✓ Board-verified
Economics · 2024 · 6 marks
Liberalisation, Privatisation and Globalisation: An AppraisalLiberalisation6 marksUnderstandlong answer
CBSE 2024 · Region 1 · Set 3 · Q33
(i)“Under the liberalisation measures taken by the Government of India, Trade and Investment Policy reforms were extremely crucial.”Reject or support the given statement with valid arguments.(ii)“Despite the implementation of Green Revolution, $\displaystyle 65$ per cent of India’s population continued to be engaged in the agriculture sector till the 1990s.”Justify the given statement with valid explanation.(i)“Every coin has two sides — debate over farm subsidies is one such classic example of the same.”Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies.(ii)State the importance of “Growth with equity” as the objective of Indian economic planning.
(i)
“Under the liberalisation measures taken by the Government of India, Trade and Investment Policy reforms were extremely crucial.”
Reject or support the given statement with valid arguments.
(ii)
“Despite the implementation of Green Revolution, $\displaystyle 65$ per cent of India’s population continued to be engaged in the agriculture sector till the 1990s.”
Justify the given statement with valid explanation.
(i)
“Every coin has two sides — debate over farm subsidies is one such classic example of the same.”
Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies.
(ii)
State the importance of “Growth with equity” as the objective of Indian economic planning.
Marking-scheme solution
(i)
The given statement is supported. Trade and Investment Policy of India were extremely crucial and had undergone comprehensive changes in the post reforms period of 1991. Liberalisation of this policy led to an increase in international competitiveness of industrial production and inflow of foreign investments and technology. These policy reforms aimed at dismantling the structure of quantitative restrictions, reducing tariffs and relaxation in licensing procedure in foreign trade. Export duties were rationalised with an objective to promote exports of Indian goods in international markets.
(ii)
Some economists argue that Green Revolution did not make much impact on the occupational structure of the country, as $\displaystyle 65$% of India’s population continued to find its livelihood in agriculture. A major reason for this fairly large proportion of population in agricultural sector as the industrial and service sector were not able to absorb the people working in the agricultural sector.
(i)
The introduction of farm subsidies had been an opinionated step taken by the Government of India.
Arguments in favour of continuing farm subsidies:
Eliminating subsidies may increase inequalities of income between rich and poor farmers.
Most farmers (small and marginal) may not be able to afford expensive agricultural inputs without subsidies.
Arguments against farm subsidies:
It is often argued that farm subsidies have helped the fertilizer industry much more than helping the needy farmers.
Economists argue that subsidies are a huge burden on government’s finances.
(ii)
For a nation, both growth of Gross Domestic Product (GDP) and equity in distribution of income are equally important. Growth refers to an increase in a country’s capacity to produce goods and services. Equity refers to reductions in inequality of income and wealth.
Growth with equity ensures that the fruits of economic development are enjoyed by all sections of society equitably. Hence, achieving equitable growth is an important objective that was taken into consideration in the Indian economic planning.
Practice Liberalisation, Privatisation and Globalisation: An Appraisal →All Liberalisation, Privatisation and Globalisation: An Appraisal questions
More from Liberalisation, Privatisation and Globalisation: An Appraisal
- The primary outcome of the efforts initiated by the Indian Government (Liberalisation and Privatisation)…2026 · asked 3×
- “In the formative stages of reforms development of credit markets, administrative intervention in interest…2026 · asked 3×
- Read the following text carefully: “In the recent times, the Government of India, has introduced several…2026 · asked 3×
- was the successor organisation to General Agreement on Trade and Tariff (GATT). (Choose the correct option to…2026 · asked 3×
- Describe the role which India has played as an important member of World Trade Organisation (WTO). OR…2026 · asked 3×
- Read the following text carefully and answer the questions given below: “This organisation replaced General…2026 · asked 2×
- (i) Discuss any two objectives which were aimed at, by the introduction of Financial sector reforms by the…2026
- (i) Mr. Ravi, an IT entrepreneur from Bengaluru, observed that several MNC’s prefer India as their…2026
CBSE Class 12 Economics past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.