Chapter 2

Introduction

15 August 1947

Freedom from British rule

Leaders' decisions

Economic system

Welfare of all

Types of economic systems

Socialism (Nehru's preference)

Not like the Soviet Union

Private property

Democracy

Economic system in India

Socialist society

Public sector

Private property
Democracy

Key Milestones

1948: Industrial Policy Resolution

1950: Planning Commission established

This mind map summarizes the key points from the introduction passage, highlighting the historical
context and the vision for India's economic system after gaining independence.

Creating a mind map for the goals of the five-year plans:

Goals of Five-Year Plans

Growth

Increase in capacity to produce goods and services

Larger stock of capital
Increased efficiency
Measured by GDP

Modernisation
 Adoption of new technology
Changes in social outlook
Utilization of women's talents

Self-reliance

Use of own resources

Reduction of dependence on imports

Sovereignty protection

Equity

Ensure benefits reach the poor

Basic needs met (food, housing, education, health care)

Reduce wealth inequality

Implementation in India

First seven five-year plans (1950-1990)

Agriculture, industry, and trade policies
Post-1991 policies (Chapter 3)

This mind map summarizes the key goals of the five-year plans, emphasizing their significance in
India's economic development.

Creating a mind map for the Agriculture section:

Agriculture in Independent India

Challenges from Colonial Rule

No growth
Lack of equity

Land Reforms

Abolishing intermediaries
Making tillers owners of land
Land ceiling to reduce concentration
Successes and challenges

The Green Revolution

Use of High Yielding Variety (HYV) seeds

Increase in production and productivity

Impact on small and big farmers

Government's role in ensuring benefits
Risk of pest attacks
 Subsidy Debate

Subsidies to encourage technology adoption

Arguments for and against subsidies
Balancing the needs of poor farmers

Employment in Agriculture

Large percentage still engaged in farming

Gap between agriculture and other sectors
Policy challenges

This mind map provides an overview of the key points and challenges related to agriculture in
independent India, including land reforms, the Green Revolution, the debate over subsidies, and
employment in agriculture.

Creating a mind map for the Industry and Trade section:

Industry and Trade in Independent India

Importance of Industry

Stable employment
Modernization and prosperity

Role of Government and Private Sector

Government's extensive role in promoting industries

Public sector leading the way

Industrial Policy Resolution 1956 (IPR 1956)

Classification of industries into three categories

Control of commanding heights of the economy
Licensing system for new and expanding industries
Promotion of industry in backward regions

Small-Scale Industry

Role in rural development

Labor-intensive nature
Need for protection and support
Concessions for small-scale industries

This mind map outlines the key points related to industry and trade in independent India, focusing on
the role of the government, the Industrial Policy Resolution of 1956, and the promotion of small-scale
industries.

Creating a mind map for the Trade Policy and Industrial Development section:
 Trade Policy: Import Substitution

Inward Looking Trade Strategy

Import substitution

Protection from Imports

Tariffs (tax on imports)

Quotas (limits on imported goods)

Goals of Import Substitution

Protect domestic industries

Avoid foreign exchange expenditure

Impact of Policies on Industrial Development

Industrial sector's growth and diversification

Role of the public sector
Small-scale industries
Criticism of public sector performance
Misuse of licenses
Negative effects of protection from foreign competition
The need for a new economic policy in 1991

This mind map summarizes the key points related to the trade policy of import substitution, its impact on
industrial development, and the need for a change in economic policy in 1991.

Here's a mind map summarizing the key points in the "Conclusion" section:

Conclusion

Achievements During First Seven Plans

Diversification of industries
Self-sufficiency in food (Green Revolution)
Land reforms (abolition of zamindari system)

Concerns and Dissatisfaction

Performance of many public sector enterprises

Excessive government regulation hindering entrepreneurship
Lack of incentives for improving product quality

Inward-Oriented Policies

Protection from foreign competition

Weak development of the export sector
 Need for Economic Reform

Changing global economic scenario

Initiation of the new economic policy in 1991 for greater efficiency

This mind map highlights the main points of the conclusion, discussing the achievements and
challenges during the first seven plans and the need for economic reforms in India.