Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

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Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 9 Development Experiences in India

Samacheer Kalvi 11th Economics Development Experiences in India Text Book Back Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
Which of the following is the way of Privatisation?
(a) Disinvestment
(b) Denationalization
(c) Franchising
(d) All the above
Answer:
(d) All the above

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
Countries today are to be …………………… for their growth.
(a) Dependent
(b) Interdependent
(c) Free trade
(d) Capitalist
Answer:
(b) Interdependent

Question 3.
The Arguments against LPG is ……………………….
(a) Economic growth
(b) More investment
(c) Disparities among people and regions
(d) Modernization
Answer:
(c) Disparities among people and regions

Question 4.
Expansion of FDI ……………………….
(a) Foreign Private Investment
(b) Foreign Portfolio
(c) Foreign Direct Investment
(d) Forex Private Investment
Answer:
(c) Foreign Direct Investment

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 5.
India is the largest producer of ……………………. in the world.
(a) Fruits
(b) Gold
(c) Petrol
(d) Diesel
Answer:
(a) Fruits

Question 6.
Foreign investment includes …………………………
(a) FDI only
(b) FPI and FFI
(c) FDI and FPI
(d) FDI and FFI
Answer:
(c) FDI and FPI

Question 7.
The Special Economic Zones policy was announced in ………………………..
(a) April 2000
(b) July 1990
(c) April 1980
(d) July 1970
Answer:
(a) April 2000

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 8.
Agricultural Produce Market Committee is a ………………………….
(a) Advisory body
(b) Statutory body
(c) Both a and b
(d) None of these above
Answer:
(b) Statutory body

Question 9.
Goods and Services Tax is ………………………..
(a) A multi point tax
(b) Having cascading effects
(c) Like Value Added Tax
(d) A single point tax with no cascading effects.
Answer:
(d) A single point tax with no cascading effects.

Question 10.
The New Foreign Trade Policy was announced in the year ……………………….
(a) 2000
(b) 2002
(c) 2010
(d) 2015
Answer:
(d) 2015

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 11.
Financial Sector reforms is mainly related to ………………………..
(a) Insurance Sector
(b) Banking Sector
(c) Both a and b
(d) Transport Sector
Answer:
(c) Both a and b

Question 12.
The Goods and Services Tax Act came into effect on ……………………..
(a) 1st July 2017
(b) 1st July 2016
(c) 1st January 2017
(d) 1st January 2016
Answer:
(a) 1st July 2017

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 13.
The new economic policy is concerned with the following
(a) Foreign investment
(b) Foreign technology
(c) Foreign trade
(d) All the above
Answer:
(d) All the above

Question 14.
The recommendation of Narashimham Committee Report was submitted in the year ………………………
(a) 1990
(b) 1991
(c) 1995
(d) 2000
Answer:
(b) 1991

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 15.
The farmers have access to credit under Kisan credit card scheme through the following except ……………………….
(a) Co – operative banks
(b) RRBs
(c) Public sector banks
(d) All the above
Answer:
(a) Co – operative banks

Question 16.
The Raja Chelliah Committee on Trade Policy Reforms suggested the peak rate on import duties at ……………………….
(a) 25%
(b) 50%
(c) 60%
(d) 100%
Answer:
(b) 50%

Question 17.
The first ever SEZ in India was set up at ………………………….
(a) Mumbai
(b) Chennai
(c) Kandla
(d) Cochin
Answer:
(c) Kandla

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 18.
‘The Hindu Rate of Growth’ coined by Raj Krishna refers to ………………………
(a) Low rate of economic growth
(b) High proportion of Hindu population
(c) Stable GDP
(d) None
Answer:
(a) Low rate of economic growth

Question 19.
The highest rate of tax under GST is ………………………. (as on July1, 2017).
(a) 18%
(b) 24%
(c) 28%
(d) 32%
Answer:
(c) 28%

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 20.
The transfer of ownership from public sector to private sector is known as ……………………..
(a) Globalization
(b) Liberalization
(c) Privatization
(d) Nationalization
Answer:
(c) Privatization

PART – B

Answer the following questions in one or two sentences.

Question 21.
Why was structural reform implemented in Indian Economy?
Answer:

  1. Indian Economy responded to the crisis by introducing a set of policies known as Structural Reforms.
  2. These policies were aimed at correcting the weaknesses and rigidities in the various sectors of the economy such as industry, trade, fiscal and agriculture.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 22.
State the reasons for implementing LPG?
Answer:
Liberalization:

  • Liberalization refers to removal of relaxation of governmental restrictions in all stages of industry.
  • De-licensing, decontrol, deregulation, subsidies (incentives) and greater role for financial institutions are the various facets of liberalization.

Privatization:

  • Privatization means transfer of ownership and management of enterprises from public sector to private sector.
  • Denationalization, disinvestment and opening exclusive public sector enterprises to private sector are the gateways to privatization.

Globalization:

  • Globalization refers to the integration of the domestic (Indian) economy with the rest of the world. Import liberalization through reduction of tariff and non-tariff barriers, opening the doors to Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are some of the measures towards globalization.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 23.
State the meaning of Privatization?
Answer:
Privatization means transfer of ownership and management of enterprises from public sector to private sector.

Question 24.
Define disinvestment?
Answer:
Disinvestment means selling of government securities of Public Sector Undertakings [PSUs] to other PSUs or private sectors or banks. This process has not been fully implemented.

Question 25.
Write three policy initiative introduced in 1991 – 92 to correct the fiscal imbalance?
Answer:
The important policy initiatives introduced in the budget for the year 1991-92 for correcting the fiscal imbalance were:

  1. Reduction in fertilizer subsidy
  2. Abolition of subsidy on sugar.
  3. Disinvestment of a part of the government’s equity holdings in select public sector undertakings.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 26.
State the meaning of Special Economic Zones?
Answer:

  1. The Special Economic Zones [SEZs] policy was announced in April 2000.
  2. As per the Special Economic Zones Act of 2005, the government has so far notified about 400 such zones in the country.
  3. The SEZ deprives the farmers of their land and livelihood, it is harmful to agriculture.
  4. To promote export and Industrial growth in line with globalization the SEZ was introduced in many countries.

Question 27.
State the various components of Central government schemes under post – harvest measures?
Answer:

  1. Mega food parks, Integrated Cold Chain, Value Addition Preservation, Infrastructure and Modernization of Slaughter house.
  2. Scheme for Quality Assurance, Codex Standards, Research and Development and Other promotional activities.

PART – C

Answer the following questions in one paragraph.

Question 28.
How do you justify the merits of Privatization?
Answer:

  1. Privatisation means transfer of ownership and management of enterprises from public sector to private sector.
  2. Denationalization, disinvestment and opening exclusive public sector enterprises to private sector are the gateways to privatization.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 29.
What are the measures taken towards Globalization?
Answer:

  1. As globalization measures tend to integrate all economies of the world and bringing them all under one umbrella.
  2. They pave the way for redistribution of economic power at the world level.
  3. Well-developed countries are favoured in this process and the welfare of the less- developed countries will be neglected.
  4. Globalization refers to the integration of the domestic (Indian) economy with the rest of the world.
  5. Import liberalization through reduction of tariff and non-tariff barriers, opening the doors to Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are some of the measures towards globalization.

Question 30.
Write a note on Foreign investment policy?
Answer:

  1. Foreign Investment Policy measure has enhanced the Industrial competition and improved business environment in the country.
  2. Foreign Investment including FDI and FPI were allowed.
  3. The government announced a specified list of high-technology and high-investment priority industries.
  4. Automatic permission was granted for Foreign Direct Investment [FDI] upto 51 % foreign equity.
  5. The limit was raised to 74% and subsequently to 100% for many of these industries.
  6. Foreign Investment Promotion Board [FIPB] has been set up to negotiate with international firms and approve foreign direct investment.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 31.
Give short note on Cold Storage?
Answer:

  1. India is the largest producer of fruits and second largest producer of vegetables in the world.
  2. Inspite of that per capita availability of fruits and vegetables is quite low because of post harvest losses which account for about 25% to 30% of production.
  3. Besides, quality of a sizable quantity of produce also deteriorates by the time it reaches the consumer.
  4. Most of the problems relating to the marketing of fruits and vegetables can be traced to their perishability.
  5. Perishability is responsible for high marketing costs, market gluts, price fluctuations and other similar problems.
  6. In order to overcome this constraint, the Government of India and the Ministry of Agriculture promulgated an order known as “Cold Storage Order, 1964” under section 3 of the Essential Commodities Act., 1955.

Question 32.
Mention the Functions of APMC?
Answer:
The Agriculture Produce Market Committee [APMC] is a statutory body constituted by State Government in order to trade in agricultural or horticultural or livestock products.

Functions of APMC:

  1. To promote public private partnership in the ambit of agricultural markets.
  2. To provide market led extension services to farmer.
  3. To bring transparency in pricing system and transactions taking place in market in a transparent manner.
  4. To ensure payments to the farmers for the sale of agricultural produce on the same day.
  5. To promote agricultural activities.
  6. To display data on arrivals and rates of agricultural produce from time to time into the market.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 33.
List out the features of new trade policy?
Answer:
The main feature of the new trade policy as it has evolved over the years since 1991 are as follows: Free imports and exports:

  1. Prior to 1991, in India imports were regulated.
  2. From 1992, imports were regulated by a limited negative list.
  3. The trade policy of 1 April 1992 freed imports of almost all intermediate and capital goods. Rationalization of tariff structure and removal of quantitative restrictions:
  4. The Chelliah Committee’s Report had suggested drastic reduction in import duties.
  5. It had suggested a peak rate of 50 percent.
  6. A gradual reduction in the tariffs, the 1991-92 budget had reduced the peak rate of import duty from more than 300 percent to 150 percent.
  7. The process of lowering the customs tariffs was carried further in successive budgets.

Question 34.
What is GST? Write its advantages?
Answer:

  1. GST (Goods and Services Tax) is defined as the tax levied when a consumer buys a good or service.
  2. Removing cascading tax effect
  3. Single point tax
  4. Higher threshold for registration .
  5. Composition scheme for small business
  6. Online simpler procedure under GST
  7. Defined treatment for e-commerce
  8. Increased efficiency in logistics
  9. Regulating the unorganized sector

PART – D

Answer the following questions in about a page.

Question 35.
Discuss the important initiatives taken by the Government of India towards Industrial Policy?
Answer:
The policy has brought changes in the following aspects of industrial regulation.

  • Industrial delicensing.
  • De-reservation of the Industrial Sector.
  • Public sector policy (dereservation and reform of PSEs).
  • Abolition of MRTP Act.
  • Foreign Investment policy and foreign technology policy.

Industrial delicensing policy:

  • The most important objective of the new Industrial policy of 1991 was the end of the Industrial licensing or the license raj or red tapism.
  • The Industrial licensing policies, private sector firms had to secure licenses to start an Industry.

Dereservation of the Industrial Sector:

  • The public sector was given reservation especially in the capital goods and key industries.
  • Industrial deregulation, most of the industrial sectors were opened to the private sector as well.
  • The new industrial policy, only three sectors viz., atomic energy, mining and railways will continue as reserved for public sector.

Reforms related to the Public Sector enterprises:

  • Reforms in the public sector were aimed at enhancing efficiency and competitiveness of the sector.
  • The government identified strategic and priority areas for the public sector concentrate.

Abolition of MRTP Act:

  • The New Industrial Policy of 1991 has abolished the Monopoly and Restrictive Trade Practices Act 1969.
  • In 2010, the Competition Commission has emerged as the watchdog in monitoring competitive practices in the economy.

Foreign Investment Policy:

  • Foreign investment including FDI and FPI were allowed.
  • In 1991, the government announced a specified list of high-technology and high-investment priority Industries.
  • Foreign Direct Investment (FDI) upto 51 percent foreign equity.
  • Foreign Investment Promotion Board has been set up to negotiate with International firms and approve Foreign Direct Investment.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 36.
Explain the objectives and characteristics of SEZs?
Answer:

  1. The Special Economic Zones [SEZs] Policy was announced in April 2000.
  2. The Special Economic Zones Act of 2005, the government has so far notified about 400 such zones in the country.

1. Major objectives of SEZs:

  • To enhance foreign investment, especially to attract foreign direct investment [FDI] and thereby increasing GDP.
  • To increase shares in Global Export (International Business).
  • To generate additional economic activity.
  • To create employment opportunities.
  • To develop infrastructure facilities.
  • To exchange technology in the global market.

2. Main Characteristics of SEZ:

  • Geographically demarked area with physical security.
  • Administrated by single body authority.
  • Streamlined procedures.
  • Having separate custom area.
  • Governed by more liberal economic laws.
  • Greater freedom to the firms located in SEZs.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 37.
Describe the Salient features of EXIM policy [2015 – 2020]?
Answer:
The new EXIM policy has been formulated focusing on increasing in exports Scenario, boosting production and supporting the concepts like Make in India and Digital India. Salient Features:

  • Reduce export obligations by 25% and give boost to domestic manufacturing supporting the “Make in India” concept.
  • As a step to Digital India concept, online procedure to upload digitally signed document by CA /CS / Cost Accountant are developed and further mobile app for filing tax, stamp duty has been developed.
  • Repeated submission of physical copies of documents available on Exporter Importer Profile is not required.
  • Export obligation period for export items related to defence, military store, aerospace and nuclear energy to be 24 months.
  • EXIM policy 2015 – 2020 is expected to double the share of India in World Trade from present level of 3% by the year 2020. This appears to be too ambitions.

Samacheer Kalvi 11th Economics Development Experiences in India Additional Important Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
Which organization established EXIM bank?
(a) Reserve Bank of India
(b) Central Bank
(c) State Bank
(d) ICICI bank.
Answer:
(a) Reserve Bank of India

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
……………………… records all the visible and invisible items.
(a) Balance of payments
(b) Exports
(c) Imports
(d) None
Answer:
(a) Balance of payments

Question 3.
The new export and import policy was announced in the year ………………………..
(a) 1970
(b) 1980
(c) 1991
(d) 2002
Answer:
(c) 1991

Question 4.
The foreign investment policy can be broadly classified into …………………….. categories.
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(c) Four

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 5.
Globalization means …………………………
(a) Integration of the economy with world economy
(b) Increasing degrees of openness in respect of international trade.
(c) process of transformation of the world into a single economic unit.
(d) All the above
Answer:
(d) All the above

Question 6.
The term …………………… means the integration of the economy of each country with the world economy.
(a) Globalization
(b) Privatization
(c) Liberalization
(d) None of the above
Answer:
(a) Globalization

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 7.
Major policy measures have been launched as a part of the programmes ………………………….
(a) LPG
(b) Liberalization
(c) Privatization
(d) Globalization
Answer:
(a) LPG

Question 8.
……………………. is the major function of WTO.
(a) Administering WTO trade agreements
(b) Forum for trade negotiations
(c) Handling trade disputes
(d) All the above
Answer:
(d) All the above

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 9.
Foreign trade creates that facilities of …………………………
(a) Imports of capital goods
(b) Flow of technology
(c) Better allocation of resources
(d) All the above
Answer:
(d) All the above

Question 10.
………………………. trade refers to the trade or exchange of goods and services between two or more countries.
(a) Internal
(b) International
(c) Domestic
(d) None
Answer:
(b) International

PART – B

Answer the following questions in one or two sentences.

Question 1.
Define “Raja – J. Chelliah Committee”?
Answer:

  1. The Chelliah Committee’s Report had suggested drastic reduction in import duties.
  2. It had suggested a peak rate of 50 percent.
  3. As a first step towards a gradual reduction in the tariffs, the 1991-92 budget had reduced the peak rate of import duty from more than 300 percent to 150 percent. The process of lowering the customs tariffs was carried further in successive budgets.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
Mention the “Basic Economic Problems”?
Answer:
The Basic Economic Problems such as

  1. Poverty
  2. Unemployment
  3. Discrimination
  4. Social exclusion
  5. Deprivation
  6. Poor health care
  7. Rising inflation
  8. Agricultural stagnation
  9. Food insecurity and
  10. Labour migration

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 3.
Give short note on “Abolition of MRTP Act”?
Answer:

  1. The New Industrial policy of 1991 has abolished the Monopoly and Restrictive Trade Practices Act 1969.
  2. In 2010, the Competition Commission has emerged as the watchdog in monitoring competitive practices in the economy.
  3. The policy caused big changes including emergence of a strong and competitive private sector and a sizable number of foreign companies in India.

PART – C

Answer the following questions in one paragraph.

Question 1.
Define “Kisan Credit Card Scheme”?
Answer:

  1. A Kisan Credit Card [KCC] is a credit delivery mechanism that is aimed at enabling farmers to have quick and timely access to affordable credit.
  2. It was launched in 1998 by the Reserve Bank of India and NABARD.
  3. The Scheme aims to reduce farmer dependence on the informal banking sector for credit – which can be very expensive and suck them into a debt spiral.
  4. The card is offered by co-operative banks, regional rural banks and public sector banks.
  5. The working of the KCC, the government has advised banks to convert the KCC into a smart card cum debit card.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
Mention how the Indian economy liberalization policy helped in the recovery?
Answer:
The liberalization policy helped in the recovery of Indian Economy:
There was enormous and regular flow of foreign direct investment [FDI]

  1. Foreign exchange reserves started rising.
  2. There was a rapid Industrialization.
  3. The pattern of consumption started improving.
  4. Infrastructure facilities such as express highways, metro rails, flyovers and airports started expanding.
  5. The benefits of this growth in some sectors have not reached the marginalized sections of the community.
  6. The process of development has generated serious social, economic, political, demographic and ecological issues and challenges.

Question 3.
Explain the impact of LPG on Indian economy?
Answer:

  1. According to International Monetary Fund, World Economic Outlook, GDP (nominal) of India in 2016 at current prices is $2,251 billion.
  2. India contributed 2.99% of total world’s GDP in exchange rate basis.
  3. India shared 17.5 percent of the total world population and 2.4 percent of the world Surface area.
  4. India was now 7th largest economy of the world.
  5. India was at 3rd position after China and Japan among Asian countries. India shared 8.50% of total Asia’s GDP (nominal) in 2016.

PART – D

Answer the following questions in about a page.

Question 1.
Explain the Monetary and Financial Sector Reforms?
Answer:
Monetary reforms aimed at doing away with interest rate distortions and rationalizing the structure of lending rates. The new policy tried in many ways to make the banking system more efficient.

Some of the measures undertaken were:
1. Reserve Requirements:

  • Reduction in Statutory liquidity ratio [SLR] and the cash reserve ratio [CRR] were recommended by the Narasimham Committee Report, 1991.
  • It was proposed to cut down the SLR from 38.5 percent to 25 percent within a time span of three years.

2. Interest Rate Liberalisation:
RBI controlled:

  • The interest rates payable on deposits.
  • The interest rate which could be charged for bank loans.
  • Greater competition among public sector, private sector and foreign banks and elimination of administrative constraints.
  • Liberalisation of bank branch licensing policy in order to rationalize the existing branch network.
  • Banks were given freedom to relocate branches and open specialized branches.
  • Guidelines for opening new private sector banks.
  • New accounting norms regarding classification of assets and provisions of bad debt were introduced in tune with the Narasimham Committee Report.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
Explain the Agrarian crisis after reforms?
Answer:
1. High input Costs:

  • The biggest input for farmers is seeds.
  • Before liberalisation, farmers across the country had access to seeds from state government institutions.
  • The institutions produced own seeds and were responsible for their quality and price.
  • India’s seed market was opened up to global agri businesses.
  • The deregulation of many state government institutions were closed down in 2003.
  • Seed prices shot up and fake seeds made an appearance in a big way.

2. Cutback in agricultural subsidies:

  • Farmers were encouraged to shift from growing a mixture of traditional crops to export oriented “cash crops” like chilli, cotton and tobacco.
  • Liberalisation policies reduced the subsides on pesticide and fertilizer and elasticity.
  • As a result prices have increased by 300%.

3. Reduction of import duties:

  • With a view to open India’s markets, the liberalization reforms also withdrew tariffs and duties on imports.
  • By 2001, India completely removed restrictions on imports of almost 1,500 items including food.

4. Paucity of credit facilities:

  • The lending pattern of commercial banks, including nationalised bank drastically changed.
  • As a result, loan was not easily adequate.
  • This has forced the farmers to rely on moneylenders who charge exorbitant rate of interest.

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