Rapid increase in national and per capita income would be possible only through rapid industrialisation.<\/li>\n<\/ul>\nQuestion 9. \nIndian policy makers made a mistake by emphasising the role of state in the economy. India could have developed much better if private sector was allowed a free play right from the beginning. Give arguments for or against this proposition. \nAnswer: \nThere are two models of development i.e. Capitalist Model or Liberal model and Socialist Model. But India did not accept any one of the two models. India adopted neither capitalistic model nor socialist model. India adopted \u2018Mixed Economy.\u2019 In \u2018Mixed Economy\u2019 public sector and private sector go together.<\/p>\n
Liberal, Rightists and many critics of Indian economy are of the view that \u201cIndian policy makers made a mistake by emphasising the role of state in the economy. They are of the view that India could have developed much better if private sector was allowed a free play right from the beginning.\u201d<\/p>\n
Inspite of the fact that India adopted a planned economy. The speed of economic development was very slow. Rate of capital formation was 6% whereas it should have been 12 per cent. Hence during the regime of Sh. Rajiv Gandhi, important changes were made in the economic policy.<\/p>\n
The policy of liberation and privatisation was adopted. Efforts were made to remove restrictions on the private sector. All restrictions were removed on cement industry. Licences were removed on 94 medicine and 27 industries were out of the M.R.T. P. Act. Arguments in Favour of Private Sector.<\/p>\n
<\/p>\n
Following are the main arguments in favour of privatisation :<\/p>\n
(1) Full Utilisation of Natural Resources. \nIndia is a rich country but Indians are poor. In India natural resources are not fully utilised due to lack of technology and scientific means. Liberalisation and Privatisation will be helpful in utilising the natural resources.<\/p>\n
(2) Production will Increase. Liberalisation and privatisation will increase the production and there will be no shortage of commodities. In India before liberalisation there was a big shortage of cement, scooters, carts, etc. But now there is no shortage because production has increased to a large extent.<\/p>\n
(3) Increase in Efficiency. Privatisation increases efficiency in industries. In private sectors employees are selected purely on the basis of merit system. Each employee works according to his ability and competence. Lazy and inefficient employees have no place in private sector.<\/p>\n
(4) High Rate of Return. Due to privatization there is more savings and hence there is heavy investment in industries.<\/p>\n
<\/p>\n
Arguments Against Privatisation. Following are the main demerits of liberalisation and privatisation: \n1. Increase in Unemployment. Liberalisation and privatisation increase the unemployment because modern machines are used to increase the efficiency. Modernisation in industries means more unemployment.<\/p>\n
2. Increase in Prices. Privatisation will increase the prices because industrialists will fix the prices of their own sweet will.<\/p>\n
3. Exploitation of Workers. Industrialists exploit the workers. Workers have to work more but they are paid less wages.<\/p>\n
4. Class Struggle. In privatisation class struggle increases between the industrialists and the workers. \nConclusion. Present age is an age of globalisation and it is very essential for India to be a part of world economy. Hence India has rightly adopted liberalisation. In the beginning, Mixed Economy was the best. Even now de-nationalisation of all the industries is not in the interest of the nation. Public sector should be modernised and it should not be eliminated completely.<\/p>\n
Question 10. \nRead the following passage and answer the questions below : \n\u201cIn the early years of Independence, two contradictory tendencies were already well advanced inside the Congress party. On the one hand, the national party executive endorsed socialist principles of state ownership, regulation and control over key sectors of the economy in order to improve productivity and at the same time curb economic concentration. On the other hand, the National Congress Government pursued liberal sole criterion of achieving maximum increase in producion.\u201d \u2014Francine Frankel \n(a) What is the contradiction that the author is talking about ? What would be the political implications of a. contradiction like this ? \n(b) If the author is correct, why is it that the Congress was pursuing this policy ? Was it related to the nature of the opposition parties ? \n(c) Was there also a contradiction between the central leadership of the Congress party and its state level leaders ? \nAnswer: \n(a) According to Francine Frankel, there were two contradictions i.e. \n(I) National party executive endorsed socialist principles of state ownership, regulation and control and \n(II) The National Congress Government pursued liberal economic policies incentives to private investment. \n(b) The author is correct. The Congress was pursuing this policy under political compulsion. This was definitely related to the nature of opposition parties. \n(c) In fact, there was a contradiction between the central leadership of the Congress party and its state level leaders.<\/p>\n","protected":false},"excerpt":{"rendered":"
Detailed, Step-by-Step\u00a0NCERT Solutions for Class 12 Political Science Chapter 12 Politics of Planned Development Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation. Politics of Planned Development NCERT Solutions for Class 12 Political Science Chapter 12 Politics of Planned Development Questions …<\/p>\n
NCERT Solutions for Class 12 Political Science Chapter 12 Politics of Planned Development<\/span> Read More »<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":""},"categories":[3],"tags":[],"yoast_head":"\nNCERT Solutions for Class 12 Political Science Chapter 12 Politics of Planned Development - MCQ Questions<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n