During the 1950s and 1960s, what was a major component of India's imports due to internal shortages?
Show answer & explanation
Correct answer: C
Explanation
Solution: The correct answer is Foodgrains, capital goods, and machinery.
Explanation:
☛ Following independence, India faced a severe shortage of agricultural production due to the partition of the country, consecutive droughts, and outdated farming methods.
☛ Consequently, India relied heavily on large imports of foodgrains, particularly wheat imported from the United States under the PL-480 (Public Law 480) agreement.
☛ Concurrently, the Second Five-Year Plan (1956–1961) emphasized rapid industrialization and basic infrastructure, necessitating massive imports of heavy machinery and capital goods.
☛ These large-scale imports of food and industrial equipment created severe balance of payments crises and depleted India's foreign exchange reserves during the 1950s and 1960s.
Extra Exam-Relevant Facts:
☛ PL-480 Program: Also known as the 'Food for Peace' program, it provided agricultural commodities to India to tackle domestic food emergencies.
☛ Green Revolution: Initiated in India in the mid-1960s with High Yielding Varieties (HYV) of seeds, chemical fertilizers, and irrigation to achieve self-sufficiency in food production.
☛ Mahalanobis Model: Formulated by Prof. P. C. Mahalanobis, this strategy focused on establishing heavy engineering and machine-building industries.
☛ Import Substitution: India adopted this trade policy to replace foreign imports with domestic production to protect nascent local industries.
Important One-Liners for Upcoming Exams:
☛ Under which US legislative program did India import large shipments of wheat in the 1950s and 1960s? → PL-480 (Public Law 480)
☛ Which Five-Year Plan in India focused primarily on heavy industry and capital goods development? → Second Five-Year Plan (1956–1961)
☛ Who is widely recognized as the 'Father of the Green Revolution in India'? → M. S. Swaminathan
☛ Which trade strategy was adopted by post-independence India to replace foreign imports with domestic products? → Import Substitution
☛ In which year was the Food Corporation of India (FCI) established to manage foodgrain procurement and distribution? → 1965