Indian Economy Case Study Examples
Case Study (1-4)
For ages, farmers in India have taken recourse to debt. In the earlier times, the same was from informal sources. Since Independence with the efforts of the government, the formal sector has actively come into the picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainly of income caused by factors likes crop failure caused by irregular rainfall, reduction in the groundwater table, locust/other pest attacks, etc. These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.
Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short, to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.
Some economists argue that such schemes are extremely beneficial to the poor and marginalized farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.
Q1) Uncertainty of income for farmers in India is majorly caused by___________ (irregular rainfall/ unavailability of loans).
Ans.) Irregular rainfall
Q2) Some economics argue that debt waiver schemes are extremely beneficial to the poor and marginalized farmers, as these schemes reduce the burden of____________ (indebtedness/ personal expenditures).
Q3) The rural banking structure in India consists of a set of multi-agency institutions___________ (Regional Rural Banks/ Small Industries Development Bank of India) is expected to dispense credit at cheaper rates for agricultural purposes to farmers.
Ans.) Regional Rural Banks
Q4) ____________ (Regional Rural Banks/ Land Development Banks) is the most prominent body responsible for providing loans for long term land development.
Ans.) Land Development Banks
Case Study (5-8)
In India, most of the people who are suffering from poverty cannot afford to pay for a single meal a day. In addition, they do not get proper healthy and nutritious food, neither medicine nor any other necessary thing. The rate of poverty in India is increasing because of the increase in the urban population. The rural people are migrating to cities to find better employment. Most of these people find an underpaid job or an activity that pays only for their food. Most importantly, around crores of urban people are below the poverty line and many of the people are on the borderline of poverty. Besides, a huge number of people live in low-lying areas or slums. These people are mostly illiterate and despite efforts, their condition remains the same and there is no satisfactory result.
Q5) The official data on poverty is made available to the public by the__________ (Planning Commission/ Ministry of Education).
Ans.) Planning Commission
Q6) Economists identify the poor on the basis of their) ___________ (Occupation/academic qualification).
Q7) In 2011-12, for rural areas, the poverty line was defined as consumption worth (Rs 1,000/Rs 816) per person a month.
Ans.) Rs 816
Q8) The rate of poverty in India is increasing because of the increase in the__________(rural/urban) population.
Case Study (9-12)
The most heated and debated topic not only in India but in the entire world is to eradicate extreme poverty by 2030. Poverty is a socio-economic incident and it is closely related to the disparity. Due to poverty, it becomes close to impossible to fulfill even the bare requirement of life viz; food, clothing, shelter, education, and health in the deprived section of society. From 1993-94 to 2011-12, national poverty estimates are reduced from 50.1% to 25.7% in rural areas on the contrary in urban areas, its rate of reduction is from 31.8% to 13.7%. In India, the poverty rate is declined by 17.89%from 1993 to 2004 and further declined by 41.13%from 2004 to 20111 (as per Tendulkar Committee estimates). As per the SDG India Index Baseline report 2018, 21.92% of India’s population was below the poverty line in 2011. With the above backdrop, we focus on the poverty alleviation programs in India with special regard to Sustainable Development Goals.
Q9) The government’s approach to poverty reduction was of__________(three/four) dimensions.
Q10) When the number of poor is estimated as the proportion of people below the poverty line, it is known as__________ (Worker Population Ratio/Head Count Ratio).
Ans.) HeadCount Ratio
Q11) In August 2005, the parliament of India passed the_________(MGNREGA/competition) Act to provide guaranteed wage employment to every household whose adult volunteer is to do unskilled manual for a minimum of 100 days in a year.
Ans.) MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act)
Q12) ‘Jail cost of living’ was a criterion formulated by_______________ (Amartya Sen/Dadabhai Naoroji) to determine the minimum of 100 days in a year.
Ans.) Dadabhai Naoroji
Case Study (13-16)
Human capital can be defined as the body of knowledge possessed by the population and the capacity of the population to use the knowledge effectively. Until the late 1950s, no economist and any other social scientist did pay much attention to the role of investment in human beings as an important determinant of economic development. The birth of this idea can be dated from the presidential address of Prof. Theodore W. Schultze to the American Economic Association in December 1960. As a result, the concept of human capital formation came into the limelight. A circular relationship between human development and economic growth has come to be established. Economic growth creates conditions for better health and education facilities; which in turn spur economic growth.
Q13) Human Capital Formation came into existence in________ (1950/1960).
Q14) Economists say that the main key player of economic development is___________ (Human capital/Physical capital).
Ans.) Human capital
Q15) In_________(Fifth/Seventh) Five Year Plan, India emphasized on human capital formation.
Q16) ___________ (Economic growth/Economic development) means an improvement in the quality of life and living standards, e.g., measures to literacy, life expectancy, and health care.
Ans.) Economic development
Case Study (17-20)
Human Capital, Intangible collective resources possessed by individuals and groups within a given population. These resources include all the knowledge, talents, skills, abilities, experience, intelligence, training, judgment, and wisdom possessed individually and collectively, the cumulative total of which represents a form of wealth available to nations and organizations to accomplish their goals. The concept of human capital stems from the economic model of human-resource capitalism, which emphasizes the relation between improved productivity or performance and the need for continuous and long-term investments in the development of human resources. Investments in human capital are viewed as affecting national and global economic performance or, more narrowly, where investments in people are viewed as crucial to organization performance. For an organization, this model suggests that high productivity and performance depend on developing learning systems that reflect the commitment of an organization to its human resources. As a result, ongoing investments in training, skill development, and job enrichment engender a reciprocal commitment among members to organizational goals and objectives.
Q17) The stock of skill and expertise of a nation at a point in time is called__________(physical/human) capital.
Q18) Workers may be trained in the firm itself under the supervision of skilled labor is a form of__________(off-the-job/on-the-job) training.
Q19) _________ (Economic Development/ Human Development) is based on the idea that education and health are integral to human well-being.
Ans.) Human Development
Q20) _________ (Unemployment/Health facilities) is/are the reason for rural-urban migration in India.