Explain how import substitution can protect domestic industry.
The import substituting industrialisation was the objective of second FYP (1956-61) till the Seventh FYP (till 1990). The Mahalanobis strategy of development was based on import substitution. The rationale of the import substitution strategy is based on infant industry argument. It helped to save foreign exchange by drastically reducing import of goods. The foreign exchange saved was to be used for the developmental imports such as capital goods, sophisticated technology, etc. It created a protected market and large demand for domestically produced goods.
Though public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy’s resources. Discuss the usefulness of public sector undertakings in the light of this fact.
Why was it necessary for a developing country like India to follow self-reliance as a planning
While subsidies encourage farmers to use new technology, they are a huge burden on govern ¬ment finances. Discuss the usefulness of subsidies in the light of this face.
What is Green Revolution? Why was it implemented and how did it benefit the farmers? Explain in brief.
Why was public sector given a leading role in industrial development during the planning period?
What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.
Why, despite the implementation of green revolution, 65 per cent of our population continued to be engaged in the agriculture sector till 1990?
Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.
Explain the statement that green revolution enabled the government to procure sufficient foodgrains to build its stocks that could be used during times of shortage.
