indian economy 1950-1990

Indian economy 1950-1990 12th notes

Indian economy 1950-1990 class 12th notes

• The Goals of five year plans
• Agriculture
• Industry and Trade
• Trade Policy: Import Substitution
• different policies in different sectors such as agriculture and industry from 1950 to 1990 
• merits and limitations of a regulated economy

Indian economy 1950-1990 class 12th notes.
Indian economy class 12th notes.

indian economy 1950-1990 12th 

Most economic are mixed economic 
• what to produce
• how to produce
• how to distribute

Also read

What is a plan

A plan spell out how the resources of a nation should be put to use.

In India plans are of 5 years duration and are called five years plan.

This long term plan is called perspective plan the five year plans are supposed to provide the basis for the perspective plan.

Planning commission

Planning Commission was set up with the Prime Minister as it chairperson.

The goals of five year plans

A plan should have some clearly specified goals. the Goals of of the five year plans are growth (i) modernisation (ii) self Reliance and (iii) equity.


It refers to increase in the country's capacity to produce the output of goods and services within the country.

A good indicator of economic growth in the language of Economics is Steady increase in the gross domestic product (GDP)

The GDP is the market value of all the goods and services produced in the country during a years.


Modernisation to increase the production of goods and services the producers have to adopt new technology.

Modernisation does not refers only to the use of new technology but also to change in social Outlook the the recognisation that women should have the same right as men.

Notes of indian economy class 12th 1950-1990


A nation can promote economic growth and modernisation by using it's own resources for by using resources imported from other Nations the first 7 year plan gave importance to self Reliance by avoiding imports the policy was considered necessity in order to reduce our dependence on origin countries especially for food.


Now growth modernisation and self-Reliance by themselves may not improve the kind of life which people are living. A country can have high growth. the most modern technology developed in the country it self and also have most of its people living in poverty.

It refers to reduction in disparity of income or wealth, by uplifting weaker sections of the society. It also refers to distribution of economic power equally or in such way that every Indian should be able to meet his or her basic needs such as food, a decent house, education, healthcare, etc.

All collage of Delhi University 2021 full details


It refers to all those activities which are related to the cultivation of land for the production of crops; food crops and non-food crops.
(i) Importance of Agriculture in the Indian Economy

  • Contribution to GDP
  • Supply of wage goods
  • Employment
  • Industrial raw material
  • Contribution to international trade
  • Contribution to domestic trade
  • Wealth of the nation

(ii) Problems of Indian Agriculture

  • Lack of permanent means of irrigation
  • Deficiency of finance
  • Conventional outlook
  • Small and scattered holding
  • Lack of organised marketing system

Reforms in Indian Agriculture
(i) Technical Reforms

  • Use of HYV seeds
  • Use of chemical fertilisers
  • Scientific farm management practices
  • Mechanised means of cultivation

(ii) Land Reforms

  • Abolition of intermediaries
  • Regulation of rent
  • Consolidation of holding
  • Ceiling on land holding
  • Co-operative farming

(iii) General Reforms

  • Expansion of irrigation facilities
  • Provision of credit
  • Regulated market
  • Price support policy

The the conical rule there was neither growth nor equity in the agricultural sector the policy makers of independent India had to address issues which they did through land Reforms and promoting the the use of 'miracle seeds' which usid in a revolution in Indian Agriculture.

Land Reforms

The low productivity of the agricultural sector forced India to import food from the United States of America U.S.A equity in agriculture called for land reforms.

Land Ceiling

Land ceiling was another policy to promote equity in the agriculture sector. this means fixing the maximum size of land which could be onwed bu an individual the purpose of land celling was to reduce the concentration of land ownership in a few hands.

Green Revolution

75% of the country's population was depend on agriculture. Productivity in the agricultural sector was very long because of the use of old technology and the absence of required infrastructure for the vast majority of farmers India's agriculture vitally depends on the monsoon.

The stagnation in agriculture during the conical rule watch permanently broken by the Green Revolution.

The Green Revolution enabled the government to procure sufficient amount of food grains to build a stock which could be used in times of food shortage.

The architect of Indian planning

Prasanta Chandra Mahalanobis was born in 1893 in Calcutta. He was educated at the Presidency College in Calcutta and at Cambridge University in England. His contributions to the subject of statistics brought him international fame. In 1946, he was made a Fellow (member) of Britain’s Royal Society, one of the most prestigious organisations of scientists.

Industry and trade

In India between 1950 and 1990 the proportion of GDP contributed by agriculture declined.

Industry provides employment which is more stable then the employment in agriculture

It promotes modernisation and over all prosperity.


At the time of independence raw material was exported from India to Britain in abundance, on the other hand finished goods from Britain were imported into India.
Notably our balance of trade was favourable (exports > imports)

After independence India’s foreign trade recorded a noticeable change such as.
(i) Decline in percentage share of agricultural exports.
(ii) Increase in percentage share of manufactured goods in total exports.
(iii) Change in direction of export trade and import trade.
(iv) Decline of Britain as main trading Partner.

Small scale industry

1955 the village and small scale industry committee also called the the the carve committee Noted the possibility of using small scale industries for promoting rural development.

• in 1950 small scale industrial you need watch one which invested a maximum of rupees 5 lakh.

1. Difficulty of finance.
2. Shortage of raw material.
3. Difficulty of marketing.
4. Outdated machines & equipment
5. Competition from large scale industries.


1. Sectoral imbalances- Agriculture and infrastructure have failed to provide the support to the industrial sector.
2. Regional imbalance- Restricted to few states.
3. Industrial sickness- which raised the problem of unemployment.
4. Higher cost of industrial product due to lack of healthy competition.
5. Dependence on the Government- for reduction in tax or duty to make import easier.
6. Poor performance of the public sector
7. Under utilisation of capacity.
8. Increasing capital-output ratio

indian economy 1950-1990 12th notes 

Now it is helpful for knowledge

Notes of class 12th Indian economy 1950- 1990

Economic planning: memes utilisation of countries resources in different development activities in accordance with national priority.

Goals of planning in India

1. Long term goal ( to be achieved over a period of 20 years )
2. Sweater goals to be achieved over a period of five years )


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