Question

Gandian thoughts and its impact on indian economy

Answer 1

Answer:

Explanation:For attaining smooth development of the economy, it is imperative to develop all the regions of the country simultaneously. The overall progress of the entire economy depends on the balanced development of all the regions. In India there exists a huge regional disparity. In relative terms some states are advanced economically and others are backward. Within a state to some districts are more backward than the rest. In West Bengal, for example, the northern part of the state popularly known as 'North Bengal' comprising six districts are relatively backward than the 'South Bengal' districts in terms of productivity in agriculture, industry, educational development, health facilities, etc. Even within the South Bengal region of West Bengal state, there are some districts like Purulia, Bankura etc. which are underdeveloped if we compare them with some districts like Burdwan and Hughly. In this context, Gandhian economics is relevant for it supports the attainment of self-sufficiency level in industrialization and uniform economic pattern for each region. The Gandhian economics is of the view that every man should increase his personal income and standard of living by exploiting the existing natural and human resources fully in an eco-friendly manner.

In line with Gandhi's dream of expanding village industries, industrial policy resolutions of 1948, 1956 and 1977 were specially favourable for the development of small scale and village industries. The village and small-scale industries have been playing an important role in Indian economy in terms of employment generation and poverty alleviation. This is due to fact that these industries are labour-intensive and capital saving. The total employment created by these industries, for example were 39,70,000 in 1973-74. This rose to 1,29,80,000 in 1991-92. According to Economic Survey, 2000-2001, the estimated employment of the cot­tage and small-scale sector again rose to 1,78,50,000. The growth rate of this sector during 1991-92 to 1,99,9­2,000 was around 4 per cent. This sector's contribution towards exports during the same period in value term has increased from Rs. 9,100 crore to Rs. 36,470 crores. This shows a growth rate of over 300 per cent. In the post-reform period, khadi and village industries play an important part in providing employment opportunities to disadvantaged groups. These industries have spread in about 2,50,000 villages out of total 5,81,000 villages of India in 1997-98. In order to be more competi­tive in the world market the Khadi and Village Industries Commission has introduced Khadi denim jeans and Sarvodaya brand. These are eco-friendly and bio-de­gradable natural products and have high demand in the world market. Mechanization in agriculture has increased productivity but at the same time reduced employment opportunity. This fact has been supported, among others, by S. Valla of JNU. Naturally stress should be laid on the creation of rural employment opportunity in the non-farm sector.

The Gandhian view of self-sufficient village economy is also relevant in the context of reducing poverty and unemployment in rural India. In 1972-73, 54.1 per cent people lived below the poverty line in rural India. This decreased slightly to 51.2 per cent in 1977-78. In 1983-84, it again fell down to 45.7 per cent. In 1993-94 this rate again came down to 37.3 per cent. In 1999-2000 it was roughly 30 per cent. The data presented here about poverty in rural India have been gath­ered from various issues of Economic Survey and Planning Commission. Although the poverty ratio has been declining, roughly one-third of the rural people still live in abject poverty. In order to improve the conditions of the rural poor it is necessary to expand rural industries further at a rapid rate. At the same time, it is essential to seriously review the rural anti-poverty programmes in the light of lapses noticed and in the context of formulating the Tenth Five Year Plan.