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Discuss the impact of India's fiscal and monetary policies on economic stability, inflation control, and resource mobilization.
Impact of India's Fiscal and Monetary Policies on Economic Stability Fiscal Policy: Fiscal Consolidation: India's fiscal policy has been focused on consolidation in recent years, with a target to reduce the fiscal deficit from 3.8% to 3.1% of GDP by 2022-23. Tax Reforms: The government has implementRead more
Impact of India’s Fiscal and Monetary Policies on Economic Stability
Fiscal Policy:
Monetary Policy:
Impact on Economic Stability:
Impact on Inflation Control:
Analyze the challenges and initiatives in the agricultural sector that have shaped India's food security and rural development.
Challenges in Indian Agriculture: Declining Share of Agriculture in GDP: India's agricultural sector has seen a decline in its share of the country's GDP, from 32% in 1990 to around 15% in 2020. Rural-Urban Migration: Many rural youth have migrated to urban areas in search of better employment opporRead more
Challenges in Indian Agriculture:
Initiatives for Agricultural Development:
Recent Examples:
Assess the role of the public sector and the evolution of India's industrial policy in the post-independence era.
Public Sector's Role in Industrial Development The public sector played a crucial role in India's industrial development in the post-independence era. The government recognized the importance of a strong public sector to accelerate economic growth and reduce regional disparities. Public Sector UnderRead more
Public Sector’s Role in Industrial Development
The public sector played a crucial role in India’s industrial development in the post-independence era. The government recognized the importance of a strong public sector to accelerate economic growth and reduce regional disparities.
Public Sector Undertakings (PSUs) were established to provide essential services, promote national interest, and ensure socio-economic development.
Evolution of Industrial Policy
India’s industrial policy has undergone significant changes since independence. From a mixed economy to a liberalized economy, the government’s role has evolved from regulation to facilitation.
Early Years (1947-1960s)
The early years of independent India saw the establishment of PSUs in strategic sectors like steel, power, and heavy industries. The government aimed to promote self-reliance and reduce dependence on foreign imports. The Industrial Policy Resolution (1948) and the Public Sector Undertakings (PSUs) Act (1973) laid the foundation for the growth of the public sector.
Liberalization and Privatization (1990s-2000s)
In the 1990s, India embarked on a path of economic liberalization. The government privatized several PSUs, introduced new policies, and removed regulatory barriers to encourage private investment and competition. This period saw significant growth in the IT sector, pharmaceuticals, and automotive industries.
Recent Developments (2010s-present)
In recent years, the Indian government has focused on promoting ‘Make in India’, ‘Start-up India’, and ‘Digital India’ initiatives. These initiatives aim to attract foreign investment, promote entrepreneurship, and boost exports. The government has also implemented policies to promote domestic manufacturing, such as the ‘Production Linked Incentive (PLI) Scheme’ and the ‘National Infrastructure Pipeline’.
See lessThe success of Operation Flood is an example of an effort that brought together institutional, technical, and market innovation. Also, discuss its impact on society.
Launched in 1970, Operation Flood was the world's largest dairy development program and a landmark project of India's National Dairy Development Board (NDDB). It transformed India from a milk deficient nation into the world's largest milk producer with about 17 percent of global output in 2010–11. WRead more
Launched in 1970, Operation Flood was the world’s largest dairy development program and a landmark project of India’s National Dairy Development Board (NDDB). It transformed India from a milk deficient nation into the world’s largest milk producer with about 17 percent of global output in 2010–11. Within a few decades, it doubled the milk available per person in India and made dairy farming India’s largest self-sustainable rural employment generator.
Significance Of The Indian Dairy Sector
Operation Flood And The Dairy Development Board
1.The National Dairy Development Board (NDDB) was created in 1965, fulfilling the desire of the then prime minister of India — the late Lal Bahadur Shastri to extend the success of the Kaira Cooperative Milk Producers’ Union (Amul) to other parts of India. 2.The White Revolution or Operation Flood launched by NDDB under the leadership of Dr Verghese Kurien, based on the Anand model of cooperative dairying that preceded it, is often regarded as one of the most successful examples of Indian innovation in the 20th century. 3.Operation Flood’s objectives included:
An Effort That Brought Together Institutional, Technical And Market Innovation
Institutional Innovation
Technical Innovation
Market Innovation
Political will
Impact Of Operation Flood On Society
India is the world’s largest producer of milk, with some of the world’s smallest producers, but dairy cooperatives today thrive in only five or six states. Only around 22% of all milk produced is processed by the organized sector and most of the milk is consumed in liquid form or khoa, channa and paneer, all highly perishable. Considering the high employability of the sector we must replicate the Operation flood throughout India. Dairy is an obvious focal point for the government’s goal to double farmers’ incomes by 2022.
See lessCritically evaluate the land reform and its impact in the post-Independence period.
Land reforms refer to a series of policy measures taken by the government of India after independence, to regulate ownership, operation, and leasing of land. Nearly two centuries of British revenue policy has caused extreme indebtedness of farmers, land fragmentation, increase in income inequality iRead more
Land reforms refer to a series of policy measures taken by the government of India after independence, to regulate ownership, operation, and leasing of land. Nearly two centuries of British revenue policy has caused extreme indebtedness of farmers, land fragmentation, increase in income inequality in rural India, less productivity, and stagnation of agriculture. After independence, the government of India took up issues of farmers on mission mode and initiated a series of reforms to rid Indian agriculture of feudalistic and exploitative agrarian structure.
Evaluation Of Land Reforms
1.Abolition of Intermediaries: Abolition of zamindari and similar intermediary tenures during 1950-55 essentially involved the removal of intermediaries between state and actual cultivators. a.
i. It led to the large-scale eviction of poor tenants from land. While landlordism has been abolished, absentee landlordism now continues to flourish. ii. The legislation conferred ownership rights not upon the actual cultivator, but on the statutory tenant, who himself was an intermediary with a chain of sub-tenants under him. c. Assessment: Thus, the abolition of intermediary rights on land has been a mixed blessing. Undoubtedly, this zamindari abolition has paved the way for a remarkable shift in the balance of power. But the goal of “land to the tiller” was not achieved. 2. Tenancy reforms: These reforms include, regulation of rent, providing security of tenure, and conferring rights of ownership for tenants.
Positives of this measure
This policy mandated that the Rent payable to the landowners should not exceed one-fifth to one-fourth of the gross produce of the land. In the light of this guideline, all the states have enacted laws for the fixation of rent. A very important aspect of tenancy reform is the conferment of ownership rights to tenants. This reform resulted in nearly 124.2 lac tenants getting ownership rights.
Issues with this measure
There existed a large-scale inter-state variation in rents fixed by the states. Due to a loose definition of the term personal cultivation, landowners continued to resume land for self-cultivation and evicted the tenants despite it being illegal. These reforms have failed to regulate rents because of the poor position of land-hungry farmers. Conferment of ownership also failed as only tenants operating in 4 percent of land got ownership rights. Assessment: Overall impact of tenancy reforms has been rather limited. Legislation for conferment of ownership rights could not yield good results because many tenants are incapable of buying land from the landowners and many of them are unwilling to do so. 3.Ceiling on Landholdings: To reduce the existing disparities in the pattern of land-ownership and make some land available for distribution to landless agricultural workers, the imposition of ceilings on agricultural holdings above a certain limit was envisaged. Positives of this measure: Till 2001, the total amount of land declared surplus was 73.67 lakh acres, 64.95 lakh acres of land had been taken over by the states. A total of 53.79 lakh acres of land have been distributed among 54.84 lakh tenants. Issues with this measure: In the second phase of this reform that started after 1972, ceiling limits have also been lowered. Besides this, the exemption for orchards, grazing land, religious/charitable/educational trusts, sugarcane plantations, tanks, fisheries have made the ceiling laws virtually redundant. Assessment of this measure: The operations of the ceiling law made virtually no impact on the agrarian structure. The public debate preceding this law over several years enabled landowners to manipulate land records. 4. Consolidation of Landholdings: Fragmented and subdivided landholdings, as well as small sized holdings, have made Indian agriculture unremunerative. So consolidation of these lands was necessary to boost efficiency and economy in India’s agriculture. This process till now is completed only in very few states, prominent among them being Punjab, Haryana, and Uttar Pradesh. One of the reasons for the tardy progress of this aspect of land reforms is that small farmers have a strong fear that consolidation favours large farmers.
Impact Of Land Reforms
After more than 70 years of independence, one notices some achievements in the sphere of land reforms. At the same time, our efforts in this direction have not yielded desired results. Most of the planks of land reform measures are ambivalent and there are large gaps between policy and legislation and between legislation and implementation.
See lessIndia made considerable economic achievements between the mid-1960s and the end of 1980s, despite facing formidable internal and external shocks during the same period. Discuss.
Internal Challenges Population Growth: Rapid population growth strained resources and public services, necessitating effective economic planning and management. Poverty and Inequality: High levels of poverty and income inequality posed significant challenges for development, requiring targeted interRead more
Introduced with much hope, land reforms measures in India after independence failed to make much difference. Critically comment.
At the time of independence, India inherited a semi-feudal agrarian structure. The farmers did not have ownership of land and ownership was concentrated in the hands of few landlords and intermediaries. Additionally, the land was fragmented. This resulted in minuscule income for farmers and reducedRead more
At the time of independence, India inherited a semi-feudal agrarian structure. The farmers did not have ownership of land and ownership was concentrated in the hands of few landlords and intermediaries. Additionally, the land was fragmented. This resulted in minuscule income for farmers and reduced the scope for further investment in agriculture. To overcome these structural challenges, land reforms were introduced post-independence.
They had the following components:
Land reforms were significant steps as they abolished the exploitative land tenure systems, distributed the surplus land among the landless and the weaker sections of the society, provided security of tenure, etc. Though the above reforms were steps in the right direction, they were not able to create much difference due to the following:
Thus, the pressure on land continues to rise. According to the latest Agriculture Census, the average holding has come down to 1.08 hectares (2015-16) from 2.28 hectares (1970-71). This has forced the farmers to take up alternative occupations, such as wage labour and animal husbandry. There continue to remain many structural challenges even after the reforms, thus, remedial measures should be taken in this regard.
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