ECONOMICS

PLANNING

• Most asked question - Critical Analysis of Planning in India:

It must include:-
o Planning strategy from 1951 to 1991
o Problems it suffered
o Planning strategy after 1991
o Still the Public Sector has a pedestal role
o Conclusion

WHY PLANNING

For the possible remedies of the country’s economic stagnation, poverty and backwardness; state has
to play a key role in economic and social spheres. Planning is the instrument to carry out these duties.
It is the systematic and scientific utilization of available resources to achieve national goals.

OBJECTIVES OF PLANNING

While the short-term objectives varied from plan to plan, the long-term objectives of Indian
planning are based on the principle of high growth rate, social justice and economic self-reliance.

STRATEGY OF INDIAN PLANNING

The strategy for Indian Planning is based on the principles of comprehensiveness, balanced
development and accelerated growth to be achieved through the instrument of mixed economy. The
1990 crisis, however, brought some major changes in our strategy. Year 1991 was the watershed in
the history of Indian planning. The key components of strategy of planning in India included-

Comprehensive developmental planning: it included policies for economic development as

well as for institutional change and cultural progress. The task was not merely to get better results
within the existing framework of economic and social institutions, but also to remould and refashion
these institutions so that they contribute to the realization of wider and deeper social values.
 Mixed Economy: based on the coexistence of government owned business enterprise with
private enterprise. The Private Sector was expected to observe national priorities in development, and
pay attention to not only private gain but also public good.

Priority development of Public Sector: Because of strategic importance, non-profitability

and high capital intensiveness of certain areas of social and economic significance, private sector was
not expected to play a leading role. Idea was to let the public sector occupy commanding heights of
the economy and bring the private sector effectively within the scope of planned development.

Accelerated growth: Equitable distribution of resources, by itself, couldn’t ensure a

reasonable standard of living for masses. Thus an accelerated tempo of development was sought after
as a development strategy.

Balanced development: Inter-Sectoral, Inter-regional and equitable development of all

classes and all sections viz. women and children, was the focus of strategy through plans. While
agriculture, industry and services got a renewed thrust, attention was also paid to the development of
backward regions.

Emphasis on Employment: For a person without other sources of income, right to work is in
fact, the right to life. Realizing this, the plan professed great concern for further employment to utilize
country’s vast manpower resources and promote national development and an equitable society.

The 1990 crisis brought a paradigm shift in our strategy, from a closed to open system, and
from independence to greater inter-dependence (Rao-Manmohan Model). The major
components of the model included -

Liberalization of economy: It freed the economy from major physical controls like industrial
licensing, import restrictions and foreign exchange controls besides restrictions on investments etc, so
that development and operation of economy is guided increasingly by free market forces i.e. by prices
and competition. Synergies of both the public and private sector was to be realized in new strategy.

Abandonment of the policy of priority development of Public Sector: pre-liberalization

period saw over-dependence on the public sector. Majority of the budgetary allocations were meant
for this sector which had become increasingly inefficient and non-performer. Liberalization put an
equal emphasis on both the public and private sectors.
 Opened door to foreign private investment: removed most of the restrictions. A more
vibrant role of the private sector was recognized. Nevertheless the government has not formally given
up the objective of self-reliance looking at the shear size of the country and welfare concerns.

Integration of economy which world economy: The protectionist strategy gave way to
competitive policies with gradual integration with world economy. Removal of Quantative
Restrictions, partial convertibility of rupee and flow of capital has been increasingly allowed.

WHY THIS SHIFT IN STRATEGY IN 1990/ REORIENTATION

The shift in strategy was the manifestation of a decade long process of opening up of the economy.
The crises of 1991 provided the required spark for this paradigm shift. The main reasons for this re-
orientation were:

1. In order to direct development and operation of economy in accordance with “accepted

social priorities” and to make planning effective, it was necessary to control and regulate the key
points of the economy. This resulted in undesirable distortion in the economy, unduly restricted
the initiative and enterprise of the people, and led to widespread corruption, delays and
inefficiency.
2. Policy to keep the economy independent enough of the world economy to protect it from
ups and downs there, and to shelter it from unequal competition from highly indsutrialised and
advanced countries, resulted in slowing down of economic progress and created high cost and
uncompetitive economy.
3. Growing realization that though labour welfare is important, but it being at the cost of
public welfare with public money is questionable.
4. The public sector eaten up the major budgetary allocations which were expected to
contribute resources for social development. Opportunity cost could have been higher if scare
resources were invested elsewhere.
5. The doubts about the efficacy of centralized planning due to the failure of erstwhile
USSR, and undergoing worldwide movement for liberalisation, besides the immediate crises of
gulf war, political instability and BOP crises in India provided the required impetus for taking
drastic steps for re-orientation of development planning. State was seen now more as a
promoter and facilitator rather than provider of goods.
WHY NOT THE LIBERALISATION (PRIVATE SECTOR) IN THE BEGINNING ITSELF
(AT THE TIME OF INDEPENDENCE)

1. Industrial development at the time of independence was slow and stunted marred by an
over-dependence on the foreign capital with complete absence of heavy capital goods industries
and technological research. This encouraged the public sector to play a key role in economy.
2. The colonial experience and consequent suspicion against foreign investment further
restricted an important role of private sector.
3. The philosophy of socialism and a planned development to bring about Balanced Regional
Development through optimum utilization of scare resources could only be possible though state
instrument.
4. Education, health and housing for the low income masses may not be adequately developed
as it is unprofitable to invest in these areas.
5. State was expected to play the role of a model employer through generating gainful employ
opportunities and better conditions for employees, thus needing concentrated efforts by public
sector.
6. In a poor country like India where the vast majority have low incomes, left to themselves,
most people may like to spend whole or greater part of their incomes on consumption rather than
save an adequate proportion for investment. This may result in a very inadequate growth rate of
economy that may condemn the country to continued poverty and backwardness.
7. Markets might neglect basic long term development like multipurpose hydel projects etc.
which involve huge investments with long gestation periods and hence a risky affair to undertake.
This could severely affect the sustainability economic development.

WHAT IS THE NEED FOR PUBLIC SECTOR NOW

1. The goals of socialism and establishment of a welfare state are still to be achieved
totally. Public sector has still to play a vital role if not the commanding role in their achievement.
2. Markets are not well-developed, regulated and promoted in developing countries
due to slow pace of reforms and volatile political scenarios.
3. Market failures in the fragile economic environments of developing countries may
cause severe consequences as experienced in South East Asian countries.
4. The dependence over market could lop side the production of goods and services in
favour of inessential needs of rich while depriving even the very essential needs of the poor.
 5. Protection of environment is the most important ecological concern of humanity today.
This may be neglected on part of market for economic gains.

CONCLUSION

The new strategy must ensure social justice which equity ingrained in the principles of
efficiency and effectiveness of government policies. What is needed is the synergy of public
and private sectors to promote balanced regional development. The higher pedestal role of
public sector needs to be strengthened through economic, managerial and institutional
reforms; while the private sector needs regulation, monitoring and facilitation.

A LOOK AT THE PLANS IN INDIA

PLAN PERIOD MODEL OBJECTIVES GROWTH RATE (%) SPECIAL

TARGET ACTUAL FEATURES
I 1951-56 Harrod Domar Development of 2.1 3.6 Community
agriculture Development
Programme
II 1956-61 Mahalanobis Rapid 4.5 4.6
industrialization
III 1961-66 John Sandy & Self reliance & 5.6 2.7
Chakravarty self sustained
economy
1966-69 Plan Holiday - Green Revolution
IV 1969-74 Allen Manne & Self reliance & 5.7 3.3 1971 war, shooting
Ashok Rudra growth stability oil prices
V 1974-79 Planning Stress was laid on 4.4 4.8 20-point
Commission employment, programme
poverty removal,
and justice
1979-80 Plan Holiday -
VI 1981-85 Planning Stress on village 5.2 5.5 Economy started
Commission and cottage opening up
industries and
natural
mobilization of
resources to
increase
employment
VII 1985-90 Planning Liberalization, 5 6
Commission modernization
1990-92 Plan Holiday - 1991 policy
VIII 1992-97 John Miller- Human 5.6 6.7
liberalized Resource
economy Development
IX 1997-2002 Planning Growth with 6.5 5.4 Pokhran, Kargil
Commission social equity war, South-East
Asia crisis
X 2002-07 Planning Quality of life, 8
Commission reduce
imbalances ,
employment
 generation
XI 2007-12 Planning 10 -
Commission

POVERTY

WHY ARE WE STUDYING

Development promises to all its citizens the equality of opportunities, choices and changes. Poverty is
the greatest hurdle to development, thereby needing certain structural, institutional and attitudinal
changes to ensure a sustainable development.

“UN High Level Panel on threats, challenges and change” identified extreme poverty and
infectious diseases as threats in themselves and also make emergence of other threats including
civil wars and environment degradation.

WHAT IS POVERTY

Poverty can be defined as a social phenomenon in which a section of society is unable to fulfill even
its basic necessities of life. HDR (1997) defines poverty as denial of opportunity to lead a long,
healthy and creative life, and to enjoy a descent standard of living, freedom, dignity, self-respect and
respect of others.

Absolute and Relative Poverty: Absolute poverty is measured in terms of certain fixed criteria e.g.
calorie consumption in India. Relative poverty is measured by estimating income distribution of
population in different groups and then a comparison is made between top 5-10% with bottom 5-10%.

HOW POVERTY LINE IN INDIA IS MEASURED

It is defined as the level of private consumption expenditure which ensures a food basket that would
supply the required amount of calories. Per capita daily calorific minimum is defined as 2400 Kcal for
rural areas and 2100 Kcal for urban areas.

Minimum physical quantities of cereals, pulses, milk etc. are determined for a subsistence level and
then price quotations of the physical quantities are converted into monetary terms. Aggregating all
quantities included a figure expressing per capita consumer expenditure.
INCIDENCE OF POVERTY IN INDIA

Total poverty ratio in India is 26.1% (260.3 Mn absolute). Rural poverty ratio is 27.1% while Urban
poverty is 23.6%. The poverty gap is relatively greater in rural areas which reflect the high intensity
of poverty in villages.

It has considerable regional disparity varying from less than 7% in Punjab to more than 47%
in Orissa followed by Bihar and Madhya Pradesh. These along which UP, West Bengal, Tamil Nadu
and Maharashtra contribute to three-fourth of poverty in India.

REASONS OF POVERTY IN INDIA

1. Outcome of two interrelated processes (i) the process of development and (ii) failure of
development. The very process of development has led to wide ranging disparities among the
various sections of people. The section at the poor end have no capital, education or skills of their
own, and even cannot fully utilize the potential of the various government programmes, thereby,
get caught in the vicious cycle of poverty.
2. Low level of Economic development.

Low Income

Low Economic Low Human

Development Resource
POVERTY Development
High
Population
Growth Rate

3. Low productivity in Agriculture: Subsistence based, under-employed and low per

capita income.
4. High population and high growth rate of it.
5. Extreme inequalities of income and assets: Top 20% enjoy 80% resources.
6. Low level of Human Resource development.
GOVERNMENT PROGRAMMES/ STRATEGIES/ 5-YEAR PLANS

Erosion of poverty has been an integrated component of economic development policies in India. The
plan-wise strategies of the government policies follow:
First 3 Plans emphasized on economic growth without any direct attack on poverty. In additional to
emphasis on growth and redistruction measures, the government initiated disadvantage-areas and
sector-specific programmes like SFDA, MFDA, CADP, DPAP etc. in Fourth FYP.

During Sixth Five Year Plan, poverty was realized predominately a rural phenomenon wherein
85% poor lived. It provided for two types of employment generating programmes,
(i) Self-employment programmes to acquire productive assets, technology and skills for raising
their productivity and production (IRDP).
(ii) Wage employment programmes to provide supplementary wages to utilize the labour to create
and maintain community assets. NREP for those having some assets while RLEGP exclusively
for rural landless.

VII FYP recognized that employment generation should be the centre of any poverty alleviation
programme, therefore introduced JRY. The new strategy also included capability enhancing
programmes like IAY, MNP etc.

VIII Plan adopted an integrated programme of local area development of selective villages. IX
Plan focused on ‘growth with equity’ to reduce inequalities.

From 1999-2000, government merged various employment generation schemes into a single all
inclusive Swarna Jayanti Gram Swarojgar Yojana (SGSY). The new approach focused on social
mobilization through SHGs and micro-enterprises.

X Plan Policy: Programmes which were revamped and refocused during IX Plan will be implemented
which greater vigour in X Plan. Initiatives taken were: -

(i) SGSY would shift to a process-oriented approach in 4 stages viz. formation of SHGs,
savings, micro-finance and micro enterprise development.
(ii) SGRY would be the single wage-employment programme having 3 streams viz. rural
infrastructure, guaranteed employment of 100 days in areas of chronic unemployment and
providing relief in natural calamites.
(iii) Creating a network of institutions including NGOs, government agencies and financial
agencies to promote a self-help movement.
(iv) Identifying key activities for an area and providing relevant training.
(v) Special attention on upgradation of technology, IT and marketing in rural areas.
(vi) Land reforms emphasizing tenancy reforms, computerization and identification of land rights
of women and tribals.
(vii) Building capacities at local level for planning, implementation and monitoring of development
programmes.

Later on NATIONAL RURAL EMPLOYMENT GUARANTEE ACT was enacted in September

2005 in 200 most backward districts. The objective is to provide 100 days of guaranteed unskilled
wage employment to each rural household.

It bestows a legal right and guarantee to the rural population through an Act of Parliament and is not
a scheme like the other wage employment programmes.

The focus of the Act is on works relating to water conservation, drought proofing (including
Afforestation/ tree plantation), land development, flood control/ protection (including drainage in
waterlogged areas) and rural connectivity in terms of all-weather roads.

Besides the above employment generation programmes, the anti-poverty derive includes
(A) Social Security and
(B) Food Security Programmes.

Social Security Programmes are for those who can’t participate in economic activities and fall
continuous to exposure to risk. NSAP (National Social Assistance Programme) started in 1995 to
provide social security to poor households affected by old age, death of primary bread earner and
maternity care. Annapurna Scheme started in 2000 to provided food security to senior citizens not
covered by National old age Pension Scheme.

CRITICAL ANALYSIS OF POVERTY ALLEVIATION PROGRAMMES

Focus was on entitlement rather than capacity building which was considered as the core to long
term solution to poverty. The failure of these programmes to achieve the desired success was
primarily due to the following reasons:-
1. Multiplicity of programmes, agencies and frequent changes created problems of
overlapping and coordination, thereby diluting the unity of purpose itself.
 2. Ill-defined and multiple objectives.
3. Insufficient assistance to start any meaningful self-employment generating activity.
4. Very high administrative cost: As per a study of PDS, 85% of the resources allocated for
these programmes are spent on their administration only.
5. Administrative leakages, lack of accountability and bureaucratic apathy: Only 25% of
foodgrains under PDS reaches the poorest of the poor.
6. Lack of monitoring, feedback and appraisal mechanism, therefore hindering timely
correction of anti-poverty programmes.
7. Local resources, both human and natural, not properly utilized.
8. Lack of peoples’ participation affected the articulation of felt needs of people and its
sustainability.
9. Social Security aspect neglected with financial support being too small to materially
change their condition.
10. Proper technological support system not available at local implementation level.

Poverty alleviation programmes have lagged on integrated and holistic approach which should
have included aspects like population stabilization, human resources development and poverty
alleviation.

SUGGESTIONS/ CONSTRUCTING AN EFFECTIVE POVERTY ALLEVIATION

PROGRAMME

1. Any strategy of poverty alleviation must concentrate on the 3-cores of Education,

Employment and Health promotion interlinked to each other and pursued simultaneously.

EDUCATION

SELF-
RELIANCE
EMPLOYMENT HEALTH

2. Decentralization of development efforts viz. mobilization of resources, targeting

beneficiaries and monitoring by involving PRIs.
3. Identifying the Growth Centres to act as Generators of Economic momentum using
local labour and raw materials. Core recipe for ending poverty is massive capital infusion.
 4. Encourage production of items of mass consumption especially wage goods in small
and cotton industries.
5. Above all Good Governance is the most important key to development as
recognized by X Plan.

ALSO See X Plan and Critical analysis for developing a poverty alleviation programme.

CONCLUSION

Rural India is in a deep and continuing stress. The growth which is not inclusive is not sustainable.
Need is for constructing an integrated policy of poverty alleviation with focus on the basic tenets of
human resource development. Such an approach alongwith an efficient administration can go a long
way in poverty alleviation.

A LOOK AT THE POVERTY ALLEVIATION PROGRAMMES

PROGRAMME REMARKS
Swarnjayanti Gram • Started in 1999 with 75:25 Centre: State contribution
Swarozgar Yojana • Cover all the aspects of self employment such as organization of poor into Self
(SGSY) Help Groups, training, credit, technology, infrastructure and marketing.
• Objective is to bring every assisted family above the poverty line in three
years by providing them income generating assets through a mix of bank credit
and government subsidy.
• Replaced IRDP and its allied schemes viz. TRYSEM, DWCRA, SITRA, GKY
and MWS.
• Aims at establishing a large number of micro enterprises in the rural areas.
• SCs/STs would account for at least 50 per cent of the Swarozgaris, women for
40 per cent and the disabled for three per cent.
• Launched by Ministry of Rural Development
• Implemented by DRDAs through Panchayat Samities.
Swarna Jayanti Shahari • Started in 1997 with 75:25 centre:state contribution.
Rozgar Yojana • In all urban and semi-urban towns.
• Two sub-schemes where bank credit is involved, namely, Urban Self
Employment Programme (USEP) and Development of Women and Children in
Urban Areas (DWCUA).
• Beneficiaries identified by the urban local bodies on the basis of house-to-house
survey.
• Under the scheme, women are to be assisted to the extent of not less than 30 per
cent, disabled at 3 per cent and SC/STs at least to the extent of the proportion of
their strength.
Prime Minister’s Rozgar • Started in 1993 for urban areas and From 1 April 1994 extended for throughout
Yojana (PMRY) the country
• Objective of the scheme is to provide self-employment opportunities to
educated unemployed youth in the age group of 18 to 35 years. In North-
Eastern states the eligible age group is from 18-40. There is a 10-year relaxation
for SC/ST, ex-servicemen/physically handicapped and women.
 • SHGs are considered eligible for financing under the Prime Minister’s Rozgar
Yojana effective from 2003 provided all members individually satisfy the
eligibility criteria laid down and total membership does not exceed 20.

Sampoorna Grameen • Started in 2001 with 75:25 cetre:state contribution.

Rozgar Yojana (SGRY) • Merging the on-going schemes of EAS and the JGSY.
• Objective of providing additional wage employment and food security,
alongside creation of durable community assets in rural areas.
• Special emphasis on women, SCs, STs and parents of Children withdrawn from
hazardous occupations.
• The annual outlay for the programme is Rs. 10,000 crore which includes 50 lakh
tones on foods grains.
• Food grains are provided free of cost to the States/UTs.
• Minimum wages are paid to the workers through a mix of minimum five kg of
food grains and at least 25 per cent of wages in cash.
• Resources are distributed among District Panchayat, Intermediate
Panchayats and the Gram Panchayats in the ratio of 20:30:50.
National Food For Work • Started in 2004 as 100% centrally sponsored scheme.
Programme
• Implemented in 150 most backward districts of the country so that the generation
of supplementary wage employment and providing of food security through
creation of need based economic, social and community assets in these districts
is further intensified.
• Most of the backward district, are in the tribal belts.
• Provide 100 days of employment at minimum wages for at least one able-
bodied person from each household in the country.
• Not be implemented in UTs.
• 150 most backward districts to be identified by the Planning Commission in
consultation with the Ministry of Rural Development and the State governments.
• Subsumed in National Rural Employment Guarantee Act.
Indira Awaas Yojana • Started in 1985 as a sub-scheme of Jawahar Rozgar Yojana (JRY) and as an
(IAY) Independent scheme since 1996.
• Providing assistance to rural BPL ST/STs for the construction of dwelling units
and upgradation of existing unserviceable kutcha houses.
• Selection of beneficiary by the Gram Sabha is final. No approval by any
higher body is required.
• Allotment of the house is done in the name of the female members of the
households or in the joint names.
• Ceiling on assistance for construction of new houses is Rs. 25,000 per unit for
the plain areas and Rs. 27,500 per unit for the hilly/ difficult areas.
• Included as one of the six components of the ‘Bharat Nirman’ Programme.
Under this programme, 60 lakh houses are to be constructed for rural BPL
families during a span of four year beginning from 2005-06.
 • Consists of National Old Age Pension Scheme (NOAPS) and National
National Social Family Benefit Scheme (NFBS).
Assistance It was administered by Ministry of Rural Development till the programme
Programme was transferred to the State Plan along with the Annapurna Scheme
and from 2002-03.
Annapurna Central assistance under NOAPS is Rs. 75 per month for providing pension
(NSAP) to a destitute aged 65 years and above, while under NFBS Rs. 10,000 is
being provided in the event of death of the primary bread winner of a
family and under Annapurna Scheme 10 kg of food grains per month
per person is provided free of cost to the beneficiaries.
Since 2006-07, increase in pension under NOAPS from Rs 75 per month
per beneficiary to Rs. 200 per month per beneficiary
• Launched in 2001 to improve the condition of urban slum dwellers living
Valmiki Ambedkar BPL
Awas Yojana
• Primary objective is to facilitate construction and upgradation of dwelling units
and provide healthy environment through community toilets “Nirmal Bharat
Abhiyan”
• VAMBAY is first scheme of its kind meant exclusively for slum dwellers.
• Central Government provides subsidy of 50% and rest arranged by State
governments
• Launched in 1998-99
Two Million Housing
Programme • Objective to provide ‘housing for all’ with emphasis on weaker sections
• HUDCO given the responsibility of constructing 10 lakh units every year (6
lakh in rural areas and 4 lakh in urban areas).

POLITY

Q. Discuss the parliamentary control over the Executive (250 words)

Democracy includes ideals, institutions and practices. While ideals and institutions are the heritage of
freedom struggle, practice of democracy is ensured through the control of parliament over Executive.
The means of this control is exercised through Ministerial Responsibility, Financial Accountability
and Administrative Admissibility.

Article 75(3) of the constitution places Collective Responsibility of the Executive to Lok
Sabha. Lok Sabha can remove the government from office by passing a vote of No-Confidence.
Defeating the government on a major issue of policy or passing an Adjournment Motion amount to
No-Confidence of House. It was passed against Vajpayee Government in 1993.
 PEOPLE

CONTROL PARLIAMENT ACCOUNTABILITY

EXECUTIVE

Financial Accountability of Executive is ensured through enactment of budget and audit

reports of CAG. Executive cannot levy/ collect any tax without the authority of law (Article 265).
Further Article 266 prohibits Executive to deposit, withdraw or appropriate out of Consolidated
Fund of India without the approval of Parliament.

Also under Article 112, the President lays down Annual Financial Statement (i.e. Budget)
in both the Houses. Parliament can reduce/ refuse the grants to Executive by passing various Cut
Motions – Economy, Policy and Token Cuts. If passed, these tantamount to the removal of Executive
from office. Further the Appropriation and Finance Bills regarding expenditure and tax proposals
need the authority of Parliament.

Administrative Admissibility of the Executive is ensured through legislations, questions,

discussions and Ministers concerned. Various committees like Public Accounts Committee,
Estimates Committee, Committee on Public Undertakings, and Departmentally Standing
Committees have emerged as powerful institutions to keep an unremitting vigil on Government
Expenditure and performance.
 However, despite all this, the Parliamentary Control over Executive is more theoretical than
practical, owing to majority support enjoyed by Government. It is mostly sporadic, general and
political in nature. The very size of Parliament, lack of expertise and fragmented opposition in
Parliament further restrict its effectiveness. What is required is that the control must be moral, ethical
and internal and must conform to the highest traditions of a Parliamentary Democracy.

Q. What ways in Rajya Sabha expected to play a special role in today’s changing political
scenario (250 words)
‘Dynamism’ is the essence of Democracy and ‘change’ is that the essence of Democratic institutions.
With the changing political scenario in India, Rajya Sabha has acquired many new roles and functions
to the extent of transformation of this institution into the conscience-keeper of the Parliament.

The emergence of hung Parliament and political instability has resulted into frequent
elections, and unethical political horse – trading and formation of unstable coalitions. In such a
scenario, Rajya Sabha provides Continuity, Consistency and Stability as a second chamber of
Legislature.

The emergence of regional parties and the increasing regional aspirations are a hindrance
in the smooth development of Centre-State relations. Rajya Sabha being a Council of States protects
the States’ interests and turns the confrontations into cooperation.

Another aspect of this confrontation is in the form of Imposition of President’s rule in a

State under Article 356. Rajya Sabha checks the undue exercise of this power by Union Executive. In
1999, the resolution for such an Emergency in Bihar failed on this aspect.

The role of Rajya Sabha is further strengthened when two different parties have majority in
two chambers of Parliament. It makes the enactments through discussions and persuasions – the
bedrock principle of a Parliamentary Democracy.

Rajya Sabha also checks the tendency of governments to take populist measures under an
unstable political Scenario. It also poses a moral authority over a caretaker government. During
Kargil War, the government had to seek Rajya Sabha’s approval when the Lok Sabha was dissolved.

Last but not least, Then diversity of Indian nation and the need for a ‘Cooperative-Federalism’
necessitate Rajya Sabha be restructured and re-strengthened to take up the new challenges of
India’s changing political scenario.

HISTORY
 CIVIL DISOBEDIENCE MOVEMENT

Questions Asked

• Why did Gandhi launch the Salt Satyagraha in 1930 and with what results? (150 words)
• In what way did the CDM affect the different provinces of India? How did it foster peasant
movement in India? (250 words)
• Why did Mahatma Gandhi launch CDM? Analyse the intensity of movement in different parts
of India? (150 words)
• Analyze Mahatma Gandhi’s main demands presented to Irwin. How did salt emerge as the
central issue for launching the Satyagraha?

• We must be able to answer:-

 Gandhiji’s main demands to Irwin – Analyze
 Why CDM
 How salt became central issue
 Its effect in different provinces
 How peasants movement was a result of CDM
 What results of CDM

WHY CDM

British heralded a new era of “Modern India”, the India which saw the process of geographical
unification, nation building and genesis of political consciousness among masses. This mass
consciousness manifested itself in the form of a spontaneous, organized and non-violent Civil
Disobedience Movement.

The idea of Civil Disobedience was always there in the mind of Gandhiji, the 1929 Lahore Resolution
of Poorna Swaraj, “full and total independence” provided the immediate spark. The background
was prepared by:

1. 1919 reforms were the shortest lasting reforms and had failed to
bring any significant change for the Indians.
2. Failure of Simon Commission to fulfill demand of Dominion status
of INC. Racial discrimination in the Simon Commission as no Indian Representative was taken.
 3. Swarajists proved that there were no real powers delegated to them.
The 1919 reforms were a retrograte step of the government.
4. December 1928 Calcutta Congress – demand by younger
nationalists like Pt. Nehru and S.C. Bose to adopt Poorna Swaraj as goal of national movement.
5. Gandhiji traveled extensively the villages during 1929 to prepare
people for direct political action.
6. 1929 – CWC organized programme of foreign cloth boycott and its
public burning.
7. Refusal of Lord Irwin to Eleven Demands of Mahatma Gandhi.
8. Spurt generated in the masses by revolutionary activities of HSRA.
9. The deteriorating socio-economic condition of the masses
especially of the peasants and the great depression of early 1930s provided the spurt to the
movement. Widespread unemployment infused anger among the Indian youth.

The spark was more because of the rise of left and induction of new blood in the Congress during
this period. This differentiated CDM from all earlier movements.

GANDHIJI’S DEMANDS

Mahatma Gandhi knew that any movement for liberation must necessarily be a mass movement and
for a movement to be a mass movement, it must incorporate grievances of all the sections of society.
Thus,

1. The most prominent demand, common to all sections especially the

poor, was abolition of salt tax and government’s monopoly on salt.
2. Reduction in land tax so as to reduce burden on Indian peasantry.
3. Reduction of expenditure on army and administration to stop the
drain of wealth.
4. Total prohibition; for emancipation of women and children.
5. Release of political prisoners and
6. Protection and development of Indian Industry through reduced
exchange rate, protection to textile industry and exclusive right of coastal shipping for Indians.
WHY SALT

“Salt March” is one of the finest examples of ‘the power of symbols’. It was not just a punch of
salt but it represented the unity and integrity of Indian people against a common enemy.
Gandhiji choose salt because:

1. Salt links itself with Indian women, for

whose emancipation, salt was the most important article.
2. Salt linked itself with the ideal of Swaraj
with a universal grievance of rural poor.
3. Unlike in ‘no-rent campaign’, Salt excluded
the socially divisive implications within the different sections of Indian society.
4. It offered urban adherents, an opportunity
of symbolic identification with mass sufferings.

Finally, there is no other article like salt, outside water, by taxing which, government can reach
starving millions, it was the most inhuman poll tax.

SPREAD & INTENSITY OF CDM – MOST INTENSE OF ALL MOVEMENTS

1. Salt disobedience: In Tamil Nadu, C. Raja Gopalachari led a march from Tiruchirapally to
Vedaranniyam and in Malabar, K.Kelappan held a march from Calicut to Poyannur.
2. Darsana: Sarojini Naidu, Imam Sahib and Manilal raided Dharsana Salt Works, and were
brutally lathi-charged.
3. NWFP - Khan Abdul Ghaffar Khan organized Pathans as Khudai Khidamatgars to lead a
non-violent movement.
4. Peshawar: a Muslim Province, urban crowd and tribesmen joined agitation against arrest of
Congressmen. Garwal Rifles refused to fire on the crowd.
5. Chittagong: Surya Sen revolted and established a provisional government.
6. Maharashtra, Karnataka and Central Provinces: against the forest laws.
7. Sholapur: ‘War Council” set up and National Flag was hoisted in the town.
8. Assam: agitation against ‘Cunningham Circular’.
9. Manipur and Nagaland: Movement under 13 year old Rani Ganidinliu.
10. Peasant’s Movements: In U.P, Bihar, Bengal and Gujarat.

PEASANT’S MOVEMENTS
During 1901 to 1939, the agriculture production per head fell by 14%, while the per capita production
of foodgrains by 24%. Growing taxation in a stagnant economy invariably carries with it the
penalty of popular revolt. This was manifested during CDM in the states of Bihar, Bengal, UP and
Gujarat. The great depression of early 1930s added fuel to the fire.

1. United Provinces: Non-revenue campaign by Zamindars against paying revenue to the

government and a No-Rent Campaign by tenants against Zamindars.
2. UP Kisan Sabha under Swami Shahjananda and Bihar Kisan Sabha nucleus for All India
Kisan activities were formed.
3. Bihar: Anti-Chowkidara tax campaign.
4. Bengal: Anti-Chowkidara tax and anti union board tax campaigns.
5. Gujarat: No-tax movement was organized for refusal to pay land revenue.

OUTCOME

Dandi March was a pilgrim’s progress. It rejuvenated the Indian Nationalism and eroded the
British legitimacy to the core. CDM is considered as the war of positions, not a war of
maneuver. It was the most-organized of all Gandhian movements.

1. Women Participation: Leading role in picketing shops selling foreign goods or liquor and
government institutions, courted arrest. British observers wrote that if CDM hadn’t accomplished
anything else, it contributed greatly to mass social emancipation of Indian women.
2. Muslims: Though Muslim League called Muslims not to join the movement, still Muslim
participation was overwhelming in NWFP, besides their participation in Dacca, Bihar, Delhi and
other parts. They belied the government’s policy of ‘divide and rule’.
3. Tribals: Came forward in Peshawar, Nagaland, Central Provinces, Maharashtra and
Karnataka. This was their first such participation in a national movement.
4. Peasants: First time organized themselves. Mainly in UP, Bihar, Bengal and Gujarat.
5. Besides, the students, workers and traders played an important role in the movement in
different parts of the country.
6. Signs of cracks in discipline of Army: Garhwali Soldiers refused to fire on crowd even
though it meant facing court martial. It shows nationalism begun penetrating Indian army.
7. Gandhi-Irwin Pact at one stroke enhanced the prestige of Congress as the equal of
government.
8. Second Round Table Conference placed India on equal footing with Britain.
 9. It further strengthened the principle of Satyagraha

Throughout the movement, Gandhiji urged people to be non-violent first because he didn’t want to
achieve Swaraj at the cost of sacred principle of Satyagraha, and secondly because he was leading an
unarmed struggle against an armed power and he knew who would win if violence were let
loose.

CONCLUSION

Though Subhas. C. Bose and Vithalbhai Patel had declared that “the Mahatma as a political leader has
failed”, CDM succeeded in further politicizing the people, and in further deepening the social roots of
freedom struggle. Indians had won independence in their hearts. It accomplished in weeks, what
three-quarters of a century of social reform movements had failed to do for emancipation of
Indian women.
 2 – MARKERS

HISTORY

NAME DESCRIPTION

Abul Kalam Azad • Prominent Nationalist leader.

• Became youngest President of INC in 1923
• President of INC during Quit India Movement
• Published Weekly ‘Al-Hilal’
Anand Mohan Bose • Prominent Nationalist Moderate leader and social reformer
• Founder of Indian National Association of Calcutta in 1876
• Founder member of INC
• Important role in various agitations in early nationalist movements
• Worked for women’s emancipation
Asif Ali • A prominent lawyer and nationalist leader
• Gave up legal practice during Non-Cooperation Movement
• Participated in INA trials during 1946
• Governor of Orissa after independence
Rabindra Nath • Reinvented Indian Style of Painting and Founded New Bengal school of
Tagore Painting
• Influenced Indian Renaissance in Art during Swadeshi Movement
• Honoured with Noble Prize for Literature in 1913, the first Indian to be
honoured with this prize
• Returned his knighthood after Jalianwala Bagh Massacre
Acharya Narendra • Prominent socialist and educationist
Dev • Founder President of Congress Socialist Party
• Vice-Chancellor of Kashi Vidyapath, Lucknow and Banaras Universities
A.O. Hume • A retired British ICS officer
• Instrumental in foundation of INC in 1885
• Remained its secretary till his death
• Founded British Committee of INC in London
Fazlul Haq • Founder member of Muslim League
• Founded ‘Krishak Praja Party’ in Bengal which played an important role
later on
• Instrumental in Lucknow Pact in 1916
• Participated in RTC
Ashutosh • An Educationist and Lawyer
Chaudhary • Played important role in foundation of National Council of Education in
1906
• Propagated for technical education as necessary for industrial development
Ashutosh • An educationist and a jurist
Mukhopadhayoy • President of Asiatic Society of Bengal and Vice-Chancellor of Calcutta
University
• Elevated to the bench of Calcutta High Court
Aruna Asaf Ali • Prominent revolutionary freedom fighter conducted underground activities
during Quit India Movement
• Unfurled the Tricolour in August Kranti Maidan (Goalia tank)
• Participated in Salt Satyagraha
• Became Mayor of Delhi after independence
Achyut • A socialist and national leader
Patwardhan • Important role in founding Congress Socialist Party in 1934
• Conducted underground activities in Maharashtra during Quit India
Movement
Acharya PC Roy • Prominent scientist and nationalist leader
• Founded Bengal Chemicals and Pharmaceutical Works
• Wrote ‘History of Hindu Chemistry’
• Played important role in Swadeshi Movement by promoting industrial
development
Lala Haryal • A great revolutionary and eminent scholar from Punjab
• Established Gadar Movement with organ ‘Gadar’ in USA
• Worked under ‘Zimmerman Plan’ of Germany
• Influenced many young revolutionaries in India
Lokmanya Tilak • Great Extremist leader from Maharashtra
• Popularly known as ‘Lok Manaya’
• Started Shivaji festival and Ganesh Ganpati festivals to propound National
movement
• Started Home Rule League, The Maratha and The Kesari newspapers
Naba Gopal Mitra • Great play writer and poet from Bengal
• Played an important role in spreading national consciousness
• Placed the prefix ‘national’ before all his institutions e.g. National School,
National Mela etc.
• Also known as ‘National Mitra’
Nalini Sen Gupta • Britisher who supported India’s cause of Independence
• President of INC in 1933
• Believed in the ideas of Gandhiji
N.M. Joshi • Prominent labour leader
• Founded AITUC in 1920
• Worked for upliftment and rights of labour force
• An important philanthropist
• Member of Servants of India Society
Rafi Ahmad • One of the greatest poet, philosopher and scholar
Kedwai • Composed “Saare Jahan Se Accha”
• Mooted the idea of autonomous entity for Muslims of North West
• Member of Muslim League
M.R. Jayakar • Important Liberal leader
• Joined Swaraj Party
• Participated in Round Table Conference
• Member of Constituent Assembly
C. Vijayraghava • Prominent Early Nationalist Leader
Chari • Instrumental in founding Madras Mahajan Sabha in 1884
• Founder member of INC
• President of INC in 1920 Nagpur Session which adopted Non-Cooperation
Movement Resolution and New Congress Constitution

ECONOMICS

Purchasing Power • It indicates how much a nation’s currency can buy from a basket of
Party internationally representative goods and services as compared to a US $
can buy in U.S. from the same basket.
• Introduced by HDR for meaningful comparison of national and per capita
income.
• India fourth in world after U.S., China, Japan.
Fixed exchange • Exchange rate between domestic and foreign currency fixed by monetary
rate system authority
• All transactions carried over at this official rate
• India followed this system till 1992
• Inflexible and put high adjustment burden on domestic economy
Managed Float • Rate allowed to move within a band
• Band may not be made public by Monetary authority
• Central bank intervenes when it goes beyond the band
• India has shifted to this system in 1992-93
• Too much intervention leads to Dirty Float e.g. in Japan
Laffer Curve • Graphical reproduction between tax rates and tax revenue
• States that as rates are lowered upto a point, tax revenues are optimized
• Holds good for indirect taxes in India e.g. VAT, not for direct taxes
NCLT (National • To look into the issue of industrial sickness
Company Law • Replaced BIFR, Company Law Board and control of High Courts
Tribunal)
• Can order winding up of sick industry
• Rehabilitation Fund created to assist workers retrenched due to sickness
Tonnage Tax • A presumptive tax introduced in 2004-05 Budget
• Applicable on shipping companies at corporate tax rate
• Based on the no. of days a ship had been in operation and the tonnage
carried by it, irrespective of the profit or loss made by the company
• Optional for shipping companies
Poverty Gap • Mean distance below poverty line
• Expressed as a % of poverty line
• Indicates depth, intensity and severity of poverty
• Adopted in India since IX Plan
P-notes • Investment by foreign Hedge Funds in Indian capital market or stock
market
• Owned by very wealthy individuals abroad
• Not regulated by SEBI
Mutual Fund • Mobilize money from small investors and invest in stock market
• Utilize expertise while doing such investment
• Charge for their services
• Liable to market risks
• US-64 was the first mutual fund
Book Building • Under this, a Company offers its IPOs to investors not at fixed prices but at
Process a price band within which an investor has to apply for its shares
• Depending upon the response of investors, the company offers the shares at
prices quoted by majority
Zero Coupon • Capital market tool to mobilize market funds
Bonds • Bear no explicit rate of interest
• Offered at a discount to face value