✓ Board-verified
Economics · 2024 · 6 marks
Liberalisation, Privatisation and Globalisation: An AppraisalLiberalisation6 marksUnderstandlong answer
CBSE 2024 · Region 1 · Set 2 · Q33
(i)“Under the liberalisation measures taken by the Government of India, financial sector reforms were extremely crucial.”Reject or support the given statement with valid arguments.(ii)Clarify, how the Green Revolution enabled the government to procure sufficient food grains to build stocks to be used during the times of food shortages.(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, financial sector reforms were extremely crucial.”
Reject or support the given statement with valid arguments.
(ii)
Clarify, how the Green Revolution enabled the government to procure sufficient food grains to build stocks to be used during the times of food shortages.
(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. The financial sector witnessed a major revamp under the economic reform process of $\displaystyle 1991$ such as redefining the role of RBI from regulator to facilitator of the financial sector. It implies that the financial sector could now take decisions on many matters without consulting the RBI. The reform policies led to the establishment of private sector banks (Indian as well as foreign).
(ii)
The Green Revolution through the adoption of high-yielding variety seeds and improved agricultural practices, substantially increased food grain production. This marketed surplus allowed the government to procure sufficient grains for building strategic stocks. These reserves served as buffer stocks during food shortages, ensuring food security.
(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.