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Economics · 2026 · 6 marks
CBSE 2026 · Region 5 · Set 2 · Q34
(i)“During the post-independence era till 1990s, India’s inward-looking trade policy was supported by various trade barriers.”Do you agree with the given statement ? Give valid explanation in support of your answer.(ii)The ‘Atmanirbhar Bharat Initiative’ carries forward the same spirit of self-reliance, which was adopted by the Government after 1947.In the light of the given statement, explain why self-reliance was considered as an important planning objective after independence.(i)The New Economic Policy (NEP) of $\displaystyle 1991$ took stabilisation measures and structural measures to correct the prevailing situations.Briefly discuss these measures.(ii)“The Industrial Policy Resolution (IPR), $\displaystyle 1956$ classified all the industries based on state ownership and control in various categories.”Do you agree with the above statement ? Give valid reasons in support of your answer.
(i)
“During the post-independence era till 1990s, India’s inward-looking trade policy was supported by various trade barriers.”
Do you agree with the given statement ? Give valid explanation in support of your answer.
(ii)
The ‘Atmanirbhar Bharat Initiative’ carries forward the same spirit of self-reliance, which was adopted by the Government after 1947.
In the light of the given statement, explain why self-reliance was considered as an important planning objective after independence.
(i)
The New Economic Policy (NEP) of $\displaystyle 1991$ took stabilisation measures and structural measures to correct the prevailing situations.
Briefly discuss these measures.
(ii)
“The Industrial Policy Resolution (IPR), $\displaystyle 1956$ classified all the industries based on state ownership and control in various categories.”
Do you agree with the above statement ? Give valid reasons in support of your answer.
Marking-scheme solution
(i)
The inward-looking trade policy aimed at replacing/ substituting imports with domestic production. Under this policy, the government protected the domestic industries from foreign competition through various trade barriers like tariffs and quotas.
Tariffs are the taxes imposed on the imported goods, making them dearer, thereby, discouraging their use. However, Quotas specify the quantity of goods which can be imported. Thus, imposition of both tariffs and quotas acts as trade barriers.
(ii)
The objective of ‘Atmanirbhar Bharat Initiative’ is to transform India into a self-reliant economy. In the post-independence era, the planning objective of self-reliance was aimed at reducing dependence on other nations, particularly for food requirements. It stressed on the use of domestic resources to avoid foreign interference, as it was feared that the dependence on the imported food supplies, foreign technology and foreign capital may increase foreign interference in the policies of our country.
(i)
Stabilisation measures are short-term measures, intended to correct some of the weaknesses in the balance of payments and to bring inflation under control.
On the other hand, structural measures are long-term measures, aimed at improving the efficiency of the economy and increasing its international competitiveness by removing the rigidities in various segments of the Indian economy.
(ii)
Yes. The Industrial Policy Resolution $\displaystyle 1956$ classified industries into three categories:
The first category comprised industries to be exclusively owned by the government.
The second category consisted of industries in which the private sector could supplement the efforts of the public sector, with the government taking the sole responsibility for starting new units.
The third category consisted of the remaining industries which were to be in the private sector. However, these industries were kept under state control through the system of licenses.
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CBSE Class 12 Economics past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.