Indian Economy Notes Unit 2nd Notes
Indian Economy Notes Unit 2nd Notes :–
Short Answer Questions
Q.1. What is meant by vicious circle of poverty ? Illustrate diagrammatically.
Ans. Vicious Circle of Poverty : Vicious circle of poverty is an accumulation of the factors which cause poverty such as the lack of natural resources, infrastructural facilities, efficiency and ability etc. These factors act and react in the manner that a poor country remains poor, According to Prof. Nurkse, “(Vicious circle of poverty involves an orbit of such powers that a poor country remains poor.”
Example : A poor man does not have food. It will make him hungry. It will make him physically weak. It will lower his efficiency and productivity. It will deprive him of employment opportunities. It will make him more poor.
Q. 2. “India is a rich country”. Explain.
Ans. India as a Rich Country
India is a rich country in the following manner :
- Mineral Resources : India has large reserves of coal expected to last over 600 years, roughly 1/4 of iron ore reserves in the world, about 70-80% of the world’s total production of Mica, largest resources of Titanium. In addition, India has large reserves of Thorium, Uranium, Chromite and Gypsum.
- Forest Resources : There are vast forest resources in India covering 75 lakhs hectares, about 23% of total geographical area of the country.
- Power Resources : Significant initiatives have been taken in the country to develop new and renewable sources of energy, namely, Bio-energy, Solar energy and Wind energy
- Water Resources : India is the only country in the world which is surrounded by sea coasts on three sides and enriched with a number of rivers. It provides a large base for hydro-electric power
- Cattle Wealth : India has largest cattle wealth in the world. There are about 36 crore cattles in India.
- Manpower : Presently the total population of India is 125 crore, nearly 16.7% of total population of world.
Q. 3. How can India be attributed as a poor country?
Ans. India as a Poor Country
India be attributed as a poor country due to :
1. Low Per Capital Income : National income and per capital income of India are very low, In 2003-04, national income of India was 12,66,005 crore and per capita income was 11,798.7 at 1993-94 prices.
2. High Birth Rate and Low Death Rate : In 2000-01, birth rate was 25,0 and death rate was 8.1.
‘It aggravates the problems of population.
3. Unemployment : There is vast unemployment, employment, disguised unemployment in Indian economy,
4. Low Technological Level : Level of technology is quite low in India. Most of the machines and equipments are obsolete and out-dated.
5. Low Level of Education and Health : In India only 65.4% persons are educated, This ratio is also quite low in comparison to developed countries. Average life expectancy in India is only 65.3 years. There are only 5.6 doctors per 1000 persons.
6. Heavy Foreign Debt : India is under a high burden of foreign debt the second most indebted country of the world.
Q. 4. Define the concept of poverty. How can it be measured?
Ans. Poverty : The term ‘poverty’ is used in two references’ absolute poverty and relative poverty. Absolute poverty of a person means that his income is so meagre that the lives below minimum subsistence level. He is not in a position to fulfil his basic necessities. Relative poverty means inequality of income in the society.
Poverty line has been defined in India on the basis of nutrition intake. According to India planning commission, it is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas. Any person getting less than this much, is known as living below the poverty line.
Q. 5. What do you mean by unemployment? What are its types?
Ans. Meaning of Unemployment : When a person is willing to do a job and he is capable in of doing it but does not find the job, he is said to be unemployed.
Types of Unemployment in India
1. Structural Unemployment : When country Is unable in providing jobs to all-seekers, it is called structural unemployment.
2. Disguised Unemployment : When number of persons engaged in a particular, work is more than required, it is known as disguised unemployment.
3. under-employment : When persons do not get work according to their ability, it is called under-employment.
4. Seasonal Unemployment : When persons get work only for a certain period and remain unemployed for rest Of the Year, it is known as seasonal unemployment.
5. Accidental Unemployment : Some persons get jobs only in case of problems like flood, drought, earthquake, war etc,
6. Open Unemployment : When number of jobs available in the country is less than the number of job-seekers, it is called open unemployment.
7. Technological unemployment : When some persons are thrown out of jobs because of mechanisation, it is known as technological unemployment. Q. 6. What is productivity? How it is measured?
Ans. Meaning of Productivity : Productivity is the relationship between factors of production and production. It studies the relationship between inputs and output.
Measures of Productivity :
Q. 7. State the need of infrastructure.
Ans. Need of a Well-developed Infrastructure
1. Full Utilisation of Resources : Development of transportation facilities helps in full utilisation of resources because it links backward regions with advanced regions,
2. Broadening the Market : Development transportation system helps in broadening the market for goods and services,
3. Rapid Economic Growth : Development of science and technology helps in rapid economic growth of the country.
4. Efficient Manpower : Expansion of education facilities provides efficient man power for industrial and agricultural sectors.
5. Availability of Adequate Finance : Expansion of banking and financial facilities helps in providing adequate finance for development.
6. Speeding up the Communication : Development of communication reduces the gap of distance. It helps in collecting information of all corners in no time.
7. Encouragement to Entrepreneurs : Development of infrastructure creates the atmosphere in which entrepreneurs are encouraged to start new ventures.
Q. 8. “Population is a valuable asset and a liability for the economic development of a country.” Explain,
Or How is population related to economic development? Discuss it in Indian context. Ans. Population as an Asset
1. Active Means of Production : Labour is the only active factor of production. Labour is available only as population and thus, population is an asset for the nation.
2. Exploitation of Natural Resources : Natural resources of the nation are discovered, developed and exploited by manpower only.
3. Facilities Research and Development : Research and development facilities and developed, used and exploited by manpower only. Manpower develops existing technique and explores the new one.
4. Advantages of Division of Labour and Spccialisation : A country can adopt division of labour and specialisation only, if it has sufficient stock of manpower,
5. Increase in Demand and Wider Market : Goods and services produced in the country are consumed by its people. Thus, population of the country creates demand and determines the size of market.
Population as a Liability
1. Supply of Food Grains : First liability of a nation is to provide sufficient food for its people. If a nation fails to provide sufficient food, it may create serious danger,
2. Accommodation : If there is a shortage of houses in the country, its people have to face great difficulties.
3. Education Medical and Health Facilities : It entrusts a great liability on the nation to provide adequate facilities of education training and health to its people,
4. Employment Opportunities : It is a liability of every nation to provide sufficient employment opportunities to its people. If there is a problem of unemployment or under-employment in the country, it may create many social and economic problems.
5. Transportation and Communication Facilities : Every nation has to provide sufficient facilities of transportation and communication to its people.
Q. 9. Write a short note on the birth and death rate in India.
Ans. Birth Rate and Death Rate : Birth rate refers to the annual number of births per thousand of population and death rate refers to the annual number of death per thousand of population. Birth rate and death rate of India have been given in following table :
Birth Rate and Death Rate in India (Per Thousand)
Q. 10. Write a short note on literacy ratio in India.
Ans. Literacy Ratio : For the purpose of census, a person is deemed as literate if he or she can read and write any language with understanding.
Since 1991 census, persons aged seven year and above considered for literacy while in earliercensuses, it was 5 years and above. Literacy ratio of India is shown in following table :
Literacy Rate : 1951-1991 (0/0)
Above table reveals that though there is significant improvement in literacy ratio in India, yet we should not feel satisfied because nearly half of out total population (47,790/0) us still illiterate.
Q. 11. Write a short note on occupational structure of population in India.
Ans. Occupational Structure : Occupational structure means the distributions of working population in different occupations as under :
1. Primary Sector : It includes agriculture and allied activities such as : fishery, forestry, poultry, farming, animal husbandry etc,
2. Secondary Sector : It includes manufacturing activities including small scale and cottage industries, gas and electricity generation and construction.
3. Tertiary Sector : It includes all services such as : banking transportation, communication, storage, advertising, trade etc. Occupational structure of Indian population is given in following table :
Occupational Structure in India (% of Total Population)
image Source : Complied from CMIE, basic statistics relating to the Indian economy.
Above table reveals that there is a gradual shift of population from primary sector to secondary and tertiary sectors, particularly after 1971 n It implies that the effect of economic development can now be seen on occupational structure of population.
Q. 12. Is India over-populated? Comment.
Ans. Is India Over Populated
1. Increasing Pressure of Population on Land : India occupies only 2.4% of total land area of world while she has to feed about 16% of total population of world.
2. Lack of Essential Facilities : There is a lack of essential facilities in our country like education, health, transport, roads, light, water, employment, banking etc.
3. High Birth Rate and Low Death : According to 1991 census, birth rate is 29.9 and death rate is 9.6,
4. Low Standard of Living : Standard of living of a large number of people is very low in India. According to an estimate, about 41% population of India does not get nourishing food and about 20% population does not get adequate food for two times,
5. Increasing Unemployment : Unemployment is increasing at a very high rate in India. Number of unemployed persons has increased from 0.53 crore to 5.1 crore during planning era.
6. High Density of Population : Density of population is 382 in India in comparison to 50 in U.S.A., 23 in Russia and 3 in Canada.
Q. 13, How can population growth be controlled?
Ans. Measures to Control Population Growth
Suggestions to Solve Population Problem in India
1. A Separate Population Planning Commission must be set up.
2. Education must be expanded more and more.
3. Minimum age of marriage must be strictly implemented.
4. Persons who adopt family planning programmes voluntarily, must be given preference in admissions, allotment of house, licence and service etc.
5. Programmes must be launched so that the protection, love, help may be provided to the old and sick persons so that they may not be so much eager to produce children.
6. Family planning should be made widespread, particularly among high birth rate group and areas.
7. Research in the field of reproductive biology should be intensified so that safer and effective contraceptives may be discovered,
8. Co-operation of public institutions, voluntary organisations and individuals should be cited to make the family
Q. 14. What is the aning of urbanisation? What are its ways?
Ans. Meaning of Urbanisation : Urbanisation means the migration of people from rural areas to urban areas. It means transfer of people from agricultural occupations to non-agricultural occupations. When a large number of people tend to migrate from rural areas to urban areas, it is called urbanisation.
Ways of Urbanisation
1. Rate of reproduction in urban areas is higher than that of rural areas.
2. Urban and rural areas are redefined and reclassified in the manner that some of the rural areas will now be ‘treated as urban areas.
3. Large number of people migrate from rural to urban areas.
Long Answer Question
Q. 1. Explain the role of natural resources in the economic development of a country. How can the resources of a country be made more effective?
How do the natural resources contribute in the process of economic development? What principles should be followed by a country while utilising its resources?
Ans. Natural Resources : Resources are generally defined as all those things available in man’s physical environment on which he depends for the satisfaction of some want or the other. In this broad sense, resources would include the surface of land, which man uses not only for habitation but also for farming and many other economic activities. Natural resources are the free gifts of nature. These are the resources which are gifted by nature to human being. Natural resources include land, water resources, fisheries, mineral resources, forests, marine resources, climate, rainfall and topography.
Types of Natural Resources : There are two types of natural resources :
1. Discovered and Undiscovered Resources : Some natural resources are discovered and known to the human being such as the size of land, the climate, the forests, the discovered mines or Topography.Some are the natural resources which are not yet known or discovered, These resources are a challenge for the human being. The man is required to explore and develop these resources, Minerals, water tides, herbs and diverse uses of available resources are the undiscovered resources.
2. Exhaustible and Renewable Resources : Exhaustible resources are the resources which can be used only for one time in the process of economic development. Mineral resources are the exhaustible resources. Renewable resources are the resources, fisheries, forest resources, marine resources, climate rainfall, topography are the renewable resources,
Role of Natural Resources in the Process of Economic Development : Natural resources play an important role in the process of economic development. The decline in the importance of natural resources with economic development is said to be on account of two main reasons :
In the first place, income elasticity of demand for agricultural products is relatively low and thus the proportion of expenditure on them to the total expenditure steadily declines as growth occurs, which in turn underlines the importance of natural resources in man’s economic life. Secondly, continuous improvement in technology permit substitution of labour and capital for land and other natural resources.
”The level and pattern of development of a country is often limited by its natural resources,” —W. A. Lewis
”Under developed countries, embarking on programmes of economic development, usually have to begin with and concentrate on the development of locally available natural resources as an initial condition for lifting local levels of living and purchasing power, for obtaining foreign exchange with which to purchase capital equipment and for setting in motion the development process,” —J.I. Fisher
Above statement make it clear that natural resources are must for economic growth and development. It is inevitable to explore develop and utilise natural resources to the best possible extent in the best possible manner to achieve national objectives. Importance of natural resources are :
1. Accelerating the Rate of Economic Development : Infrastructural facilities, agricultural development and industrial development are the strongest pillars of economic development. Since natural resources strengthen these pillars, therefore, are helpful in accelerating the rate of development.
2. Helpful in Infrastructural Development : Natural resources constitute a ground for infrastructural development.
3. Helpful in Agricultural Development : Natural resources are the most important parts of agriculture. No agricultural production is possible in the absence of natural resources.
4. Helpful in Industrial Development : A number of natural resources provide raw materials for industrial production and thus help in industrial development
5. Social Importance : Social importance of natural resources are :
(i) Mineral resources and forest resources are helpful in making the human life comfortable.
(ii) Climate, weather, rainfall and topography are the necessary parts of human life.
(iii) Air, light and water are necessary for human life.
(iv) This all helps in raising the standard of living people.
Utilisation of Natural Resources
Economic growth and development is a continuous process in which all the best efforts are made to increase national income, national outpUt, per capita income, infrastructural facilities and social welfare by utilising available natural, physical and human resources. Optimum utilisation of available resources is essential to achieve national objectives. Proper utilisation of resources should be ensured not only in short period but in sustained manner over the long period. Following principles should be followed for resource development :
1. Sustained use of Resources : Sustained use of resources should be ensured through the conservation of renewable resources and economic use of exhaustible resources.
2. Development of Technology : Technology should be developed to explore latent natural resources to develop discovered resources and to utilise the resources fully.
3. Minimum Wastage : Wastage of resources should be minimised capability should be developed to use by products. Productive resources should not be allowed to remain under-utiliséd,
4. Integrated Planning : Integrated planning should be adopted for resource development, Well defined plans and programmes should be prepared and implemented for the exploration, development and Utilisation of resources.
5. Multi-purpose use of Resources : A large number of natural resources can be put to several uses in the process of economic growth. All the uses of such resources should be well ensured. For example, a river valley scheme may be used for irrigation, power generation, flood control, navigation purpose also etc. A tree may be used for paper, wood, food purpose also etc.
6. Top Priority to Infrastructural Development : Development of Infrastructural facilities should be accorded top priority because it is the base of economic development and it facilities the development of other industries.
7. Minimisation of Costs : The process of resource development should be undertaken in the manner that its costs may be minimised.
8. Ecological Balance : The process of exploration, development and utilisation of natural resources should not result in the disturbance of ecological balance. Following measures should be adopted to maintain ecological balance :
(i) Residues and wastes should be discharged in a planned manner.
(ii) Mismanagement of natural resources should not be allowed.
(iii) Untended side effect of economic development should be avoided or controlled.
(iv) Large scale deforestation should be banned.
Q. 2. Write a detailed note on land resources in India.
What are the land resources available in India? What are main problems in the development of land resources ? What steps have been taken by government to solve these problems?
Ans. Land Resources : Of all natural resources land is certainly the most important. Man and other living being use it for their habitation. It is also the basis of most of the primary productive activities which are so essential for human existence, Land is not only required for agriculture, factories are also established on it. Vast tracts of land are used as grazing fields, forests grow on it and road and railway lines are built on its surface.
Geographically, it is the 7th largest country in the world. Total geographical area of India is about 329 million hectares but statistical data regarding land classification are available for 305 million hectares only. Thus, no data are available for 24 million hectares or 70/0 of total area.
1. Agricultural Land : Net agricultural land available in our country is only 141 million hectares. Thus we use only 46% of our land for agriculture. It includes the area sown with crops and orchard, area sown more than once in the same year and the area sown only once in a year.
2. Follow Lands : These are the lands which are normally cultivated lands but remain uncultivated or follow during a given year for some certain not less than 1 year or not more than 5 years. 25 million hectares of land (8% of total land area) is covered under follow land.
3. Cultivated Waste Land : It includes land under miscellaneous tree crop and culturable waste, In other words, it includes land available for cultivation but not activated during previous 5 or more years. Such land is 18 million hectares or 6% of the total land area.
4. Pastures and Grazing Land : It includes all grazing land such as permanent pasture and meadows and village common grazing land. Thus 3% of total land area is covered under this category.
5. Area Under Forests : 69 million hectares of land is under forests. Thus about 23% of total geographical area is covered under forests.
6. Barren Land : Barren land means the land which cannot be brought under cultivation such as mountains, deserts, buildings, roads, railways, rivers, canals and other lands put to non-agricultural uses. In India 42 million hectaresland is covered under this category. Thus 14% of total geographical area of our country is not available for cultivation. This ratio may be further increase on account of growing population and urbanisation, The rest of the land is put under forests, pastures and agriculture.
Problems of Land Resources
1. Water and wind erosion is causing damage to 15 crore hectares and this constitutes a major threat to the country’s sustainable development. Waterlogging is a major threat to the soil. It is necessary that effective steps are taken to provide draining and other appropriate measure.
2. Major problem of land resources is the availability of little area for cultivation. Statistical data suggest-that only 46% of total land of our country is available for agriculture. Land is limited in area.
3. India’s population is growing very fast, It has increased from 36.11 crore in 1950-51 to 125 crore in 2014. Requirements of food grains are also increasing along with increase in population growing requirements of food grains necessitates more production but the land area availåble for cultivation is limited.
Government’s Efforts to Develop Land Resource
1. India has presently a higher proportion of area under cultivation to geographical area compound to most of the European countries. Government has paid due attention on increasing irrigated area. 2. Till the beginning of 1960, efforts were made to expand cropped area to increase agricultural production, for this purpose, grazing land and forest land were turned into crop lands, cultivable waste lands were brought under the plough and the cropping was diverted.
3. Government is focussing attention on increasing production through multiple cropping. As a result of these efforts, the area under-multiple cropping has increased from 13 million hectares in 1951 to 49 million hectares in 2000.
Q.3. Give the name of the mineral resources available in India. What are the problems of resources ? What is the role of government to solve this problem?
Write a brief essay on ‘Mineral Resources’ in India.
Ans. Mineral Resources in India and their Problems : Availability of mineral has a unique distribution of influencing the course of economic development of a country. Iron and steel, aluminium, cement, coal, petroleum and fertilizer industries have a vital role in the economic progress as with high linkage effects they create conditions for large-scale industrialisation and thus enable a country to reach a high level.
India’s mineral resources can be broadly classified into three categories :
1. In the first category we may include such materials whose known reserves are considerable. Iron ore, manganese, mica, thorium, ilmenite, chromite and magnesite belong to this country.
2. Bauxite, non-cooking oil, limestone, dolomite, gypsum, silica, salt and barium comprise the second category. The country has adequate known reserves of this minerals, but cannot afford to export any one of them.
3. In the third category, we may include copper, zinc, lead, gold, silver phosphates and crude oil. The known reserves of these important industrial minerals are inadequate for meeting the growing needs of the country.
When we consider India’s mineral resources in their totally we find that India has a range of useful minerals sufficient to make it industrially developed. Important minerals of India are :
1. Iron Ore : India possesses extensive deposits of iron ore. Its known reserves are about 6.6% of the world’s deposits. The quality of iron ore found in India is one of the best in the world, as the iron content in it varies from 49 to 63%. With the merger of Goa in Indian Union, the country has got an important region producing big quantity of iron ore, At present the states of Goa, M.P. and Karnataka produce about 67% of iron ore in India. Orissa and Jharkhand together account for 31% of production.
Problems of Iron Ore Resources
(i) Lack of co-operation between iron ore and steel industry.
(ii) Under-utilisation of resources.
2. Coal : Coal is obtained from mining industry and its products are sources of energy. India has large reserves of coal estimated at 180 billion tonnes. Main centres of coal are Bengal, Jharkhand, M,p., Maharashtra, Orissa and Andhra Pradesh but the bulk of coal comes from Bengal and Bihar.
Problems of Coal Resources
(i) This mineral is heavy.and involve high transportation cost.
(ii) Uneven distribution.
(iii) Coal resources lie too deep.
(iv) Reserves of good quality coal are limited.
3. Ferro-alloys : Ferro-alloys are metals that are required to be mixed up in small quantities with iron for making steel, The commonly used ferro-alloys are manganese, nickel, chromite, cobalt, vanadium, mica, titanium and gypsum. Each one of these substances provides a particular property to steel. Some ferro-alloys are :
1. Manganése Ore : In India, except manganese and chromite, no other ferro-alloys metal is available in abundant quantity. The recoverable reserves of manganese are 16,7 crore tonnes-third largest in the world. The most important deposits of manganese in India exist in Nagpur, Bhandara-Balaghat belt of Maharashtra and M.P. Manganese deposits in Andhra Pradesh, Orissa and Karnataka are of lesser importance. The production of manganese in India has always been in excess of its demand for steel manufacturing. Normally about 75% of its production is exported to various countries, the U.K., Japan, France, Germany and the U.S.A. being the principal buyer, Problems of Manganese Resources
(i) Little use in Indian industries.
(ii) High cost of extraction.
2. Chromite : Chromite deposits of significance occur in Bihar, Karnataka, Maharashtra, Orissa and Tamilnadu. The renewable reserves of chromite are 8.6 crore tonnesn It is an important industrial mineral, particularly for stainless steel industry. It is an important source of chromium also, which is used in electroplating, dying, paint-making industries.
3. Nickel : Nickel is found in Cuttack, Keonjhar and Mayurbhanj district of Orissa. The known reserves of Nickel have been estimated to be 18.4 crore tonnes. Production of nickel and tungsten is presently small in the country.
4. Gypsum : Gypsum is a mineral of great importance, particularly for cement and fertilizer industries. Rajasthan, J&K and Tamilnadu are principal producers of Gypsum.
5. Non-Ferrous Minerals : In the category of more important industrial non-ferrous minerals copper, aluminium (bauxite), zinc, lead and tin are included. Uranium and thorium are also non-ferrous minerals, but they are used for producing nuclear energy. Gold and silver are precious metallic minerals.
I. Bauxite/ Aluminium : Bauxite is used for manufacturing aluminium. During the last two decades the production of aluminium has increased so much that the country has now become its net exporter. The reserves of bauxite of all grades have been estimated to the 246.2 crore tonnes. Bihar is the principle producer followed by Gujrat, M.P., Tamil Nadu, Karnataka, Andhra Pradesh.
Il. Copper : Copper mineral used in modern industry due to high corrosion resistance and high conductivity of heat or electricity. India is known reserves of copper are small. The principal copper belt in India is located in Singhbhum or Hazaribagh district of Jharkhand.
Ill. Lead and Zinc : Lead and zinc are found together. Lead is industrially useful because of the malleability, softness and resistance to corrosion. Zinc is used for a thin coating on steel sheet which protects it from rusting. Deposits of lead and zinc are limited in India and are concentrated at a few places.
IV. Gold : Gold is primarily used for making ornaments in our country. It is available at Kolar gold mines and Hutti gold mines in Karnataka. The production of gold is declining. It has come down from 5413 kgs in 1950 to 1970 kgs in 1991-92.
V. Mica : Mica is an important mineral, particularly for electrical industry. India is top producer of mica in the world, accounting for 70-80% of total production of world. Bihar leads the states in mica production followed by Rajasthan and A.P.
VI. Titanium : The beach sands contain largest reserves of titanium in the world, It is estimated at about 350 million tonnes,
New Mineral Policy, 1993
In May 1945, Indian Bureau of Mining Research was set up to develop and utilise mineral resources. In 1950, National Fuel Research Laboratory was set up. In 1958, National Mineral Development Corporation was set up. In addition to these, Mineral Exploitation Corporation (MEC), Nationål Metallurgical Laboratory, Central Glass and Ceramic Research Institute have been strengthened. Recently, the coal mines have been nationalised and Coal India Ltd. has been set up to run and develop coal mines.
The government declared a new mineral policy in 1993. The government made some radical changes in its mineral policy. This was considered necessary keeping in view the adoption of the new liberal economic policy in industry and trade. The most important aspect of new mineral policy is that the government is now allowing both domestic and foreign private concerns to make investment in mineral extraction and export.
Objectives of Mineral Policy
The objectives of mineral policy are as follows :
1. To promote exports of minerals.
2. To promote research and development in minerals.
3. To develop mineral resources in the manner that :
(a) To ensure regular availability of minerals to industries.
(b) To satisfy future long term needs of country.
(c) To adopt measures for processing and conserving minerals.
(d) To adopt scientific methods of exploration.
4. To maintain balance between the development of mineral resources on one hand and forests, environment and ecology on the other hands.
5. To explore for identification of mineral wealth, particularly strategic minerals. Strategies of Mineral Policy
The strategies of mineral policy are :
1. Domestic and foreign enterprises would be invited to must in mineral extraction and export.
2. Foreign equity and technology participation would be invited in exploration and mixing of scarce resources.
3. Joint ventures with Indian and foreign equity participation could be encouraged.
Demerits of Mineral Policy : This policy, however is wrong because it is fraught with two obvious dangers :
1. In the first place, the risk is that the private companies in their attempt to maximise their profits will indulge in reckless extraction of minerals which is contrary to long-term national interests.
2. Secondly private exploitation of mineral wealth is likely to have adverse effects on environment and worker’s safety.