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Set – 1



  1. What is Planning Commission? Discuss the objectives of planning in India.

Ans 1.

Planning Commission

The Planning Commission was an institution in the Government of India, which formulated India’s Five-Year Plans, among other functions. Established in March 1950 under the chairmanship of the then Prime Minister Jawaharlal Nehru, the Commission was tasked with promoting a rapid rise in the standard of living of the people by efficient exploitation of the country’s resources, increasing production, and offering opportunities to all for employment in the service of the community. The Planning Commission was responsible for making assessments of the material,

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  1. Define economic development. Express any 4 differences between economic growth &economic development.

Ans 2.

Economic Development

Economic development refers to the process by which the overall health, well-being, and academic level of the general population improve. It is a comprehensive term that encapsulates various indicators of human progress and quality of life, including increased per capita income, better education, improved healthcare, and greater opportunities for employment. Unlike mere economic growth, which is a narrow measure focusing primarily on the increase in the



  1. Discuss in detail the different types of reforms which came up in India because of Liberalisation.

Ans 3.

Reforms in India Due to Liberalisation

The liberalisation of the Indian economy, initiated in 1991, marked a significant shift from a predominantly controlled and regulated economic framework to a more open and market-oriented economy. This transformative phase brought about various structural reforms aimed at enhancing economic efficiency and integration with the global economy. The reforms can be broadly categorized into


SET – 2



  1. Discuss the role of public sector in economic development.

Ans 4.

The public sector plays a crucial role in the economic development of a country, serving as a foundation for growth, stability, and social welfare. This role encompasses various dimensions, from acting as a regulator and facilitator to being a direct participant in the economy. Below, the major functions and impacts of the public sector on economic development are



  1. What is national income? Discuss any 4 types of unemployment.

Ans 5.

National Income

National income is the total value of all the goods and services produced by a country over a specific period, typically measured annually. It represents the aggregate economic output of a country and is a critical indicator of economic performance. National income encompasses various forms of income, including wages earned by workers, profits made by companies, and rents received by landowners. It is calculated through different methods, including the Gross Domestic Product (GDP), Gross National Product (GNP), and Net National Product (NN


  1. Discuss in detail the importance of service sector in the Indian scenario.

Ans 6.

Importance of the Service Sector in the Indian Scenario

The service sector has emerged as the most significant and dynamic component of the Indian economy, both in terms of its contribution to national income, employment, and its role in economic transformation. Over the past few decades, this sector has become the dominant area of economic activity, and its importance continues to grow, reflecting broader global trends toward service-