Question

The first four decades after independence stressed the establishment of _______.

• A. consumer goods
• B. basic and capital goods
• C. defence equipment
• D. infrastructure sector

Answer 1

Answer: (B)

basic and capital goods

Basic Goods are those material things used to satisfy human requirements that are needed to survive, like food, shelter and clothing. Examples of basic goods are: Flour, Water. The term Capital Goods is used for Plants, machinery and other assets which are used for conversion of basic goods to finished goods. We note here that Capital good provides service without losing its essential functional characteristic, form or shape except wear and depreciation.

After independence the objective of India’s development strategy has been to establish a socialistic pattern of society through economic growth with self-reliance, social justice and alleviation of poverty. These objectives were to be achieved within a democratic political framework using the mechanism of a mixed economy where both public and private sectors co-exist. India initiated planning for national economic development with the establishment of the Planning Commission