launched various skill development programs such as the Skill India Mission and the Pradhan Mantri Kaushal Vikas Yojana (PMKVY). These initiatives aim to enhance the employability of the workforce by providing vocational training and certification in diverse sectors.

3. Startup India: The government has introduced the Startup India initiative to encourage entrepreneurship and foster a supportive ecosystem for startups. This program offers incentives, tax benefits, and funding opportunities to promote job creation through innovative startups.

4. Make in India: The Make in India campaign aims to boost domestic manufacturing and attract foreign investment. By promoting manufacturing sectors such as textiles, electronics, automobiles, and defense, the government intends to create job opportunities and strengthen the country's industrial base.

5. Infrastructure Development: The government has emphasized infrastructure development through initiatives like the National Infrastructure Pipeline (NIP) and the Bharatmala Pariyojana. These projects involve the construction of roads, railways, ports, airports, and urban infrastructure, which not only improves connectivity but also generates employment opportunities.

6. Rural Employment Schemes: The government continues to implement rural employment schemes such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). These schemes provide guaranteed wage employment to rural households, enabling them to earn a livelihood and contribute to local development.

7. Ease of Doing Business: The government has undertaken several reforms to improve the ease of doing business in the country. These reforms aim to simplify regulations, reduce bureaucracy, and facilitate investment, which in turn can spur job creation and economic growth.

(h) Examine the achievement and failures of green revolution. Is green revolution technology viable in the long run? 7+3=10

Ans:- The Green Revolution, which occurred from the 1940s to the 1970s, aimed to increase agricultural productivity through the use of high-yielding crop varieties, chemical fertilizers, and pesticides. It brought significant achievements and failures.

Achievements of the Green Revolution:

1. Increased food production: The adoption of high-yielding varieties and modern farming techniques led to a substantial increase in agricultural output, particularly in countries like India, Mexico, and the Philippines.

2. Alleviation of hunger: The Green Revolution helped prevent famines and alleviate food shortages in many developing countries, improving food security for millions of people.

3. Economic benefits: Higher agricultural productivity boosted rural incomes, reduced poverty, and contributed to overall economic growth in some regions.

Failures of the Green Revolution:

1. Environmental impact: The heavy reliance on chemical inputs resulted in water pollution, soil degradation, and loss of biodiversity. Excessive use of water for irrigation led to the depletion of groundwater resources in some areas.

2. Inequality: The Green Revolution technologies favored larger farmers with access to resources like capital and irrigation, exacerbating income disparities and marginalizing small-scale farmers.

3. Dependency on external inputs: Farmers became reliant on expensive inputs such as fertilizers, seeds, and pesticides, leading to increased production costs and financial burdens. This dependency limited the sustainability of the agricultural systems.

-Long-term viability of the Green Revolution technology:

The long-term viability of Green Revolution technology is debatable. While it successfully increased agricultural productivity in the short term, concerns about its sustainability and negative environmental impacts have arisen. 

Moving forward, sustainable agriculture practices that prioritize environmental stewardship, resource conservation, and social equity are being emphasized. Agroecology, organic farming, and precision agriculture are some of the approaches that promote ecological balance, reduce chemical dependency, and improve long-term agricultural sustainability. These alternative methods aim to address the shortcomings of the Green Revolution technology and provide a more viable path for the future.

(i) Explain briefly the causes of low rate of industrialisation in the North-Eastern region. Suggest few measures for speeding up the pace of industrialisation in this region.

Ans: The low rate of industrialization in the North-Eastern region can be attributed to several factors. These include:

1. Geographic Constraints: The region's hilly terrain, dense forests, and lack of proper connectivity pose challenges for setting up industries and establishing a robust supply chain.

2. Infrastructural Deficiencies: Limited availability of quality infrastructure, including roads, railways, airports, and power supply, hampers industrial growth and investment in the region.

3. Limited Market Access: The North-Eastern states have smaller populations compared to other parts of India, resulting in limited market opportunities and lower demand for industrial products.

4. Insurgency and Security Concerns: Persistent security issues and frequent incidents of insurgency have deterred investors from establishing industries in the region, affecting economic development.

5. Lack of Skilled Workforce: The region faces a shortage of skilled labor, which is essential for running industries efficiently. Limited access to quality education and training institutions contributes to this challenge.

6. Policy and Regulatory Barriers: Complex bureaucratic procedures, unclear land acquisition policies, and inadequate incentives for industrial development have hindered investment in the region.

To speed up the pace of industrialization in the North-Eastern region, several measures can be implemented:

1. Infrastructure Development: Focus on building and improving transportation networks, including roads, railways, and airports, to enhance connectivity within the region and with other parts of the country.

2. Investment Promotion: Offer attractive incentives and tax breaks to attract private investments in the region. This can be achieved through policies such as tax exemptions, subsidies, and streamlined approval processes.

3. Skill Development: Establish vocational training institutes and skill development centers to enhance the employability of the local workforce. Collaborations with industries and educational institutions can facilitate the acquisition of industry-specific skills.

4. Sector-specific Industrial Parks: Develop industrial parks with specialized infrastructure and facilities for sectors with high growth potential in the region, such as tourism, agriculture, renewable energy, and handicrafts.

5. Promote Entrepreneurship: Encourage entrepreneurship and start-up culture by providing financial assistance, mentorship programs, and business incubation centers. This can foster innovation and create a conducive environment for new industries to flourish.

6. Strengthen Security: Enhance security measures and address the root causes of insurgency and unrest in the region. A stable and secure environment is essential for attracting investors and ensuring sustained industrial growth.

(j) Explain the impact of Covid-19 on Indian economy. State few initiatives undertaken by Govt. of India for recovery of the economy in recent times. 7+3=10

Ans:- The Covid-19 pandemic has had a significant impact on the Indian economy. Here are a few key effects:

1. Economic contraction: The pandemic led to a decline in economic activity, resulting in a contraction of India's GDP. Lockdown measures, disrupted supply chains, reduced consumer demand, and decreased exports contributed to this contraction.

2. Job losses and unemployment: Many businesses were forced to shut down or downsize, leading to job losses and a rise in unemployment. Particularly affected were sectors like hospitality, tourism, retail, and manufacturing.

3. Disruptions in key sectors: Sectors such as aviation, hospitality, tourism, and small-scale industries suffered severe setbacks due to travel restrictions, social distancing measures, and reduced consumer spending.

4. Decline in private consumption: Consumer spending witnessed a decline as people prioritized essential goods and services, while non-essential expenditures were curtailed. This had a ripple effect on various industries and businesses.

5. Financial stress: The pandemic led to increased financial stress on individuals and businesses, with many facing difficulties in loan repayments and financial obligations.

In recent times, the Government of India has implemented several initiatives to support the recovery of the economy:

1. Atmanirbhar Bharat Abhiyan: This initiative aims to promote self-reliance by providing various financial and policy support measures to boost domestic production, stimulate demand, and encourage investment in key sectors.

2. Stimulus packages: The government announced multiple stimulus packages to provide relief and support to various sectors. These packages included measures such as credit guarantees, liquidity injections, and tax benefits.

3. Infrastructure development: The government has emphasized infrastructure development as a key driver of economic recovery. Investments in sectors like roads, railways, ports, and renewable energy are being made to create employment opportunities and boost economic growth.

These initiatives, along with other measures such as tax reforms, ease of doing business initiatives, and sector-specific reforms, are aimed at reviving the Indian economy and restoring growth.

*********

 Download PDF