Solution-Class 9-History-Chapter-4-Economic Development-Maharashtra Board

(b) 14

(c) Indira Gandhi

Wrong Pair: Kawasji Dawar - Iron and Steel Factory

• Under the leadership of Prime Minister Pandit Jawaharlal, India adopted the mixed economy model for economic development after gaining independence.
• It is a golden mean between capitalist economy and the socialist economy. There is co-existence of public sector and private sector, besides the joint sector.
• The industries such as defence equipment factories are in public sector, under the control and management of the government.
• Consumer goods industries are one example of a private sector industry that is owned by private industrialists. The government and private industrialists work together to operate the joint sector.

On July 1st, 1975, Prime Minister Mrs. Indira Gandhi announced the 20-point programme, which outlined the determination to make efforts toward quickly developing the country. The following are a few of the 20-point program's provisions:

• Ceiling on urban and agricultural land, equitable distribution of wealth (wrongly given as equal in the textbook) minimum wages for workers and increase in water conservation schemes.
• Workers participation in management (wrongly given as industry) national training programme and freeing of bonded labour.
• Prevention of tax evasion, smuggling and other economic crimes.

• By having a mixed economy, beneficial aspects (advantages) of both the capitalist and socialist systems can be adopted.
• Priority was given to economic development in India after independence.
• Economic development requires development of basic and heavy industries which require huge capital investment and the returns take much longer time.
• Not many industrialists were keen to invest in these industries and it was left to the government to take the initiative.
• Therefore, India opted for the mixed economy.

• When banks were nationalised, their profits went into the government's treasury. It was essential to cover the deficits if they occurred while implementing different schemes.
• Additionally, India needed money to develop its small-scale and pharmaceutical industries.
• Lal Bahadur Shastri launched the Green Revolution experiment to overcome food shortages and drought.
• The ‘Congress Forum for Socialist Action‘, a group within the Congress Party demanded nationalisation of banks, which was supported by the Communist Party.
• Therefore, fourteen commercial banks were nationalised in 1969.

• As workers in other industries received higher pay, better benefits, and more bonuses in the 1980s, unrest among textile mill workers started growing.
• Workers at textile mills anticipated a 20% bonus for Diwali 1981, but Rashtriya Mill Mazdoor Sangh only agreed to an 8% to 17% bonus without asking the workers. (3) This caused unrest among the workers.
• Dr. Datta Samant was approached to take leadership of textile mill workers in 65 mills. He agreed to lead the strike.
• As a result, the textile mills went on strike on 18^th January, 1982.

During the Eighth Five-Year Plan (1992-1997) the following programmes were started :

• Pradhanmatri Rozgar Yojana.
• Mahila Samruddhi Yojana
• Rashtriya Samajik, Arthik Sahayya Yojana
• Midday Meal Scheme
• Indira Mahila Vikas Yojana
• Ganga Kalyan Yojana

The Second Five-Year Plan (1956 to 1961) gave priority to industrialisation.

• Iron and steel plants (in the public sector) were built in Durgapur, Bhilai, and Rourkela.
• Sindri, a plant for chemical fertilisers was established.
• Railway engine factory at Chittarajan and railway coach (given as railway bogies) at Perambur were established.
• Ship building activity (given as factory) was started at Vishakhapattanam.
• Heavy and basic industries were set up in the public sector.
• To produce electricity and provide irrigation for agriculture, massive multipurpose projects like the Bhakra-Nangal Dam and Damodar Valley were built.