These notes for CBSE Class 11 Economics, Chapter 11, focus on Development Policies and Experience from 1950 to 1990. They explain economic planning as the utilization of national resources according to priorities, with objectives like growth (increasing GDP), modernization (adopting new technology and changing social outlook), self-reliance (reducing dependence on imports), and equity (equal distribution of income and wealth). The notes detail the development of the agriculture sector through land reforms, land ceiling, and the Green Revolution. They also cover the industrial sector's development, emphasizing public enterprises, import substitution, and protection for domestic industries. Finally, the foreign trade strategy adopted was inward-looking, focusing on import substitution to save foreign exchange. These notes provide a comprehensive overview for students preparing for their exams.
Last optimized 10 Aug 2026
1 Meaning of economic planning
2 Objectives of planning
3 Agricultural sectors
4 Industrial sectors
5 Foreign trades
1. What is Economic Planning?
Ans : - It means utilization of country’s resources into different development. Activities in
accordance with the national priorities.
2. When was planning commission set up ?
Ans : - It was set up in 1950.
3. When was National development council set up?
Ans : - It was set up in 1952
4. Mention the objectives or goals of planning in India. Briefly explain it.
Ans : - The goals or objectives of planning in India are as follows:
i) Growth: -
It refers to increase in the country’s capacity to produce the output of goods and services
within the country. It implies either a large stock of productive capital or an increase in the
efficiency of productive capital and services like transport, banking & communication etc.
In other words, it means steady increase in the gross domestic product (GDP). It is necessary
to produce more goods and services if the country need to achieve higher growth level.
(ii) Modernization:-
It is necessary to adopt new technology in order to increase production of goods & services.
Adoption of new technology is called modernization.
However, modernization does not refer only to the use of new technology but also to change in
social outlook such as women empowerment . A modern society makes use of the talents of
women in the work place so that the society will be more civilized and prosperous
(iii) Self reliance:-
It refers to utilization of country’s resources in order to promote economic growth and
modernization without using the resources imported from other countries. It means avoiding
imports of those goods which could be produced in India itself.
It is necessary in order to reduce our dependence on foreign countries in order to
safeguard the sovereignty of our country and unnecessary foreign interference in our polices.
(iv) Equity:-
It means equal distribution of income and wealth among the societies. It is important to
ensure that the benefits of economic development should reach the poor sections of the society as
well instead of being enjoyed by the rich. It is necessary that every people of a country should be
able to meet their basic needs such as food, education, health facilities in order to reduce the
inequality
5. Mention the development of Agriculture sector between 1950-1990
Ans : (i) Land reforms :Land reforms were initiated in order to bring equity in ownership of
landholdings. It was decided to establish intermediaries and to make the tillers of the owners of
land. It gives the tillers the incentives to invest in making improvements in land provided
sufficient capital was made available to them.
(ii) Land Ceiling : If refers to fixing the maximum size of land which could be owned by an individual. The
purpose of land ceiling was to reduce the concentration of land ownership in a few hands and to
promote equality in the agricultural sector.
(iii) Green Revolution: It refers to large increase in reduction of food grains resulting form the use of High
yielding variety (HYV) seeds. The use of fertilizers, pesticides, irrigation facilities is important
along with HYV seeds in order to increase agricultural productivity & production. The farmers
should be provided adequate financial resources in order to purchase agricultural inputs.
Q6. Mention the development of Industrial sector between 1950-1990
Ans : 1) Public enterprises were played a central role in the process of Industrialization
2) Private enterprises were to play only a secondary role in the process of industrialization. It
means private sector were to obtain a license for their industrial establishments and to produce
goods within the prescribed limits of production capacity.
3) Major thrust was given to import substitution. It means production of such goods were to be
accorded high priority which were imported from abroad. It was necessary to achieve the
objective of growth with self reliance.
4) Domestic industries were given protection from foreign competition and it was done through
(i) Heavy duty in imports
(ii) Large – scale industry was to be developed with a view to build an
infrastructural base in country.
Q7. Mention the development of foreign trade between 1950-1990
Ans : - Inward looking trade strategy was adopted as foreign trade policy . This strategy is called
import substitution. It aims at replacing or substituting imports with domestic production.
Domestic industry is offered protection from foreign competition through import duties.
Its main objective was to save foreign exchange by encouraging domestic production of such
goods which could be imported from rest of the world.
The Government protected the domestic
industries from competition through tariffs and quotas. Through imposition of tariffs and quotas,
the government restricted the imports of goods and thereby protecting the domestic firms from
foreign competition.
Q.8 what is marketed Surplus?
The excess portion of agriculture produce which is sold into the market by the farmers is
called marketed surplus.
Economic planning means utilizing a country's resources for various development activities according to national priorities.
The Planning Commission was set up in 1950.
The main objectives are Growth, Modernization, Self-reliance, and Equity.
The Green Revolution refers to a large increase in food grain production resulting from the use of High-Yielding Variety (HYV) seeds and other modern agricultural inputs.
Import substitution is a trade strategy aimed at replacing or substituting imports with domestic production to save foreign exchange.
Land ceiling refers to fixing the maximum size of land that an individual can own, aiming to reduce land ownership concentration and promote equality.
Marketed surplus is the portion of agricultural produce that farmers sell in the market.
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