Question

(A) Green revolution transformed India from a subsistent food grain economy to a food surplus economy."

Justify the statement, giving reasons in support of your answer.

(B) “In order to protect domestic industries, India followed the regime of restrictions on imports."

Briefly outline and discuss such steps taken by the government to promote import substitution policy.

Answer 1

(A) Before the advent of Green Revolution, a large proportion of agricultural produce was consumed by the farmers themselves instead of being sold in the market. Green Revolution led to an increase in the growth of agricultural output.

After the Green Revolution, a greater proportion of the agro produce (wheat and rice) was sold by the farmers in the market. That led to the attainment of marketed surplus and converted India into a food surplus economy from the food scarce one.

(B) In order to protect domestic industries, India followed the import substitution policy. This policy aimed at substituting imports with domestic production.

The domestic industries were protected from foreign competition by using the following tools:

i. Tariffs: Tariffs are a tax on imported goods that make imported goods dearer and discourage their usage.

ii. Quotas: Quotas specify the quantity of goods that can be imported.