top of page
BCOG-172: Indian Economy

BCOG-172: Indian Economy

IGNOU Solved Assignment Solution for 2022-23

If you are looking for BCOG-172 IGNOU Solved Assignment solution for the subject Indian Economy, you have come to the right place. BCOG-172 solution on this page applies to 2022-23 session students studying in BCOMG courses of IGNOU.

Looking to download all solved assignment PDFs for your course together?

BCOG-172 Solved Assignment Solution by Gyaniversity

Assignment Solution

Assignment Code: BCOG-172/TMA/2022-23

Course Code: BCOG-172

Assignment Name: Indian Economy

Year: 2022-2023

Verification Status: Verified by Professor

 

Attempt all the questions.

Section A

 

Q1) Discuss the role of non-economic factors in economic development.

Ans) Economic development is a multifaceted process that involves the growth and diversification of an economy. While economic factors such as infrastructure, trade policies, and investments play a significant role in this process, non-economic factors such as social, cultural, and political factors also play an important role.

 

One important non-economic factor is the level of education and human capital. Education is a crucial determinant of economic growth, as it contributes to the development of a skilled workforce, increased productivity, and innovation. A well-educated population can create a positive environment for innovation, creativity, and entrepreneurship. Education also has a significant impact on social and cultural factors such as attitudes towards innovation, risk-taking, and cooperation.

 

Another non-economic factor that impacts economic development is social capital, which refers to the level of trust, cooperation, and shared values within a society. Social capital can facilitate economic development by reducing transaction costs, increasing efficiency, and promoting entrepreneurship. A high level of social capital can also create a favourable environment for the development of institutions and policies that support economic growth.

 

Political stability and good governance are also critical non-economic factors that impact economic development. A stable political environment can provide a conducive environment for economic growth by promoting investment, reducing uncertainty, and increasing the confidence of investors. Good governance can ensure that public resources are used efficiently and effectively, and policies are developed in the interest of the public. This, in turn, can lead to the development of institutions that support economic growth.

 

Cultural factors, such as values and beliefs, can also play a significant role in economic development. For instance, cultural attitudes towards entrepreneurship and innovation can affect the level of risk-taking, investment, and innovation in an economy. Cultural factors can also influence the level of social capital, which can have a significant impact on economic growth.

In conclusion, non-economic factors such as education, social capital, political stability, good governance, and culture, can have a significant impact on economic development. These factors are often interrelated and can influence each other. Therefore, a comprehensive understanding of these non-economic factors is critical for promoting sustainable economic development.

 

Q2) Discuss the main features of the mixed economy followed by India after independence.

Ans) India's economy after independence in 1947 was primarily agrarian, and the government played a dominant role in shaping economic policies. The Indian economy adopted a mixed economic model that aimed to balance public and private sectors and promote economic growth while ensuring social welfare. The main features of the mixed economy followed by India after independence are as follows:

 

  1. Public Sector: The government played a dominant role in the public sector, which included key industries such as banking, telecommunications, railways, and defense. The public sector was viewed as a critical instrument for economic growth and was responsible for creating essential infrastructure and employment opportunities.

  2. Private Sector: The private sector was allowed to operate alongside the public sector, although it faced significant regulatory controls. The private sector was primarily responsible to produce consumer goods and services, including textiles, automobiles, and electronics.

  3. Industrialization: India's mixed economy model emphasized industrialization as a means of promoting economic growth and reducing dependence on agriculture. The government implemented policies such as import substitution and protectionism to promote domestic industries.

  4. Planning: India's mixed economy model was characterized by planning and regulation. The government set up a planning commission that was responsible for formulating five-year plans to guide economic growth and development.

  5. Social Welfare: The mixed economy model followed by India aimed to ensure social welfare through various policies and programs, including subsidies, price controls, and poverty alleviation programs. The government played a critical role in providing basic services such as healthcare and education.

  6. Liberalization: In the 1990s, India began to move away from its traditional mixed economy model and embraced liberalization and market-oriented reforms. The government dismantled many regulatory controls and privatized several state-owned enterprises.

 

In conclusion, India's mixed economy model after independence aimed to promote economic growth while ensuring social welfare. The model emphasized public sector dominance, industrialization, planning and regulation, and social welfare policies. While the model was successful in achieving many of its goals, India has since embraced liberalization and market-oriented reforms to meet the challenges of globalization and international competition.


Q3) Explain the concept of human capital. What role does it play in an economy?

Ans) Human capital refers to the knowledge, skills, abilities, and other attributes possessed by individuals that are valuable in the marketplace. These attributes can be developed through education, training, and experience and can enhance an individual's ability to contribute to economic productivity and growth. Human capital is a critical component of an economy and plays a significant role in its development.

 

  1. Firstly, human capital contributes to productivity and innovation. A skilled and knowledgeable workforce can increase the productivity of an economy by producing more goods and services in less time. They can also innovate by introducing new products, services, and technologies that can create new markets and increase productivity.

  2. Secondly, human capital is a critical determinant of economic growth. An increase in the level of human capital in an economy can led to increased investment, higher productivity, and economic diversification. It can also help an economy to move towards a knowledge-based economy by encouraging the development of high-value-added industries that rely on innovation and technology.

  3. Thirdly, human capital can lead to a reduction in poverty and inequality. By investing in education and training, individuals can increase their earning potential and improve their economic well-being. This can also have a positive effect on the economy, by increasing consumer demand and promoting economic growth.

  4. Fourthly, human capital can contribute to the development of social capital. Social capital refers to the networks, relationships, and social norms that enable individuals to work together effectively. Human capital can contribute to social capital by promoting trust, cooperation, and shared values within a society. This, in turn, can lead to a more productive and cohesive society.

 

In conclusion, human capital is a critical component of an economy, contributing to productivity, innovation, economic growth, poverty reduction, and social capital. Investment in human capital through education and training is therefore essential for promoting sustainable economic development and improving the well-being of individuals and society.

 

Q4) Discuss the measures adopted by the government to reduce poverty in India.

Ans) The key measures adopted by the government to reduce poverty in India are:

  1. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): MGNREGA was launched in 2005 to provide employment opportunities to rural households, guaranteeing 100 days of wage employment in a year to a rural household whose adult members volunteer to do unskilled manual work.

  2. National Food Security Act (NFSA): The NFSA was enacted in 2013, which aims to provide subsidized food grains to the poorest of the poor. It covers around 75% of the rural population and 50% of the urban population.

  3. Pradhan Mantri Jan Dhan Yojana (PMJDY): PMJDY was launched in 2014 with the objective of providing access to financial services to the unbanked population. It aims to provide a bank account to every household in the country, along with a RuPay debit card and insurance coverage.

  4. Swachh Bharat Abhiyan: Swachh Bharat Abhiyan was launched in 2014 with the objective of achieving a clean and open defecation-free India. It focuses on building toilets and proper sanitation facilities in rural and urban areas.

  5. National Rural Livelihood Mission (NRLM): NRLM was launched in 2011, which aims to reduce poverty by providing sustainable livelihood opportunities to rural households. It focuses on promoting self-employment and entrepreneurship by providing skill development training and financial support.

  6. Pradhan Mantri Awas Yojana (PMAY): PMAY was launched in 2015, which aims to provide affordable housing to the urban poor. It focuses on providing housing for all by 2022, with a special emphasis on the economically weaker sections and low-income groups.

  7. National Health Protection Scheme (NHPS): NHPS was launched in 2018, which aims to provide health insurance coverage to the poor and vulnerable sections of the society. It provides coverage of up to Rs. 5 lakh per family per year for secondary and tertiary hospitalization expenses.

 

These measures adopted by the government have helped in reducing poverty in the country to some extent. However, there is still a long way to go, and the government needs to focus on implementing these schemes effectively to achieve their objectives.

 

Q5) Analyse the causes of regional imbalance in India? Which cause(s) you consider to be of importance in the present condition?

Ans) Regional imbalance in India is a significant issue that has been prevalent for a long time. The country has been facing disparities in terms of economic growth, infrastructure development, and employment opportunities across different regions. The following are some of the main causes of regional imbalance in India:

 

  1. Historical Factors: The historical factors like the British colonial rule, regional kingdoms, and princely states have led to the uneven distribution of resources and opportunities across regions.

  2. Physical Geography: India's physical geography, such as the presence of deserts, mountains, and rivers, has resulted in uneven distribution of resources, leading to differences in economic growth and development across regions.

  3. Infrastructure Development: The lack of adequate infrastructure development in certain regions, such as roads, transportation, and communication facilities, has led to a lack of connectivity and accessibility, which in turn has resulted in low economic growth.

  4. Uneven Industrialization: Industrialization has been uneven across regions, with some areas experiencing rapid growth while others remain underdeveloped. This uneven industrialization has resulted in disparities in income and employment opportunities.

  5. Government Policies: The government's policies have not always been equitable, with some regions receiving preferential treatment while others have been neglected, leading to regional disparities.

  6. Migration: Migration of skilled and unskilled workers from underdeveloped regions to developed ones has led to an imbalance in the availability of resources and opportunities across regions.

 

In the present condition, the lack of infrastructure development and uneven industrialization are the most important causes of regional imbalance in India. The lack of adequate infrastructure development has led to a lack of connectivity and accessibility, which has resulted in low economic growth. The uneven industrialization has resulted in disparities in income and employment opportunities, leading to the migration of workers from underdeveloped regions to developed ones. To address regional imbalances, the government needs to focus on infrastructure development in underdeveloped regions and provide incentives to attract investments and industries to these areas. The government should also introduce policies that promote balanced regional development and ensure that there is equitable distribution of resources and opportunities across all regions of the country.

 

Section B

 


Q6) What are the important contributions that agriculture makes according to Simon Kuznet?

Ans) The important contributions that agriculture makes according to Simon Kuznet are:

 

  1. Supply of Food: Agriculture is the primary source of food supply, and the availability of food is a prerequisite for the growth and development of a nation.

  2. Supply of Raw Materials: Agriculture provides raw materials for various industries, such as textiles, sugar, jute, and tobacco, which contribute to the industrial growth of the country.

  3. Source of Employment: Agriculture is a labour-intensive sector and provides employment to a significant percentage of the population. In developing countries like India, where most of the population lives in rural areas, agriculture is a significant source of livelihood.

  4. Export Earnings: Agriculture products such as tea, coffee, spices, and cotton contribute significantly to the export earnings of a country, helping to boost its foreign exchange reserves.

  5. Market for Industrial Products: Agriculture is a significant market for industrial products like fertilizers, pesticides, and farm equipment, which are essential for increasing agricultural productivity and output.

 

Q7) “The Green Revolution was a watershed in Indian agriculture” Elaborate.

Ans) The Green Revolution was a significant transformation in Indian agriculture, which started in the 1960s and continued throughout the 1970s. It was a watershed moment that brought about a significant increase in agricultural productivity and output. The following are some of the reasons why the Green Revolution was a watershed in Indian agriculture:

  1. Increased Crop Yield: The Green Revolution brought about a significant increase in crop yield due to the introduction of new high-yielding varieties of seeds, use of fertilizers and pesticides, and improved irrigation facilities.

  2. Food Security: The Green Revolution helped to achieve food security by increasing food production, reducing the country's dependence on food imports, and ensuring the availability of food for the growing population.

  3. Employment Opportunities: The Green Revolution created employment opportunities in rural areas through the expansion of agricultural activities and the development of Agro-based industries.

  4. Technological Advancements: The Green Revolution brought about technological advancements in the agricultural sector, such as the development of farm machinery, which increased productivity and efficiency.

  5. Economic Growth: The Green Revolution contributed to the overall economic growth of the country by increasing agricultural output and exports, generating foreign exchange, and boosting rural incomes.

 

Q8) Why is private sector growing fast since 1991 in Indian economy?

Ans) The Indian economy underwent significant changes in the 1990s, with the introduction of economic reforms, liberalization, and globalization. These changes paved the way for the growth of the private sector in India.

The following are some of the reasons why the private sector has been growing rapidly since 1991:

  1. Policy Reforms: The Indian government introduced policy reforms that created a favourable business environment for the private sector. The liberalization of the economy and the easing of regulations made it easier for private companies to do business.

  2. Investment Opportunities: The opening of the economy and the relaxation of regulations created new investment opportunities in various sectors, attracting both domestic and foreign investors.

  3. Entrepreneurial Spirit: The Indian population has a strong entrepreneurial spirit, and the reforms of the 1990s provided a platform for individuals to start their businesses, leading to the growth of the private sector.

  4. Technology Advancements: The advancements in technology and communication have enabled private companies to access new markets and expand their operations, contributing to their growth.

  5. Competitive Environment: The liberalization of the economy and the entry of new players created a competitive environment that encouraged private companies to innovate, improve efficiency, and offer better products and services to consumers.

 

Q9) Explain the various initiatives taken by the Government to help the growth of MSMEs.

Ans) The Micro, Small, and Medium Enterprises (MSME) sector plays a crucial role in the Indian economy by providing employment and contributing to economic growth. The government has taken several initiatives to promote the growth of MSMEs in the country.


Some of these initiatives include:

  1. Credit Guarantee Fund Scheme: The government has introduced the Credit Guarantee Fund Scheme to provide collateral-free loans to MSMEs.

  2. Prime Minister's Employment Generation Programme (PMEGP): The PMEGP scheme aims to promote self-employment among educated youth and provide opportunities for them to start their businesses.

  3. Udyog Aadhaar: The Udyog Aadhaar scheme provides a unique identification number to MSMEs and simplifies the registration process, making it easier for them to access various schemes and benefits.

  4. Technology Upgradation: The government provides financial assistance to MSMEs to upgrade their technology and equipment to enhance their productivity and competitiveness.

  5. Marketing Assistance: The government provides support to MSMEs to access new markets and participate in trade fairs and exhibitions to promote their products.

  6. Skill Development: The government has initiated several schemes to promote skill development among MSMEs to improve their productivity and efficiency.

  7. Cluster Development Programme: The Cluster Development Programme aims to enhance the competitiveness of MSMEs by providing support for common infrastructure, technology upgradation, and market development.

 

Q10) Explain the importance of WTO.

Ans) The World Trade Organization (WTO) is a global organization that aims to promote free and fair trade among member countries. The importance of WTO can be seen in the following ways:

  1. Promotes Free and Fair Trade: The WTO promotes free and fair trade by setting rules and regulations that govern international trade, reducing trade barriers, and resolving trade disputes between member countries.

  2. Provides a Platform for Negotiations: The WTO provides a platform for member countries to negotiate and make agreements on various trade-related issues, such as tariffs, quotas, and subsidies.

  3. Enhances Economic Growth: The WTO helps to enhance economic growth by promoting international trade, increasing market access, and creating opportunities for businesses to expand their operations globally.

  4. Ensures Fair Treatment: The WTO ensures that member countries are treated fairly in international trade by promoting transparency, non-discrimination, and equal treatment.

  5. Supports Development: The WTO supports development in developing countries by providing technical assistance and capacity-building programs, which help them to participate effectively in international trade and benefit from it.

  6. Encourages Innovation and Competition: The WTO encourages innovation and competition by promoting the protection of intellectual property rights and preventing anti-competitive practices that can hinder economic growth.


 

Section C 


Q11) Write short notes on the following:

 

(a) Hydro power

Ans) Hydropower is a renewable source of energy that harnesses the energy of flowing water to generate electricity. It is considered one of the cleanest and most reliable sources of renewable energy. Hydropower works by using the kinetic energy of flowing water to turn a turbine, which then powers a generator to produce electricity. There are various types of hydropower, including large-scale hydroelectric dams, run-of-river systems, and pumped-storage systems. One of the biggest advantages of hydropower is that it is a clean and renewable source of energy that produces zero emissions. It is also a reliable source of energy that can be easily adjusted to meet changing demand. However, the construction of large dams can have significant environmental impacts, and there are concerns about their safety and potential to cause damage if they fail. Despite these challenges, hydropower remains a key part of the global energy mix and is likely to continue to play an important role in the transition to a more sustainable energy future.

 

(b) Poverty line

Ans) The poverty line is a level of income that is considered the minimum required to meet basic needs such as food, clothing, and shelter. It is used as a measure of poverty and is used to determine the number of people living below the poverty line. The poverty line varies depending on factors such as location, family size, and composition. In India, the poverty line is determined by the Planning Commission and is updated regularly based on changes in prices.

 

The poverty line is an important tool for measuring poverty and for developing policies and programs aimed at reducing poverty. It is used to determine eligibility for various social welfare programs and is also used to monitor progress in poverty reduction over time. However, there is ongoing debate about the adequacy of the poverty line and whether it accurately reflects the true level of poverty in each society. Some critics argue that the poverty line is too low and does not capture the full extent of poverty, particularly in developing countries. Others argue that the poverty line is too high and that it does not accurately reflect the minimum required to meet basic needs.

 

(c) Ever green technology

Ans) Evergreen technology refers to technologies that are designed to have a long lifespan and to be sustainable over the long term. These technologies are designed to reduce waste, conserve resources, and minimize environmental impacts. Examples of evergreen technologies include renewable energy sources such as wind, solar, and geothermal, as well as energy-efficient building materials, appliances, and transportation systems. The goal of evergreen technology is to promote sustainability and reduce the environmental impact of human activities. By adopting evergreen technologies, we can reduce our reliance on non-renewable resources and minimize the waste and pollution associated with traditional manufacturing and production processes.

 

Evergreen technology is becoming increasingly important as we face growing environmental challenges such as climate change and resource depletion. It offers a sustainable alternative to traditional technologies and can help us build a more resilient and sustainable future. By investing in evergreen technologies, we can reduce our impact on the environment, promote sustainable development, and create a more equitable and prosperous world for all.

 

(d) Trade in services

Ans) Trade in services refers to the exchange of services between countries. Services include a wide range of activities, such as transportation, tourism, financial services, telecommunications, and information technology. Trade in services is becoming increasingly important as the global economy becomes more interconnected and service industries continue to grow. The General Agreement on Trade in Services is the international agreement that governs trade in services. The GATS sets out rules for the liberalization of trade in services and provides a framework for negotiating new agreements to further liberalize trade in services. Trade in services offers many benefits, including increased economic growth, job creation, and access to new markets. However, there are also challenges associated with trade in services, such as the potential for job displacement and the need to protect sensitive sectors such as healthcare and education.

 

Q12) Distinguish between the following:

 

(a) Underdevelopment and development

Ans) Underdevelopment and development are two terms that are often used to describe different stages of economic and social progress.

 

Underdevelopment refers to a situation where a country or region is characterized by low levels of economic growth, limited access to basic services such as healthcare and education, and high levels of poverty and inequality. Underdeveloped countries typically have weak institutional frameworks, limited infrastructure, and a lack of investment in human capital.

 

Development, on the other hand, refers to a process of sustained economic growth and social progress. Developed countries typically have strong institutional frameworks, robust infrastructure, and a highly educated workforce. They also tend to have high levels of economic productivity and innovation.

 

The distinction between underdevelopment and development is not always clear-cut, and there is ongoing debate about the best way to promote development and reduce underdevelopment. Some argue that development should focus on economic growth, while others argue that it should prioritize social progress and human well-being. Ultimately, the goal of development is to create a more equitable and sustainable world, where all individuals can lead healthy, fulfilling lives.

 

(b) Industrial sector reforms and financial sector reforms

Ans) Industrial sector reforms and financial sector reforms are two types of economic reforms that are designed to promote economic growth and development.

 

Industrial sector reforms focus on improving the performance of industries and businesses by reducing government intervention and increasing competition. These reforms typically involve deregulation of industries, privatization of state-owned enterprises, and liberalization of trade policies. The goal of industrial sector reforms is to promote efficiency and competitiveness, leading to increased economic growth and job creation.

 

Financial sector reforms, on the other hand, are aimed at improving the performance of financial markets and institutions. These reforms typically involve the deregulation of financial markets, the strengthening of regulatory frameworks, and the promotion of financial innovation. The goal of financial sector reforms is to promote financial stability, increase access to credit and financial services, and support economic growth.

 

While industrial sector reforms and financial sector reforms are distinct, they are often interrelated. Improvements in the financial sector can support the growth of businesses and industries, while improvements in industrial performance can help to drive economic growth and create opportunities for financial institutions. Together, these reforms can help to create a more dynamic and prosperous economy.

 

(c) Tertiary education and primary education

Ans) Tertiary education and primary education are two different levels of education that serve different purposes in the overall education system.

 

Primary education, also known as elementary education, is the first stage of formal education, typically provided to children between the ages of 5 and 11 years. Primary education focuses on basic literacy and numeracy skills, as well as social and emotional development. The goal of primary education is to provide children with a strong foundation in learning and prepare them for higher levels of education.

 

Tertiary education, on the other hand, is education at the college or university level, typically provided to students who have completed secondary education. Tertiary education includes undergraduate and graduate programs and focuses on specialized knowledge and skills in specific fields of study. The goal of tertiary education is to prepare students for careers in their chosen fields and to develop critical thinking and problem-solving skills.

 

While primary education is a prerequisite for tertiary education, they serve different purposes and require different levels of preparation and skills. Primary education provides a foundation for learning and prepares students for more advanced education, while tertiary education provides specialized knowledge and skills for professional and academic advancement. Both types of education are important components of a well-functioning education system.


(d) Public sector and private sector

Ans) Public sector and private sector are two different types of organizations that operate in different ways and serve different purposes.

 

Public sector organizations are owned and operated by the government and are responsible for providing essential public goods and services such as healthcare, education, and infrastructure. Public sector organizations are funded by taxes and operate under government regulations and policies. The primary goal of public sector organizations is to serve the public interest and promote the social welfare of citizens.

 

Private sector organizations, on the other hand, are owned and operated by individuals or groups of individuals and are primarily driven by profit motives. Private sector organizations operate in a competitive market environment and are subject to market forces such as supply and demand, pricing, and consumer preferences. The primary goal of private sector organizations is to maximize profits for their owners or shareholders.

 

While public sector and private sector organizations are distinct, they are often interrelated and work together to support economic growth and development. Public sector organizations provide essential services and infrastructure, while private sector organizations drive innovation, job creation, and economic growth. A healthy balance between the public and private sectors is important for promoting overall economic and social well-being.

100% Verified solved assignments from ₹ 40  written in our own words so that you get the best marks!
Learn More

Don't have time to write your assignment neatly? Get it written by experts and get free home delivery

Learn More

Get Guidebooks and Help books to pass your exams easily. Get home delivery or download instantly!

Learn More

Download IGNOU's official study material combined into a single PDF file absolutely free!

Learn More

Download latest Assignment Question Papers for free in PDF format at the click of a button!

Learn More

Download Previous year Question Papers for reference and Exam Preparation for free!

Learn More

Download Premium PDF

Assignment Question Papers

Which Year / Session to Write?

Get Handwritten Assignments

bottom of page