NCERT Class 11

NCERT Class 11 Economics Chapter 2 Indian Economy 1950–1990 Important Questions with Answers

Class 11 Economics Chapter 2 – Indian Economy 1950–1990 Important Questions

These Indian Economy 1950–1990 Important Questions cover the most important MCQs, one-word questions, assertion and reason questions and descriptive questions from NCERT Class 11 Economics Chapter 2. The questions are prepared from NCERT concepts and important exam-oriented topics for quick revision and practice.

This page is useful for UPSC, SSC, PSC, Railway, CUET and Class 11 Economics preparation, helping students revise important concepts related to economic planning, public sector, industrial policy, Green Revolution, trade policy and economic development after independence.

Multiple Choice Questions (MCQs)

These MCQs from Indian Economy 1950–1990 are designed for quick objective revision and competitive exam preparation. The questions cover important planning policies, industrial development, agriculture reforms and economic strategies discussed in the NCERT chapter.

MCQ 1: After independence, India adopted:

A. Socialist economy only

B. Capitalist economy only

C. Mixed economy

D. Feudal economy

Answer: C. Mixed economy

Page Reference: Page 17

MCQ 2: Economic planning in India was inspired mainly by:

A. British model

B. Soviet Union model

C. Chinese monarchy

D. Colonial system

Answer: B. Soviet Union model

Page Reference: Page 18

MCQ 3: The Planning Commission was established in:

A. 1947

B. 1950

C. 1956

D. 1965

Answer: B. 1950

Page Reference: Page 18

MCQ 4: The main objective of planning in India was:

A. Economic development

B. Reduction of poverty

C. Self-reliance

D. All of these

Answer: D. All of these

Page Reference: Page 18–19

MCQ 5: Which sector was given greater importance in the Second Five Year Plan?

A. Agriculture

B. Heavy industries

C. Banking

D. Trade

Answer: B. Heavy industries

Page Reference: Page 20

MCQ 6: The strategy of industrialisation in India emphasized:

A. Consumer goods only

B. Heavy and capital goods industries

C. Cottage industries only

D. Foreign imports only

Answer: B. Heavy and capital goods industries

Page Reference: Page 20

MCQ 7: The public sector was expanded mainly to:

A. Promote private monopoly

B. Build basic and strategic industries

C. Reduce industrialisation

D. Encourage imports

Answer: B. Build basic and strategic industries

Page Reference: Page 21

MCQ 8: Which policy regulated entry of private industries through licensing?

A. Liberalisation policy

B. Industrial licensing policy

C. Free trade policy

D. Globalisation policy

Answer: B. Industrial licensing policy

Page Reference: Page 21

MCQ 9: The Green Revolution was mainly associated with:

A. Industrial development

B. Agricultural modernisation

C. Banking reforms

D. Foreign trade

Answer: B. Agricultural modernisation

Page Reference: Page 24

MCQ 10: Which crops benefited most from the Green Revolution?

A. Wheat and rice

B. Tea and coffee

C. Cotton and jute

D. Sugarcane and tobacco

Answer: A. Wheat and rice

Page Reference: Page 24

MCQ 11: The Green Revolution mainly used:

A. Traditional seeds only

B. HYV seeds and irrigation

C. Bullock farming only

D. Cottage industries

Answer: B. HYV seeds and irrigation

Page Reference: Page 24

MCQ 12: The policy of import substitution aimed to:

A. Encourage imports

B. Reduce dependence on foreign goods

C. Promote colonial trade

D. Increase luxury imports

Answer: B. Reduce dependence on foreign goods

Page Reference: Page 23

MCQ 13: Self-reliance means:

A. Dependence on imports

B. Dependence on foreign aid only

C. Reducing dependence on foreign countries

D. Exporting only agricultural goods

Answer: C. Reducing dependence on foreign countries

Page Reference: Page 23

MCQ 14: The public distribution system was introduced to:

A. Promote luxury goods

B. Ensure availability of essential goods

C. Encourage imports only

D. Reduce agriculture

Answer: B. Ensure availability of essential goods

Page Reference: Page 25

MCQ 15: Which bank reform took place in 1969?

A. Privatization of banks

B. Nationalisation of banks

C. Closure of banks

D. Foreign ownership of banks

Answer: B. Nationalisation of banks

Page Reference: Page 26

MCQ 16: Bank nationalisation aimed at:

A. Expanding rural credit

B. Supporting development

C. Reducing monopoly control

D. All of these

Answer: D. All of these

Page Reference: Page 26

MCQ 17: Land reforms mainly aimed at:

A. Promoting zamindari

B. Improving conditions of farmers

C. Increasing foreign trade

D. Supporting industrial monopolies

Answer: B. Improving conditions of farmers

Page Reference: Page 22

MCQ 18: The Industrial Policy Resolution of 1956 emphasized:

A. Dominance of public sector

B. Complete privatization

C. Colonial trade

D. Free market only

Answer: A. Dominance of public sector

Page Reference: Page 21

MCQ 19: Which among the following was a limitation of Green Revolution?

A. Regional inequalities

B. Benefits concentrated in few states

C. Environmental issues

D. All of these

Answer: D. All of these

Page Reference: Page 25

MCQ 20: India’s economic policy between 1950 and 1990 mainly focused on:

A. Planned development

B. Self-reliance

C. Public sector growth

D. All of these

Answer: D. All of these

Page Reference: Page 18–26

One-Word / Very Short Answer Questions

These one-word and factual questions help students quickly revise important planning concepts, agricultural reforms and industrial policies from the chapter. The section is especially useful for UPSC, SSC, PSC, Railway, CUET and other objective examinations.

  1. Which type of economy was adopted by India after independence?
    Answer: Mixed economy (Page Reference: Page 17)
  2. Which body was established in 1950 for economic planning?
    Answer: Planning Commission (Page Reference: Page 18)
  3. Which plan emphasized heavy industries?
    Answer: Second Five Year Plan (Page Reference: Page 20)
  4. Which policy regulated industries through licenses?
    Answer: Industrial licensing policy (Page Reference: Page 21)
  5. Which agricultural programme introduced HYV seeds?
    Answer: Green Revolution (Page Reference: Page 24)
  6. Which crops mainly benefited from Green Revolution?
    Answer: Wheat and rice (Page Reference: Page 24)
  7. What does HYV stand for?
    Answer: High Yielding Variety (Page Reference: Page 24)
  8. Which policy aimed to reduce dependence on imports?
    Answer: Import substitution (Page Reference: Page 23)
  9. Which economic objective reduced foreign dependence?
    Answer: Self-reliance (Page Reference: Page 23)
  10. Which banks were nationalised in 1969?
    Answer: Commercial banks (Page Reference: Page 26)
  11. Which sector dominated Industrial Policy Resolution 1956?
    Answer: Public sector (Page Reference: Page 21)
  12. Which reforms aimed at improving farmers’ condition?
    Answer: Land reforms (Page Reference: Page 22)
  13. Which system ensured supply of essential goods?
    Answer: Public Distribution System (Page Reference: Page 25)
  14. Which economic strategy focused on planned development?
    Answer: Economic planning (Page Reference: Page 18)
  15. Which country inspired Indian planning model?
    Answer: Soviet Union (Page Reference: Page 18)

Assertion and Reason Questions

These assertion and reason questions from Indian Economy 1950–1990 help students develop conceptual clarity and analytical understanding of planning, industrialisation, agriculture and public sector policies. They are highly useful for board exams and competitive examinations.

Question 1

Assertion (A): India adopted planned economic development after independence.

Reason (R): Planning was considered necessary for economic growth and poverty reduction.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 18

Question 2

Assertion (A): The Second Five Year Plan emphasized heavy industries.

Reason (R): Industrialisation was considered important for long-term economic growth.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 20

Question 3

Assertion (A): Public sector played major role in Indian economy after independence.

Reason (R): Public sector developed strategic and basic industries.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 21

Question 4

Assertion (A): Industrial licensing was introduced in India.

Reason (R): Government wanted to regulate industrial growth and prevent concentration of wealth.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 21

Question 5

Assertion (A): Green Revolution increased food grain production in India.

Reason (R): HYV seeds, irrigation and fertilizers improved agricultural productivity.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 24

Question 6

Assertion (A): Import substitution promoted self-reliance.

Reason (R): India tried to reduce dependence on foreign imports.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 23

Question 7

Assertion (A): Bank nationalisation expanded rural credit facilities.

Reason (R): Nationalised banks focused more on development and social welfare.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 26

Question 8

Assertion (A): Land reforms were introduced after independence.

Reason (R): Government aimed to improve conditions of farmers and reduce inequality.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 22

Question 9

Assertion (A): Green Revolution created regional inequalities.

Reason (R): Benefits were concentrated in selected regions with irrigation facilities.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 25

Question 10

Assertion (A): India followed mixed economy model after independence.

Reason (R): Both public and private sectors were allowed to operate.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A | Page Reference: Page 17

Important Exam-Based Concept Questions

These important descriptive and analytical questions from Indian Economy 1950–1990 are useful for board examinations and competitive exams. The questions focus on conceptual understanding, planning strategies, industrialisation and agricultural development.

  • 1. Explain the meaning and objectives of economic planning in India.
    Page Reference: Page 18–19
  • 2. Discuss the features of mixed economy adopted by India after independence.
    Page Reference: Page 17
  • 3. Explain the role of Planning Commission in economic development.
    Page Reference: Page 18
  • 4. Discuss the industrial strategy followed during the Second Five Year Plan.
    Page Reference: Page 20
  • 5. Explain the importance of public sector in Indian economy.
    Page Reference: Page 21
  • 6. Discuss the Industrial Policy Resolution of 1956.
    Page Reference: Page 21
  • 7. Explain the concept and objectives of industrial licensing policy.
    Page Reference: Page 21
  • 8. Discuss the importance of land reforms after independence.
    Page Reference: Page 22
  • 9. Explain the policy of import substitution.
    Page Reference: Page 23
  • 10. Discuss the meaning and importance of self-reliance.
    Page Reference: Page 23
  • 11. Explain the causes and features of Green Revolution.
    Page Reference: Page 24
  • 12. Discuss the achievements and limitations of Green Revolution.
    Page Reference: Page 24–25
  • 13. Explain the role of Public Distribution System in India.
    Page Reference: Page 25
  • 14. Discuss the objectives and impact of bank nationalisation.
    Page Reference: Page 26
  • 15. Explain the major achievements and shortcomings of Indian economic policies during 1950–1990.
    Page Reference: Page 18–26
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