SURDS

SURDS

A surd is a square root which cannot be reduced to a rational number.

For example,  is not a surd.

However  is a surd.

If you use a calculator, you will see that  and we will need to round the answer correct to a few decimal places. This makes it less accurate.

If it is left as , then the answer has not been rounded, which keeps it exact.

Here are some general rules when simplifying expressions involving surds.

 

 

 

  1. aman = am + n
am am – n
an
   
  • (am)namn

 

  1. (ab)nanbn

 

a n = an
b bn
           
  1. a0= 1

 

 

Questions

Level-I

 

1. (17)3.5 x (17)? = 178
A. 2.29
B. 2.75
C. 4.25
D. 4.5

 

2.
If a x – 1 = b x – 3 , then the value of x is:
b a
A.
1
2
B. 1
C. 2
D.
7
2

 

3. Given that 100.48 = x, 100.70 = y and xz = y2, then the value of z is close to:
A. 1.45
B. 1.88
C. 2.9
D. 3.7

 

4. If 5a = 3125, then the value of 5(a – 3) is:
A. 25
B. 125
C. 625
D. 1625

 

5. If 3(x – y) = 27 and 3(x + y) = 243, then x is equal to:
A. 0
B. 2
C. 4
D. 6

 

.6. (256)0.16 x (256)0.09 = ?
A. 4
B. 16
C. 64
D. 256.25

 

7. The value of [(10)150 ÷ (10)146]
A. 1000
B. 10000
C. 100000
D. 106

 

8.
1  + 1 + 1 = ?
1 + x(b – a) + x(c – a) 1 + x(a – b) + x(c – b) 1 + x(b – c) + x(a – c)
A. 0
B. 1
C. xa – b – c
D. None of these

 

9. (25)7.5 x (5)2.5 ÷ (125)1.5 = 5?
A. 8.5
B. 13
C. 16
D. 17.5
E. None of these

 

10. (0.04)-1.5 = ?
A. 25
B. 125
C. 250
D. 625

 

 

Level-II

 

11.
(243)n/5 x 32n + 1 = ?
9n x 3n – 1
A. 1
B. 2
C. 9
D. 3n

 

12.
1 + 1 = ?
1 + a(n – m) 1 + a(m – n)
A. 0
B.
1
2
C. 1
D. am + n

 

13. If m and n are whole numbers such that mn = 121, the value of (m – 1)n + 1 is:
A. 1
B. 10
C. 121
D. 1000

 

14.
xb (b + c – a) . xc (c + a – b) . xa (a + b – c) = ?
xc xa xb
A. xabc
B. 1
C. xab + bc + ca
D. xa + b + c

 

  1. If 5√5 * 53÷ 5-3/2= 5a+2 , the value of a is:
    A. 4
    B. 5
    C. 6
    D. 8
 

16.(132)7 ×(132)? =(132)11.5.

A. 3
B. 3.5
C. 4
D. 4.5

 

 

17. (ab)x−2=(ba)x−7. What is the value   of x ?

 

A. 3
B. 4
C. 3.5
D. 4.5

 

 

 

18. (0.04)-2.5 = ?

 

A. 125
B. 25
C. 3125
D. 625

 

 

 

 
 

Answers

Level-I

Answer:1 Option D

 

Explanation:

Let (17)3.5 x (17)x = 178.

Then, (17)3.5 + x = 178.

3.5 + x = 8

x = (8 – 3.5)

x = 4.5

 

Answer:2 Option C

 

Explanation:

Given a x – 1 = b x – 3
b a

 

a x – 1 = a -(x – 3)  = a (3 – x)
b b b

x – 1 = 3 – x

2x = 4

x = 2.

 

 

Answer:3 Option C

 

Explanation:

xz = y2        10(0.48z) = 10(2 x 0.70) = 101.40

0.48z = 1.40

 z = 140 = 35 = 2.9 (approx.)
48 12

 

Answer:4 Option A

 

Explanation:

5a = 3125        5a = 55

a = 5.

5(a – 3) = 5(5 – 3) = 52 = 25.

 

 

Answer:5 Option C

 

Explanation:

3x – y = 27 = 33        x – y = 3 ….(i)

3x y = 243 = 35        x + y = 5 ….(ii)

On solving (i) and (ii), we get x = 4

 

 

Answer:6 Option A

 

Explanation:

(256)0.16 x (256)0.09 = (256)(0.16 + 0.09)

= (256)0.25

= (256)(25/100)

= (256)(1/4)

= (44)(1/4)

= 44(1/4)

= 41

= 4

Answer:7 Option B

 

Explanation:

(10)150 ÷ (10)146 = 10150
10146

= 10150 – 146

= 104

= 10000.

 

Answer:8 Option B

 

Explanation:

Given Exp. =
1  + 1  + 1
1 + xb + xc
xa xa
1 + xa + xc
xb xb
1 + xb + xa
xc xc

 

   = xa + xb + xc
(xa + xb + xc) (xa + xb + xc) (xa + xb + xc)

 

   = (xa + xb + xc)
(xa + xb + xc)

= 1.

 

Answer:9 Option B

 

Explanation:

Let (25)7.5 x (5)2.5 ÷ (125)1.5 = 5x.

Then, (52)7.5 x (5)2.5 = 5x
(53)1.5

 

5(2 x 7.5) x 52.5 = 5x
5(3 x 1.5)

 

515 x 52.5 = 5x
54.5

5x = 5(15 + 2.5 – 4.5)

5x = 513

x = 13.

 

Answer:10 Option B

 

Explanation:

(0.04)-1.5 = 4 -1.5
100

 

   = 1 -(3/2)
25

= (25)(3/2)

= (52)(3/2)

= (5)2 x (3/2)

= 53

= 125.

 

Level-II

 

Answer:11 Option C

 

Explanation:

Given Expression
= (243)(n/5) x 32n + 1
9n x 3n – 1
= (35)(n/5) x 32n + 1
(32)n x 3n – 1
= (35 x (n/5) x 32n + 1)
(32n x 3n – 1)
= 3n x 32n + 1
32n x 3n – 1
= 3(n + 2n + 1)
3(2n + n – 1)
= 33n + 1
33n – 1
= 3(3n + 1 – 3n + 1)   = 32   = 9.

Answer:12 Option C

 

Explanation:

1 + 1 =
1  + 1
1 + an
am
1 + am
an
1 + a(n – m) 1 + a(m – n)

 

   = am + an
(am + an) (am + an)

 

   = (am + an)
(am + an)

= 1.

 

Answer:13 Option D

 

Explanation:

We know that 112 = 121.

Putting m = 11 and n = 2, we get:

(m – 1)n + 1 = (11 – 1)(2 + 1) = 103 = 1000.

 

Answer:14 Option B

 

Explanation:

Given Exp.  

x(b – c)(b + c – a) . x(c – a)(c +a – b) . x(a – b)(a + b – c)
x(b – c)(b + c) – a(b – c)  .  x(c – a)(c + a) – b(c – a)
.  x(a – b)(a + b) – c(a – b)
x(b2 – c2 + c2 – a2 + a2 – b2)  .   xa(b – c) – b(c – a) – c(a – b)
= (x0 x x0)
= (1 x 1) = 1.

 

Answer:15 option C

 

Answer:16

Explanation

am.an=am+n

(132)7 × (132)x = (132)11.5

=> 7 + x = 11.5

=> x = 11.5 – 7 = 4.5

 

 

Answer:17

Explanation:

an=1a−n

(ab)x−2=(ba)x−7⇒(ab)x−2=(ab)−(x−7)⇒x−2=−(x−7)⇒x−2=−x+7⇒x−2=−x+7⇒2x=9⇒x=92=4.5

 

Answer:18

Explanation:

a−n=1/an

(0.04)−2.5=(1/.04)2.5=(100/4)2.5=(25)2.5=(52)2.5=(52)(5/2)=55=3125

 

Greenhouse effect

 

The https://exam.pscnotes.com/greenhouse-effect”>Greenhouse Effect is a natural process that warms the Earth’s surface. When the Sun’s energy reaches the Earth’s Atmosphere, some of it is reflected back to space and the rest is absorbed and re-radiated by greenhouse gases. It is the process by which radiation from a planet’s atmosphere warms the planet’s surface to a temperature above what it would be without its atmosphere. If a planet’s atmosphere contains radioactively active gases (i.e., greenhouse gases) the atmosphere will radiate energy in all directions.

The greenhouse effect comes from Molecules that are more complex and much less common. Water vapour is the most important greenhouse gas, and carbon dioxide (CO2) is the second-most important one. Methane, nitrous oxide, ozone and several other gases present in the atmosphere in small amounts also contribute to the greenhouse effect. In the humid equatorial regions, where there is so much water vapour in the air that the greenhouse effect is very large, adding a small additional amount of CO2 or water vapour has only a small direct impact on downward infrared radiation. However, in the cold, dry polar regions, the effect of a small increase in CO2 or water vapour is much greater. The same is true for the cold, dry upper atmosphere where a small increase in water vapour has a greater influence on the greenhouse effect than the same change in water vapour would have near the surface.

Green house effects changes are due to:-

  • Energy;
  •  Industry;
  •  Agriculture-notes-for-state-psc-exams”>Agriculture;
  •  Waste; and
  • Land Use Land Use Change

Synopsis of NCERTS

 

Introduction

  • Indian national movement: One of the biggest. Inspired many others.
  • Gandhian Political Strategy very important.
  • Elements of Gandhian Strategy can be seen in the Solidarity Movement in Poland by Lech Walesa

WHY IS THE INDIAN NATIONAL MOVEMENT UNIQUE

  • In the Indian national movement, the Gramscian perspective of war of position was successfully practiced.
  • It provides the only historical example of a semi-democratic or democratic type of political structure being successfully replaced or transformed.
  • State power was not seized in a moment of revolution, but through prolonged popular struggle on moral, political and ideological reserves.
  • It is also an example of how the constitutional space offered by the existing structure could be used without getting coopted by it.
  • Diverse perspectives and ideologies

WHY STUDY NATIONAL MOVEMENT?

  • The path that India has followed since 1947 has deep roots in the struggle for independence.

OUTSTANDING FEATURES OF THE FREEDOM STRUGGLE

  • Values and modern ideals on which it was based
  • Vision of the leaders: democratic, civil libertarian and secular India, based on a self-reliant, egalitarian social order and an independent https://exam.pscnotes.com/foreign-policy”>Foreign Policy
  • The movement popularized democratic ideas and institutions in India
  • The strong civil libertarian and democratic tradition of the national movement was reflected in the constitution of independent India.
  • Pro-poor orientation
  • Secular
  • A non-racist, anti-imperialist outlook which continues to characterize Indian foreign policy was the part of the legacy of the anti-imperialist struggle.
  • India’s freedom struggle was basically the result of fundamental contradiction between the interests of the Indian people and that of British colonialism.

 

 Revolt of 1857

  • During the Governor-General Lord Canning
  • May 11, 1857. The Meerut incident. Capture of Delhi. Proclaiming B S Jazar as the emperor.
  • Almost half the Company’s sepoy strength of 232224 opted out of their loyalty to their regimental colours.
  • Kanpur: Nana Saheb; Lucknow: Begum Hazrat Mahal; Bareilly: Khan Bahadur; Jagdishpur (Ara): Kunwar Singh; Jhansi: Rani Lakshmi Bai
  • Only the Madras army remained totally loyal. Sikh regiment as well remained largely loyal.

Causes for the revolt

The revolt was a result of the accumulated grievances of the people against Company’s administration and a loathing for the character and policies of the colonial rule. The causes can be classified as social, economic, religious and military. <In class notes>

WHY DID THE SEPOYS REVOLT?

  • The conditions of service in the Company’s army and cantonments increasingly came into conflict with the religious beliefs and prejudices of the sepoys.
  • The unhappiness of the sepoys first surfaced in 1824 when the 47th Regiment of Barrackpur was ordered to go to Burma. To the religious Hindu, crossing the sea meant loss of caste. The sepoys refused. The regiment was disbanded and those who led the opposition were hanged.
  • The rumors about the Government’s secret designs to promote conversions to Christianity further exasperated the sepoys.
  • The greased cartridges
  • They were also unhappy with the emoluments
  • Discrimination and racism
  • Misery brought to the peasants by the British rule. E.g. the land revenue system imposed in Oudh, where about 75000 sepoys came from, was very harsh.
  • The civilians also participated
  • After the capture of Delhi, a letter was issued to the neighboring states asking for support.
  • A court of administrators was established in Delhi
  • Ill-equipped, the rebels carried on the struggle for about a year
  • The country as a whole was not behind them. The merchants, intelligentsia and Indian rulers not only kept aloof but actively supported the British.
  • Almost half the Indian soldiers not only did not revolt but fought against their own countrymen.
  • Apart from a commonly shared hatred for alien rule, the rebels had no political perspective or definite vision of the future
  • Delhi fell on September 20, 1857.
  • Rani of Jhansi died fighting on June 17, 1858
  • Nana Saheb escaped to Nepal hoping to revive the struggle.
  • Kunwar Singh died on May 9, 1958
  • Tantia tope carried on guerrilla warfare until April 1959 after which he was betrayed by a zamindar, captured and put to death.

Important Persons relating to the Revolt

 

Bahadur Shah Zafar: BSZ was the last Mughal emperor of India.

 

Nana Saheb

 

Rani Lakshmi Bai

 

Kunwar Singh

 

Nawab Wajid Ali Shah

 

Birjis Qadr: The son of Wajid Ali Shah and the leader of the revolt in Lucknow.

 

Shah Mal: He belonged  to a clan of Jat cultivators in parganan Barout in UP. During the revolt, he mobilized the headmen and cultivators of chaurasee des (84 villages: his kinship area), moving at night from village to village, urging people to rebel against the British.

 

Maulvi Ahmadullah Shah: Maulvi Ahmadullah Shah was one of the many maulvis who played an

important part in the revolt of 1857. 1856, he was seen moving from village to village preaching jehad (religious war) against the British and urging people to rebel. he was elected by the mutinous 22nd Native Infantry as their leader. He fought in the famous Battle of Chinhat in which the British forces under Henry Lawrence were defeated.

 

Begum Hazrat Mahal:

 

Chapter 2: Civil Rebellions and Tribal Uprisings

  • The backbone of the rebellions, their mass base and striking power came from the rack-rented peasants, ruined artisans and demobilized soldiers

CAUSES

  • The major cause of the civil rebellions was the rapid changes the British introduced in the economy, administration and land revenue system.
  • The revenues were enhanced by increasing taxes.
  • Thousands of zamindars and poligars lost control over their land and its revenue either due to the extinction of their rights by the colonial state or by the forced sale of their rights over land because of their inability to meet the exorbitant land revenue demanded.
  • The economic decline of the peasantry was reflected in twelve major and numerous minor famines from 1770 to 1857
  • The new courts and legal system gave a further fillip to the dispossessors of land and encouraged the rich to oppress the poor.
  • The Police looted, oppressed and tortured the common people at will.
  • The ruin of Indian handicraft industries pauperized millions of artisans
  • The scholarly and priestly classes were also active in inciting hatred and rebellion against foreign rule.
  • Very foreign character of the British rule

REBELLIONS

  • From 1763 to 1856, there were more than forty major rebellions apart from hundreds of minor ones.
  • Sanyasi Rebellion: (1763-1800)
  • Chuar uprising (1766-1772 & 1795-1816); Rangpur and Dinajpur (1783); Bishnupur and Birbhum (1799); Orissa zamindars (1804-17) and Sambalpur (1827-40) and many others

WHY FAILED?

  • These rebellions were local in their spread and were isolated from each other.
  • They were the result of local causes and grievances, and were also localized in their effects.
  • Socially, economically and politically, the semi-feudal leaders of these rebellions were backward looking and traditional in outlook.
  • The suppression of the civil rebellions was a major reason why the revolt of 1857 did not spread to South India and most of Eastern and Western India.

TRIBAL  UPRISINGS: CAUSES

  • The colonial administrators ended their relative isolation and brought them fully within the ambit of colonialism.
  • Introduced new system of land revenue and Taxation of tribal products
  • Influx of Christian missionaries into the tribal areas
  • They could no longer practice shifting Agriculture-notes-for-state-psc-exams”>Agriculture
  • Oppression and extortion by police officials
  • The complete disruption of the old agrarian order of the tribal communities provided the common factor for all the tribal uprisings

UPRISINGS

  • Santhals
  • Kols of Chhotanagpur (1820-37)
  • Birsa Munda (1899-1900)

 

 

CHAPTER 3: Peasant Uprisings

  • Many dispossessed peasants took to robbery and dacoity.
  • Indigo Revolt of 1859-60
  • By the end of 1860 indigo cultivation was virtually wiped out from the districts of Bengal
  • A major reason for the success of the Indigo revolt was the tremendous initiative, cooperation, organization and discipline of the ryots.
  • Another was the complete unity among Hindu and Muslim peasants
  • Another significant feature was the role of intelligentsia of Bengal which organized a powerful campaign in support of the rebellious peasantry.
  • The government’s response to the revolt was rather restrained and not as harsh as in the case of civil rebellions and tribal uprisings.
  • The government appointed the Indigo Commission to enquire into the problems of indigo cultivation. The report of the commission exposed the coercion and Corruption in indigo cultivation
  • The government issued a notification in November 1960 that ryots could not be compelled to sow indigo and all disputes were to be settled by legal means.

 

CHAPTER 4 & 5

 

Why did national movement arise?

  • Indian nationalism rose to meet the challenges of foreign domination
  • The British rule and its direct and indirect consequences provided the material and the moral and intellectual conditions for the development of a national movement in India.
  • Clash of interest between the interests of the Indian people with British interests in India
  • Increasingly, the British rule became the major cause of India’s economic backwardness
  • Every class gradually discovered that their interests were suffering at the hands of the British
    • Peasant: Govt took a large part of produce away as land revenue. Laws favoured the Zamindars
    • Artisans: Foreign competition ruined the Industry
    • Workers: The government sided with the capitalists
    • Intelligentsia: They found that the British policies were guided by the interests of British capitalists and were keeping the country economically backward. Politically, the British had no commitment of guiding India towards self-government.
    • Indian capitalists: the Growth of Indian industries was constrained by the unfavourable trade, tariff, taxation and transport policies of the government.
    • Zamindars, landlords and princes were the only ones whose interests coincided with those of the British. Hence they remained loyal to them.
  • Hence, it was the intrinsic nature of foreign imperialism and its harmful effect on the lives of the Indian people that led to the rise of the national movement. This movement could be called the national movement because it united people from different parts of the country as never before for a single cause.

 

What factors strengthened and facilitated the national movement?

  • Administration and Economic Unification of the country
    • Introduction of modern trade and industries on all-India scale had increasingly made India’s economic life a single whole and interlinked the economic fate of people living in different parts of the country.
    • Introduction of railways, telegraph and unified postal system brought together different parts of the country and promoted contact among people like never before.
    • This unification led to the emergence of the Indian nation
  • Western Thought and Education
    • A large number of Indians imbibed a modern rational, secular, democratic and nationalist political outlook
    • They began to study, admire and emulate the contemporary nationalist movements of European nations
    • The western education per se did not create the national movement. It only enabled the educated Indians to imbibe western thought and thus to assume the Leadership of the national movement and to give it a democratic and modern direction
    • Modern education created a certain uniformity and community of outlook and interests among the education Indians.
  • Role of Press and Literature
    • Large number of nationalist newspapers appeared in the second half of the 19th century
    • They criticized the policies of the British government and put forth the Indian point of view
    • National literature in form of essays, novels and poetry also played an important role. Bamkin Chandra, Tagore: Bengali; Bhartendu Harishchandra: Hindi; Lakshmikanth Bezbarua: Assamese; Vishnu Shastri Chiplunkar: Marathi; Subramanya Bharti: Tamil; Altaf Husain Hali: Urdu
  • Rediscovery of India’s past
    • The British had lowered the self confidence of the Indian through the propaganda that Indians are incapable of self-government
    • Nationalist leaders referred to the cultural heritage of India to counter this propaganda. They referred to political achievements of rulers like Ashoka, Chandragupta Vikramaditya and Akbar.
    • However, some nationalists went to the extent of glorifying the past uncritically. They emphasized on the achievements of ancient India and not Medieval India. This encouraged the growth of communal sentiments.
  • Racial arrogance of the rulers
    • Englishmen adopted a tone of racial superiority in their dealings with the Indians
    • Failure of Justice whenever an Englishman was involved in a dispute with an Indian.
    • Indians kept out of European clubs and often were not permitted to travel in same compartment as Englishmen

 

Rise of Indian National Congress

 

Predecessors of INC

  • East India Association
    • By Dadabhai Naoroji in 1866 in London
    • To discuss the Indian question and to influence the British public men to discuss Indian welfare
    • Branches of the association in prominent Indian cities
  • Indian Association
    • Surendranath Banerjee and Ananda Mohan Bose in 1876, Calcutta
    • The aim of creating strong public opinion in the country on political questions and the unification of the Indian people on a common political programme
  • Poona Sarvajanik Sabha
    • Justice Ranade, 1870
  • Madras Mahajan Sabha
    • Viraraghavachari, Anand Charloo, G Subramanian Aiyer, 1884
  • Bombay Presidency Association
    • Pherozshah Mehta, K T Telang, Badruddin Tyabji, 1885
  • These organizations were narrow in their scope and functioning. They dealt mostly with local questions and their membership were confined to a few people belonging to a single city or province

 

Indian National Congress

  • Indian National Congress was founded on 28 December 1885 by 72 political workers. A O Hume was the first secretary and was instrumental in establishing the Congress
  • First session in Bombay. President: W C Bonnerjee
  • With the formation of INC, the Indian National Movement was launched in a small but organized manner
  • The Congress itself was to serve not as a party but as a movement
  • Congress was democratic. The delegates to INC were elected by different local organizations and groups
  • Sovereignty of the people
  • In 1890, Kadambini Ganguli, the first woman graduate of Calcutta University addressed the Congress session
  • Safety Valve Theory
    • The INC was started under the official direction, guidance and advice of Lord Dufferin, the Viceroy, to provide a safe, mild, peaceful and constitutional outlet or safety valve for the rising discontent among the masses, which was inevitably leading towards a popular and violent revolution.

Does the safety valve theory explain the formation of Congress?

  • The safety valve theory is inadequate and misleading
  • INC represented the urge of the Indian educated class to set up a national organization to work for their political and Economic Development
  • A number of organizations, as mentioned above, had already been started by the Indians towards that end
  • Hume’s presence in Congress was used to allay official suspicions

 

 

Why was there a need for an All-India organization?

  • Vernacular Press Act, 1878
  • Ilbert Bill (1883) which would allow Indian judges to try Europeans was opposed by the European community and was finally enacted in a highly compromised state in 1884.
  • The Indians realized that they could not get the Ilbert bill passed because they were not united on all India level. Hence need for INC was felt.
  • In order to give birth to the national movement
    • Creation of national leadership was important
    • Collective identification was created

 

Aims of INC

  • Promotion of friendly relations between nationalist political workers from different parts of the country
  • Development and consolidation of the feeling of national unity irrespective of caste, religion or province
  • Formulation of popular demands and their presentation before the government
  • Training and organization of public opinion in the country

 

  • The first major objective of the Indian national movement was to promote weld Indians into a nation, to create an  Indian identity
  • Fuller development and consolidation of sentiments of national unity
    • Efforts for unity: In an effort to reach all regions, it was decided to rotate the congress session among different parts of the country. The President was to belong to a region other than where the congress session was being held.
    • To reach out to the followers of all religions and to remove the fears of the minorities, a rule was made at the 1888 session that no resolution was to be passed to which an overwhelming majority of Hindu or Muslim delegates objected.
    • In 1889, a minority clause was adopted in the resolution demanding reform of legislative councils. According to the clause, wherever Parsis, Christians, Muslims or Hindus were a minority their number elected to the councils would not be less than their proportion in the Population.
    • To build a secular nation, the congress itself had to be intensely secular
  • The second major objective of the early congress was to create a common political platform or programme around which political workers in different parts of the country could gather and conduct their political activities.
    • Due to its focus solely on political issues congress did not take up the question of social reform.
  • Since this form of political participation was new to India, the arousal, training, organization and consolidation of public opinion was seen as a major task by the congress leaders.
    • Going beyond the redressal of immediate grievances and organize sustained political activity.

Contribution of early nationalists

  • Early nationalists believed that a direct struggle for the political emancipation of the country was not yet on the agenda of HISTORY. On agenda was:
    • Creation of public interest in political questions and the organization of public opinion
    • Popular demands had to be formulated on a country-wide basis
    • National unity had to be created. Indian nationhood had to be carefully promoted.
  • Early national leaders did not organize mass movement against the British. But they did carry out an ideological struggle against them. (Important from a Gramscian perspective)
  • Economic critique of imperialism
    • Economic critique of imperialism was the most important contribution of the early nationalists
    • They recognized that the essence of British economic imperialism lay in the subordination of the Indian economy to the British economy
    • They complained of India’s growing POVERTY and economic backwardness and the failure of modern industry and agriculture to grow
    • They wanted the government to promote modern industries through tariff protection and direct government aid
    • Popularized the idea of swadeshi and the boycott of British goods
    • They propounded the ‘drain of wealth’ theory and demanded that this drain be stopped
    • Demanded reduction of taxes and land revenue
    • Condemned the high military expenditure
  • Constitutional reforms
    • They were extremely cautious. From 1885 to 1892 they demanded the expansion and reform of the Legislative Councils
    • Due to their demands, the British passed the Indian Councils Act of 1892
    • They failed to broaden the base of their democratic demands. Did not demand the right to vote for the masses or for Women
  • Administrative and other reforms
    • They demanded Indianisation of the higher grades of the administrative Services.
    • They had economic political reasons for this. Economically, appointment of British only to ICS made Indian administration costly because they were paid very high. Politically, appointment of Indians would make the administration more responsive to Indian needs
    • Demanded separation of the judicial from executive powers so that the people might get some protection from the arbitrary acts of the police and the Bureaucracy.
    • Urged the government to undertake and develop welfare activities and education
  • Defense of Civil Rights

Methods of work of early nationalists

  • Dominated by moderates till 1905
  • Method of moderates: Constitutional agitation within the four walls of the law, and slow, orderly political progress. Their work had two pronged direction:
    • To build a strong public opinion in India to arouse the political consciousness and national spirit of the people, and to educate and unite them on political questions
    • They wanted to persuade the British government and British public opinion to introduce reforms along directions laid down by the nationalists.
  • In 1889, a British Committee of the INC was founded. In 1890 this committee started a journal called India.

What about the role of the masses?

  • The basic weakness of the early national movement lay in its narrow social base.
  • The leaders lacked political faith in the masses.
  • Hence, masses were assigned a passive role in the early phase of the national movement.

Evaluation

  • The basic objectives of the early nationalist leaders were to lay the foundations of a secular and democratic national movement, to politicize and politically educate the people, to form the headquarters of the movement, that is, to form an all-India leadership group, and to develop and propagate an anti-colonial nationalist ideology.
  • Very few of the reforms for which the nationalists agitated were introduced by the government
  • It succeeded in creating a wide national awakening and arousing the feeling of nationhood. It made the people conscious of the Bonds of common political, economic and social interests and the existence of a common enemy in imperialism
  • They exposed the true character of the British rule through their economic critique.
  • All this was to become a base for the national movement in the later period.

 

WHY HUME?

  • The leaders assumed that the rulers would be less suspicious and less likely to attack a potentially subversive organization if its chief organizer was a retired British civil servant.
  • Gokhale himself stated explicitly in 1913 that if any Indian had started such a movement the officials wouldn’t have let it happen.

 

CHAPTER 6: Socio-religious reforms

  • The socio-religious reforms are also referred to as the Indian renaissance
  • The socio-cultural regeneration in nineteenth century India was occasioned by the colonial presence, but not created by it.
  • Formation of the Brahmo Samaj in 1828.
  • Paramhansa Mandali, Prathna Samaj, Arya Samaj, Kayasth Sabha: UP, Sarin Sabha: Punjab, Satya Sodhak Samaj: Maharashtra, Sri Narayana Dharma Paripalana Sabha: Kerala
  • Ahmadiya and Aligarh Movements: Muslims, Singh Sabha: Sikhs, Rehnumai Mazdeyasan Sabha: Parsees
  • Their attention was focused on worldly existence.
  • The idea of otherworldliness and salvation were not a part of their agenda.
  • At that time the influence of religion and superstition was overwhelming. Position of priests strong; that of women weak.
  • Caste was another debilitating factor
  • Neither a revival of the past nor a total break with tradition was contemplated.
  • Rationalism and religious universalism influenced the reform movement.
  • Development of universalistic perspective on religion
  • Lex Loci Act propsed in 1845 and passed in 1850 provided the right to inherit ancestral property to Hindu converts to Christianity.
  • The culture faced a threat from the colonial rule.

CHAPTER 7

  • First, the Indian intellectuals co-operated with the British in the hope that British would help modernize India.
  • However, the reality of social development in India failed to conform to their hopes.
  • Three people who carried out the economic analysis of British India:
    • Dadabhai Naoroji: the grand old man of India. Born in 1825, he became a successful businessman but devoted his entire life and wealth to the creation of national movement in India
    • Justice Mahadev Govind Ranade: He taught an entire generation of Indians the value of modern industrial development.
    • Romesh Chandra Dutt: a retired ICS officer, published The Economic History of India at the beginning of the 20th century in which he examined in minute detail the entire economic record of colonial rule since 1757.
  • They concluded that colonialism was the main obstacle to India’s economic development.
  • Three aspects of domination of British: trade, industry, finance
  • The problem of poverty was seen as a problem of national development. This approach made poverty a broad national issue and helped to unite, instead of divide, different regions and sections of Society“>Indian Society.
  • The early nationalists accepted that the complete economic transformation of the country on the basis of modern technology and capitalist enterprise was the primary goal of their economic policies.
  • Because their whole-ted devotion to the cause of industrialization, the early nationalists looked upon all other issues such as Foreign Trade, railways, tariffs, finance and labour legislations in relation to this paramount aspect. (and hence the obsession of Nehru with industrialization)
  • However great the need of India for industrialization, it had to be based on Indian capital and not foreign capital.
  • The early nationalists saw foreign capital as an unmitigated evil which did not develop a country but exploited and impoverished it.
  • Expenditure on railways could be seen as Indian subsidy to British industries.
  • A major obstacle in the process of industrial development was the policy of free trade
  • High expenditure on the army
  • Drain Theory was the focal point of nationalist critique of colonialism.
    • A large part of India’a capital and wealth was being transferred or drained to Britain in the form of salaries and pensions of British civil and military officials working in India, interest on loans taken by the Indian government, profits of British capitalists in India, and the Home Charges or expenses of the Indian Government in Britain.
    • This drain amounted to one-half of government revenues, more than the entire land revenue collection, and over one-third of India’s total Savings.
    • The Drain theory was put forward by Dadabhai Naoroji. He declared that the drain was the basic cause of India’s poverty.
    • Through the drain theory, the exploitative character of the British rule was made visible.
    • The drain theory possessed the merit of being easily grasped and understood by a nation of peasants. No idea could arouse people more than the thought that they were being taxed so that others in far off lands might live in comfort.
    • This agitation on economic issues contributed to the undermining of the ideological hegemony of the alien rulers over Indian minds.
    • The nationalist economic agitation undermined the moral foundations inculcated by the British that foreign rule is beneficial for India.

CHAPTER 8: Freedom of Press

  • On 29th January 1780, the Hickey’s Bengal Gazette or the Calcutta General Advertizer was published. It was the first English newspaper to be printed in the Indian sub-continent.
  • The press was the chief instrument of forming a nationalist ideology

 

  • The resolutions and proceedings of the Congress were propagated through press. Trivia: nearly one third of the founding fathers of congress in 1885 were journalists.

 

  • Main news papers and editors

 

    • The Hindu and Swadesamitran: G Subramaniya Iyer
    • Kesari and Mahratta: BG Tilak
    • Bengalee: S N Banerjea
    • Amrita Bazar Patrika: Sisir Kumar Ghosh and Motilal Ghosh
    • Sudharak: GK Gokhale
    • Indian Mirror: N N Sen
    • Voice of India: Dadabhai Naoroji
    • Hindustani and Advocate: GP Varma
    • Tribune and Akhbar-i-Am in Punjab
    • Indu Prakash, Dnyan Prakahs, Kal and Gujarati in Bombay
    • Som Prakash, Banganivasi and Sadharani in Bengal

 

  • Newspaper was not confined to the literates. It would reach the villages and would be read by a reader to tens of others.
  • Reading and discussing newspaper became a form of political participation.
  • Nearly all the major political controversies of the day were conducted through the Press.
  • ‘Oppose, oppose, oppose’ was the motto of the Indian press.
  • The section 124A of the IPC was such as to punish a person who evoked feelings of disaffection to the government.
  • The Indian journalists remained outside 124A by adopting methods such as quoting the socialist and anti-imperialist newspapers of England or letters from radical British citizens
  • The increasing influence of the newspapers led the government to pass the Vernacular Press Act of 1978, directed only against Indian language newspapers.
    • It was passed very secretively
    • The act provided for the confiscation of the printing press, paper and other materials of a newspaper if the government believed that it was publishing seditious materials and had flouted an official warning.
    • Due to the agitations, it was repealed in 1881 by Lord Ripon.
  • SN Banerjee was the first Indian to go to jail in performance of his duty as a journalist.

 

B G Tilak

 

  • The man who is most frequently associated with the struggle for the freedom of Press during the nationalist movement is Bal Gangadhar Tilak.
  • In 1881, along with G G Agarkar, he founded the newspapers Kesari and Mahratta.
  • In 1893, he started the practice of using the traditional religious Ganapati festival to propagate nationalist ideas through patriotic songs and speeches.
  • In 1896, he started the Shivaji festival to stimulate nationalism among young Maharashtrians.
  • He brought peasants and farmers into the national movement.
  • He organized a no-tax campaign in Maharashtra in 1896-97
  • Plague in Poona in 1897.
  • Popular resentment against the official plague measures resulted in the assassination of Rand, the Chairman of the Plague Committee in Poona, and Lt. Ayerst by the Chaphekar brothers on 27 June 1898.
  • Since 1894, anger had been rising against the government due to the tariff, currency and famine policy.
  • Tilak was arrested and sentenced to 18 month rigorous imprisonment in 1897. This led to country wide protests and Tilak was given the title of Lokmanya.
  • Tilak was again arrested and tried on 24 June 1908 on the charge of sedition under article 124A. He was sentenced to 6 years of transportation. This led to nationwide protests and closing down of markets for a week. Later, in 1922 Gandhi was tried on the same act and he said that he is proud to be associated with Tilak’s name.

 

CHAPER 9

 

  • The Indian Councils Act of 1861 enlarged the Governor-General’s Executive Council for the purpose of making laws.
  • The GG could add 6-12 members to the Executive Council. This came to be known as the Imperial Legislative Council. It didn’t have any powers.
  • ‘Despotism controlled from home’ was the fundamental feature of British rule in India.
  • The Indians nominated to the council were not representative of the nationalist movement.
  • Despite the early nationalists believing that India should eventually become self-governing, they moved very cautiously in putting forward political demands regarding the structure of the state, for they were afraid of the Government declaring their activities seditious and disloyal and suppressing them.
  • Till 1892, they only demanded reforms in the council.

 

 

CHAPTER 10: The Swadeshi Movement: 1903-1908

Nationalist Movement 1905-1918

Reasons for the growth of militant nationalism (this is different from Revolutionary Terrorism)

 

Disillusionment of the nationalists with moderate policies

  • The moderates thought that the British could be reformed from within
  • Politically conscious Indians were convinced that the purpose of the British rule was to exploit India economically
  • The nationalists realized that Indian industries could not flourish except under an Indian government
  • Disastrous famines from 1896 to 1900 took a toll of over 90 lakh lives
  • The Indian Councils Act of 1892 was a disappointment
  • The Natu brothers were deported in 1897 without trial
  • In 1897 B G Tilak was sentenced to long term imprisonment for arousing the people against the government
  • In 1904, the Indian Official Secrets Act was passed restricting the freedom of the Press
  • Primary and technical education was not making any progress
  • Thus, increasing number of Indians were getting convinced that self-government was essential for the sake of economic, political and cultural progress of the country

 

Growth of Self-respect and  self-confidence

  • Tilak, Aurobindo and Pal preached the message of self-respect
  • They said to the people that remedy to their condition lay in their own hand and they should therefore become strong
  • Swami Vivekananda’s messages

 

Growth of education and Unemployment

 

International Influences

  • Rise of modern Japan after 1868
  • Defeat of the Italian army by the Ethiopians in 1896 and of Russia by Japan in 1905 exploded the myth of European superiority

Existence of a Militant Nationalist School of Thought

 

Partition of Bengal

 

  • With the partition of Bengal, Indian National Movement entered its second stage
  • On 20 July, 1905, Lord Curzon issued an order dividing the province of Bengal into two parts: Eastern Bengal and Assam with a population of 31 mn and the rest of Bengal with a population of 54 mn.
  • Reason given: the existing province of Bengal was too big to be efficiently administered by a single provincial government
  • The partition expected to weaken the nerve centre of Indian Nationalism, Bengal.
  • The partition of the state intended to curb Bengali influence by not only placing Bengalis under two administrations but by reducing them to a minority in Bengal itself as in the new proposed Bengal proper was to have seventeen million Bengali and thirty seven million Oriya and Hindi speaking people.
  • The partition was also meant to foster division on the basis of religion.
  • Risley, Home Secretary to the GoI, said on December 6, 1904 – ‘one of our main objects is to split up and thereby weaken a solid body of opponents to our rule.’
  • the nationalists saw it as a deliberate attempt to divide the Bengalis territorially and on religious grounds

 

The Swadeshi Movement

  • The Swadeshi movement had its genesis in the anti-partition movement which was started to oppose the British decision to partition Bengal.
  • Mass protests were organized in opposition to the proposed partition.
  • Despite the protests, the decision to partition Bengal was announced on July 19, 1905
  • It became obvious to the nationalists that their moderate methods were not working and that a different kind of strategy was needed.
  • Several meetings were held in towns such as Dinajpur Pabna, Faridpur etc. It was in these meetings that the pledge to boycott foreign goods was first taken.
  • The formal proclamation of the Swadeshi movement was made on 7 August 1905 in a meeting held in the Calcutta town hall. The famous boycott resolution was passed.
  • The leaders like SN Banerjee toured the country urging the boycott of Manchester cloth and Liverpool salt.
  • The value of British cloth sold in some of the districts fell by five to fifteen times between September 1904 and September 1905.
  • The day the partition took effect – 16 October 1905 – was declared a day of mourning throughout Bengal.
  • The movement soon spread to the entire country.
  • Militant nationalists
    • The extremists were in favor of extending the movement to the rest of India and carrying it beyond the programme of just Swadeshi and boycott to a full fledged political mass struggle. The moderates were not as willing to go that far.
    • The differences between the extremists and moderates came to had in 1907 Surat session where the party split with serious consequences for the Swadeshi Movement.
    • In Bengal, the extremists acquired a dominant influence over the Swadeshi movement.
    • They proposed the technique of extended boycott which included, apart from boycott of foreign goods, boycott of government schools and colleges, courts, titles and government services and even the organization of strikes.
    • Aurobindo Ghose: Political freedom is the lifebreath of a nation.
    • Boycott and public burning foreign cloth, picketing of shops selling foreign goods, became common in remote corners of Bengal as well as in many towns across the country.
    • The militant nationslists, however, failed to give a positive leadership to the people. They also failed to reach the real masses of the country, the peasants.
  • The movement also innovated with considerable success different forms of mass mobilization such as public meetings, processions and corps of volunteers.
  • The Swadesh Bandhab Samiti set up by Ashwini Kumar Dutt, a school teacher, in Barisal was the most well known volunteer organization.
  • During the Swadeshi period, traditional festivals were used to reach out to the masses. The Ganapati and Shivaji festivals were popularized by Tilak. Traditional folk theatres such as jatras were also used.
  • Another important aspect was the great emphasis given to self-reliance or Atmasakti as a necessary part of the struggle against the government.
  • Self-reliance was the keyword. Campaigns for social reforms were carried out.
  • In 1906, the National Council for Education was setup to organize the education system.
  • Self-reliance also meant an effort to set up Swadeshi or indigenous enterprises.
  • Marked impact in the cultural sphere
    • The songs composed by Rabindranath Tago, Mukunda Das and others became the moving spirit for nationalists.
    • Rabindranath’s ‘Amar Sonar Bangla’, written at that time, was to later inspire the liberation struggle of Bangladesh and was adopted as the National Anthem of the country in 1971.
    • Nandalal Bose, who left a major imprint on Indian art, was the first recipient of a Scholarship offered by the Indian Society of Oriental Art founded in 1907.
  • The social base of the national movement was now extened to include certain zamindari section, lower middle class and school and college students. Women also participated in large numbers.
  • Drawback: Was not able to garner the support of the mass of Muslims, especially the muslim peasantry. The British policy of Communalism responsible for this.
  • By mid-1908, the movement was almost over. The main reasons were:
    • The government, seeing the revolutionary potential of the movement, came down with a heavy hand.
    • The split of the congress in 1907 had weakened the movement.
    • The movement lacked an effective organization and party structure.
    • The movement decline dpartially because of the logic of the Mass Movements itself – they cannot be endlessly sustained at the same pitch of militancy and self-sacrifice.
  • The anti-partition movement, however, marked a great revolutionary leap forward for Indian nationalism.
  • The decline of Swadeshi engendered the rise of revolutionary terrorism.
  • Assessing the movement
    • Cultural impact
    • Social Impact
    • Economic impact
    • Role of students and  Women
    • All India aspect of the movement
    • From passive protest to active boycott

Revolutionary Terrorism

  • Revolutionary young men did not try to generate a mass revolution. Instead they followed the strategy of assassinating unpopular officials
  • 1904: VD Savarkar organized Abhinav Bharat
  • Newspapers like The Sandhya and Yugaantar in Bengal and the Kal in Maharashtra advocated revolutionary ideology
  • Kingsford Incident: In 1908, Khudiram Bose and Prafulla Chaki threw bomb at a carriage they believed was carrying Kingsford, the unpopular judge of Muzaffarpur.
  • Anushilan Samiti threw a bomb at the Viceroy Lord Hardinge
  • Centres abroad
    • In London: led by VD Savarkar, Shyamaji Krishnavarma and Har Dayal
    • In Europe: Madam Cama and Ajit Singh
  • They gradually petered out. It did not have any base among the people

 

CHAPTER 11: The Split in the Congress

  • Moderates were successful to some extent.
  • Moderates failed in many aspects. Why?
    • They could not acquire any roots among common people.
    • They believed that they could persuade the rulers to change their policies. However, their achievement in this regard was meager.
    • They could not keep pace with the events. They failed to meet the demands of the new stage of the national movement.
  • The British were keen on finishing the Congress because:
    • However moderate the leaders were, they were still nationalists and propagators of anti-colonialist ideas.
    • The British felt that moderates led congress could be finished off easily because it did not have a popular base
  • In the swadeshi movement, all sections of INC united in opposing the Partition
    • However, there was much difference between the moderates and the extremists about the methods and scope of the movement
    • The extremists wanted to extend the Swadeshi and Boycott movement from Bengal to the rest of the country and to boycott every form of association with the colonial government
    • The moderates wanted to confine the boycott movement to Bengal and even there to limit it to the boycott of foreign goods
  • After the Swadeshi movement the British adopted a three pronged approach to deal with congress. Repression-conciliation-suppression.
    • The extremists were reppressed
    • The moderates were conciliated thus giving them an impression that their further demands would be met if they disassociated from the extremists. The idea was to isolate the extremists.
    • Once the moderates and extremists were separate the extremists could be suppressed through the use of state force while the moderates could later be ignored.
  • The congress session was held on December 26, 1907 at Surat, on the banks of the river Tapti.
    • The extremists wanted a guarantee that the four Calcutta resolutions will be passed.
    • They objected to the duly elected president of the year, Rash Behari Ghose.
    • There was a confrontation with hurling of chairs and shoes.
  • The government launched a massive attack on the extremists. Newspapers were suppressed. Tilak was sent to Mandalay jail for six years.
  • The extremists were not able to organize an effective alternative party or to sustain the movement.
  • After 1908 the national movement as a whole declined.
  • The moderates and the country as a whole were disappointed by the 1909 Minto-Morley reforms
    • The number of indirectly elected members of the Imperial and provincial legislative councils was increased.
    • Separate electorates for Muslims were introduced.
  • With the split of Congress revolutionary terrorism rose.
  • In 1904 V D Savarkar organized Abhinav Bharat as a secret society of revolutionaries
  • In April 1908, Prafulla Chaki and Khudiram Bose threw a bomb at a carriage which they believed was occupied by Kingsford the unpopular judge at Muzzafarpur.
  • Anushilan Samity and Jugantar were two most important revolutionary groups.
  • An assessment of the split
    • The split did not prove useful to either party
    • The British played the game of divide and rule
    • To placate the moderates they announced the Morley-Minto reforms which did not satisfy the demands of the nationalists. They also annulled the partition of Bengal in 1911.

Morley-Minto Reforms, 1909

  • Increased the number of elected members in the Imperial Legislative Council and the provincial council
  • However, most of the elected members were elected indirectly
  • The reformed councils still enjoyed no real power, being merely advisory bodies.
  • Introduced separate electorates under which all Muslims were grouped in separate constituencies from which Muslims alone could be elected. This was aimed at dividing the Hindus and Muslims. It was based on the notion that the political and economic interests of Hindus and Muslims were separate.
    • This later became a potent factor in the Growth of Communalism
    • It isolated the Muslims from the Nationalist Movement and encouraged separatist tendencies
  • The real purpose of the reforms was to confuse the moderate nationalists, to divide nationalist ranks and to check the growth of unity among Indians
  • Response of Moderates
    • They realized that the reforms had not granted much
    • However, they decided to cooperate with the government in working the reforms
    • This led to their loss of respect among the nationalists and masses

Growth of Communalism

  • Definition
    • Communalism is the belief that because a group of people follow a particular religion they have, as a result, common secular, that is, social, political and economic interests.
    • Second stage: Secular interests of followers of one religion are dissimilar and divergent from the interests of the followers of another religion
    • Third stage: The interests of the followers of different religions or of different religious communities are seen to be mutually incompatible, antagonistic and hostile.
  • Communalism is not a remnant of the medieval period. It has its roots in the modern colonial socio-economic political structure.
  • Divide and Rule
    • After 1857, British initially suppressed Indian muslims. However, after the publishing of Hunter’s book ‘The Indian Mussalman’ they actively followed the policy of divide and rule and hence started supporting the Muslims.
    • They promoted provincialism by talking of Bengal domination
    • Tired to use the caste structure to turn the non-brahmins against Brahmins and the lower caste against the higher castes.
    • It readily accepted communal leaders as authentic representatives of all their co-religionists.
  • Reasons for growth of communal tendencies in Muslims
    • Relative backwardness: educationally and economically <incomplete>

Muslim League

  • 1906 by Aga Khan, the Nawab of Dhaka, and Nawab Mohsin-ul-Mulk
  • It made no critique of colonialism, supported the partition of Bengal and demanded special safeguards for the Muslims in government services.
  • ML’s political activities were directed not against the foreign rulers but against the Hindus and the INC.
  • Their activities were not supported by all Muslims
    • Arhar movement was founded at this time under the leadership of Maulana Mohamed Ali, Hakim Ajmal Khan, Hasan Imam, Maulana Zafar Ali Khan, and Mazhar-ul-Haq. They advocated participation in the militant nationalist movement.

Muslim Nationalists

  • The war between Ottoman Empire and Italy created a wave of sympathy for Turkey
  • During the war between Ottoman empire and Italy, India sent a medical mission headed by MA Ansari to help Turkey.
  • As the British were not sympathetic to Turkey, the pro-Caliph sentiments in India became anti-British
  • However, the militant nationalists among muslims did not accept an entirely secular approach to politics
  • The most important issue they took up was not political independence but protection of the Turkish empire.
  • This approach did not immediately clash with Indian nationalism. However, in the long run it proved harmful as it encouraged the habit of looking at political questions from a religious view point.

Hindu Communalism

  • Some Hindus accepted the colonial view of Indian history and talked about the tyrannical Muslim rule in the medieval period
  • Over language they said that Hindi was the language of Hindus and Urdu that of Muslims.
  • Punjab Hindu Sabha was founded in 1909. Its leaders attached the INC for trying to unite Indians into a single nation.
  • The first session of the All India Hindu Mahasabha was held in April 1915 under the presidentship of the Maharaja of Kasim Bazar.
  • It however remained a weak organization because the colonial government gave it few concessions and little support.

 

CHAPTER 12: World War I and Indian Nationalism

  • Increasing number of Indians from Punjab were emigrating to North America.
  • The British government thought that these emigrants would be affected by the idea of Liberty. Hence, they tried to restrict emigration.
  • Tarak Nath Das, an Indian student in Canada, started a paper called Free Hindustan.
  • The Hindi Association was setup in Portland in May 1913.
  • Under the leadership of Lala Har Dayal, a weekly paper, The Ghadar was started and a headquarters called Yugantar Ashram was set up in San Fransisco.
  • On November 1, 1913, the first issue of Ghadar was published in Urdu and on December 9, the Gurumukhi edition.
  • In 1914, three events influenced the course of the Ghadar movement:
    • The arrest and escape of Har Dayal
    • The Komagata Maru incident
    • Outbreak of the first world war
  • Gharadites came to India and made several attempts to instill the Indian population to revolt. However, this was of no avail.
  • The Ghadar movement was very secular in nature.
  • Ghadar militants were distinguished by their secular, egalitarian, democratic and non-chauvinistic internationalist outlook.
  • The major weakness of the Ghadar leaders was that they completely under-estimated the extent and amount of preparation at every level – organizational, ideological, strategic, tactical, financial – that was necessary before an attempt at an armed revolt could be organized.
  • It also failed to generate an effective and sustained leadership that was capable of integrating the various aspects of the movement.
  • Another weakness was its almost non-existent organizational structure.
  • Some important leaders: Baba Gurmukh Singh, Kartar Singh Saraba, Sohan Singh Bhakna, Rahmat Ali Shah, Bhai Parmanand and Mohammad Barkatullah.
  • Inspired by the Ghadar Party, 700 soldiers at Singapore revolted under the leadership of Jamadar Chisti Khan and Subedar Dundey Khan. The rebellion was crushed.
  • Other revolutionaries: Jatin Mukharjee, Rash Bihari Bose, Raja Mahendra Pratab, Lala Hardayal, Abdul Rahim, Maulana Obaidullah Sindhi, Champakaraman Pillai, Sardar Singh Rana and Madame Cama

 

CHAPTER 13: The Home Rule Movement

  • After being released in 1914, Tilak sought re-entry into Congress. Annie Besant and Gokhale supported. But finally Pherozshah Mehta won and Tilak was not admitted.
  • Tilak and Besant decided to start the home rule movement on their own.
  • In early 1915, Annie Besant (and S Subramaniya Iyer) launched a campaign through her two newspapers, New India and Commonweal, and organized public meetings and conferences to demand that India be granted self-government on the lines of the White colonies after the War. From April 1915, her tone became more peremptory and her stance more aggressive.
  • At the annual session of the Congress in December 1915 it was decided that the extremists be allowed to rejoin the Congress. The opposition from the Bombay group has been greatly weakened by the death of Pherozshah Mehta.
  • Tilak and Annie Besant set up two different home rule leagues.
  • Tilak’s league was to work in Maharashtra (excluding Bombay city), Karnataka, the central provinces and Berar and Annie Besant’s league was given the charged of the rest of India.
  • Tilak was totally secular in nature. There was no trace of religious appeal. The demand for Home Rule was made on a wholly secular basis.
    • “Home rule is my birthright, and I will have it”
  • The British were aliens not because they belonged to another religion but because they did not act in the Indian interest
  • Tilak’s league was organized into six branches, one each in Central Maharashtrra, Bombay city, Karnataka, and Central Provinces, and two in Berar.
  • On 23rd July 1916, on Tilak’s sixtieth birthday the government sent a notice asking him to show cause why he should not be bound over for good behavior for a period of one year and demanding securities of Rs 60000
  • Tilak was defended by a team of lawyers led by Mohammad Ali Jinnah. He won. Tilak used the opportunity to further the Home Rule movement.
  • In Besant’s league, the main thrust of activity was directed towards building up an agitation around the demand for Home Rule. This was to be achieved by promoting political education and discussion.
  • Lucknow Pact: 1916 in the Congress Session at Lucknow. Also known as Congress League Pact. Extremists were accepted back in congress. An agreement was reached between Muslim League and Congress.
  • The turning point in the movement came with the arrest of Annie Besant in June 1917
  • There was wide agitation and many leaders joined the league.
  • The government agreed to grant self rule but the timing for such a change was to be decided by the government alone.
  • After the great advance in 1917, the movement gradually dissolved.
    • The moderates were pacified by the government’s assurance of reforms after Besant’s release.
    • The publication of scheme of government reforms in July 1918 further created divisions. Many rejected it while others were for giving it a trial.
    • Later, Tilak went to England to fight a case. With Besant unable to give a firm lead, and Tilak away in England, the movement was left leaderless.
  • Achievements of the movement
    • The achievement of the Home Rule movement was that it created a generation of ardent nationalists who formed the backbone of the national movement in the coming years.
    • The Home rule leagues also created organizational links between town and country which were to prove invaluable in later years.
    • By popularizing the idea of self-government, it generated a widespread pro-nationalist Atmosphere in the country.
    • The movement set the right mood for the entry of Mahatma Gandhi and take the leadership.

Lucknow Pact (1916)

  • Nationalists saw that their disunity was affecting their cause
  • Two important developments at the Lucknow Session of Congress
    • The two wings of the Congress were again united
    • The Congress and the Muslim League sank their old differences and put up common political demands before the government.
  • INC and ML passed the same resolutions at their sessions, put forward a joint scheme of political reforms based on separate electorates, and demanded that the British Government should make a declaration that it would confer self-government on India at an early date.
  • The pact accepted the principle of separate electorates
  • Main clauses of the pact
  • There shall be self-government in India.
  • Muslims should be given one-third representation in the central government.
  • There should be separate electorates for all the communities until a community demanded joint electorates.
  • A system of weightage should be adopted.
  • The number of the members of Central Legislative Council should be increased to 150.
  • At the provincial level, four-fifth of the members of the Legislative Councils should be elected and one-fifth should be nominated.
  • The size of provincial legislatures should not be less than 125 in the major provinces and from 50 to 75 in the minor provinces.
  • All members, except those nominated, should be elected directly on the basis of Adult Franchise.
  • No bill concerning a community should be passed if the bill is opposed by three-fourth of the members of that community in the Legislative Council.
  • The term of the Legislative Council should be five years.
  • Members of Legislative Council should themselves elect their president.
  • Half of the members of Imperial Legislative Council should be Indians.
  • The Indian Council must be abolished.
  • The salaries of the Secretary of State for Indian Affairs should be paid by the British government and not from Indian funds.
  • Of the two Under Secretaries, one should be Indian.
  • The Executive should be separated from the Judiciary.
  • Evaluation
    • As an immediate effect, the unity between the two factions of the congress and between INC and ML aroused great political enthusiasm in the country
    • However, it did not involve Hindu and Muslim masses  and was based on the notion of bringing together the educated Hindus and Muslims as separate political entities without secularization of their political outlook
    • The pact therefore left the way open to the future resurgence of communalism in Indian politics.
  • Montagu-Chelmsford Reforms
    • Provincial LC enlarged. More elected members
    • Dyarchy
      • Some subjects were reserved and remained under the direct control of the Governor; others such as education, public Health and local self-government were called transferred subjects and were to be controlled by the ministers responsible to the legislature.
    • At the centre, there were two houses of legislature.
    • Response of nationalists
      • INC condemned the reforms as disappointing and unsatisfactory
      • Some others , led by Surendranath Banerjea, were in favour of accepting the government proposals. They left the Congress at this time and founded the Indian Liberal Federation
    • Evaluation
      • The  governor could overrule the ministers on any grounds that he considered special
      • The legislature had virtually no control over the Governor-General and his Executive Council.
      • The central government had unrestricted control over the provincial governments

 

Rowlatt Act

  • March 1919
  • It authorized the Government to imprison any person without trial and conviction in a court of law.

 

CHAPTER 14: Gandhi’s early career and activism

  • Gandhi was the first Indian barrister to have come to South Africa.
  • He was faced with various racial discriminations within days of his arrival in SA.
  • He led the Indian struggle in SA.
  • The first phase of Gandhi’s political activities from 1894-1906 may be classified as the ‘moderate’ phase.
  • He set up the Natal Indian Congress and started a paper called Indian Opinion.
  • By 1906, Gandhiji, having fully tried the ‘Moderate’ methods of struggle, was becoming convinced that these would not lead anywhere.
  • The second phase, begun in 1906, was characterized by the use of passive resistance, Satyagraha. There was no fear of jails.
  • South Africa prepared Gandhiji for leadership of the Indian national struggle:
    • He had the invaluable experience of leading poor Indian labourers.
    • SA built up his faith in the capacity of the Indian masses to participate in and sacrifice for a cause that moved them.
    • Gandhiji also had the opportunity of leading Indians belonging to different religions.
  • South Africa provided Gandhiji with an opportunity for evolving his own style of politics and leadership.
  • Gandhi returned to India on January 9, 1915
  • He founded the Sabarmati Ashram in Ahmedabad in 1916
  • Initially he was politically idle. He spent his time studying the situation of the country.
  • He was deeply convinced that the only viable method of political struggle was satyagraha.
  • During the course of 1917 and early 1918, he was involved in three significant struggles – in Champaran in Bihar, in Ahmedabad and in Kheda in Gujarat. The common feature of these struggles was that they related to specific local issues and that they were fought for the economic demands of the masses.
  • Champaran Satyagraha (1917)
    • Peasantry on the indigo plantations in Champaran, Bihar was excessively oppressed by the Eurpoean planters.
    • On the invitation of the peasants he went to Champaran and began to conduct a detailed inquiry into the condition of the peasantry
    • The government was forced to set up a committee with Gandhi as one of the members. The sufferings of the peasants was reduced.
    • Others in this movement: Rajendra Prasad, Mazhar-ul-Haq, J B Kriplani, Narhari Parekh and Mahadev Desai.
  • Ahmedabad Mill Strike (1918)
    • Dispute between workers and mill owners
    • Gandhi advised workers to go on a non-violent strike. He himself took to fast
    • Owners yielded and gave a 35 percent increase in wages to the workers
  • Kheda Satyagraha (1918)
    • Despite crop failure in Kheda the government insisted on full land revenue
    • Gandhi advised the peasants to withhold payment.
    • Govt issued instructions that revenue should be collected from only those farmers who could afford to pay
    • Sardar Vallabhbhai Patel played a major role in this satyagraha.
  • Impact of these early experiences
    • Brought Gandhiji in close contact with the masses
    • He identified his life and manner of living with the life of the common people
  • He had three main aims
    • Hindu-Muslim Unity
    • Fight against untouchability
    • Raising the social status of the women
  • Gandhiji’s first major nation-wide protest was against the Rowlatt Bills in 1919. He formed the Satyagraha Sabha whose members took a pledge to disobey the Act and thus to court arrest and imprisonment.
  • Satyagraha was launched. The form of protest finally decided was the observance of a nation-wide hartal accompanied by fasting and prayer.
  • However, protests were generally accompanied by violence and disorder.
  • In Punjab, the situation was particularly violent. Genral Dyer was called to control the situation. On 13 April, Baisakhi Day, General Dyer ordered to open fire on unarmed crowd in Jallianwala Bagh. The government estimate was 379 dead, other estimates were considerably higher.
  • Gandhiji, overwhelmed by the total atmosphere of violence, withdrew the movement on 18 April.
  • Difference between earlier methods of struggle and satyagraha
    • Earlier, the movement had confined its struggle to agitation. They used to hold meetings, demonstrate, boycott etc
    • Through Satyagraha they could act now.
    • The new movement relied increasingly on the political support of the peasants, artisans and urban poor.
    • Gandhiji increasingly turned the face of nationalism towards the common man
  • Jallianwala Bagh Massacre
    • On April 13, 1919 a large crowd had gathered in Amritsar to protest against the arrest of their leaders, Dr. Saifudding Kitchlew and Dr. Satyapal
    • General Dyer opened fire
    • Widespread criticism. Tagore returned his knighthood.

 

 

CHAPTER 15: Non Co-operation Movement

  • Montagu-Chelmsford Reforms 1919: Dyarchy
  • In a system called “dyarchy,” the nation-building departments of government — agriculture, education, public works, and the like — were placed under ministers who were individually responsible to the legislature. The departments that made up the “steel frame” of British rule — finance, revenue, and home affairs — were retained by executive councillors who were nominated by the Governor.
  • The Hunter Committee report praised the actions of general Dyer.
  • Khilafat Movement
    • For support of Turkey
    • Khilafat Committee formed under the leadership of Ali Brothers, Maulana Azad, Hakim Ajmal Khan and Hasrat Mohani
    • The promises made to the Khilafat Committee were not kept after the World War.
    • The All-India Khilafat Conference held at Delhi in November 1919 decided to withdraw all cooperation from the government if their demands were not met.
    • On June 9 1920, the Khilafat Committee at Allahabad unanimously accepted the suggestion of non-cooperation and asked Gandhiji to lead the movement.
  • Khilafat movement cemented Hindu-Muslim unity
    • Gandhiji looked upon the Khilafat agitation as “an opportunity of uniting Hindus and Mohammedans as would not arise in a hundred years”
  • The non-cooperation movement was launched on August 1, 1920. Lokmanya Tilak passed away on the same day.
  • People countrywide observed hartal and took out processions.
  • The congress met in September at Calcutta and accepted non-co-operation as its own.
  • The programme of non-cooperation included:
    • Surrender of titles and honors
    • Boycott of government affiliated schools and colleges, law courts, foreign cloth and could be extended to resignation from government services.
    • Mass civil disobedience including the non-payment of taxes.
    • National schools and colleges were to be set up
    • Panchayats were to be established to settle disputes
    • Hand-spinning and weaving was encouraged
    • People were asked to maintain Hindu-Muslim unity, give up untouchability and observe strict non-violence.
  • Changes in Congress to attain the new objective:
    • At the Nagpur session in 1920 changes in the Constitution of Congress were made.
    • The goal of congress was changed from the attainment of self-government by constitutional and legal means to the attainment of Swaraj by peaceful and legitimate means.
    • The Congress now had a Working Committee of fifteen members to look after its day to day affairs.
    • Provincial congress committees were now organized on a linguistic basis.
    • Mahalla and ward committees were formed.
    • The membership fee was reduced to 4 annas a years to enable poor to become members.
    • This was not without opposition however. Some members still believed in the traditional methods. Leaders like Jinnah, GS Khaparde, Bipin Chandra Pal and Annie Besant left congress during this time.
  • Gandhiji, along with the Ali brother, undertook a nationwide tour to address people.
  • Thousands of students left government schools and joined national schools.
  • The most successful item of the programme was the boycott of foreign cloth.
  • Picketing of toddy shops was also very popular.
  • Students let government schools and colleges. IT was during this time that Jamia Milia Islamia of Aligarh, the Bihar Vidyapith, the Kashi Vidyapith and the Gujarat Vidyapith came into existence.
  • Lawyers such as  Deshbandhu CR Das, Motilal Nehru, Rajendra Prasad, Saifudiin Kitchlew, C Rajagopalachari, Sardar Patel, T Prakasam and Asaf Ali gave up their legal practice.
  • Tilak Swarajya Fund was started to finance the NCM.
  • In 1921, Khilafat Committee issued a resolution that no muslim should serve in the British Indian army.
  • The visit of the Prince of Wales on 17th November 1921 was observed as a day of hartal all over the country.
  • The Congress Volunteer Corps emerged as a powerful parallel police.
  • By December 1921, the government felt that things were going too far and announced a change of policy by declaring the volunteer corps illegal and arresting all those who claimed to be its members.
  • Thousands of peasants and tenants participated in the movement.
  • In Punjab, the Akali movement to remove corrupt mahants from the Gurudwaras was started.
  • Assam: Tea plantation workers went on strike. Midnapore: peasants refused to pay Union Board taxes.                 Guntur (Chirala): Agitation led by Duggirala Gopalakrishayya                       Malabar: Mohlahs (muslim peasants) created a powerful anti-zamindari movement.
  • As the government refused to yield, Gandhiji announced that mass civil disobedience would begin in Bardoli taluqa of Surat.
  • However, in Chauri Chaura, Gorakhpur on 5 February 1922 crowd set fire on a police station and killed some policemen. On hearing this, Gandhiji decided to withdraw the movement.
  • The congress working committee ratified his decision. Thus, on February 12, 1922, the non-cooperation movement came to an end.
  • Assessing the Withdrawal:
    • Some scholars say that Gandhiji withdrew the movement because he wanted to protect the interests of the propertied class.
    • Some argue that there was no logic why a small incident should lead to withdrawal of the movement itself.
    • However, government could use Chauri Chaura to justify its repression of the movement.
    • If movement was started at that time, it would have been defeated due to the repression of the government.
    • Gandhiji was protecting the movement from likely repression, and the people from demoralization.
    • Mass movements tend to ebb in some time. Hence, withdrawal is a part of the strategy of mass movements.
  • Gandhiji was tried in 1922 and sentenced to six years’ imprisonment.
    • He invited the court to award him “the highest penalty that can be inflicted upon me for what in law is a deliberate crime, and what appears to be the highest duty of a citizen”.
  • Positives out of the non-cooperation movement:
    • Congress started commanding the support and sympathy of vast sections of the Indian people.
    • Millions of Indians became politically involved. Women were drawn into the movement.
    • Muslims participated heavily and communal unity was maintained.
    • Strengthened the national movement. Nationalist sentiments and the national movement had reached the remotest corners of the land.
    • People gained tremendous self-confidence and self-esteem.

 

CHAPTER 16: Peasant Movements

  • Three important peasant movements of the early twentieth century:
    • Kisan Sabha and Eka movements in Avadh in UP
    • Mappila rebellion in Malabar
    • Bardoli Satyagrah in Gujarat
  • The UP Kisan Sabha was set up in February 1918 through the efforts of Gauri Shankar Mishra and Indra Narain Dwivedi with the support of Madan Mohan Malviya.
  • By June 1919, it had established about 450 branches in 173 tehsils of the province.
  • In August 1921, Mappila (Muslim) tenants rebelled. Their grievances related to lack of any security of tenure, renewal fees, high rents and other oppressive labndlord exactions.
  • The no-tax movement was launched in Bardoli taluq of Surat district in Gujarat in 1928.

 

CHAPTER 17: The Working Class Movements

  • There were some working class movements in second half of 19th century. However, they were impulsive and not very well organized.
  • The early nationalists had a lukewarm Attitude towards the question of workers. This war because initially Congress wanted to focus on issues which were of common concern to all the people of India.
  • There was a difference in attitude of the nationalists towards workers in indigenous and European enterprises.
  • The most important feature of the labour movement during the Swadeshi days was the shift from agitation and struggles on purely economic questions to the involvement of the worker with the wider political issues of the day.
  • The All India Trade Union Congress (AITUC) was founded in 1920.
  • IN 1918 Gandhi founded the Ahmedabad Textile Labour Association.
  • The AITUC in November 1927 took a decision to boycott the Simon Commission and many workers participated in the massive Simon boycott demonstrations.
  • Alarmed by worker’s movement, the government enacted repressive laws like the Public Safety Act and Trade Disputes Acts and arrested the entire radical leadership of the labour movement and launched the Meerut Conspiracy Case against them.
  • The labour movement suffered a major setback partially due to this government offensive and partially due to a shift in stance of the communist led wing of the movement.
  • From the end of 1928, the communists stopped aligning them with the national movement.
  • Communists got isolated within the AITUC and were thrown out in the split of 1931.
  • BY 1934, the communists re-entered the mainstream nationalist politics.
  • The working class of Bombay held an anti-war strike on 2 October, 1939.
  • With the Nazi attack on the Soviet Union in 1941, the communists changed their policy and asked the people to support the allied forces instead of holding anti-war strikes.
  • The communists dissociated themselves from the Quit India Movement launched in 1942.
  • The last years of colonial rule also saw a remarkably sharp increase in strikes on economic issues all over the country – the all India strike of the post and telegraph department employees being the most well known among them.

 

CHAPTER 18: Struggles for Gurudwara Reform and Temple Entry

 

  • The Akali movement
  • The movement arose with the objective of freeing the Gurudwaras from the control of ignorant and corrupt priests (mahants).
  • Apart from the mahants, after the British annexation of Punjab in 1849, some control over the Gurudwaras was exercised by Government-nominated managers and custodians, who often collaborated with mahants.
  • The government gave full support to the mahants. It used them to preach loyalism to the Sikhs and to keep them away from the rising nationalist movement.
  • The agitation for the reform of Gurudwaras developed during 1920 when the reformers organized groups of volunteers known as jathas to compel the mahants and the government appointed managers to hand over control of the Gurudwaras to the local devotees.
  • Tens of Gurudwaras were liberated within an year.
  • To manage the control of Golden Temple and othe rGurudwaras the Shiromani Gurudwara Prabandhak Committee was formed in November 1920.
  • Feeling the need to give the reform movement a structure, the Shiromani Akali Dal was established in December 1920.
  • The SGPC and Akali Dal accepted complete non-violence as their creed.
  • There was a clash between the mahant and the Akalis over surrendering the gurudwara at Nanakana. This led to killing of about 100 akalis.
  •  The Nankana tragedy led to the involvement of Sikhs on a large scale in the national movement.
  • Keys Affair: In October 1921, the government refused to surrender the possession fo the keys of the Toshakhana of the golden temple of the Akalis. This led to protests. Leaders like Baba Kharak Singh and Master Tara Singh were arrested. Later, the government surrendered the keys to keep the Sikhs from revolting.
  • Guru ka Bagh gurudwara in Ghokewala was under dispute as the mahant there claimed that the land attached to it was his personal possession. When few akalis cut down a tree on that land they were arrested on the complain of the mahant. Seeing this thousands of akalis came and started cutting down the trees. About 4000 akalis were arrested. Later, the government didn’t arrest but started beating them up severly. But the alakis kept turning up. Ultimately the government had to surrender.
  • The akali movement made a huge contribution to the national awakening of Punjab.
  • However, the movement encouraged a certain religiosity which would be later utilized by communalism.
  • In 1923, the Congress decided to take active steps towards the eradication of untouchability.
  • The basic strategy it adopted was to educate and mobilize opinion among caste hindus.
  • Immediately after the Kakinada session, the Kerala Provincial Congress Committee (KPCC) took up the eradication of untouchability as an urgent issue.
  • KPCC adeiced to organize an procession on the temple roads in Vaikom, a village in Travancore, on 30 March 1924.
  • During the processions, the satyagrahis were arrested and sentenced to imprisonment.
  • On the death of Maharaja in August 1924, the Maharani released the Satyagrahis.
  • Gandhiji visited Kerala to discuss the opening of temple with Maharani. A compromise was reached whereby all roads except for the ones in the Sankethan of the temple were opened to the harijans.
  • In his Kerala tour, Gandhi didn’t visit a single temple because avarnas were kept out of them.
  • The weakness of the anti-caste movement was that through it aroused people against untouchability it lacked a strategy of ending the caste system itself.

 

CHAPTER 19: The years of Stagnation

 

  • Gandhiji was arrested in 1922 and sentenced to 6 years of imprisonment. The result was the spread of disintegration, disorganization and demoralization in the nationalist ranks.
  • After a defeat of their resolution of ‘either mending or ending’ in the Congress, CR Das and Motilal Nehru resigned and formed the Congress-Khilafat Swaraj Party in December 1922.
    • It was to function as a group within the congress
  • How to carry on political work in the movements’ non-active phases.  The swarajists said that work in the council was necessary to fill the temporary political void. The no-changers believed otherwise.
  • Major no-changers: Sardar Patel, Dr Ansari, Rajendra Prasad
  • The no-changers opposed council-entry mainly on the ground that parliamentary work would lead to the neglect of constructive and other work among the masses , the loss of revolutionary zeal and political corruption.
  • Despite the differences, he two groups had a lot in common.
    • The need for unity was very strongly felt by all the Congressmen after the 1907 debacle.
    • Both realized that the real sanctions which would compel the government to accept the national demands would be forged only by a mass movement.
    • Both groups fully accepted the leadership of Mahatma Gandhi.
  • In the session held in 1923, the congressmen were permitted to stand as candidates and exercise their franchise in the forthcoming Elections.
  • Gandhiji was released on February 5, 1924. He did not agree with the Swarajists. However, slowly he moved towards an accommodation with the swarajists.
  • On 6 November 1924, Gandhiji brought the strife between the Swarajists and no-changers to an end, by signing a joint statement with Das and Motilal that the Swarajists Party would carry on work in the legislatures on behalf of the Congress and as an integral part of the Congress. This decision was endorsed in Belgaum.
  • The Swarajists did well in the elections and won 42 out of 101 seats in the Central Legislative Assembly.
  • In March 1925, Vithalbhai J Patel was elected as he President (speaker) of the Central Legislative Assembly.
  • The achievement of the Swarajists lay in filling the political void at a time when the national movement was recouping its strength.
    • They also exposed the hollowness of the reforms of 1919
  • After the petering out of the NCM communalism took stronghold
    • Even within the Congress, a group known as  ‘responsivists’, including Madan Mohan Malviya, Lala Lajpat Rai and NC Kelkar, offered cooperation to the government so that the so-called Hindu interests might be safeguarded.

 

CHAPTER 20: Bhagat Singh

 

  • The sudden suspension of the non-cooperation movement led many young people to question the very basis strategy of non-violence and began to look for alternatives.
  • All the major new revolutionary leaders had been enthusiastic participants in the non-violent non-cooperation movement.
  • Two separate strands of revolutionary terrorism developed – one in Punjab, UP and Bihar and the other in Bengal.
  • Ramprasad Bismil, Jogesh Chatterjea and Sachindranath Sanyal met in Kanpur in October 1924 and founded the Hindustan Republican Association to organize armed revolution.
  • In order to carry out their activities the HRA required funding. The most important action of the HRA was the Kakori Robbery.
  • On August 9, 1925, ten men held up the 8-Down train from Shahjahanpur to Lucknow at Kakori and looted its official RAILWAY cash.
  • The government arrested a large number of young men and tried them in the Kakori Conspiracy Case.
  • Ashfaqulla Khan, Ramprasadn Bismil, Roshan Singh and Rajendra Lahiri were hanged, four others were sent to Andaman while seventeen others were sentenced to long term imprisonment.
  • New revolutionaries joined the HRA. They met at Ferozshah Kotla Ground at Delhi on 9 and 10 September 1928, created a new collective leadership, adopted Socialism as their official goal and changed the name of the party to the Hindustan Socialist Republican Association.
  • Lala Lajpat Rai dies in a lathi-charge when he was laeding an anti-Simon Commission demonstration at Lahore on 30 October 1928.
  •  On 17 December 1928, Bhagat Singh, Azad and Rajguru assassinated, at Lahore, Saunders, a police official involved in the lathi-charge on Lala Lajpat Rai.
  • In order to let the people know about HSRA’s changed objectives Bhagat Singh and BK Dutt were asked to throw a bomb in the Central Legislative Assembly on 8 April 1929 against the passage of the Public Safety Bill and the Trade Disputes Bill.
  • He aim was not to kill but to let people know of their objectives through the leaflet they threw.
  • They were later arrested and tried.
  • The country was also stirred by the hunger strike the revolutionaries took as a protest against the horrible conditions in jails.
  • On 13th September, the 64th day of the epic fast, Jatin Das died.
  • Bhagat Singh, Sukhdev and Rajguru were sentenced to be hanged. He sentence was carried out on 23 March, 1931.
  • Bhagat Singh was fully secular.
    • The Punjab Naujawan Bharat Sabha organized by him acted on secular lines.
  • In Bengal, after the death of C R Das, the Congress leadership in Bengal got divided into two wings: one led by S C Bose and the other by J M Sengupta. The Yugantar group joined forces with the first while the Anushilan with the second.
  • Surya Sen had actively participated in the non-cooperation movement. He gathered around him a large band of revolutionary youth including Anant Singh, Ganesh Ghosh and Lokenath Baul.
  • Chittagong Armoury Raid

 

NCERT Chapter 13

 

  • Emergence of socialism in the 1920s in the nationalist ranks
    • JL Nehru and SC Bose
    • Raised the question of internal class oppression by capitalists and landlords
    • MN  Roy became the first Indian to be elected to the leadership of the Communist International
    • Muzaffer Ahmed and SA Dange were tried in the Kanpur Conspiracy Case
    • 1925: Communist Party of India was formed
    • All India Trade Union Congress
    • Various Strikes: Bombay textile mills, Jamshedpur, Kharagpur
  • Bardoli Satyagraha (1928)
    • Peasants under the leadership of Sardar Patel organized no tax campaign
  • Indian Youth were becoming active
    • First All Bengal Conference of Students  held in 1928 presided by JL Nehru
  • Hindustan Republican Association: 1924
    • Kakori Conspiracy Case (1925)
    • Four, including Ram Prasad Bismil and Ashfaqulla Khan were hanged.
  • Hindustan Socialist Republican Association (1928)
    • On 17th December 1928, Bhagat Singh, Azad and Rajguru assassinated Saunders
    • Bhagat Singh and BK Dutt threw bomb in the Central Legislative Assembly on 8 April 1929 to let the people know of their changed political objectives
  • Chittagong Armoury Raid: 1030, Surya Sen
    • Participation of young women

 

Simon Commission (1927)

  • Indian Statutory Commission chaired by Simon to go into the question of further constitutional reform
  • All its seven members were Englishmen. Clement Attlee was one of the members.
  • Lord Birkinhead was the secretary of state at that time
  • At its Madras session in 1927 INC decided to boycott the commission “at every stage and in every form”
    • ML and Hindu Mahasabha supported Congress
  • Nehru Report, 1928
    • Dominion status
    • Contained Bill of Rights
    • No state religion
    • Federal form
    • Linguistically determined provinces
    • No separate electorates
    • All Party Convention, held at Calcutta in 1928, failed to pass the report
    • Muslim league rejected the proposals of the report
    • Jinnah drafted his fourteen points
    • Hindu Mahasabha and Sikh League also objected
  • Poorna Swaraj
    • Resolution passed at the Lahore session in 1929
    • On 31 December 1929, the tri-color was hoisted
    • On 26 January 1930, Independence Day was celebrated

 

Civil Disobedience Movement

  • Started by Gandhi on 12th March 1930 with the Dandi March. Reached Dandi on April 6.
  • Defiance of forest laws in Maharashtra, Central Province and Karnataka. Refusal to pay chaukidari tax in Eastern India.
  • Wide participation of women
  • Khan Abdul Gaffar Khan organized Khudai Khidmatgars (aka Red Shirts)
  • Nagaland: Rani Gaidilieu
  • First RTC, 1930
    • Congress boycotted
  • Gandhi-Irwin Pact, 1931
    • Government agreed to release the political prisoners who had remained non-violent
    • Right to make salt for consumption
    • Right to peaceful picketing of liquor and foreign cloth shops
    • Congress suspended the Civil Disobedience Movement
    • Agreed to take part in the second RTC

 

 

   TERRESTRIAL ECOSYSTEMS

 

 

The interrelations between organisms and Environment on the land constitute “Terrestrial ECOLOGY“.

The most important limiting factors of the terrestrial Ecosystems are moisture and temperature.

 

 

https://exam.pscnotes.com/tundra”>Tundra

The word tundra means a “barren land” since they are found where environmental conditions are very severe. There are two types of tundra- arctic and alpine.

Distribution:

Arctic tundra extends as a continuous belt below the polar ice cap and above the tree line in the northern hemisphere. It occupies the northern fringe of Canada, Alaska, European Russia, Siberia and island group of Arctic Ocean.

On the south pole, tundra is very small since most of it is covered by ocean .

Alpine tundra occurs at high Mountains above the tree line. Since mountains are found at all latitudes therefore alpine tundra shows day and night temperature variations.

Flora and Fauna:

Typical vegetation of arctic tundra is Cotton grass, sedges, dwarf heath, willows, birches and lichens.

Animals of tundra are reindeer, musk ox, arctic hare, caribous, lemmings and squirrel.

They are protected from chillness by the presence of thick cuticle and epidermal hair.

Mammals of the tundra region have large body size and small tail and ear to avoid the loss of heat from the surface.

The body is covered with fur for insulation.

Plate tectonics

 

The uppermost outer solid and rigid layer of the earth is called crust. Its thickness varies considerably. It is as little as 5 km thick beneath the Oceans at some places but under some mountain ranges it extends upto a depth of 700km. Below the crust denser rocks are found, known as mantle crust. This upper part of mantle upto an Average depth of 100 km from the surface is solid. This solid mantle plus upper crust form a comparatively rigid block termed as lithosphere. Mantle is partially molten between 100 to 250 km depth. This zone is said to be asthenosphere, also known as Mohr discontinuity, a SIMPLIFICATION of Mohorovicic, the name of the seismologist who discovered it.
The lithosphere is broken into several blocks. These blocks are known as plates, which are moving over asthenosphere. There are seven major plates.

 

While the continents do indeed appear to drift, they do so only because they are part of larger plates that float and move horizontally on the upper mantle asthenosphere. The plates behave as rigid bodies with some ability to flex, but deformation occurs mainly along the boundaries between plates.

 

 

 

The plate boundaries can be identified because they are zones along which Earthquakes occur.Plate interiors have much fewer earthquakes.

There are three https://exam.pscnotes.com/types-of-plate-boundaries”>Types of Plate Boundaries:

  1. Divergent Plate boundaries, where plates move away from each other.
  2. Convergent Plate Boundaries, where plates move toward each other.
  3. Transform Plate Boundaries, where plates slide past one another.

Divergent Plate Boundaries

These are oceanic ridges where new oceanic lithosphere is created by upwelling mantle that melts, resulting in basaltic magmas which intrude and erupt at the oceanic ridge to create new oceanic lithosphere and crust. As new oceanic lithosphere is created, it is pushed aside in opposite directions. Thus, the age of the oceanic crust becomes progressively older in both directions away from the ridge.

Because oceanic lithosphere may get subducted, the age of the ocean basins is relatively young. The oldest oceanic crust occurs farthest away from a ridge. In the Atlantic Ocean, the oldest oceanic crust occurs next to the North American and African continents and is about 160 million years old (Jurassic)

. In the Pacific Ocean, the oldest crust is also Jurassic in age, and occurs off the coast of Japan.

Because the oceanic ridges are areas of young crust, there is very little sediment accumulation on the ridges. Sediment thickness increases in both directions away of the ridge, and is thickest where the oceanic crust is the oldest. Knowing the age of the crust and the distance from the ridge, the relative velocity of the plates can be determined.

Relative plate velocities vary both for individual plates and for different plates.

Sea floor topography is controlled by the age of the oceanic lithosphere and the rate of spreading.

If the spreading rate (relative velocity) is high, magma must be rising rapidly and the lithosphere is relatively hot beneath the ridge. Thus for fast spreading centers the ridge stands at higher elevations than for slow spreading centers. The rift valley at fast spreading centers is narrower than at slow spreading centers. As oceanic lithosphere moves away from the ridge, it cools and sinks deeper into the asthenosphere. Thus, the depth to the sea floor increases with increasing age away from the ridge.

 

Convergent Plate Boundaries

When a plate of dense oceanic lithosphere moving in one direction collides with a plate moving in the opposite direction, one of the plates subducts beneath the other. Where this occurs an oceanic trench forms on the sea floor and the sinking plate becomes a subduction zone. The Wadati-Benioff Zone, a zone of earthquakes located along the subduction zone, identifies a subduction zone. The earthquakes may extend down to depths of 700 km before the subducting plate heats up and loses its ability to deform in a brittle fashion.

As the oceanic plate subducts, it begins to heat up causing the release water of water into the overlying mantle asthenosphere. The water reduces the melting temperature and results in the production of magmas. These magmas rise to the surface and create a volcanic arc parallel to the trench. If the subduction occurs beneath oceanic lithosphere, an island arc is produced at the surface (such as the Japanese islands, the Aleutian Islands, the Philippine islands, or the Caribbean islands

Transform Plate Boundaries

Where lithospheric plates slide past one another in a horizontal manner, a transform fault is created. Earthquakes along such transform faults are shallow focus earthquakes.

Most transform faults occur where oceanic ridges are offset on the sea floor. Such offset occurs because spreading takes place on the spherical surface of the Earth, and some parts of a plate must be moving at a higher relative velocity than other parts One of the largest such transform boundaries occurs along the boundary of the North American and Pacific plates and is known as the San Andreas Fault. Here the transform fault cuts through continental lithosphere

Triple Junctions occur at points where thee plates meet.

Hot Spots

Areas where rising plumes of hot mantle reach the surface, usually at locations far removed from plate boundaries are called hot spots. Because plates move relative to the underlying mantle, hot spots beneath oceanic lithosphere produce a chain of Volcanoes. A volcano is active while it is over the vicinity of the hot spot, but eventually plate motion results in the volcano moving away from the plume and the volcano becomes extinct and begins to erode.

Because the Pacific Plate is one of the faster moving plates, this type of volcanism produces linear chains of islands and seamounts, such as the

  • Hawaiian – Emperor chain, the Line
  • Islands, the Marshall-Ellice Islands,
  • and the Austral seamount chain

 

Four Modes of Services under GATT

  Four Modes of Services under GATT
Mode 1 Cross border trade, which is defined as delivery of a service from the territory of one
  country into the territory of other country;
Mode 2 Consumption abroad – this mode covers supply of a service of one country to the service
  consumer of any other country;
Mode 3 Commercial  presence  –  which  covers  services  provided  by  a  service  supplier  of  one
  country in the territory of any other country, and
Mode 4 Presence of natural persons – which covers services provided by a service supplier of one
  country through the presence of natural persons in the territory of any other country

 

 

 

 

 

 

 

 

Industrial Transition in India

 

  • The process of industrial transition divided into: industrial Growth during the 19th century and industrial progress during the 20th century
  • Industrial growth during the 19th century
    • Decline of indigenous industries and the rise of large scale modern industries
    • 1850-55: first https://exam.pscnotes.com/cotton”>Cotton mill, first jute mill and the first coal mine established. RAILWAY also introduced.
    • Despite some industrialisation, India was becoming an agricultural colony
    • The thrust to industrialisation came from the British because
      • They had capital
      • They had experience in setting up industries in Britain
      • They had state support
    • British industrialists were interested in making profits rather than economic growth of India
    • Parsis, Jews and Americans were also setting industries
    • No Indian industrialists because
      • Neither the merchants nor the craftsmen took the lead in setting industries
      • While the craftsmen didn’t possess capital, the merchants were happy with trading and Money lending activity which was also growing at that time.
    • However, some Parsis, Gujaratis, Marwaris, Jains and Chettiars joined the ranks of industrialists
  • Industrial Growth in the first half of the 20th century
    • Imp events that stimulated industrial growth
      • 1905: Swadeshi Movement
      • First WW
      • Second WW
    • Great stimulus was given to the production of iron and steel, cotton and woollen textiles, leather products, jute.
    • Tariff protection was given to Indian industries between 1924 and 1939. This led to growth and Indian industrialists were able to capture the market and eliminate foreign completion altogether in important fields
    • The increase in industrial output between 1939 and 1945 was about 20 percent
    • After the WW I, the share of the foreign enterprises in India’s major industries began to decline.
  • Causes for the slow growth of private enterprise in India’s industrialisation
    • Inadequacy of entrepreneurial ability
      • Indian industrialists were short-sighted and cared very little for replacement and renovation of machinery
      • Nepotism dictated choice of personnel
      • High profits by high prices rather than high profits by low margins and larger sales
    • Problem of capital and private enterprise
      • Scarce capital
      • Few avenues for the Investment of surplus
      • No government loans
      • Absence of financial institutions
      • Banking was not highly developed and was more concerned with commerce rather than Industry
    • Private enterprises and the role of government
      • Lack of support from the government
      • Discriminatory tariff policy: one way free-trade
      • Restrictions transfer of capital equipments and machinery from Britain
      • Almost all machinery was imported
    • Despite these difficulties, the Indian indigenous business communities continued to grow, albeit at a slow pace.

Forms and Consequences of Colonial Exploitation

  • Main forms of colonial exploitation
    • Exploitation through trade policies
    • Exploitation through export of British Capital to India
    • Exploitation through finance capital via the Managing agency system
    • Exploitation through the payments for the costs of the British administration
  • Exploitation through trade policies
    • Exp of cultivators to boost indigo export: forced
    • Exp of artisans by compulsory procurement by the Company at low prices: gomastas were the agents of the Company who used to do this
    • Exp through manipulation of export and import duties:
      • Imports of Indian printed cotton fabrics in England were banned
      • Heavy import duties on Indian manufactures and very nominal duties on British manufactures.
      • Discriminating protection was given (to industries that had to face competition from some country other than Britain). This was whittled down, however, by the clause of Imperial Preference under which imports from GB and exports to GB should enjoy the MFN status.
    • Exploitation through export of British Capital to India
      • There were three purposes of these investment (in transport and Communication)
        • To build better access systems for exploited India’s Resources“>Natural Resources
        • To provide a quick means of communication for maintaining law and order
        • To provide for quicker disbursal of British manufactures throughout the country and that raw materials could be easily procured
      • Fields of FDI
        • Economic overhead and Infrastructure like railways, shippings, port, roads, communication
        • For promoting mining of resources
        • Commercial Agriculture-notes-for-state-psc-exams”>Agriculture
        • Investment in consumer goods industries
        • Investments made in machine building, engineering industries and chemicals
      • Forms of investment
        • Direct private foreign investment
        • Sterling loans given to the British Government in India
      • Estimates show that foreign capital increased from 365 mn sterling in 1911 to 1000 mn sterling in 1933.
      • British multinationals were the chief instruments of exploitation and it were they who drained out the wealth of India.
      • These investments show that
        • British were interested in creating economic infrastructure to aid exploitation and resource drain
        • They invested in consumer goods and not in basic and heavy industries to prevent the development of Indian industries
        • Ownership and management of these companies lay in British hands
      • Exploitation through finance capital via the Managing agency system
        • Managing agency system: The British merchants who had earlier set up firms acted as pioneers and promoters in several industries like jute, tea and coal. These persons were called managing agents
        • It may be described as partnerships of companies formed by a group of individuals with strong financial resources and business experience
        • Functions of managing agents
          • To float new concerns
          • Arrange for finance
          • Act as agents for purchase of raw materials
          • Act as agents to market the produce
          • Manage the affairs of the business
        • They were important because they supplied finance to India when it was starved of capital
        • In due course, they started dictating the terms of the industry and business and became exploitative and inefficient
        • They demanded high Percentage of profits. When refused they threatened to withdraw their finance
      • Exploitation through payments for the costs of British administration
        • British officers occupied high positions and were paid fabulous remunerations.
        • These expenditures were paid by India
        • They transferred their Savings to Britain
        • India had to pay interest on Sterling Loans
        • India has to pay for the war expedition of the Company and later the Crown

Consequences of the exploitation

  • India remained primarily an agricultural economy
  • Handcrafts and industries were ruined
  • Trade disadvantage developed due to the policy of the British
  • Economic infrastructure was developed only to meet the colonial interests
  • Drain of Wealth
  • The net result of the British policies was POVERTY and stagnation of the Indian economy

Population growth, distribution and density

 

India is the second most populous country in the world next only to China. On March 1, 2011 the total Population of India was at 1.247 billion. This accounted for 17.5% of the world’s total population. In other words, about every sixth person in the world there is an Indian. China, the most populous country of the world, is a step ahead of us as every fifth person in the world there is a Chinese. While India possesses only 2.42% of the world’s total land area, she is required to sustain almost 17.5% of the world’s population.

Two components of https://exam.pscnotes.com/population-Growth“>Population Growth are: Natural growth: It is analysed by assessing the crude birth and death rates. Induced growth: It is assessed by the volume of inward and outward movement of people in any given area. There are four phases of population growth in India. The period from 1901-1921 is referred to as a period of stagnant growth of India’s population. The high birth rate was counterbalanced by high death rate. The decades 1921-1951 are referred to as the period of steady population growth. The mortality rate started showing downward trend as a result of improvement in general Health and sanitation conditions after 1921.

The density of population is expressed as the number of persons per square kilometre. According to 2011 census, the density of population in India is 382 persons per square kilometre. Over the last 100 years density has increased more than four times.

Density and its variation across states can be accessed by the following table:-

State Area Sq. Km Density 2011 Density 2001 Density

2011

India (Average) 3,287,240 382 324
1 Delhi 1,483 11,320 9,340
2 Chandigarh 114 9,258 7,900
3 Puducherry 490 2,547 2,034
4 Daman and Diu 111 2,191 1,413
5 Lakshadweep 30 2,149 1,895
6 Bihar 94,163 1,106 881
7 West Bengal 88,752 1,028 903
8 Kerala 38,852 860 819
9 Uttar Pradesh 240,928 829 690
10 Dadra and Nagar Haveli 491 700 449
11 Haryana 44,212 573 478
12 Tamil Nadu 130,060 555 480
13 Punjab 50,362 551 484
14 Jharkhand 79,716 414 338
15 Assam 78,438 398 340
16 Goa 3,702 394 364
17 Maharashtra 307,713 365 315
18 Tripura 10,486 350 305
19 Karnataka 191,791 319 276
20 Gujarat 196,244 308 258
21 Andhra Pradesh 275,045 308 277
22 Orissa 155,707 270 236
23 Madhya Pradesh 308,252 236 196
24 Rajasthan 342,239 200 165
25 Uttarakhand 53,483 189 159
26 Chhattisgarh 135,192 189 154
27 Meghalaya 22,429 132 103
28 Manipur 22,327 128 103
29 Himachal Pradesh 55,673 123 109
30 Nagaland 16,579 119 120
31 Sikkim 7,096 86 76
32 Jammu and Kashmir 222,236 56 46
33 Mizoram 21,081 52 42
34 Andaman and Nicobar Islands 8,249 46 43
35 Arunachal Pradesh 83,743 17 13

 

 

 

 

 

Financial Inclusion

https://exam.pscnotes.com/financial-inclusion”>Financial Inclusion

Financial inclusion or inclusive financing is the delivery of financial Services at affordable costs to sections of disadvantaged and low-income segments of Society, in contrast to financial exclusion where those services are not available or affordable.

Government of India has launched an innovative scheme of Jan Dhan Yojna for Financial Inclusion to provide the financial services to millions out of the regulated Banking sector.

 

 

 

 

Various program’s for financial inclusion are:-

  • Swabhimaan Scheme:under the Swabhimaan campaign, the Banks were advised to provide appropriate banking facilities to habitations having a Population in excess of 2000 (as per 2001 census) by March 2012.
  • Extention of  the banking networkin unbanked areas,
  • Expansion of Business Correspondent Agent (BCA)Network
  • Direct Benefit Transfer(DBT) and Direct Benefit Transfer for LPG (DBTL)
  • RuPay, a new card payment scheme has been conceived by NPCI to offer a domestic, open-loop, multilateral card payment system which will allow all Indian banks and financial Institutions in India to participate in electronic payments.
  • Pradhan Mantri Jan-Dhan Yojana (PMJDY)was formally launched on 28th August, 2014. The Yojana envisages universal access to banking facilities with at least one basic banking account for every household, financial Literacy, access to credit, Insurance and pension. The beneficiaries would get a RuPay Debit Card having inbuilt accident insurance cover of Rs.1.00 lakh. In addition there is a life insurance cover of Rs.30000/- to those people who opened their bank accounts for the first time between 15.08.2014 to 26.01.2015 and meet other eligibility conditions of the Yojana.

 

 

 

Inflation in India

<use fundaes from your MAP> this question is very likely to be asked given the present inflationary trend.

Monetary Policy of India

Topics

  1. MP background
  2. Evolution of monetary policy in India: Different phases
  3. Transmission Mechanism
  4. Goals of MP
  5. Instruments of MP
  6. Determinants of MP
  7. Role of RBI: Pre and post-reforms
  8. MP: pre and post reforms
  9. Committees on Monetary Management in India
  10. MP and Money Market
  11. MP and Fiscal Policy
  12. MP and the external sector
  13. MP and the banking sector
  14. MP and Economic Growth
  15. MP and Inflation
  16. Financial Stability: New Challenge
  17. Challenges before monetary policy
  18. Criticisms of India’s MP

 

Some background information

  • An important factor that determines the effectiveness of MP is its transmission – a process through which changes in the policy achieve the objectives of controlling inflation and achieving growth
  • MP transmission mechanism describes how MP action affects output and inflation, the final objectives of MP
  • Various MP transmission channels
    • Quantum Channel relating to Money Supply and credit
    • Interest Rate Channel –this has become important in the post reform period
    • Exchange Rate Channel
    • Asset Price Channel
  • How these channels function in an economy depends on its stage of development and its underlying financial structure.
  • These channels, however, are not mutually exclusive. There could be considerable feedback and interaction among them.

Evolution of MP

  • 1935: Proportional Reserve System
  • 1954: Minimum Reserve System
  • 1973-76: Minimum and maximum lending rates for bank loans prescribed
  • 1985: Flexible monetary targeting with feedback
  • 1998: Multiple indicator approach adopted

Divide MP into phases and study

Functions of RBI

  • Monetary functions
    • Conduct of monetary policy
    • Bank of issue
    • Banker to the government
    • Banker’s Bank and Lender of the Last Resort
    • Controller of credit
    • Custodian of Foreign Exchange reserves
    • Foreign exchange management – current and Capital Account management
    • Oversight of the payment and settlement systems
  • Non-monetary functions
    • Regulation and supervision of the banking and non-banking financial institutions, including credit information companies
    • Regulation of money, forex and Government Securities markets as also certain financial Derivatives
    • Promotional functions: promotion of IFCI, SFC etc
    • Developmental role
    • Research and statistics

Objective of MP

  • To catalyse economic growth: by ensuring adequate flow of credit to productive sectors
  • Price stability
  • After the financial crisis, achieving Financial Stability has emerged as an important objective. Exchange rate management can be yet another objective

Tools of MP

  • General Credit Control (Quantitative Control)
  • Specific and direct credit control (Qualitative Control)
    • Lending margins
    • Purpose specific credit ceiling
    • Discriminatory interest rates
    • Eg: Credit Authorisation Scheme, Credit Monitoring Arrangement.

MP pre-reforms

  • MP in India was conducted under the monetary targeting framework till 1997-98 with M3 as an intermediate target. This amounted to regulating money supply consistent with the expected growth in real income and a projected level of inflation.
  • During the monetary targeting phase (1985-1998), while M3 growth provided the nominal anchor, reserve money was used as the operating target and   cash reserve ratio (CRR) was used as the principal operating instrument.  Besides CRR, in the pre-reform period prior to 1991, given the command and control nature of the economy, the Reserve Bank had to resort to direct instruments like interest rate regulations and selective credit control. These instruments were used intermittently to neutralize the expansionary impact of large fiscal deficits which were partly monetised. The administered interest rate regime kept the yield rate of the government securities artificially low. The demand for them was created through periodic hikes in the Statutory Liquidity Ratio (SLR) for banks. The task before the Reserve Bank was, therefore, to develop the Financial Markets to prepare the ground for indirect operations.

MP post-reform

  • In the wake of the financial reforms, questions were raised about the appropriateness of this framework.
  • Working Group on Money Supply (1998)
    • Highlighted that the interest rate channel of transmission mechanism was gaining importance
  • On the recommendation of this working group, RBI shifted over to a multiple-indicator approach from 1998-9
  • Multiple Indicator Approach: Interest rates or rates of return in different markets (money, capital and g-sec), along with such data as on currency, credit extended by banks and financial institutions, fiscal position, trade, capital flows, inflation rate, exchange rate, refinancing and transactions in foreign exchange available on high-frequency basis, are juxtaposed with output data for drawing policy perspectives.
  • LAF: Another important feature post reform is the increased use of LAF. It has enabled RBI to modulate short-term liquidity under varied financial market conditions, including large capital inflows from abroad.
  • CRR: Reduced
  • 1992-93: market borrowing programme of the government was put through the auction process
  • SLR was brought down to its statutory minimum of 25 pc by Oct 1997 and 24 pc in 2010
  • CRR was brought down from 15 pc of NDTL of banks to 9.5 pc in Nov 1997 which has stabilised at 6 pc for a long time. Not bound by its statutory limit (lower) of 3 pc now.
  • Narsimhan Committee (1998) recommended reforms in the Money Market
    • RBI introduced LAF in 2000 to manage market liquidity on a daily basis and also to transmit interest rate signals to the market. In the post-reform period, LAF, with OMO, has emerged as the dominant instrument of MP, though CRR continued to be used as an additional instrument of policy.
    • Call Money market was transformed into a pure inter-bank market by 2005.
    • With the introduction of prudential limits on borrowing and lending by banks in the call money market, the collateralized money market segments developed rapidly
  • To absorb the capital inflows in excess of the absorptive capacity of the economy MSS was introduced in 2004. Interestingly, in the face of reversal of capital flows during the recent crisis, unwinding of the sterilised liquidity under the MSS helped to ease liquidity conditions.
  • Increased Micro-finance: To strengthen rural finance RBI has focused on SHGs.
  • Fiscal Monetary Separation: Automatic monetization of deficit faced out since 1994. Thus it has separated the monetary policy from the fiscal policy.
  • Changed interest rate structure: Phased deregulation of lending rates in the credit market. Minimum lending rates had been abolished and lending rates above Rs. 2 lakh were freed. In 2010, the Base Rate mechanism was adopted. Savings rate was deregulated in 2011
  • Higher market orientation for banking: the banking sector got more autonomy and operational flexibility.

 

Challenges in the post-reform period

  • A major challenge is the conduct of monetary policy in surplus liquidity conditions.
  • Increased capital inflows
    • To deal with this, RBI initiated the Market Stabilization Scheme (MSS) in 2004
    • Under the scheme RBI issues Treasury Bills and dated government securities. The money generated from sale of these bills is kept in a different account held by the government and maintained and operated by RBI. This money is not available for government’s expenditure. Thus, liquidity in the market is mopped.
    • The operationalisation of the MSS to absorb liquidity of more enduring nature has considerably reduced the burden of sterilization on the LAF window.
  • Financial stability is an emerging concern
  • The ongoing modernisation of the payments system with the introduction of RTGS would have a significant impact on MP.
  • The transmission of policy signals to banks’ lending rates has been rather slow. <base rate system introduced to correct this?>
  • Central bank independence

Criticisms/Limitations

  • In case of high Fiscal Deficit, monetary expansion has continued to happen
  • Limited coverage: The MP covers only commercial banking system and leaves out the non-bank institutions. This limits the effectiveness of MP
  • Unorganised money market: Its pretty large and does not come under the control of the RBI. Hence, MP does not affect them.
  • Predominance of cash transcation (?): <check out the current situation> In India, still there is huge dominance of cash in total money supply. It is one of the main obstables in the effective implementation of MP. Because MP operates on the bank credit rather than cash.
  • Increase volatility: As MP has adoptged changes in accordance to the changes in the external sector as well, it could lead to a high amount of volatility.

Evaluation of the changes in MP and Money Market

  • In response to the reforms, over the years the turnover in various market segments increased significantly
  • The reforms have also led to improvement in liquidity management operations by the RBI as is evident from the stability in call money rates, which also helped improve integration of various money market segments and thereby effective transmission of policy signals
  • The rule based fiscal policy pursued under the FRBM Act, by easing fiscal dominance, contributed to overall improvement in monetary management.
  • With the changing framework of monetary policy in India from monetary targeting to an augmented multiple indictors approach, the operating targets and processes have also undergone a change. There has been a shift from quantitative intermediate targets to interest rates, as the development of financial markets enabled transmission of policy signals through the interest rate channel. At the same time, availability of multiple instruments such as CRR, OMO including LAF and MSS has provided necessary flexibility to monetary operations. While monetary policy formulation is a technical process, it has become more consultative and participative with the involvement of market participant, academics and experts. The internal process has also been re-engineered with more technical analysis and market orientation. In order to enhance transparency in Communication the focus has been on dissemination of information and analysis to the public through the Governor’s monetary policy statements and also through regular sharing of policy research and macroeconomic and financial information.
  • The availability of multiple instruments and their flexible use in the implementation of monetary policy have enabled the RBI to successfully influence the liquidity and interest rate conditions in the economy.

Changes in MP

  Pre-reform Post-reform
Operating Target Reserve Money was used as the operating target in the monetary targeting framework until mid-1990s Multiple Indicator Approach
Monetary Policy Instruments CRR and SLR was heavily used Reliance on direct instruments has been reduced and liquidity management in the system is carried out through OMOs in the form of outright purchases of g-secs and daily repo and reverse repo operations under LAF. MSS also introduced.
    Large capital inflows witnessed in recent years have posed a major challenge in the conduct of monetary and exchange rate management.
    Phased deregulation of the interest rates
  High SLR and CRR Low SLR and CRR
     

 

Money Market

  • RBI operationalises its monetary policy through its operations in government securities, foreign exchange and money markets
  • 1985: Money Market reforms begin
  • 1992: Introduction of auction system for government securities
  • 1996: Primary Dealer System initiated
  • 2002: Electronic trading and guaranteed settlement through CCIL for G-Sec starts
  • 2006: RBI expressly empowered to regulate money, forex, G-sec and gold related securities markets

 

Role of RBI

Pre-reform Post-reform
Developmental Role: the developmental role has increased in view of the changing structure of the economy with a focus on SMEs and financial inclusion Priority Sector Lending: Introduced from 1974 with Public Sector Banks. Extended to all Commercial Banks by 1992 In the revised guidelines for PSL the thrust is on ensuring adequate flow of bank credit to those sectors that impact large segments of the population and weaker sections, and to the sectors which are EMPLOYMENT intensive such as Agriculture-notes-for-state-psc-exams”>Agriculture and small enterprises
Lead Bank Scheme Special Agricultural credit Plan introduced.
Kisan Credit Card scheme (1998-99)
Focus on credit flow to micro, small and  medium enterprises development
Financial Inclusion
Monetary Policy: the role of RBI has changed from regulating credit and money flow directly to using market mechanisms for achieving policy targets. MP framework has changed to promote financial deregulations and market development. Role as a facilitator rather than as principal actor. M3 as an intermediary target Multiple Indicator Approach
Regulation of foreign exchange Management of foreign exchange
Direct credit control Open Market Operations, MSS, LAF
Rupee convertability highly managed Full current ac convertability and some capital account convertability
Banker to the government Monetary policy was linked to the fiscal policy due to automatic monetisation of the deficit Delinking of monetary policy from the fiscal policy. From 2006, under FRBM, RBI ceased to participate in the Primary Market auctions of the central government’s securities.
As regulator of financial sector: As regulator of the financial sector, RBI has faced the challenge of regulating the increasing financial sector in India. Credit flows have increased. RBI had to make sure that financial institutions are regulated in a way to protect the consumers while not impeding economic growth. Reduction in SLR
Custodian of FOREX reserves Forex reserves have increased drastically. Need to manage it adequately and avoid inflationary impact
Inflation Direct instruments were used Multiple indicators
Financial Stability Closed economy Increased FDI and FII has made financial stability one of the policy objectives.
Money Market Narsimhan Committee (1998) recommended reforms in the money market

 

 

The term Sustainable growth became prominent after the World Conservation Strategy Presented in 1980 by the International Union for the Conservation of Nature and Resources“>Natural Resources. Brundland Report(1987) define Sustainable Development as the a process which seek to meet the needs and aspirations of the present generation without compromising the ability of the future generation to meet their own demands.

Natural resources are limited and thus sustainable development promotes their judicious use and put emphasis on conservation and protection of Environment.Global Warming and Climate-change”>Climate Change has brought the issue of Sustainable development in prominence.

Inclusive Growth is economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society.Indian Plans after the independence were based on the downward infiltration theory, which failed to bring equitable growth to all the sections of the Indian Society.

Approach paper of 11th five year plan talked about “Inclusive and more faster growth” through bridging divides by including those in growth process who were excluded. Divide between above and Below POVERTY-line”>Poverty Line, between those with productive jobs and those who are unemployed or grossly unemployed is at alarming stage.

Liberalization and Privatization after 1990’s have brought the nation out of the hindu growth rate syndrome but the share of growth has not been equitably distributed amongst different sections of Indian Society.

Various dimensions of Inclusive growth are:-

  1. economic
  2. social
  3. financial
  4. environmental

Important issues that are needed to be addressed to achieve the inclusive growth are:-

  1. Poverty
  2. Unemployment
  3. Rural Infrastructure
  4. Financial Inclusion
  5. Balanced regional development
  6. Gender Equality
  7. Human resource development (Health, Education, Skill development)
  8. Basic Human Resources like sanitation, drinking water, housing etc.

Government has launched several programs and policies for Inclusive growth such as:-

  1. MNREGA
  2. Jan Dhan Yojna
  3. Atal Pension Yojna
  4. Skill India Mission
  5. Deen Dayal Upadhyaya Gram Jyoti Yojana
  6. Pradhan Mantri Suraksha Bima Yojana
  7. Pradhan Mantri Jeevan Jyoti Bima Yojana
  8. Sukanya Samridhi Yojana
  9. Pradhan Mantri  Garib Kalyan Yojana
  10. Jan Aushadhi Yojana (JAY)
  11. Nai Manzil Scheme for minority students
  12. The Pradhan Mantri Awas Yojana (PMAY) or Housing for all by 2022

 

Food Security & Public Distribution System(PDS)

WHO Defines Food security to exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food which meets their dietary needs and food preferences for an active and healthy life.
Food security has three interlinked contents such as :-

  1. Availability of food,
  2. Access to food and
  3. absorption of food.

Food security is a multidimensional concept covering even the  micro level household food security,energy intakes and indicators of Malnutrition.

 

Major components of food security are:-

  1. Production and Procurement
  2. Storage
  3. Distribution

Indian Agriculture is rightly called as a gamble with Monsoon, variability in food production and rising population creates food insecurity in the nation and worst effected are the downtrodden section of the society.

While India has seen impressive economic growth in recent years, the country still struggles with widespread poverty and hunger. India’s poor population amounts to more than 300 million people, with almost 30 percent of India’s rural population living in poverty. The good news is, poverty has been on the decline in recent years. According to official government of India estimates, poverty declined from 37.2% in 2004-05 to 29.8% in 2009-10.

Need for Self-Sufficiency:

India suffered two very severe droughts in 1965 and 1966. Food Aid to India was restricted to a monthly basis by USA under the P.L. 480 programme.  The Green Revolution made a significant change in the scene. India achieved self-sufficiency in food grains by the year 1976 through the implementation of the seed- water-fertilizer policy adopted by the Government of India.

Food grain production increased four-fold during 1950-51 and 2001-2002 from 51 million tons to 212 million tones. The country is no longer exposed to real famines. But the regional variation in the success of Green Revolution which was chiefly limited to northern- Western states has lead to the divide in the nation. Evergreen revoloution and Bringing green revolution to eastern India is the need of the hour.

Green revolution was focused on wheat and rice and thus the production of pulses was stagnant.

National Food Security Mission comprising rice, wheat and pulses to increase the production of rice by 10 million tons, wheat by 8 million tons and pulses by 2 million tons by the end of the Eleventh Plan (2011-12). The Mission is being continued during 12th Five Year Plan with new targets of additional production of food grains of 25 million tons of food grains comprising of 10 million tons rice, 8 million tons of wheat, 4 million tons of pulses and 3 million tons of coarse Cereals by the end of 12th Five Year Plan.
The National Food Security Mission (NFSM) during the 12th Five Year Plan will have five components

(i) NFSM- Rice;

(ii) NFSM-Wheat;

(iii) NFSM-Pulses,

(iv) NFSM-Coarse cereals and

(v) NFSM-Commercial Crops.

Government through Public Distribution System has tried to counter the problem of food insecurity by providing the food grains through fair price shops.

The central Government through Food Corporation of India has assumed the responsibilities of  procurement,storage,transfer and bulk allocation of food grains to state governments.

The public distribution system (PDS) has played an important role in attaining higher levels of the household food security and completely eliminating the threats of famines from the face of the country, it will be in the fitness of things that its evolution, working and efficacy are examined in some details.

PDS was initiated as a deliberate social policy of the government with the objectives of:

  1. i) Providing foodgrains and other essential items to vulnerable sections of the society at resonable (subsidised) prices;
  2. ii) to have a moderating influence on the open market prices of cereals, the distribution of which constitutes a fairly big share of the total marketable surplus; and

iii) to attempt socialisation in the matter of distribution of essential commodities.

 

The focus of the Targeted Public Distribution System (TPDS) is on “poor in all areas” and TPDS involves issue of     35 Kg of food grains per family per month for the population Below Poverty Line (BPL) at specially subsidized prices. The TPDS requires the states to Formulate and implement :-

  1. foolproof arrangements for identification of poor,
  2. Effective delivery of food grains to Fair Price Shops (FPSs)
  3. Its distribution in a transparent and accountable manner at the FPS level.

 

 

 

 

Establishment of Various Financial Institutions

1.     Reserve Bank Of India 1934        
2.     Industrial Finance Corporation of India 1948. Sick financial institution.
3.     ICICI 1955        
4.     SBI 1955. Nationalized
5.     Life Insurance Corporation (LIC) 1956        
6.     Industrial Development Bank of India (IDBI) 1964        
7.     Unit Trust of India (UTI) 1964        
8.     HUDCO 1970        
9.     General Insurance Corporation (GIC) 1972        
10.   NABARD 1982        
11.   SEBI (Replaced Controller of Capital Issue) 1988  Functional in 1992
12.   Small Industries Development Bank of India (SIDBI) 1990. Subsidiary of IDBI
13.   IRDA 1999        
          Various Acts & their Enactment Years        
      1.   Banking Regulation Act     1949    
      2. Industries (Development & Regulation) Act     1951    
      3.   MRTP Act     1969    
      4.   FERA     1973    
      5.   Negotiable Instrument Act     1981    
      6.   FEMA     2000    
      7.   Competition Act     2002    
          FDI Upper Limit in Various Sectors        
    1. Print Media   26 % (Recent)  
    2. Defense Sector   26 % (Recent)  
    3. Private Sector Banking, Radio (FM)   74%    
    4. Insurance   26%    
    5. Telecommunications   74%    
    6. Trading   51%    
    7. Power, Drugs & Pharmaceuticals, Road and highways, Ports 100%    
        and harbours, Hotel & Tourism, Advertising, Films, Mass        
        Rapid Transport Systems, Pollution Control & Management,        
        Special Economic Zones, Petroleum Refining(Private Sector)        
        Construction Development, Non Banking Financial Companies.        
    8. Airports   74%    
    9. Domestic Airlines   49%    
    10. Agriculture (including plantation except tea), Atomic Energy, Not Allowed  
        Railways (except Mass Rapid transport system)          
    11. Tea Plantation   100%    

 

 

 

 

 

 

 

 

 

Depository Receipt

A depositary receipt (DR) is a type of negotiable (transferable) financial security that is traded on a local stock exchange but represents a security, usually in the form of Equity, that is issued by a foreign publicly listed company. The DR, which is a physical certificate, allows investors to hold Shares in equity of other countries. One of the most common types of DRs is the American depositary receipt (ADR), which has been offering companies, investors and traders global Investment opportunities since the 1920s.

 

Global Depository Receipt

A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches.

 

Global Depository Receipts facilitate trade of shares, and are commonly used to invest in companies from developing or emerging markets.

 

American Depositary Receipt

An American Depositary Receipt (abbreviated ADR) represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets. The stock of many non-US companies trade on US Stock Exchanges through the use of ADRs. ADRs enable U.S. investors to buy shares in foreign companies without the hazards or inconveniences of cross-border & cross-currency transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies.

 

Each ADR is issued by a U.S. depositary bank and can represent a fraction of a share, a single share, or multiple shares of the foreign stock.

 

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at a DISCOUNT, reflecting prevailing market interest rates.

 

Qualified Institutional Placement – QIP

A designation of a securities issue given by the Securities and Exchange Board of India (SEBI) that allows an Indian-listed company to raise capital from its domestic markets without the need to submit any pre-issue filings to market regulators. The SEBI instituted the guidelines for this relatively new Indian financing avenue on May 8, 2006.

 

Minimum Alternate Tax (MAT)

The Indian Income tax Act contains large number of exemptions from total income. Besides exemptions, there are several deductions permitted from gross total income. Further, depreciation allowable under the Income Tax Act is not the same as required under the Companies Act. The result of such exemptions, deductions, and other incentives under the Income tax Act in the form of liberal rates of depreciation is the emergence of Zero tax companies which inspite of having high book profit are able to reduce their taxable income to nil.

 

The system of minimum alternate tax has accordingly been introduced under which a company is required to pay a minimum tax of 7 % of the book profit in case the tax on the total income computed under the normal provisions of law works out to less than this amount [Sec 115JB].

 

 

 

Negotiated Dealing System

Negotiated Dealing System (NDS) is an electronic platform for facilitating dealing in Government Securities and Money Market Instruments.

 

NDS facilitates electronic submission of bids/application by members for primary issuance of Government Securities by RBI through auction and floatation. NDS also provides interface to Securities Settlement System (SSS) of Public Debt Office, RBI, thereby facilitating settlement of transactions in Government Securities including treasury bills, both outright and repos.

 

National Spot Exchange

Estd. 2008

 

HQ: Mumbai

 

It is a private commodity exchange in India that is a joint venture of Financial Technologies (India) Ltd. (FTIL), Multi Commodity Exchange (MCX) and National Agricultural Marketing“>Cooperative Marketing Federation of India Limited (NAFED).

 

Basel III

India is a member of the Basel Committee on Banking Supervision. It has actively engaged in the development of the Basel III accord. Proposals entail:

 

Require banks to hold more and better quality capital

Require banks to carry more liquid assets

This would limit their leverage and mandate them to build up capital buffers in good times that can be drawn down in periods of Stress.

 

Teaser Loans

Loans – usually house loans – that have low, customer friendly and fixed interest rate for initial some time and high interest rate set on a floating rate basis thereafter.

 

The problem with such loans is that there is a greater risk of default as the interest rate increases.

 

National Payments Corporation of India

Incorporated in 2008. To consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems. Promoted by 10 banks.

 

Multidimensional Poverty Index

Developed by Oxford Poverty and Human Development Initiative supported by UNDP

It was featured in HDR-2010 and replaces Human Poverty Index (HPI) which had been included in HDR since 1997

Was created using a technique developed by Sabina Alkire and James Foster

The Alkire-Foster method measures outcomes at the individual level (person or household) against multiple criteria (dimensions and indicators)

The method is flexible and can be used with different dimensions and indicators to create measures specific to different societies and situations

The method can show the incidence, intensity and depth of poverty, as well as inequality among the poor, depending on the type of data available to create the measure

<details in the file in the economy section>

de-mutualised, online exchange dealing in numerous commodities

Indian Commodity Exchange (ICEX) –

Others are:

 

Bharat Diamond Bourse – (Diamond Exchange) – Mumbai

International Pepper Exchange – 1997 – Kochi

These are regulated by the Forward Market Commission setup in 1953

 

Credit Default Swaps

It is a form of insurance against debt default. When an investor buys corporate (or govt) Bonds he/she faces the risks of default on part of the issuing agent. The investor can insure its investment in such bonds against default through a third party. The investor pays a premium to the party providing insurance. In the event of default by the bond issuer, the insurer would step and pay the investor. A CDS is just that insurance, which is bought by those who fear default and sold by those who believe it wont.

 

Seigniorage

When the cost of production of a note or coin is less than its face value, seigniorage is said to exist. In some cases, especially for low denomination coins, negative seigniorage can exist. This will mean that the cost of producing the coin is more than its face value.

 

Takeout Finance

Takeout finance is essentially a mechanism designed to enable banks/lenders to avoid asset liability mismatch that may arise out of extending long tenor loans to infrastructure projects. Under this arrangement, banks that extend credit facility to infrastructure projects enter into an arrangement with a financial institution for transferring the loan outstanding in the banks’ books to the books of the financial institution who take out the loan.

 

Subsequent to the announcement in the Union Budget of 2010-11, the government entrusted India Infrastructure Finance Company Ltd (IIFCL) with the task of introducing the Takeout Finance Schemes (TFS)

 

The scheme enhances the availability of long tenor debt finance for infrastructure projects, enables availability of cheaper cost of finance available for the borrower, addresses sectoral/group/single party exposure issues of banks etc. three institutions IIFCL, LIC and IDFC signed MoU to provide takeout finance for infrastructure projects.

 

Impact of Liberalisation

The leading economists of the country differ in their opinion about the socioeconomic and ecological consequences of the policy of liberalisation.Liberalization has led to several positive and negative effects on Indian economy and society. Some of the consequences of liberalisation have been briefly described here:

  1. Increase in the Direct Foreign Investment:The policy of liberalisation has resulted in a tremendous increase in the direct foreign investment in the industrial and infrastructural sector (roads and electricity).
  2. Enhancement in the Growth of GDP:There is a significant growth in the Gross Domestic Product (GDP). Prior to the liberalisation, the growth rate of GDP was around 4 per cent which rose to around 10 per cent in 2006-07.
  3. Reduction in Industrial RecessionThe Industrial Sector of India was passing through a period of recession prior to the policy of liberalisation. The foreign and private investment has checked the recession trend. This happened because of the massive investment in modernisation, expansion, and setting up of many new projects. Industries like automobiles, auto-components, coal-mining, consumer electronics, chemicals, food-processing, Metal, petrochemicals, Software, sport-goods, and textiles have undergone a growth rate of about 25 per cent. In addition to these, other industries, like crude-oil, construction, fertilisers, and power generation have shown an increase of about 15 per cent.
  4. Employment:The heavy investments in industries and infrastructure by the Indian and foreign investors have generated great employment opportunities for the professionals, and skilled and unskilled workers.
  5. Development of Infrastructure: Prior to the liberalisation, the infrastructure (roads and electricity) were in a bad shape affecting the industrial growth and Economic Development of the country adversely. Heavy investment in infrastructure has improved the efficiency of the industrial sector significantly.
  6. Rise in Export:There is a phenomenal increase in export after liberalisation. Simultaneously India is importing raw materials, machinery, and finished products. Despite heavy imports, there has been a tangible improvement in the Balance of Payment.

7-Increase in Regional Disparities:The policy of liberalisation and New Industrial Policy (1991) could not reduce the regional inequalities in economic development. In fact, investments by the Indians and foreign investors have been made in the states of Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, and West Bengal. The states like Bihar, Himachal Pradesh, Jammu and Kashmir, Kerala, Meghalaya, Mizoram, Nagaland, Orissa, Tripura, Uttar Pradesh, and Uttarakhand are lagging behind. This has accentuated the regional imbalance and has lead to north south devide. The maximum investment so far has been done in Maharashtra, Gujarat, Andhra Pradesh, West Bengal, and Tamil Nadu. This uneven industrial development has resulted into many socioeconomic and political problems. The Naxal Movement, ULFA, and political turmoil in Jammu and Kashmir may be partly explained as being caused due to the less industrial and economic development of the regions.
8. Damage to Cottage and Small Scale Industries:Liberalisation in a country like India has adversely affected the traditional cottage and small scale industries which are unable to compete with the large-scale industries established by the multinationals. The cottage and small scale industries need protection in the form of subsidies, technology, technical access, funds, and network to export their products, Indian traditional workers such as silk workers of bihar are threatened by the imported synthetic silk.

9.Sophisticated Technology: The latest technology, being sophisticated, replaces labour and thus results in unemployment. This may be counter productive and detrimental to our industrial structure.

  1. Comparatively Little Direct Investment: The foreign investors are more inclined to portfolio investment rather than direct investment. The former may be withdrawn at will at the slightest of hurdles giving a jolt to the economy of the country  and it may create instability to Indian economy.

    11. Investment in Selected Industries: Most of the foreign investment comes to white-goods and not to wage-good sector. Hence, it may be fruitful in improving the high priority sector and bringing in the latest technology. This will be counter productive. India is blessed with demographic dividend and the selective investment has failed to harness it.

    12. Economic and Political Freedoms are at Stake: The over-enthusiasm of liberalisation to attract more investors and foreign exchange might lead to gradual handling over of the whole economy to the multinationals. This will affect adversely our economic and political freedom.

  2. Inflation:Since the new industrial policy and liberalisations, the rate of inflation is continuously increasing. A section of the society is becoming more rich and adopting the lifestyle of consumerism. As opposed to this, the absolute number below the poverty line is also increasing. The gulf between the rich and the poor may be the cause of numerous social problems resulting in social tension.

Impacts of Privatization

Privatization in generic terms refers to the process of transfer of ownership, can be of both permanent or long term lease in nature, of a once upon a time state-owned or public owned property to individuals or groups that intend to utilize it for private benefits and run the entity with the aim of profit maximization.
ADVANTAGES OF PRIVATIZATION
Privatization indeed is beneficial for the growth and sustainability of the state-owned enterprises.
• State owned enterprises usually are outdone by the private enterprises competitively. When compared the latter show better results in terms of revenues and efficiency and productivity. Hence, privatization can provide the necessary impetus to the underperforming PSUs .
• Privatization brings about radical structural changes providing momentum in the competitive sectors .
• Privatization leads to adoption of the global best practices along with management and motivation of the best human talent to foster sustainable competitive advantage and improvised management of resources.
• Privatization has a positive impact on the financial health of the sector which was previously state dominated by way of reducing the deficits and debts .
• The net transfer to the State owned Enterprises is lowered through privatization .
• Helps in escalating the performance benchmarks of the Industry in general .
• Can initially have an undesirable impact on the employees but gradually in the long term, shall prove beneficial for the growth and prosperity of the employees .
• Privatized enterprises provide better and prompt services to the customers and help in improving the overall infrastructure of the country.

DISADVANTAGES OF PRIVATIZATION
Privatization in spite of the numerous benefits it provides to the state owned enterprises, there is the other side to it as well. Here are the prominent disadvantages of privatization:
• Private sector focuses more on profit maximization and less on social objectives unlike public sector that initiates socially viable adjustments in case of emergencies and criticalities .
• There is lack of transparency in private sector and stakeholders do not get the complete information about the functionality of the enterprise .
• Privatization has provided the unnecessary support to the Corruption and illegitimate ways of accomplishments of licenses and business deals
ADVANTAGES AND DISADVANTAGES OF PRIVATISATION IN INDIA

  • Privatization loses the mission with which the enterprise was established and profit maximization agenda encourages malpractices like production of lower quality products, elevating the hidden indirect costs, price escalation etc..
    • Privatization results in high employee turnover and a lot of investment is required to train the lesser-qualified staff and even making the existing manpower of Psu abreast with the latest business practices .
    • There can be a conflict of interest amongst stakeholders and the management of the buyer private company and initial resistance to change can hamper the performance of the enterprise .
    • Privatization escalates price inflation in general as privatized enterprises do not enjoy government subsidies after the deal and the burden of this inflation effects common man

 

 

Impacts of Globalisation:-

Definition of Globalization :- Its a process(not an outcome) characterized by increasing global Interconnections by gradual removal of barriers to trade and investment between nation and higher economic efficiency through competitiveness.

Various economic, political, social and cultural effects of globalization are as follows:-

Economic:-

  • Breaking down of national economic barriers
  • International spread of Trade, Financial and productive activities
  • Growing power of transnational cooperation and International financial Institutions(WTO, IMF)Through the process of:-

1- Liberalization- relaxation of restrictions, reduction in role of state in economic activities,decline in role of govt in key industries, social and infrastructural sector.

2- Privatization- Public offering of shares and private sale of shares, entry of private sector in public sector and sale of govt enterprises.

3- FDI

4- International regulatory bodies(WTO,IMF)

5- MNC’s

6- Infrastructural development

7- Expansion of Information and communication technology and birth of information age.

8- Outsourcing of services- ie BPO and Call Centres.

9- Trade related Intellectual Property Rights(TRIPS)- product based patent rather than process based.

Social effects:-

  • Withdrawal of National govt from social sectors ie declining share of govt in public spending, reducing social benefits for worker(social dumping,pension cuts,subsidies reduction)
  • Labor  reforms and deteriorating Labor welfare:-
    • Labour Market deregulation:-
      • Minimum wage fixing
      • Employment security
      • Modifying tax regulation
      • Relaxed standards of security
    • Increased Mechanization demands skilled labour and thus loss of job for unskilled labour
    • Loss of jobs for traditional workers for example bihar silk workers due to imported Chinese- Korean silk
  • Feminism of Labour ie increased Women participation specially in soft industries
  • Trickle down theory of poverty reduction has limited success and in agricultural nations poverty has infect increased.
  • Unsustainable development practices such as:- excessive use of Fertilizers, Irrigation, fish trawling by mnc’s(Protein flight ),Exploitation of natural resources by MNC’s.
  • Migration and Urbanization have lead to problem of slums
  • Commercialization of indigenous knowledge:- patenting
  • Rising inequality in wealth concentration

 

Cultural:-

  • Increased pace of cultural penetration
  • Globalization of culture
  • Development of hybrid culture
  • Resurgence of cultural nationalism ie shivsena opposing valentine day

 

Political:-

  • Globalization of National Policies- Influenced by International agencies
  • Reducing economic role of govt
  • Political lobbying

 

Positive effects of Globalization

  • Increased competition
  • Employment generation
  • Investment and capital flow
  • Foreign Trade
  • Spread of technical know how
  • Spread of education
  • Legal and ethical effects
  • Improved status of women in the society
  • Urbanization
  • Agriculture:- greater efficiency,productivity, use of HYV seeds, Future contracts and Cooperative Farming
  • Higher standard of living

 

 

Financial Stablity

 

Reasons for financial instability

  • Increased non-official capital flows across countries through banks and international capital markets.
  • Hasty and non-strategic liberalisation
  • Deregulation of financial sector
  • Opening up of the capital account in many countries

Intiatives by RBI

  • Had set up the Committee on Financial Sector Assessment in 2009
  • Will setup a dedicated interdisciplinary Financial Stability Unit with the remit to assess the health of the financial system with a focus on identify and analysing potential risks to systemic stability and carrying out stress tests on an ongoing basis
  • Financial Stability Reports are being released

Financial Stability Report

  • Three FSRs released till June 2011
  • First was released in March 2010
  • As per the three FSRs released so far, there is no serious threat to the Indian financial system
  • FSR 2011
    • states that the Indian financial system remains stable in the face of some fragilities being observed in the global macro-financial environment.
    • Banking sector continues to be stable
    • Banking stability indicator confirms the overall improvement in the stability of banking sector
    • Toxity index/vulnerability index: the Probability of a bank causing distress to another bank or being affected by the distress of another bank

FS in India

  • The relatively crisis free environment in the Indian financial system can be attributed to the strength of state Home grown policies pursued with caution and prudence.
  • In the late 1990s, FS was incorporated as a specific objective of the RBI’s policy after the Asian Financial crisis.
  • Present weaknesses in the financial system
    • Greater access of domestic corporate to ECBs has resulted in increased currency mismatches
    • Increased reliance on market borrowings could adversely affect the liquidity position of banks
    • There remains gaps in the regulatory framework for NBFCs

 

 

Decision-Making: concept, process and techniques


 

DECISION MAKING is an essential part of planning. Decision making and problem solving are used in all management functions, although usually they are considered a part of the planning phase. A discussion of the origins of management science leads into one on modeling, the five-step process of management science, and the process of engineering problem solving.

Decision-making is an integral part of modern management. Essentially, Rational or sound decision making is taken as primary function of management. Every manager takes hundreds and hundreds of decisions subconsciously or consciously making it as the key component in the role of a manager. Decisions play important roles as they determine both organizational and managerial activities. A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals. Decision making process is continuous and indispensable component of managing any organization or business activities. Decisions are made to sustain the activities of all business activities and organizational functioning.

Relation to Planning

 

Managerial decision making is the process of making a conscious choice between two or more rational alternatives in order to select the one that will produce the most desirable consequences (benefits) relative to unwanted consequences (costs). If there is only one alternative, there is nothing to decide.

If planning is truly “deciding in advance what to do, how to do it, when to do it, and who is to do it” , then decision making is an essential part of planning. Decision making is also required in designing and staffing an organization, developing methods of motivating subordinates, and identifying corrective actions in the control process. However, it is conventionally studied as part of the planning function, and it is discussed here.

Occasions for Decision

 

the occasions for decision originate in three distinct fields:

(a) from authoritative communications from superiors;

(b) from cases referred for decision by subordinates; and

(c) from cases originating in the initiative of the executive concerned.

Types of Decisions

 

TYPES OF DECISIONS:

 

PROGRAMMED DECISIONS:

 

Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines.

 

NON PROGRAMMED DECISIONS:

 

Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.

 

Decision Making under Certainty

Decision making under certainty implies that we are certain of the future state of nature (or we assume that we are). (In our model, this means that the probability p of future N is 1.0, and all other futures have zero probability.) The solution, naturally, is to choose the alternative A that gives us the most favorable outcome O . Although this may seem like a trivial exercise, there are many problems that are so complex that sophisticated mathematical techniques are needed to find the best solution.