Class 12 Economics Chapter 8 Current Challenges Facing Indian Economy

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Class 12 Economics Chapter 8 Current Challenges Facing Indian Economy

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Current Challenges Facing Indian Economy

Chapter: 8

PART – (B) INDIAN ECONOMIC DEVELOPMENT

(A) Very Short Types Question & Answers:

1. What is human capital formation?

Ans: It is a process by which knowledge, skills and capacities of the people of the country increases.

2. How much calories intake is required in rural urban sector in India?

Ans: In rural areas — 2400 calories per person

In urban areas — 2100 calories per person.

3. What is meant by ‘Food for Work’ programme?

Ans: The project in which government takes work from the labourers and provide food in place of work.

4. What was the poverty ratio in India according to NSSO 2004-05?

Ans: 21.8%.

5. What do you understand by jobless growth?

Ans: Jobless growth is a situation when the level of output in the economy tends to rise without a proportionate rise in the opportunities of employment.

6. What is capital formation?

Ans: Capital formation includes both Physical Capital and Human Capital.

7. What is physical capital formation?

Ans: It means increase in capital goods like machines, factories, tools etc.

8. What is meant by human development?

Ans: It is a process of widening people’s choices as well as raising the level of well being achieved.

9. How many people lived below poverty line in 1999-2000 and 2004-05 in India?

Ans: In 1999 – 2000 — 26%

In 2004 – 2005 — 22%

10. Name two unconventional sources of energy.

Ans: The two unconventional sources of energy are solar energy and bioenergy.

11. Which of the following is a cause of ozone layer depletion?

(a) Noise pollution.

(b) Air pollution.

(c) Water pollution.

(d) None of the above. (Choose the correct option)

Ans: (d) None of the above.

12. What is NABARD?

Ans: National Bank for Agriculture and Rural Development.

13. What is ‘Agricultural Marketing’?

Ans: It means all those activities by which agriculture produce reaches the consumers.

14. What do you mean by Bharat Nirman Yojana?

Ans: This yojana is basically to improve the rural infrastructure. It was approved on may 16, 2005.

15. What is organic farmings?

Ans: It is a natural way of farming, using manures and bio-wastes.

16. What is unproductive loans?

Ans: The loan which is not used for productive work, as expenditure incurred on marriage, customs, rituals and festivals.

17. Who is a worker?

Ans: He who is engaged in economic activity is a worker.

18. Are the following workers – a beggar, a thief, a smuggler, a gambler? Why?

Ans: They are not workers because they are not engaged in any type of economic activities.

19. Compare to urban women, more rural women are found working. Why?

Ans: Because rural women are more powerful and they have the tendency to work from the beginning.

20. Define worker-population ratio.

Ans: Worker population Ratio = = Total Number of workers/Population × 100

21. What do you mean by economic activities?

Ans: The activities that contribute to the gross national product are called economic activities.

22. How is the member of workers found out?

Ans: Number of workers = Population/100

× Workers Population Ratio.

23. What is the main cause of difference in rural and urban workers ratio?

Ans: People have limited resources to get income and employment in rural areas.

24. What is meant by self employ?

Ans: Workers who own and operate enterprises and earn their livelihood are called self employment.

25. What do you mean by formal sector establishments?

Ans: All public sector and private sector establishments which employ 10 hired workers or more are called formal sector established.

26. Why are regular salaried employed are ore in urban areas then in rural areas?

Ans: Because more employment opportunities are available in urban areas.

27. What is work force?

Ans: It refers to that labour force which is actually engaged in economic activities.

28. What is labour force?

Ans: It is the total number of persons who are available for participation in productive economic activities.

29. Who is a casual wage labour?

Ans: Who does not get work everyday regularly.

30. What are the main types of environment problems?

Ans: (i) Pollution.

(ii) Degradation of resources.

31. Define cultural environment.

Ans: Construction of houses, bridges, roads, dams, factories etc. on land is called cultural environment.

32. Define environmental pollution.

Ans: It means the presence of any environmental pollutant in the environment. In fact due to the urbanisation and industrialization natural resources are used excessively. It creates natural imbalance. As a result, the problem of environmental pollution arises.

33. What are different forms of pollution?

Ans: (a) Air pollution.

(b) Water pollution.

34. Define Air Pollution.

Ans: It means the excessive presence of certain gases and suspended particulates material (SPM).

35. Define Water Pollution.

Ans: Contamination of poisonous chemicals, foul gases and infectious material into water is known water pollution.

36. Define Noise Pollution.

Ans: It is the cause of excessive noise by factories, vehicles and loud speakers.

37. Name two legal measures taken by Govt. of India to control pollution.

Ans: (a) The Water Prevention and Control of Pollution Act, 1974.

(b) The air-Prevention and Control of Pollution Act, 1981.

38. Define degradation of resources.

Ans: It means a fall in the yield of land- agricultural land and forest wealth.

39. What is meant by deforestation?

Ans: It means reduction in geographical area under forest.

40. Why are regular salaried employed are ore in urban areas then in rural areas?

Ans: Because more employment opportunities are available in urban areas.

41. Why are less women found in regular salaried employment?

Ans: Because, women are not able to work regularly due to their family problems like marriage, children etc.

42. What do you mean by agricultural marketing?

Ans: It means all those activities by which agriculture produce reaches the consumers.

43. What is sustainable development?

Ans: Sustainable development refers to the practice of meeting present needs without compromising the ability of future generations to meet their own needs. It encompasses economic growth, social progress, and environmental protection.

44. What do you mean by AYUSH?

Ans: Six systems of Indian medicines are included in it. They are – Ayurveda, Yoga, Unania, Sidha, Naturopathy and Homeopathy.

45. What are the causes of air pollution in India?

Ans: The causes of air pollution in India include industrial emissions, vehicular pollution, agricultural practices, biomass burning, construction activities, and the burning of fossil fuels for energy generation.

46. Why calorie-based norm is not adequate to identify the poor?

Ans: The calorie based norms can’t give property the numbers of poor and the proportion it compared. This norm can not provide an adequate idea of different levels of poverty of people and their distribution between states and overtime.

47. What is meant by ‘Food for Work’ programme?

Ans: The project in which government takes work from the labourers and provide food in place of work.

48. What are the sources of human capital in Assam?

Ans: The sources of human capital in Assam include various educational institutions, vocational training centres, skilled labor, and the cultural and intellectual capital of its population.

49. Why are employment generation programme important in poverty alleviation in India?

Ans: The employment generation programmes assumes self-employment to the needy persons by providing finance and technical guidance. It encourages self-employment and provides supplementary wage employment.

50. How does organic farming contribute to sustainable development in Assam?

Ans: Organic farming in Assam contributes to sustainable development by avoiding the use of synthetic fertilisers and pesticides, promoting soil health and fertility, conserving water resources, reducing greenhouse gas emissions, preserving biodiversity, and ensuring the production of safe and nutritious food.

51. Classify rural credit on the basis of purpose.

Ans: The rural credit on the basis of purpose are:

(a) Credit for the production.

(b) Credit for the consumption.

52. Write the problem of agricultural marketing.

Ans: (a) More middlemen.

(b) Lack of storage facilities.

53. Which are the two sources of human capital formation?

Ans: (a) Education.

(b) Health.

54. What are the adverse effects of excessive use of limited resources?

Ans: (a) Scarcity of natural resources.

(b) Pressure on environment.

55. What are the two major environmental issues that the world are facing today?

Ans: (a) Environmental Degradation.

(b) Environmental Pollution.

56. What are the two sources of rural credit for the farmers?

Ans: The two sources of rural credit for the farmers:

(a) Businessmen and Mahajans.

(b) Primary Credit Society.

57. Write two short comings of rural credit.

Ans: (a) More credit to the big farmers.

(b) Less repayment of loans.

58. Give two measures to remove the shortcoming of rural credit.

Ans: (i) Check on money lenders.

(ii) Providing long term loan.

59. Classify rural credit on the basis of time.

Ans: The rural credit on the basis of time are:

(a) Short term credit.

(b) Medium term credit.

60. What are two sources of rural credit in India?

Ans: (a) Institutional sources.

(b) Non-institutional sources.

61. What are the sources of non-institutional credit?

Ans: (i) Money lenders.

(ii) Traders.

(iii) Relatives.

(iv) Land Owners.

(B) Short Type Questions & Answers:

1. What is organic farming and how does it promote sustainable development?

Ans: It is a natural way of farming, using manures and bio-wastes.

In this farming, soil is kept alive and in good health, not by using synthetic imputes but with the use of organic wastes. It increases crop production in an eco friendly, pollution free environment. In this way, it has no adverse effect on soil and environment. Therefore, it promotes sustainable development.

2. How does the cultural and intellectual capital of the population contribute to human capital in Assam?

Ans: Assam is known for its rich cultural heritage, artistic traditions, and intellectual contributions. The cultural and intellectual capital of its population, including artists, writers, scholars, and innovators, contributes to the human capital of the state by promoting creativity, knowledge dissemination, and fostering a vibrant cultural ecosystem.

3. What are the indicators of educational achievement in a country?

Ans: (a) Increase in the efficiency of labourers.

(b) Improvement in the technique of the country.

4. What factors contributes to human capital formation?

Ans: (a) Educational Institutions.

(b) Hospitals.

5. What is the role of microfinance institutions in providing credit to rural areas in Assam?

Ans: Microfinance institutions (MFIs) play a significant role in providing credit to rural areas of Assam, particularly to individuals and businesses that may not have access to formal banking services. MFIs offer small loans, known as microcredit, to support income-generating activities, agriculture, and small-scale enterprises.

6. What are the different types of agricultural markets in Assam?

Ans: Assam has various types of agricultural markets, including regulated markets, commonly known as Agricultural Produce Market Committees (APMCs), rural haats or periodic markets, and direct marketing channels. APMCs are government-regulated market yards where farmers can sell their produce, while haats are local markets that operate on specific days in rural areas.

7. How do educational institutions contribute to human capital in Assam?

Ans: Educational institutions such as schools, colleges, and universities in Assam provide formal education and knowledge acquisition, enabling individuals to develop skills, expertise, and qualifications necessary for personal and professional growth.

8. Explain the term ‘Golden Revolution’.

Ans: The period between 1991-2003 is called Golden Revolution. During this period the planned investment in horticulture became highly productive. This sector emerged as a substantial alternative employment. As a result India has become the first largest producer in the production of fruits like mangoes, bananas, coconuts, cashew nuts. It has got second place in the production of fruits and vegetables.

9. Is environmental crisis a recent phenomenon? If so, why?

Ans: Due to the urbanisation and industrialization natural resources are used excessively. It creates natural imbalance. As a result, the problem of environment crisis arises.

10. What is the effect of economic development on environment?

Ans: Economic development has full pressure on environment also. It pollutes atmosphere, environment and water bodies with garbage, smoke, sewage, chemical waste, and other poisonous gases etc. In fact higher is the economic develop higher will be the pollution.

11. Discuss the effect of economic development on natural resources.

Ans: Economic development leads to the scarcity of natural resources. The present production technology makes use of renewable and non-renewable natural resources to such an extent that their regeneration becomes difficult. In this way natural resources tend to reduce.

12. Write the favourable effects of sustainable development?

Ans: (a) Protection from pollution.

(b) Benefit of the present generation, i.e. standard of living of the present gen eration increases.

(d) Environmental protection.

13. What are the obstacles of sustainable development?

Ans: (a) Wasteful consumption: There is excessive wasteful consumption in developed countries.

(b) Growing Population: Large population is an obstacle in the way of sustainable development in developing countries.

14. What is meant by environment.

Ans: It means natural surrounding around us involving land, water, air, plants and animals etc. Thus, two types of elements are included in environment–

(a) Physical. and

(b) Biology.

15. What are the functions of the environment?

Ans: (a) It supplies resources — renewable and non-renewable.

(b) It assimilates waste.

(d) It provides aesthetic services like scenery etc.

16. Outline the steps involved in attaining sustainable development in India.

Ans: (a) Balance between present and future generation.

(b) Optimum use of resources.

(d) Decrease in poverty by providing lasting and secure livelihoods.

(e) Minimisation of cultural destruction and social instability.

17. What is sustainable development?

Ans: It meets the needs of the present generation without compromising the needs of future generation. It was introduced in 1987 by World Commission on Environment and Development of the United Nations.

18. Write the good effects of environment.

Ans: (a) Increase in human welfare, especially good health.

(b) Increase in productivity, increase in fertility of soil, etc.

(d) Future developmental potential.

19. Write the bad effects of environment.

Ans: (a) Tendency of urbanisation.

(b) Increase in poverty rate.

(d) Lack of civic sense.

20. Give some measures to solve environmental pollution.

Ans: (a) Less utilisation of harmful goods.

(b) Population must be controlled.

(d) Systematic and planned urban growth.

(e) Sources of water must be cleaned before supplying it to the public.

(f) Legal actions must be taken in case of old vehicles used, polluting industries etc.

21. What are the causes of deforestation in India?

Ans: (a) Construction of buildings due to the growing population.

(b) Increase in population resulting in more demand for fuel wood and timber.

(d) Indiscriminating sites of development projects.

(e) Diversion of forestry for non-forestry purposes.

22. Write the causes of land degradation.

Ans: (a) Soil erosion.

(b) Salinity and Alkalinity.

(d) Poor conditions of land use practices.

23. What are the main features of sustainable development?

Ans: (a) Balance between present and future needs.

(b) Emphasis on equal distribution.

(d) No increase in pollution.

(e) No limit for development.

24. What educational institutions contribute to human capital in Assam?

Ans: Assam has a range of educational institutions that contribute to human capital, including schools, colleges, universities, and research institutes. Notable institutions include Gauhati University, Assam Agricultural University, Indian Institute of Technology (IIT) Guwahati, and various medical and engineering colleges.

25. How do vocational training centers contribute to human capital in Assam?

Ans: Vocational training centers in Assam provide skill development programs and technical training to individuals, equipping them with specific skills and knowledge required for various industries. These centers focus on sectors such as agriculture, healthcare, tourism, hospitality, and manufacturing, enhancing the human capital of the state.

26. How does the cultural and intellectual capital of the population contribute to human development in Assam?

Ans: The cultural and intellectual capital of the population in Assam, including artists, writers, scholars, and innovators, enriches human development. Their contributions in the fields of art, literature, research, and innovation enhance the cultural fabric, knowledge base, and overall intellectual capacity of the state.

27. What factors contribute to the growth in the workforce participation rate in the informal sector?

Ans: Factors contributing to the growth in the workforce participation rate in the informal sector include limited opportunities in the formal sector, lack of formal employment options, poverty, low education levels, rural-urban migration, and the presence of traditional or unregulated economic activities.

28. What are the implications of changes in the informal sector workforce participation rate?

Ans: Changes in the informal sector workforce participation rate reflect the dynamics of informal economic activities, self-employment, and informal labor arrangements. An increasing participation rate may indicate a lack of formal employment opportunities or challenges in transitioning to the formal sector, while a decreasing rate may suggest improvements in the formality of employment or shifts in economic structure.

29. What are the benefits of implementing sustainable development strategies?

Ans: The benefits of implementing sustainable development strategies include environmental conservation, reduced resource depletion, improved public health, social well-being, enhanced resilience to climate change, economic opportunities in sustainable industries, and the preservation of natural resources for future generations.

30. What are the challenges faced by organic farming in Assam?

Ans: Organic farming in Assam faces challenges such as limited awareness and understanding among farmers, lack of access to organic inputs and markets, inadequate infrastructure for processing and certification, pests and diseases management, and the need for technical support and training.

31. How does organic farming contribute to sustainable rural development in Assam?

Ans: Organic farming contributes to sustainable rural development in Assam by providing employment opportunities, strengthening local economies, reducing the dependency on external inputs, preserving traditional farming knowledge, improving soil and water quality, and fostering resilient and self-reliant farming communities.

32. How can market linkages be strengthened in rural areas of Assam?

Ans: Strengthening market linkages in rural areas of Assam requires the development of market infrastructure, including cold storage facilities, warehouses, and transportation networks. Encouraging farmer producer organisations, cooperatives, and self-help groups can help in collective marketing and bargaining power. Additionally, leveraging technology and providing market information to farmers can enable better price discovery and access to larger markets.

33. Write a short note on MGNREGA.

Ans: The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) was notified on September 7, 2005. The mandate of the Act is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.

Mahatma Gandhi National Rural Employment Guarantee Act. is a flag-ship programme of govt which aims at enhancing the general livelihood of rural people by guaranteeing at least 100 days of employment in a finan-cial year to adults of the household who are willing to do unskilled labour.

34. Write two causes of global warming.

Ans: Two causes of Global warming are-

(a) Waste: Humans create more waste now than ever before, be-cause of the amount of packaging used and the short life cycle of prod-ucts. A lot of items, waste and packaging isn’t recyclable, which means it ends up in landfills. When the waste in landfills begins to decompose/break down it releases harmful gases into the atmosphere which contrib-ute to global warming.

(b) Deforestation: Deforestation is the clearance of woodland and forest, this is either done for the wood or to create space for farms or ranches. Trees and forests turn carbon dioxide into oxygen, so when they are cleared like the stored carbon is then released into the environment. Deforestation can also occur naturally which has a greater effect because of the fumes released from the fire.

35. What programmes has the government adopted to help the elderly people and poor destitute women?

Ans: Some of the programmes are:

(a) National Old Age Pension Scheme.

(b) National Family Benefit Scheme.

(d) Public Distribution System.

(e) Mid-Day-Meal.

(f) Antodya Ann Yojana.

(g) Aam Admi Bima Yojana.

36. Suppose you are a resident of a village, suggest few measures to tackle the problem of poverty?

Ans: Suggestion to remove rural poverty are—

(a) Gainful wages and self-employment opportunity for poor class.

(b) Stringent measures against exploitation of child and women labour.

(d) Ceiling on land holdings and surplus land for landless farmers with required amount of finance.

(e) Minimum wages should be guaranteed by the government to every workers.

37. Give example each of self employment in rural and urban areas.

Ans: Rural self-employment – Baskets making in villages. Urban self-employment – Candle, plastic bags making in urban areas.

38. Explain the features of poverty in India.

Ans: The features of poverty in India are:

(a) Poverty in rural areas had always been on higher sides than that in urban areas in India.

(b) Significant fall in poverty took place in 1977-78 to 1983-84.

39. Mentions some causes of poverty?

Ans: (a) Slow economic growth rate.

(b) Increase in population.

(d) Inequalities of income and wealth.

(e) Exploitation under British Rule.

40. Write some measures to control poverty?

Ans: (a) Control over population.

(b) Control over inflation.

(d) Increase in investment.

(e) Encouragement to cottage and small scale industries.

41. Briefly explain the three dimensional attack on poverty adopted by the govt.

Ans: (a) Efforts of Economic Growth: In it govt. is trying to develop agriculture and industrial sector.

(b) Expansion of self-Employment Programme: For it, the govt. is providing finance and training to the people. It will increase income and employment. As a result poverty will reduce.

(c) Supply of Minimum Basic Needs: In this regard, govt. has introduced schemes like, Public Distribution System (PDS), Integrated Child Development Scheme, Mid-Day Meal Scheme etc.

42. Mention some poverty alleviation programmes of the government.

Ans: They are—

(a) Prime Minister Employment Generation Programme. (PMEGP).

(b) Swarna Jayanti Gram Swarojgar Yojana (SJGSY).

(d) Antodya Ann Yojana (AAY).

(e) Indira Awaas Yojana (IAY).

(f) National Rural Employment Guarantee Scheme (NREGS).

43. What are the two major sources of human capital in a country?

Ans: The two major sources of human capital in a country are:

(a) Increase in the efficiency of labourers.

(b) Improvement in the technique of the country.

44. What are the indicators of educational achievement in a country?

Ans: The indicators of educational achievement in a country are:

(a) Increase in the efficiency of labourers.

(b) Improvement in the technique of the country.

45. Bring out the differences between human capital and human development.

Ans: (a) Human capital increases productivity, but human development increases human welfare.

(b) Human capital increases health, knowledge, skills and capacities of the people of the country. But, human development is a process of widening people’s choices as well as raising the level of well being achieved.

46. How is human development a border term as compared to human capital?

Ans: Human development considers education and health as integral to human well being. In the human development, human beings are considered ends in themselves. For example if investments in educational and health do not increase labour productivity then it is called unproductive investment. But human welfare should be increased through these investments. Therefore, human development is a broader term as compared to human capital.

47. What factors contributes to human capital formation?

Ans: (a) Educational Institutions.

(b) Hospitals.

48. Discuss the need for promoting women’s education in India.

Ans: The India the women is backward from the beginning. Due to the man dominating society less attention has been paid towards woman education. But now a days equal opportunities are provided to the woman. At this stage government is also promoting woman education. Free education and scholarships are provided to the girls.

49. Argue in favour of the need for different form of government intervention in education and health sectors.

Ans: Govt. has fixed the following targets in education after the intervation—

(a) A target for providing free elementary education has been fixed.

(b) It is proposed to bring quality improvement in education right from primary education to university level.

Again, in health sector, Govt. has taken the following steps after intervention—

(a) Improvement in the quality of services and effective programmes to control diseases.

(b) Establishment of health university.

50. What are the main problems of human capital formation in India?

Ans: The main problems of human capital formation in India are:

(a) Un-balanced development.

(b) Wastage of resources.

(d) Expensive higher education system.

(e) Lack of funds.

(f) Neglects Indian languages.

(g) Uneven distribution of medical facilities.

(h) Mismatch between infrastructure and trained personnel.

(i) Lack of appropriate referral system.

(j) Poor sanitary conditions.

51. Discuss the following as a source of human capital formation.

(i) Health Infrastructure.

Ans: Health infrastructure is an important source of human capital formation. Preventive medicines (vaccination), curative medicine (medical intervention during illness), social medicine (spread of heath literacy) and provision of clean drinking water and good sanitation are the various forms of heath infrastructures. It directly increases the supply of healthy labour force and is, thus, a source of human capital formation.

(ii) Expenditure on migration.

Ans: People migrate in search of jobs that fetch them higher salaries than what they may get in their native places. Migration involves cost of transport, higher cost of living in the migrated places and psychic costs of living in a strange socio-culture setup. The enhanced earnings in the new place out might the costs of migration, hence, expenditure on migration is also a source of human capital formation.

52. Mention two govt. organisations each that regulate the health and education sectors.

Ans: (a) Organisations relating to education sector are-National Council of Educational Research and Training (NCERT) and University Grant Commission (UGC).

(b) Organisation relating to health sector are-Ministry of Health and All India Institutes of Medical Sciences (AIIMS).

53. Distinguish between human capital and human development?

Ans: (a) Human capital increases productivity, but human development increases human welfare.

54. What are the components of HDI?

Ans: The three components are—

(a) Life Expectancy (Average Age).

(b) Knowledge (Literacy).

55. How is human development a border term as compared to human capital?

56. Write the role or importance of human capital formation in economic development.

Ans: (a) Invention of National Resources.

(b) Optimum use of resources.

(d) Increase in production.

(e) Increase in demand.

(f) Higher economic growth rate.

57. Write the problems of educational system.

Ans: (a) Un-balanced development.

(b) Wastage of resources.

(d) Expensive higher education system.

(e) Lack of funds.

(f) Neglects Indian languages.

58. Give some govt. efforts to promote education.

Ans: (a) Introduction of vocational education.

(b) To set up new institutions, like National Institute of Open School (NIOS).

(d) Free education to girls.

(e) Establishment of research center for promotion of higher education.

59. What do you mean by rural development? Bring out the key issues in rural development.

Ans: It means improvement in the standard in living of rural people. It is a comprehensive term.

The key issues are:

(a) Do they get minimum requirements of living?

(b) What is the status of education? Is it equal to national level?

(d) What is the standard of living of the people living in rural areas?

60. Discuss the importance of credit in rural development.

Ans: Credit for Production: In it all types of credit are included which are used for various farm activities. The farmers have credit to borrow to pay the rent on land, wages of the labourers, government tax etc. All these activity are related to production. Therefore, the credit received to meet their needs is called productive credit.

Credit for Consumption: In it the credit is received for the objectives like, of marriage and death, to repay the old debts, for the repair, construction and purchase of houses, for the litigation etc.

61. Critically evaluate the role of rural banking system in the process of rural development in India.

Ans: The roles are:

(a) These banks provide short terms and medium term loans to the farmers.

(b) These banks provide loans to the farmers to purchase seeds, fertilisers and agricultural implements.

(d) There is a lack of education in rural areas. So, people use less banking facilities. People feel burden of banking system.

62. Mention some obstacles that hinder the mechanism of agricultural marketing.

Ans: Some obstacles are—

(a) More middlemen.

(b) Lack of storage facilities.

(d) Lack of knowledge of the market.

63. What are the alternative channels available for agricultural marketing? Give some examples.

Ans: (a) To set up Regulated Markets, to improve the marketing of agricultural produce.

(b) Providing storage facilities. Govt. has set up Central Warehousing Corporation in 1957.

(d) Govt. has set up Central Control Quality laboratory to test the quality and purity of agricultural goods.

64. Distinguish between Green Revolution’ and ‘Golden Revolution’?

Ans: Green Revolution: It means large increase in agricultural production due to the use of new scientific technology in agriculture. It makes commercialization of agriculture and self-sufficient in agricultural produced.

Golden Revolution: The period between 1991-2003 is called Golden Revolution. During this period the planned investment in horticulture became highly productive. This sector emerged as a substantial alternative employment. As a result India has become the first largest producer in the production of fruits like mangoes, bananas, coconuts, cashew nuts. It has got second place in the production of fruits and vegetables.

65. Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.

Ans: The importance of animal husbandry, fisheries and horticulture as a source of diversification are:

(a) It reduces the risks of agriculture.

(b) Rural people get two employment opportunities.

66. Identify the benefits and limitations of organic farming.

Ans: Benefits:

(a) It helps in maintaining environmental health and reduces pollution.

(b) It ensures optimum productivity with no demand for costly inputs.

(d) It is highly cost effective as it does not involve the use of purchases inputs.

Limitations: In this system there is no use of chemical fertilisers, pesticides and other mixed inputs. In Fact these factors are harmful for the fertility of soil, human health, cattle wealth and environment.

67. Explain the steps taken by the government in developing rural markets.

Ans: Some steps are:

(a) Regulation of markets to create orderly and transparent marketing conditions.

(b) Provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storage and processing units.

(d) Another steps is the policy instruments like, assurance of minimum support prices (MSP), maintain of buffer stocks, distribution for foodgrains through PDS (Public Distribution System) etc.

68. Why is agricultural diversification essential for sustainable livelihoods?

Ans: Diversification towards new are areas is necessary not only to reduce the risk from agriculture sector but also to provide productive sustainable livelihood options to rural people. Much of the agricultural employment activities are concentrated in the Khariff season. But during the Rabi season, in areas where there are inadequate irrigation facilities, it becomes difficult to find gainful employment. Therefore, expansion into other sectors is essential to provide supplementary gainful employment and in releasing higher levels of income for rural people to overcome poverty and other tribulations. Hence, there is a need to focus on allied activities, non-farms employment and other emerging alternatives of livelihood, though there are many other options available for providing sustainable livelihoods in rural areas.

69. Enlist some problems faced by farmers during the initial years of organic farming.

Ans: Some of the problems are—

(a) Inadequate infrastructural facilities.

(b) Problem of marketing the products.

(d) It may also have more blemishes and a shorter shelf life than sprayed produced.

(e) Choice in production of off-season crops is quite limited.

70. “Information technology plays a very significant role in achieving sustainable development and food security”- Comment.

Ans: Govt. can predict areas of food insecurity and vulnerability using appropriate information and software tools so hataction can be taken to prevent or reduce the livelihood of an emergency.

It also has an positive impact on the agriculture sector as it can disseminate information regarding emerging technologies and its applications, prices, weather and soil conditions for growing differents crops.

It also has potential of employment generation in rural areas.

Thus, from the above discussion it is believed that information technology definitely plays a very important role in achieving sustainable development and food security.

71. Give some measures taken by government to improve agricultural marketing.

Ans: (a) To set up Regulated Markets, to improve the marketing of agricultural produce.

(b) Providing storage facilities. Govt. has set up Central Warehousing Corporation in 1957.

(d) Govt. has set up Central Control Quality laboratory to test the quality and purity of agricultural goods.

72. Analyse the recent trends in sectoral distribution of work force in India.

Ans: Recent trends is sectoal distribution of work force in India Is as under:

(a) Primary Sector: About 69% of work force was engaged in primary sector in 1983. This proportion has decreased to 64% in 1993-94 and then 56% in 2007-08.

(b) Secondary Sector: The proportional of workforce was about 12% in secondary sector in 1983. It increased to 16% in 1993-94 but again decreased 14% in 2007-08.

(c) Service Sector: Abut 17% of workforce was concentrated in service in 1983. It continued to rise. It increased from 20% to 30% during the period 1993-94 to 2007-08.

73. Distinguish between formal and informal sector.

Ans: All public sector and private sector establishments which employ 10 hired workers or more are called formal sector establishments.

But, in informal sector there is no hired workers. Thus, informal sector include millions of farmers, agricltural labourers, owners of small enterprises and self-employed.

74. Write the features of employment in India.

Ans: The features of employment in India are:

(a) Low rate of labour force participation.

(b) Low percentage of work force.

(d) Gap between rural and urban employment ratio.

75. What are the causes of difference in urban and rural workers ratio?

Ans: In Rural Areas:

(a) Lack of resources.

(b) Lack of education.

In Urban Areas:

(a) Urban people have more employment opportunities.

(b) They get the appropiate job to suit their skills and qualifications.

(C) Long Type Questions & Answers:

1. Mention four unemployment alleviation programme taken by Indian Government.

Ans: The four main employment generation programmes as undertaken by the government of India during the Eight Plan are:

(i) Mahila Samridhi Yojana (MSY): The Mahila Samridhi Yojana was laucned on 2nd October, 1993 in order to benefit all rural adult women. This scheme entitles every adult woman who opens a Mahila Samridhi Yojana account with Rs. 300 to get an incentive of Rs. 75 for a year.

(ii) Nehru Rozgar Yojana (NRY): Nehru Rozgar Yojana contemplated by the Ministry of Urban Affairs was designed to create employment opportunities for urban poor. This programme was launch in October 1989 with the objective of providing employment opportunities to the enemployed and underemployed urban poor.

(iii) Prime Minister’s Ingegrated Urban Poverty Eradication Programme (PMIUPEP): The Prime Minister’s Integrated Urban Poverty Eradication Programme was launched in 1995-96 with a specific objective of effective achievement of social sector goals, community empowerment, employment generation and skill upgradation, shelter upgradation and environmental improvement with a multi-pronged and long-term strategy. The programme was to cover 5 million urban living in 345 class II urban agglomerations (towns) with a population of 50,000 to 1,00,000 each.

(iv) The Swarna Jayanti Shahri Rozgar Yojana (SJSRY): The Swarna Jayanti Rozgar Yojana which subsumed the earlier three urban poverty programme, viz. NRY, Urban Basic Services for the Poor (UBSP) and PMIUPEP came into operation from December 1997. These programme seeks to provide employment to the urban unemployed or underemployed poor living below poverty line and educated upto XI standard through encouraging the setting up of self-employment ventures or provision of wage employment. The scheme gives special impetus to empower as well as uplift the poor women.

2. Distinguish between Economic Development and Sustainable Development.

Ans: Economic development is related to the problems of under-developed economies. But, sustainable development is related to the problems of both developed and under-developed economies.

In economic development, natural resources are exploited. But in tainable development, natural resources are rationally utilised to give benefit to the future generation.

In economic development, there is a long term increase in per capita income and economic welfare. But in sustainable development, attention is paid to maintain real per capita income, economic welfare and economic welfare of the future generations.

3. What do you mean by environmental degradation? Suggest some measures to solve the problems of environmental degradation.

Ans: India has abundant natural resources in terms of rich quality of soil, hundreds of rivers and tributaries, lust green forests, plenty of mineral deposits beneath the land surface, vast stretch of the Indian Ocean, ranges of mountains etc. The black soil of the Deccan Plateau is particularly suitable for cultivation of cotton, leading to concentration of textile industries in this region. The Indo-Gangetic Plains- spread from the Arabian sea to the Bay of Bengal-are one of tire most fertile intensively cultivated and densely populated regions in the world. India’s forests, though unevenly distributed provide green cover for a majority of its population and natural cover for its wildlife. Large deposits of iron-ore, coal and natural gas are found in the country. India alone accounts for nearly 20% of the world’s total iron-ore reserves, bauxite, copper, chromate, diamonds, gold, lead, lignite, manganese, zinc, uranium etc. are also available in different parts of the country. However, the developmental activities in India have resulted in pressure on its finite-natural resources, besides creating impacts on human health and well being.

Environmental crisis is a recent phenomenon. In early days, when civilisation just began, before the phenomenal increase in population and growth of industrialisation, the demand for environmental resources was within the carrying capacity of the environment and so the pollution was also within the absorptive capacity of the environment. Therefore, environmental problems did not arise. But with the advent of industrialisation and out break of population, environmental problems arisen and the resources for both production and consumption proved to be beyond the rate of regeneration of the resources and the absorptive capacity of the environment.

4. The following table shows the population and worker population ratio for Indian in 1999-2000. Can you estimate the work force for India?

Region	Estimates of Population (in crores)	Worker population Ratio	Extimated no of workers (in crores)
Rural	71.88	41.9	71.88/100 × 41.9 = 30.12
Urban	28.52	33.7	?
Total	100.40	39.5	?

Ans:

Region	Estimates of	Worker Population (in crores)	Extimated no population of workers Ratio (in crores)
Rural	71.88	41.9	71.88/100 × 41.9 = 30.12
Urban	28.52	33.7	28.52/100 × 33.7 = 9.61
Total	100.40	39.5	100.40/100 × 39.7 = 39.86

Hence, the total workforce for India for the year 1999-2000 is 39.86 almost 40 crores.

5. How does the skilled labor force contribute to human capital in Assam?

Ans: The skilled labor force in Assam contributes significantly to the human capital of the state.

Here are some ways in which skilled labor contributes:

(a) Economic Growth: Skilled labor is crucial for driving economic growth in Assam. Skilled workers possess the knowledge, expertise, and technical abilities required to contribute to various industries and sectors, such as manufacturing, services, agriculture, healthcare, and IT. Their skills help boost productivity, innovation, and competitiveness, leading to economic development.

(b) Employment Generation: Skilled labor plays a vital role in generating employment opportunities in Assam. As industries and sectors grow, they create job openings that require specific skills and qualifications. Skilled individuals are better positioned to secure these jobs, thereby reducing unemployment rates and improving the livelihoods of the workforce.

(c) Improved Productivity: Skilled workers tend to be more productive compared to unskilled or low-skilled workers. They possess specialised knowledge and competencies that enable them to perform tasks efficiently, utilise resources effectively, and adapt to changing work environments. This increased productivity contributes to overall economic growth and development in Assam.

(d) Technological Advancement: Skilled labor drives technological advancement in Assam. Skilled workers are adept at utilising advanced technologies, machinery, and equipment in their respective fields. They can operate and maintain sophisticated tools and systems, contributing to the adoption and integration of technology in various sectors, which in turn leads to increased efficiency and competitiveness.

(e) Human Development: Skilled labor is an essential component of human development in Assam. When individuals acquire specific skills and knowledge, it empowers them to lead more fulfilling lives, enhances their personal growth, and expands their opportunities for socioeconomic advancement. Skilled labor contributes to higher levels of education, health, and overall well-being, which are fundamental aspects of human capital development.

(f) Attraction of Investments: A skilled labor force can attract investments to Assam. Companies and investors seek locations with a skilled workforce to ensure operational efficiency and the availability of talent. When Assam demonstrates a skilled labor pool, it becomes an attractive destination for investment, leading to economic growth, job creation, and improved infrastructure.

(g) Capacity Building: Skilled labor contributes to capacity building in Assam by imparting knowledge and expertise to the local workforce. Skilled individuals often act as trainers, mentors, and educators, sharing their skills and experiences with others. This helps build a strong knowledge base, fosters a learning culture, and enables the transfer of skills within the community.

6. What are the sources of human capital in Assam?

Ans: The sources of human capital in Assam can be attributed to various factors.

Here are some key sources of human capital in the state:

(a) Education System: The education system in Assam, including schools, colleges, and universities, plays a crucial role in developing human capital. It provides individuals with knowledge, skills, and qualifications necessary for different professions and industries. The formal education system helps in building a foundation for human capital development.

(b) Vocational Training Institutes: Vocational training institutes and skill development programs contribute to human capital by providing specialised training and hands-on skills in specific trades and professions. These institutes equip individuals with practical skills that are relevant to the job market, enhancing their employability and contributing to human capital development.

(c) Professional Training Centers: Professional training centers offer specialised training programs in fields such as engineering, medicine, agriculture, management, and technology. These centers provide advanced knowledge and skills required for specific professions, producing professionals who contribute to the human capital pool in Assam.

(d) Research and Development Institutions: Research and development institutions, including scientific laboratories, agricultural research centers, and technology institutes, contribute to human capital by conducting research, innovation, and knowledge creation. They attract researchers, scientists, and experts who generate new knowledge, technologies, and solutions, thereby enhancing human capital in Assam.

(e) Migration and Return Migration: Migration plays a significant role in shaping human capital in Assam. Individuals who migrate to other regions or countries for education, employment, or entrepreneurial opportunities gain diverse experiences, skills, and knowledge. Return migration of these individuals brings back their acquired human capital, contributing to the development of Assam’s workforce.

7. What are some government initiatives promoting human development in Assam?

Ans: The government of Assam has undertaken several initiatives to promote human development in the state.

Here are some key government programs and initiatives in Assam:

(a) Assam Skill Development Mission (ASDM): The Assam Skill Development Mission aims to enhance the employability of the youth by providing skill training programs. It offers training in various sectors such as agriculture, healthcare, tourism, retail, and construction, among others, to develop a skilled workforce and promote employment opportunities.

(b) Chief Minister’s Special Scholarship Scheme: This scheme provides financial assistance to meritorious students from economically weaker sections of society. It supports their education by offering scholarships for pursuing higher education in professional courses.

(c) Mukhyamantri Krishi Sa-Sajuli Yojana: This scheme promotes agricultural entrepreneurship by providing financial assistance, training, and technical support to farmers for setting up agribusinesses. It aims to encourage innovative and sustainable practices in the agricultural sector and enhance farmer incomes.

(d) Swami Vivekananda Assam Youth Empowerment (SVAYEM) Yojana: The SVAYEM Yojana aims to provide self-employment opportunities to the youth of Assam. It offers financial assistance and guidance to young entrepreneurs for setting up their own ventures and encourages self-employment as a means of livelihood.

(e) Gunotsav: Gunotsav is an initiative to improve the quality of education in schools across Assam. It involves assessing and grading schools based on various parameters such as infrastructure, teaching quality, student learning outcomes, and community participation. The program aims to identify areas for improvement and enhance the overall education system in the state.

(f) Assam Rural Livelihoods Mission (ASRLM): ASRLM works towards poverty alleviation and rural development by implementing various programs such as promoting self-help groups, livelihood skill training, access to microfinance, and strengthening rural institutions. It focuses on empowering rural communities and enhancing their socio-economic well-being.

(g) Deen Dayal Upadhyaya Swavalamban Yojana (DDUSY): The DDUSY provides financial assistance and support to unemployed youth for starting their own businesses. It aims to promote entrepreneurship, generate employment opportunities, and foster self-reliance among the youth of Assam.

(h) Assam Women’s Empowerment and Livelihoods (AWEEL) Project: The AWEEL project focuses on women’s empowerment and livelihood enhancement. It provides skill training, financial assistance, and support services to women, enabling them to become economically self-sufficient and participate in decision-making processes.

8. What are the key sources of credit in rural areas of Assam?

Ans: In rural areas of Assam, several sources of credit are available to meet the financial needs of the rural population. Here are some key sources of credit:

(a) Commercial Banks: Commercial banks, both public and private, play a significant role in providing credit to rural areas. They offer various loan products such as agricultural loans, crop loans, livestock loans, and small-scale business loans. Farmers and rural entrepreneurs can access credit from these banks by fulfilling the required criteria and providing necessary collateral.

(b) Regional Rural Banks (RRBs): RRBs are spec ialized banks that focus on providing banking and credit services to rural areas. They are established with the objective of promoting financial inclusion and rural development. RRBs offer loans for agricultural activities, rural housing, self-employment ventures, and other rural-oriented businesses.

(c) Cooperative Credit Institutions: Cooperative credit institutions, such as cooperative banks and credit societies, are an important source of credit in rural areas. They are organised and operated by members of a cooperative society and provide credit facilities to meet the financial needs of their members. These institutions often offer loans at affordable interest rates and have a better understanding of the local agricultural and rural economy.

(d) Microfinance Institutions (MFIs): MFIs play a crucial role in providing credit to rural areas, especially to small and marginalised farmers, women entrepreneurs, and self-help groups. MFIs offer microcredit, small loans, and financial services tailored to the needs of rural borrowers. They operate on the principles of financial inclusion and promote access to credit for the unbanked and underserved rural population.

(e) Government-Sponsored Schemes: The government of Assam implements various credit schemes targeted at rural areas. These include schemes like the Kisan Credit Card (KCC) scheme, National Rural Livelihood Mission (NRLM), Pradhan Mantri Mudra Yojana (PMMY), and other agriculture and rural development programs. These schemes provide subsidised credit, interest rate concessions, and loan guarantees to farmers, rural entrepreneurs, and self-help groups.

(f) Self-Help Groups (SHGs): Self-help groups are informal associations of individuals who pool their savings and provide credit to members within the group. SHGs have emerged as an effective source of credit in rural areas, empowering women and promoting economic activities at the grassroots level. They receive support from government programs and banks for capacity building, credit linkages, and financial management.

(g) Non-Governmental Organisations (NGOs): Some NGOs operating in rural areas of Assam provide credit facilities to support income-generating activities, livelihood projects, and rural enterprises. These NGOs work closely with communities, provide financial literacy training, and offer credit on favorable terims to promote sustainable development.

9. What are the key issues in marketing agricultural produce in rural areas of Assam?

Ans: In marketing agricultural produce in rural areas of Assam, several key issues are prevalent.

Here are some of the major challenges faced:

(a) Lack of Market Infrastructure: One of the key issues is the inadequate market infrastructure in rural areas of Assam. The absence of proper storage facilities, cold chains, processing units, and transportation networks hinders the smooth movement and storage of agricultural produce. This leads to post-harvest losses, reduced quality, and limited market access.

(b) Limited Market Information: Farmers in rural areas often lack access to timely and accurate market information. They face challenges in understanding market demand, price trends, and market opportunities. The lack of transparent and reliable market information prevents farmers from making informed decisions regarding crop selection, timing of harvest, and marketing strategies.

(c) Middlemen and Price Exploitation: Middlemen play a dominant role in agricultural marketing in rural areas. Farmers often have to rely on intermediaries for selling their produce, which results in price exploitation. Middlemen may manipulate prices, create artificial market barriers, and exploit information asymmetry, leading to lower returns for farmers.

(d) Inefficient Supply Chain Management: Inefficient supply chain management contributes to marketing challenges in rural areas. The absence of coordinated logistics, fragmented transportation systems, and delays in product handling and distribution impact the quality and shelf life of agricultural produce. This, in turn, affects market competitiveness and farmer profitability.

(e) Inadequate Market Linkages: Limited market linkages between farmers and buyers pose a significant challenge. Farmers struggle to connect with reliable and regular buyers, especially for value-added or niche agricultural products. The absence of formal contracts, long-term buyer relationships, and direct market access inhibits farmers from capturing better prices and establishing stable market channels.

(f) Quality and Standardization: Ensuring consistent quality and adherence to market standards is another challenge. Many farmers lack knowledge and resources to meet quality requirements and comply with food safety and quality standards. This restricts their access to formal markets, export opportunities, and higher-value markets.

10. What role can government initiatives play in addressing credit and marketing issues in rural areas of Assam?

Ans: Government initiatives can play a crucial role in addressing credit and marketing issues in rural areas of Assam. Here are some ways in which government initiatives can help:

(a) Promoting Financial Inclusion: The government can promote financial inclusion by establishing banking facilities in rural areas. This includes setting up branches of commercial banks, regional rural banks, and cooperative banks to ensure access to credit and financial services for rural communities. The government can also encourage the use of mobile banking and digital payment systems to facilitate easy and convenient access to financial services.

(b) Providing Subsidised Credit: Government initiatives can provide subsidised credit to farmers and rural entrepreneurs through schemes like Kisan Credit Card (KCC), interest rate concessions, and loan guarantees. These initiatives can enable farmers to access affordable credit for agricultural activities, investment in farming equipment, and working capital requirements. Subsidised credit can also be extended to other sectors like rural businesses and micro-enterprises.

(c) Strengthening Cooperative Credit Institutions: The government can support and strengthen cooperative credit institutions such as cooperative banks and credit societies. This can be done through capacity-building programs, training in modern banking practices, and providing financial assistance to improve their infrastructure. Strengthening these institutions enhances their ability to provide credit to rural communities and enables them to play a significant role in rural development.

(d) Promoting Self-Help Groups (SHGs): Government initiatives can encourage the formation and support of Self-Help Groups (SHGs) in rural areas. SHGs empower rural women and communities to pool their savings and access credit for income-generating activities. The government can provide financial support, training, and capacity-building programs to SHGs, making them effective credit and marketing intermediaries.

(e) Creating Market Infrastructure: Government initiatives can focus on creating and improving market infrastructure in rural areas. This includes the development of rural markets, cold storage facilities, warehouses, processing units, and transportation networks. These initiatives enhance the storage capacity, reduce post-harvest losses, and enable efficient marketing of agricultural produce.

(f) Establishing Farmer Producer Organizations (FPOs): Government initiatives can facilitate the formation and strengthening of Farmer Producer Organizations (FPOS). FPOs enable small and marginal farmers to collectively market their produce, negotiate better prices, and access formal markets. The government can provide financial and technical assistance, training, and marketing support to FPOs to enhance their capabilities and market linkages.

11. What is the agriculture market system in Assam?

Ans: The agriculture market system, in Assam refers to the structure and mechanisms through which agricultural produce is bought and sold in the state. It includes the physical infrastructure, regulatory framework, market players, and processes involved in the marketing of agricultural products. The agriculture market system in Assam aims to facilitate fair and transparent transactions, ensure remunerative prices for farmers, and provide efficient market linkages.

Key elements of the agriculture market system in Assam include:

(a) Agricultural Produce Market Committees (APMCs): APMCs are established under the Assam Agricultural Produce Market Act to regulate and facilitate the marketing of agricultural produce. These committees oversee the functioning of agricultural markets known as ‘mandis’ and ensure fair practices, price discovery, and dispute resolution.

(b) Mandis: Mandis are physical marketplaces where farmers bring their agricultural produce to sell. Assam has a network of mandis spread across different regions of the state. These mandis serve as meeting points for buyers (traders, wholesalers, retailers) and sellers (farmers) to conduct transactions. Mandis provide facilities for weighing, grading, and auctioning of agricultural produce.

(c) market Infrastructure: The agriculture market system in Assam comprises physical infrastructure such as market yards, auction platforms, storage facilities, cold storage units, warehousing, and transportation networks. These facilities play a crucial role in maintaining the quality and preserving the freshness of agricultural produce.

(d) Market Information: Market information systems disseminate timely and accurate information about prices, demand, supply, and market trends to farmers and market participants. This information helps farmers make informed decisions about crop selection, timing of harvest, and pricing strategies. The Directorate of Agriculture Marketing and the Assam State Agricultural Marketing Board are responsible for collecting and disseminating market information.

12. What is the workforce participation rate?

Ans: The workforce participation rate refers to the percentage of the working-age population (typically individuals aged 15 years and above) who are either employed or actively seeking employment. It is a measure of the proportion of the population that is engaged in the labor force and is an important indicator of the level of economic activity and labor market dynamics within a specific population or country.

The workforce participation rate takes into account both employed individuals and those who are unemployed but actively looking for work. It does not include individuals who are not in the labor force, such as students, retirees, homemakers, and individuals who have given up searching for employment.

The workforce participation rate is often used as a key labor market indicator to assess the level of labor force engagement and to understand changes in the labor market over time. It provides insights into the potential labor supply available for productive activities and helps policymakers, economists, and analysts evaluate employment trends, unemployment rates, and the overall health of the labor market.

13. How do government policies and initiatives influence workforce participation rates in the formal and informal sectors?

Ans: Government policies and initiatives can have a significant influence on workforce participation rates in both the formal and informal sectors. Here are some ways in which government policies can impact workforce participation:

(a) Labor Laws and Regulations: Government policies related to labor laws and regulations can shape workforce participation in the formal sector. These policies determine employment conditions, minimum wages, working hours, safety standards, and other aspects of formal employment. Favorable labor laws and regulations can provide incentives for individuals to participate in the formal sector by ensuring job security, social security benefits, and protection of workers’ rights.

(b) Skill Development and Education: Government initiatives aimed at skill development and education can enhance workforce participation rates in both formal and informal sectors. By providing quality education and vocational training programs, governments can equip individuals with the necessary skills and qualifications to enter the workforce. Skill development initiatives help individuals acquire marketable skills, increasing their chances of finding employment and participating in economic activities.

(c) Employment Generation Programs: Government-led employment generation programs, such as public works programs, can directly impact workforce participation rates. These programs provide temporary employment opportunities in various sectors, allowing individuals to earn income and contribute to economic activities. Such initiatives are particularly important in rural areas and during times of economic downturn when job opportunities may be limited.

(d) Entrepreneurship and Microfinance Support: Government policies that promote entrepreneurship and provide microfinance support can encourage workforce participation in the informal sector. By facilitating access to credit, business training, and supportive regulatory frameworks, governments can enable individuals to start and sustain their own businesses. This boosts self-employment and informal sector participation, particularly among individuals who may not have formal employment opportunities.

(e) Social Protection and Welfare Programs: Government initiatives focused on social protection and welfare can influence workforce participation rates by providing a safety net for vulnerable populations. Programs such as unemployment benefits, pension schemes, healthcare provisions, and social assistance alleviate economic uncertainties, reducing barriers to workforce participation and encouraging individuals to seek employment.

14. What are the key principles of sustainable development?

Ans: The key principles of sustainable development are as follows:

(a) Environmental Stewardship: Sustainable development emphasises the responsible use and conservation of natural resources. It recognizes the need to protect and preserve the environment, promote biodiversity, and mitigate the negative impacts of human activities on ecosystems. Environmental stewardship involves adopting sustainable practices that minimise pollution, promote renewable energy sources, and ensure the long-term viability of natural resources.

(b) Economic Prosperity: Sustainable development seeks to promote economic growth and prosperity in a way that is inclusive, equitable, and sustainable. It emphasises the importance of a robust economy that creates employment opportunities, fosters innovation, and supports the well-being of individuals and communities. Economic prosperity should be pursued while considering the long-term implications on social and environmental dimensions.

(c) Social Equity: Sustainable development aims to ensure social equity and justice by addressing inequalities and promoting social inclusion. It seeks to enhance access to education, healthcare, housing, clean water, and sanitation for all individuals. It recognizes the importance of promoting human rights, gender equality, and social cohesion within societies.

(d) Inter-generational Equity: Sustainable development emphasises the responsibility to meet the needs of the present generation without compromising the ability of future generations to meet their own needs. It involves making choices and taking actions that ensure the long-term well-being and sustainability of future generations. This principle emphasises the importance of considering the impacts of current decisions on the future and adopting a long-term perspective.

(e) Stakeholder Engagement and Participation: Sustainable development promotes the active involvement and participation of all stakeholders, including communities, civil society organisations, businesses, and governments. It recognizes the value of inclusive decision-making processes, transparency, and accountability in shaping sustainable development strategies. Stakeholder engagement ensures that diverse perspectives and interests are considered and enables collaborative approaches to address complex challenges.

15. Write a comparative note on the contribution of agriculture, industry and service sectors to the respective economies of India, China and Pakistan.

Ans: Agriculture:

Countries	Contribution to GDP%	Workforce in agriculture%
China	15	54
India	23	60
Pakistan	23	49

Industry:

Countries	Contribution to GDP%	Distribution of workforce %
China	53	27
India	26	16
Pakistan	23	18

Service:

Countries	Contribution to GDP%	Distribution of workforce%
China	32	19
India	51	24
Pakistan	54	33

The above data shows that the economies of China, India and Pakistan differ in terms of sectoral growth.

16. Write two differences between formal and informal sources of rural credit.

Ans: The difference between formal and informal sources credit are tabulated below:

(a) The formal sources of loans that the government registers are followed by laws and regulations.”The informal sources include all small and scattered units that are generally beyond the government’s control, they must obey its laws and regulations”.

(b) Social welfare is the primary motive for formal sources. “The profit-making is the primary motive for informal sources”.

(c) The RBI regulates the activities of formal credit sources. “There is no organisation that controls credit activities in informal sources.”

(d) Formal sources typically charge lower interest rates. “They charge much higher interest rates for informal sources.” Examples of formal sources: Banks and cooperatives. “Examples of informal sources: Moneylenders, merchants, workers, relatives and friends etc.

Class 12 Economics Chapter 8 Current Challenges Facing Indian Economy

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