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What specific economic policies did the British implement during their rule in India, and how did they impact local economies?
The British introduced the following economic policies to India, which are still profound and lasting: Land Revenue Systems:---- 1. Zamindari System: The British granted authority to collect land revenue to Zamindars which meant landlords. The feudal system usually intimidated peasants through heighRead more
The British introduced the following economic policies to India, which are still profound and lasting:
Land Revenue Systems:—-
1. Zamindari System:
The British granted authority to collect land revenue to Zamindars which meant landlords. The feudal system usually intimidated peasants through heightened lease payments while forcing some to leave their properties.
2. Ryotwari System:
Tax revenue was obtained through direct payment from agricultural producers. During periods of drought the approach proved stern but it kept toward fairness throughout most other times.
3. De-industrialization:
British manufacturing imports led to the demise of Indian textile businesses producing cotton alongside silk along with different types of handicrafts.
4. Focus on Cash Crops:
Indian farmers faced a dual requirement to focus on producing cash crops for British exports which pushed food crops into secondary importance thereby leading to recurring food shortages across the country.
5. Drain of Wealth:
Years of Indian wealth ended up being moved out of the country through British business profits and British official salaries as well as loan payment interests.
6. Development of Infrastructure
The British constructed railways along with other infrastructure yet all their developments targeted British economic purposes for transporting raw materials and manufactured goods.
Economic Impact on Local Economies
1. Destruction of Peasants: The combination between land revenue policies and cash crop programs transformed most farmers into poverty-stricken people.
2. Deindustrialization: Traditional industries declining caused an enormous loss of employment while creating total disaster for skilled professionals and textile manufacturers.
3. Economic Dependence: Raw material export from India allowed it to depend on British manufactured goods imports.
4. Unequal Development: Development fruits did not reach British citizens and Indian capitalist class fairly in this economic model.
See lessHow was agriculture affected by the first five year plan of India?
The First Five Year Plan of India (1951-1956) had a significant impact on the agricultural sector of the country. Here are some of the key ways in which agriculture was affected during this plan period: Focus on Agricultural Development: The First Five Year Plan recognized the importance of agricultRead more
The First Five Year Plan of India (1951-1956) had a significant impact on the agricultural sector of the country. Here are some of the key ways in which agriculture was affected during this plan period:
- Focus on Agricultural Development:
- The First Five Year Plan recognized the importance of agriculture as the backbone of the Indian economy and allocated a significant portion of the plan’s resources towards agricultural development.
- The plan emphasized increasing agricultural production, improving irrigation facilities, and expanding the use of modern agricultural techniques and inputs.
- Expansion of Irrigation:
- A major focus of the First Five Year Plan was on expanding and improving irrigation facilities across the country.
- Significant investments were made in the construction of dams, canals, and other irrigation infrastructure to increase the area under irrigation and enhance agricultural productivity.
- This led to the expansion of the total area under irrigation from around 22 million hectares in 1951 to 27 million hectares by 1956.
- Promotion of High-Yielding Varieties:
- The plan encouraged the adoption of high-yielding varieties of crops, particularly wheat and rice, through the introduction of improved seeds and the use of chemical fertilizers.
- This effort laid the foundation for the Green Revolution that would transform Indian agriculture in the subsequent decades.
- Land Reforms:
- The First Five Year Plan also included initiatives for land reforms, such as the abolition of the zamindari system (a feudal land tenure system) and the redistribution of land to small and marginal farmers.
- These reforms aimed to improve the living conditions of agricultural workers and enhance their access to land and other resources.
- Cooperatives and Extension Services:
- The plan promoted the establishment of agricultural cooperatives and the expansion of extension services to provide farmers with access to inputs, credit, and technical guidance.
- This helped to strengthen the institutional support for the agricultural sector and facilitate the adoption of new technologies and practices.
See lessHow does a thing comes into possession?
From both a philosophical and economic standpoint, a thing comes into possession through a combination of labor, initial occupancy, market transactions, and legal recognition. These mechanisms are justified by the benefits they bring to individuals and society, including efficiency, productivity, anRead more
From both a philosophical and economic standpoint, a thing comes into possession through a combination of labor, initial occupancy, market transactions, and legal recognition. These mechanisms are justified by the benefits they bring to individuals and society, including efficiency, productivity, and innovation. Inequality, in this view, is a natural outcome of these processes and serves as a motivating force within a meritocratic framework.Bryan Caplan would likely argue that possession is a result of legitimate acquisition processes within a free-market system, where differences in wealth and possession reflect differences in individual contributions and choices, ultimately leading to overall societal benefits.
See lessFiscal Deficit
Fiscal Deficit refers to the excess of government’s expenditure over its revenue. When the government’s expenditure is exceeding the revenue , it has to borrow money or sell the assets to finance the deficit. Formula Fiscal Deficit = Total Expenditure - Total receipts ( excluding the borrowings).Read more
Fiscal Deficit refers to the excess of government’s expenditure over its revenue. When the government’s expenditure is exceeding the revenue , it has to borrow money or sell the assets to finance the deficit.
Formula
Fiscal Deficit = Total Expenditure – Total receipts ( excluding the borrowings).Thus , Fiscal Deficit is nothing but borrowing required of the government.
During the economic crisis 1991, India saw the gross fiscal deficit as high as 12.7%. This forced India to adopt the LPG reforms 1991 , which eventually opened up the Indian market up to an extent. But the problem of high fiscal deficit continued in the post liberalisation era and was seen as a huge problem for the government’s public expenditure management. The reasons for such continued problem are the following:
To manage the fiscal deficit problem the government has launched various schemes such as:
India after post liberalisation has seen a reduction in the fiscal deficit though they are still high given the economy’s size and GDP structure. Borrowing by the government is nothing but a burden for the future generations. The Bimal Jalan Committee also suggested measures like rationalising subsidies and disinvestment as a measure to enhance expenditure management.
See lessNehruvian model and economic reforms
The Nehruvian model (1950s-1980s) and the 1991 reforms differed dramatically: Role of Government: Nehru emphasized state control. Five-Year Plans directed investments in heavy industries like steel. The 1991 reforms reduced government control, favoring a market-driven approach. Foreign Investment: NRead more
The Nehruvian model (1950s-1980s) and the 1991 reforms differed dramatically:
Role of Government: Nehru emphasized state control. Five-Year Plans directed investments in heavy industries like steel. The 1991 reforms reduced government control, favoring a market-driven approach.
Foreign Investment: Nehru limited foreign investment to protect domestic industries. The reforms actively courted foreign investment for capital and technology.
Trade: Nehru focused on import substitution, making India self-sufficient. The reforms lowered trade barriers, integrating India with the global market.
Focus: Nehru prioritized heavy industry for long-term growth, even if it meant fewer consumer goods. The reforms aimed for faster economic growth by boosting exports and consumer industries.
In short, the Nehruvian model was inward-looking and state-centric, while the 1991 reforms embraced globalization and a market-driven approach.
See lessEducation
The debate between the importance of natural talent and systematic learning is longstanding. Both elements play significant roles in achieving success, but systematic learning often proves to be more crucial in the long run. Natural talent can provide an initial advantage by making certain tasks feeRead more
Education
The debate between natural talent and systematic learning hinges on the complex interplay between innate ability and the benefits of structured education. Natural talent refers to the inherent abilities individuals possess, which can give them a head start in certain fields. These innate qualities cRead more
The debate between natural talent and systematic learning hinges on the complex interplay between innate ability and the benefits of structured education. Natural talent refers to the inherent abilities individuals possess, which can give them a head start in certain fields. These innate qualities can include a predisposition for musicality, athleticism, or mathematical thinking. However, systematic learning—the process of acquiring knowledge and skills through organized study and practice—is crucial for nurturing and refining these talents.
Research suggests that while natural talent can provide an initial advantage, systematic learning is often more significant for long-term success. Deliberate practice, a key component of systematic learning, is essential for developing expertise. Studies in various fields, from music to sports to academics, indicate that extensive, focused practice can elevate individuals to high levels of performance, regardless of their starting point.
Moreover, systematic learning fosters resilience, adaptability, and a growth mindset, encouraging individuals to persist through challenges and continuously improve. This structured approach also exposes individuals to a broader range of skills and knowledge, enabling them to innovate and excel in diverse contexts.
In conclusion, while natural talent can be a valuable asset, systematic learning is paramount in unlocking and maximizing one’s potential, leading to sustained achievement and excellence.
See lessWhat is the current status of unemployment rate in india? what are the steps to be taken to overcome the unemployment problems in the country?
Current Status of Unemployment in India As of June 2024, India's unemployment rate is 9.2%, up from 7% in May 2024. The urban unemployment rate for individuals aged 15 and above is 6.7%, while rural areas face a higher rate of 9.3%. Steps to Overcome Unemployment Skill Development: Enhance vocationaRead more
Current Status of Unemployment in India
As of June 2024, India’s unemployment rate is 9.2%, up from 7% in May 2024. The urban unemployment rate for individuals aged 15 and above is 6.7%, while rural areas face a higher rate of 9.3%.
Steps to Overcome Unemployment
These steps can help mitigate unemployment and promote sustainable economic growth in India.
See lessSignificance of Financial Inclusion
Economic inclusion is the process of making sure get right of entry to to economic services and well timed and good enough credit score where wished by using vulnerable organizations, consisting of weaker sections and occasional-earnings corporations, at an low-cost fee. within the context of India,Read more
Economic inclusion is the process of making sure get right of entry to to economic services and well timed and good enough credit score where wished by using vulnerable organizations, consisting of weaker sections and occasional–earnings corporations, at an low-cost fee. within the context of India, monetary inclusion is essential for facilitating inclusive growth, which ambitions to provide possibilities and advantages to all segments of society, thereby reducing poverty and inequality.
Significance
Economic growth: Economic inclusion facilitates in mobilizing financial savings and channeling them into efficient investments. It increases the quantity of funds available for lending and investment, which can stimulate financial increase.
Poverty alleviation: Get right of entry to monetary offerings can assist the terrible manipulate their price range greater effectively, save for future needs, and spend money on fitness, education, and income–generating sports. this will cause a discount in poverty stages.
Employment generation: By using presenting credit score and other monetary services to micro, small, and medium enterprises (MSMEs), financial inclusion can result in the advent of jobs and entrepreneurial possibilities.
Empowerment of women: Monetary inclusion can empower women by way of giving them manipulate over their finances and enhancing their participation within the economic activities of the household and network.
Social Inclusion: Monetary inclusion can carry marginalized and inclined businesses into the formal monetary system, reducing their dependence on informal and regularly exploitative resources of finance.
Reduced income Inequality: By means of supplying financial offerings to all sections of society, economic inclusion can assist lessen income disparities and promote greater equitable distribution of wealth.
Steps Taken by the Government of India
Pradhan Mantri Jan Dhan Yojana (PMJDY): Launched in 2014, PMJDY aims to provide universal access to banking facilities, with at least one basic banking account for every household, financial literacy, access to credit, insurance, and pension. As of now, millions of bank accounts have been opened under this scheme.
Direct Benefit Transfer (DBT): Under DBT, subsidies and benefits are directly transferred to the beneficiaries’ bank accounts. This reduces leakages and ensures that the intended recipients receive the benefits.
Microfinance and Self-Help Groups (SHGs): The government has supported microfinance institutions and the formation of SHGs to provide credit to the unbanked population, especially in rural areas.
Mudra Yojana: Launched in 2015, the Pradhan Mantri Mudra Yojana (PMMY) aims to provide loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.
Conclusion
Financial inclusion is a vital driving force of inclusive growth in India. by using offering get entry to to monetary offerings to all sections of society, in particular the underserved and marginalized, it allows in reducing poverty, generating employment, and making sure equitable monetary improvement. The Indian government has undertaken numerous tasks to sell monetary inclusion, but continuous efforts are needed to address the challenges and make certain that the advantages attain each citizen.
See lessDiscuss in detail about the term "FERA" & "FERA" ?
FERA stands for Foreign Exchange Regulation Act, which was a legislation enacted in India in 1973 to regulate the foreign exchange transactions and investments in the country. The act was passed by the Indian Parliament in 1973 and came into effect on January 1, 1974. Objectives of FERA: The main obRead more
FERA stands for Foreign Exchange Regulation Act, which was a legislation enacted in India in 1973 to regulate the foreign exchange transactions and investments in the country. The act was passed by the Indian Parliament in 1973 and came into effect on January 1, 1974.
Objectives of FERA:
The main objectives of FERA were:
Key provisions of FERA:
Challenges faced by FERA:
FERA was a complex legislation that aimed to regulate foreign exchange transactions and investments in India. While it had its objectives, it faced several challenges, including complexity, bureaucratic hurdles, lack of transparency, and restrictions on trade and investment. Its repeal led to the introduction of FEMA, which has simplified procedures, provided greater flexibility, and harmonized Indian regulations with international standards.
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