Chapter 1: Development Experience (1947–90)
CBSE Competency-Based MCQs (2026–27)
Total MCQs: 50
Marks: 1 Mark Each
1. After Independence, India adopted a system of:
A. Free market economy
B. Socialist economy
C. Mixed economy
D. Capitalist economy
Answer: C. Mixed economy
Explanation: India adopted a mixed economy combining public and private sectors.
2. The main objective of economic planning in India was:
A. Profit maximization
B. Economic development
C. Military expansion
D. Export promotion only
Answer: B. Economic development
Explanation: Planning aimed at growth, modernization, self-reliance, and equity.
3. Which institution was responsible for formulating Five-Year Plans?
A. RBI
B. Planning Commission
C. NITI Aayog
D. Finance Commission
Answer: B. Planning Commission
Explanation: The Planning Commission prepared and monitored Five-Year Plans.
4. The First Five-Year Plan mainly focused on:
A. Heavy industries
B. Agriculture
C. Defence
D. Information technology
Answer: B. Agriculture
Explanation: Agriculture was prioritized due to food shortages after Independence.
5. The Second Five-Year Plan emphasized:
A. Rural development
B. Transport
C. Heavy industries
D. Foreign trade
Answer: C. Heavy industries
Explanation: The Mahalanobis strategy focused on industrialization.
6. Who proposed the industrial development strategy in the Second Five-Year Plan?
A. Dadabhai Naoroji
B. P.C. Mahalanobis
C. V.K.R.V. Rao
D. Amartya Sen
Answer: B. P.C. Mahalanobis
Explanation: Mahalanobis emphasized capital goods industries.
7. Land reforms aimed to:
A. Increase imports
B. Reduce inequalities in land ownership
C. Increase taxes
D. Promote exports
Answer: B. Reduce inequalities in land ownership
Explanation: Land reforms targeted equitable distribution of land.
8. Abolition of Zamindari system was related to:
A. Industrial reform
B. Agricultural reform
C. Trade reform
D. Banking reform
Answer: B. Agricultural reform
Explanation: It removed intermediaries between farmers and the state.
9. Green Revolution was introduced to:
A. Increase industrial production
B. Increase food grain production
C. Promote exports
D. Improve transport
Answer: B. Increase food grain production
Explanation: HYV seeds and modern techniques increased agricultural output.
10. Which crop benefited the most from the Green Revolution?
A. Tea
B. Cotton
C. Wheat
D. Sugarcane
Answer: C. Wheat
Explanation: Wheat production rose significantly during the Green Revolution.
11. Green Revolution was most successful in:
A. Kerala and Tamil Nadu
B. Punjab and Haryana
C. Odisha and Bihar
D. Assam and Meghalaya
Answer: B. Punjab and Haryana
Explanation: These states had better irrigation and infrastructure.
12. The term “license raj” refers to:
A. Freedom in business
B. Excessive government controls and permits
C. Agricultural subsidy system
D. Export policy
Answer: B. Excessive government controls and permits
Explanation: Industries needed licenses for production and expansion.
13. Industrial Policy Resolution of 1956 gave importance to:
A. Private sector only
B. Foreign companies only
C. Public sector
D. Agriculture only
Answer: C. Public sector
Explanation: Public sector industries were considered crucial for development.
14. Small-scale industries were promoted because they:
A. Needed huge investment
B. Generated employment
C. Reduced exports
D. Increased imports
Answer: B. Generated employment
Explanation: Small industries created jobs with less capital.
15. Import substitution means:
A. Increasing imports
B. Replacing imports with domestic production
C. Exporting imported goods
D. Reducing domestic production
Answer: B. Replacing imports with domestic production
Explanation: India aimed to become self-reliant.
16. The main reason for adopting import substitution was:
A. Dependence on foreign goods
B. Lack of population
C. Surplus exports
D. Declining industries abroad
Answer: A. Dependence on foreign goods
Explanation: India wanted to reduce foreign dependence.
17. Which sector was given the leading role in development strategy?
A. Cooperative sector
B. Public sector
C. Foreign sector
D. Household sector
Answer: B. Public sector
Explanation: Public enterprises were expected to build infrastructure and industries.
18. During 1947–90, Indian economy was mainly characterized by:
A. High unemployment
B. Very high exports
C. Complete privatization
D. High per capita income
Answer: A. High unemployment
Explanation: Employment generation remained a major challenge.
19. The main aim of self-reliance was:
A. Dependence on imports
B. Avoid foreign aid dependence
C. Increase luxury imports
D. Encourage colonial trade
Answer: B. Avoid foreign aid dependence
Explanation: India wanted economic independence.
20. Which plan is also called the “Harrod-Domar Model based plan”?
A. First Five-Year Plan
B. Second Five-Year Plan
C. Third Five-Year Plan
D. Fourth Five-Year Plan
Answer: A. First Five-Year Plan
Explanation: The First Plan was influenced by the Harrod-Domar growth model.
21. Which institution provides agricultural credit in rural areas?
A. RBI only
B. Cooperative banks
C. SEBI
D. Stock exchange
Answer: B. Cooperative banks
Explanation: Cooperative institutions supported farmers financially.
22. Buffer stock is maintained to:
A. Increase exports
B. Stabilize food supply and prices
C. Reduce agriculture
D. Increase inflation
Answer: B. Stabilize food supply and prices
Explanation: Buffer stock helps in food security.
23. The major drawback of Green Revolution was:
A. Decline in wheat production
B. Regional inequalities
C. No irrigation facilities
D. Decrease in fertilizer use
Answer: B. Regional inequalities
Explanation: Benefits were limited to certain regions.
24. Which organization procures food grains from farmers?
A. LIC
B. FCI
C. NABARD
D. SBI
Answer: B. FCI
Explanation: Food Corporation of India purchases and stores food grains.
25. The public distribution system (PDS) aims to:
A. Promote luxury goods
B. Provide essential goods at fair prices
C. Increase imports
D. Encourage exports
Answer: B. Provide essential goods at fair prices
Explanation: PDS ensures food availability to poor households.
26. India’s economic system after Independence can best be described as:
A. Command economy
B. Market economy
C. Mixed economy
D. Closed economy only
Answer: C. Mixed economy
Explanation: Both public and private sectors operated together.
27. The Industrial Policy Resolution, 1956 classified industries into:
A. Two categories
B. Three categories
C. Four categories
D. Five categories
Answer: B. Three categories
Explanation: Industries were divided according to ownership and control.
28. Which sector was reserved exclusively for the state?
A. Cottage industries
B. Strategic industries
C. Consumer goods
D. Agriculture
Answer: B. Strategic industries
Explanation: Important sectors like defence were under government control.
29. One objective of land ceiling was to:
A. Increase land concentration
B. Redistribute surplus land
C. Promote urbanization
D. Encourage imports
Answer: B. Redistribute surplus land
Explanation: Land above the ceiling limit was redistributed.
30. The Green Revolution required:
A. HYV seeds
B. Irrigation
C. Fertilizers
D. All of these
Answer: D. All of these
Explanation: Modern inputs together increased productivity.
31. India adopted centralized planning inspired by:
A. USA
B. USSR
C. Japan
D. Germany
Answer: B. USSR
Explanation: Soviet-style planning influenced Indian planning.
32. The Mahalanobis model emphasized production of:
A. Consumer goods
B. Agricultural goods
C. Capital goods
D. Imported goods
Answer: C. Capital goods
Explanation: Heavy industries were expected to accelerate growth.
33. Which of the following is NOT a goal of Five-Year Plans?
A. Growth
B. Modernization
C. Self-reliance
D. Privatization
Answer: D. Privatization
Explanation: Privatization was not a major goal before 1991 reforms.
34. The Green Revolution increased the use of:
A. Traditional seeds only
B. Organic farming only
C. Modern farm technology
D. Hand tools only
Answer: C. Modern farm technology
Explanation: Tractors, fertilizers, and irrigation were widely used.
35. The strategy of protectionism aimed to:
A. Protect domestic industries
B. Promote free imports
C. Remove tariffs
D. Increase foreign competition
Answer: A. Protect domestic industries
Explanation: Tariffs and quotas protected Indian industries.
36. Which problem existed despite planning?
A. Excessive equality
B. Poverty and unemployment
C. Zero inflation
D. Declining population
Answer: B. Poverty and unemployment
Explanation: Economic growth was insufficient to eliminate poverty.
37. The Indian economy during 1947–90 is often criticized for:
A. High growth rate
B. Slow industrialization
C. Low GDP growth
D. Excess exports
Answer: C. Low GDP growth
Explanation: Growth rate remained modest during this period.
38. “Hindu rate of growth” refers to:
A. Very rapid economic growth
B. Moderate growth of around 3.5%
C. Negative growth
D. Agricultural decline
Answer: B. Moderate growth of around 3.5%
Explanation: The term described India’s slow growth rate before reforms.
39. Which of the following was a benefit of planning?
A. Development of infrastructure
B. Decline in industries
C. Fall in literacy
D. Reduced agricultural production
Answer: A. Development of infrastructure
Explanation: Planning improved roads, dams, and power projects.
40. Cooperative farming means:
A. Farming individually
B. Joint farming efforts by farmers
C. Government farming only
D. Foreign farming
Answer: B. Joint farming efforts by farmers
Explanation: Farmers pool resources for better productivity.
41. Which was a major source of irrigation during Green Revolution?
A. Wells and tube wells
B. Rainwater only
C. Rivers only
D. Canals only
Answer: A. Wells and tube wells
Explanation: Tube wells expanded irrigation facilities.
42. The Planning Commission was established in:
A. 1947
B. 1950
C. 1956
D. 1965
Answer: B. 1950
Explanation: It was set up to guide planned development.
43. Which policy restricted imports through tariffs and quotas?
A. Liberalization policy
B. Protection policy
C. Privatization policy
D. Globalization policy
Answer: B. Protection policy
Explanation: Protectionism safeguarded domestic industries.
44. Public sector enterprises were expected to:
A. Maximize private profit
B. Promote social welfare
C. Reduce employment
D. Encourage monopolies
Answer: B. Promote social welfare
Explanation: Public enterprises focused on welfare and development.
45. India’s planning process emphasized:
A. Balanced regional development
B. Urban luxury growth only
C. Foreign ownership
D. Export dependence
Answer: A. Balanced regional development
Explanation: Plans aimed to reduce regional disparities.
46. Which among the following is a feature of a mixed economy?
A. Only private sector exists
B. Only public sector exists
C. Coexistence of public and private sectors
D. No government intervention
Answer: C. Coexistence of public and private sectors
Explanation: Both sectors jointly contribute to development.
47. Agricultural productivity increased mainly due to:
A. Traditional farming
B. Green Revolution techniques
C. Reduced irrigation
D. Less fertilizer use
Answer: B. Green Revolution techniques
Explanation: Scientific farming improved yields.
48. Which challenge remained unresolved during 1947–90?
A. Industrial growth
B. Food shortages in all years
C. Poverty alleviation
D. Banking nationalization
Answer: C. Poverty alleviation
Explanation: Poverty continued despite development efforts.
49. The term “self-reliant economy” means:
A. Complete isolation from the world
B. Dependence on foreign aid
C. Ability to meet domestic needs internally
D. Only exporting goods
Answer: C. Ability to meet domestic needs internally
Explanation: Self-reliance reduces excessive external dependence.
50. Which statement best describes India’s development strategy after Independence?
A. Market-driven growth only
B. Agriculture was ignored
C. Planned development with state intervention
D. Complete foreign control
Answer: C. Planned development with state intervention
Explanation: India followed planned economic development through government policies.
20 Important Questions and Answers
As per CBSE 2026–27 Syllabus
Q1. Why did India adopt a mixed economic system after Independence?
Answer:
After Independence, India adopted a mixed economic system to combine the advantages of both capitalism and socialism. The government wanted rapid economic development while ensuring social justice and equitable distribution of resources. In this system, both the public and private sectors were allowed to operate. The public sector controlled key industries such as steel, railways, and power, while private enterprises worked in consumer goods and services. This approach aimed to prevent concentration of wealth, promote industrialization, and ensure balanced regional development. The mixed economy model helped India pursue growth while protecting the interests of weaker sections of society.
Q2. What was the role of planning in India’s development strategy?
Answer:
Planning played a central role in India’s development strategy after Independence. The government introduced Five-Year Plans to achieve economic growth, reduce poverty, and improve living standards. Planning helped allocate scarce resources efficiently and set development priorities. It focused on agriculture, industry, infrastructure, and social welfare. Through planning, the government aimed to create employment opportunities and reduce regional imbalances. The Planning Commission was established in 1950 to formulate and monitor plans. Planning provided a systematic framework for economic development and guided the country’s efforts toward self-reliance and modernization during the period 1947–90.
Q3. Explain the objectives of the First Five-Year Plan.
Answer:
The First Five-Year Plan (1951–56) mainly focused on the development of agriculture and irrigation. At that time, India faced food shortages and low agricultural productivity. Therefore, increasing food grain production was the primary objective. The plan also aimed to control inflation, improve transportation, and promote community development programs. Major investments were made in irrigation projects and rural development. The plan successfully achieved its targets and recorded a higher growth rate than expected. Its success laid the foundation for future economic planning and strengthened confidence in the planning process as a tool for national development.
Q4. Why did the Second Five-Year Plan emphasize industrial development?
Answer:
The Second Five-Year Plan (1956–61) emphasized industrial development to accelerate economic growth and achieve self-reliance. Based on the Mahalanobis strategy, it focused on the development of heavy and capital goods industries such as steel, machinery, and engineering. These industries were expected to create a strong industrial base for long-term growth. The plan aimed to reduce dependence on imports and increase production capacity. Public sector enterprises played a major role in implementing industrial projects. Although agriculture received less attention, the industrial focus helped India establish important industries and infrastructure needed for future development.
Q5. What is import substitution? Why was it adopted in India?
Answer:
Import substitution is a strategy in which a country encourages domestic production of goods that were previously imported. India adopted this policy after Independence to reduce dependence on foreign countries and save valuable foreign exchange. The government protected domestic industries through tariffs, quotas, and licensing policies. This strategy promoted the growth of local industries and encouraged self-reliance. Import substitution helped establish various industries, including engineering, chemicals, and machinery. However, excessive protection also reduced competition and efficiency. Despite its limitations, the policy played an important role in developing India’s industrial base during the early decades after Independence.
Q6. What were the main features of the Industrial Policy Resolution, 1956?
Answer:
The Industrial Policy Resolution of 1956 provided the framework for India’s industrial development. It classified industries into three categories. The first category was reserved exclusively for the public sector, including strategic industries such as defense and atomic energy. The second category allowed both public and private sector participation, while the third category was left mainly to private enterprises. The policy emphasized the expansion of the public sector and aimed to reduce economic inequalities. It also promoted balanced regional development and industrial growth. This resolution became the foundation of India’s industrial strategy for several decades.
Q7. What was the Green Revolution?
Answer:
The Green Revolution refers to the significant increase in agricultural production during the late 1960s and 1970s through the use of modern farming techniques. It involved high-yielding variety (HYV) seeds, chemical fertilizers, pesticides, irrigation facilities, and improved farming methods. The main objective was to increase food grain production and achieve self-sufficiency in food. Wheat production increased significantly, especially in Punjab, Haryana, and western Uttar Pradesh. The Green Revolution helped reduce dependence on food imports and improved food security. However, its benefits were concentrated in certain regions and among farmers with larger landholdings.
Q8. Mention two achievements of the Green Revolution.
Answer:
The Green Revolution brought several positive changes to Indian agriculture. First, it significantly increased food grain production, particularly wheat, enabling India to achieve self-sufficiency in food production. This reduced dependence on imports and strengthened food security. Second, it introduced modern agricultural practices such as HYV seeds, fertilizers, and irrigation, leading to higher productivity and technological advancement in farming. Farmers in regions benefiting from the Green Revolution experienced higher incomes and improved living standards. These achievements contributed greatly to agricultural growth and economic development during the post-independence period.
Q9. What were the limitations of the Green Revolution?
Answer:
Despite its success, the Green Revolution had several limitations. Its benefits were concentrated mainly in states such as Punjab, Haryana, and western Uttar Pradesh, creating regional disparities. Small and marginal farmers often lacked resources to purchase HYV seeds, fertilizers, and irrigation equipment, leading to income inequalities. The excessive use of chemical fertilizers and pesticides caused environmental problems, including soil degradation and water pollution. Furthermore, the focus was mainly on wheat and rice, while other crops received less attention. Thus, the Green Revolution increased production but also created social, regional, and environmental challenges.
Q10. What is land reform? Why was it important?
Answer:
Land reform refers to government measures aimed at improving the ownership and distribution of agricultural land. After Independence, land reforms were introduced to abolish intermediaries such as zamindars, protect tenant farmers, and impose ceilings on land holdings. These reforms aimed to reduce rural inequality and improve agricultural productivity. By giving cultivators ownership rights, the government hoped to increase incentives for investment and better farming practices. Land reforms also sought to ensure social justice by distributing surplus land to landless farmers. Although implementation varied across states, land reforms played an important role in rural development.
Q11. Why did India promote small-scale industries?
Answer:
India promoted small-scale industries to generate employment, reduce regional imbalances, and support equitable economic development. These industries required less capital and could be established in rural and semi-urban areas. They provided livelihood opportunities to a large number of people and encouraged entrepreneurship. Small-scale industries also contributed to exports and the production of consumer goods. Government policies such as reservation of products, financial assistance, and tax concessions supported their growth. By promoting labor-intensive production, small-scale industries helped address unemployment and contributed significantly to India’s industrial and economic development.
Q12. What was the role of the public sector in India’s development?
Answer:
The public sector played a crucial role in India’s development strategy after Independence. It was responsible for establishing basic and heavy industries such as steel, power, mining, and transportation. The government invested in sectors requiring large capital investments that private firms could not easily undertake. Public sector enterprises also aimed to provide essential services, generate employment, and promote balanced regional development. They contributed to infrastructure creation and economic modernization. Although some enterprises faced inefficiency and losses, the public sector laid the foundation for industrial growth and supported the country’s long-term development objectives.
Q13. Explain the concept of self-reliance.
Answer:
Self-reliance refers to the ability of a country to meet its development needs without excessive dependence on foreign countries. India adopted self-reliance as a major objective of economic planning after Independence. The strategy encouraged domestic production, import substitution, and the development of indigenous industries. It aimed to reduce dependence on foreign aid, imports, and external influences. Self-reliance helped build a strong industrial base and promoted national economic independence. While complete self-sufficiency was difficult to achieve, the policy strengthened India’s productive capacity and contributed to long-term economic stability and growth.
Q14. What is the License Raj?
Answer:
The License Raj refers to the system of government controls, regulations, and permits that governed economic activities in India before the economic reforms of 1991. Businesses required licenses for establishing industries, expanding production, importing goods, and making investments. The system was introduced to regulate resource allocation and prevent concentration of economic power. However, over time it led to delays, bureaucratic inefficiency, and reduced competition. Many firms faced difficulties in expanding operations due to excessive regulations. Although it helped regulate industries initially, the License Raj eventually became a barrier to economic efficiency and growth.
Q15. What were the major goals of India’s development strategy?
Answer:
India’s development strategy after Independence focused on several key goals. These included economic growth, modernization, self-reliance, and social justice. Economic growth aimed at increasing national income and improving living standards. Modernization involved adopting new technologies and improving productivity. Self-reliance sought to reduce dependence on foreign countries and strengthen domestic industries. Social justice aimed to reduce poverty, inequality, and unemployment while ensuring equitable distribution of resources. These goals guided the planning process and shaped government policies during the period 1947–90, influencing the country’s economic and social development.
Q16. How did agriculture contribute to India’s development?
Answer:
Agriculture played a vital role in India’s development during the post-independence period. It provided employment to a large portion of the population and supplied food for the growing nation. Agriculture also supplied raw materials to industries such as textiles and food processing. Increased agricultural production generated demand for industrial goods and contributed to overall economic growth. Government initiatives such as land reforms, irrigation projects, and the Green Revolution improved agricultural productivity. A strong agricultural sector was essential for ensuring food security, reducing poverty, and supporting industrial development during India’s early years of planned development.
Q17. What is modernization in economic development?
Answer:
Modernization refers to the adoption of advanced technologies, improved production methods, and progressive social attitudes to enhance economic efficiency and growth. In India, modernization became a key objective of economic planning after Independence. It involved expanding industries, improving infrastructure, promoting scientific research, and increasing agricultural productivity through modern techniques. Modernization also encouraged education and skill development. By introducing new technologies and methods, the country aimed to increase productivity and competitiveness. Modernization helped transform traditional sectors of the economy and contributed to overall economic and social progress during the development process.
Q18. What were the achievements of India’s development strategy between 1947 and 1990?
Answer:
India’s development strategy achieved several significant successes between 1947 and 1990. The country established a strong industrial base and developed key sectors such as steel, power, and engineering. Agricultural production increased substantially, especially after the Green Revolution. Infrastructure facilities, including roads, railways, and irrigation systems, expanded considerably. The country also achieved progress in education, healthcare, and scientific research. Economic planning helped promote self-reliance and reduce dependence on imports. Although challenges remained, these achievements created the foundation for future economic growth and development.
Q19. What were the shortcomings of India’s development strategy?
Answer:
Despite notable achievements, India’s development strategy faced several shortcomings. Economic growth remained relatively slow, often referred to as the “Hindu Rate of Growth.” Poverty, unemployment, and income inequalities continued to exist. The industrial sector suffered from inefficiency due to excessive government controls and lack of competition. Agricultural growth was uneven across regions. Public sector enterprises often experienced losses and low productivity. The License Raj created bureaucratic obstacles for businesses. These shortcomings highlighted the need for policy reforms, which eventually led to economic liberalization in 1991.
Q20. Why is the period 1947–90 important in India’s economic history?
Answer:
The period 1947–90 is important because it laid the foundation for India’s modern economy. During these years, the country adopted economic planning, developed industries, expanded infrastructure, and promoted agricultural growth. Policies such as the mixed economy model, import substitution, and public sector expansion shaped the nation’s development path. The Green Revolution improved food security, while investments in education and technology strengthened human resources. Although the economy faced challenges such as slow growth and inefficiency, this period established the institutional and industrial framework that supported future economic reforms and development.