Understanding Indian Economic History Chronology

The question asks us to arrange several significant events in the history of the Indian economy in the order they occurred. To do this, we need to know the approximate timing of each event listed.

Analyzing Each Event's Timeline

• (B) Setting up of Planning Commission: The Planning Commission of India was set up by a Resolution of the Government of India in March 1950. This was a key step in shaping India's economic development through Five Year Plans.
• (E) Karve Committee: The Village and Small Scale Industries Committee, commonly known as the Karve Committee, was formed in 1955. Its recommendations were crucial for the development strategy outlined in the Second Five Year Plan, focusing on cottage and village industries.
• (C) Resolution which formed on the basis of second Five Year Plan: This refers primarily to the economic model or framework adopted for the Second Five Year Plan (1956-1961). The core of this plan's strategy was the Mahalanobis Model, which emphasized heavy industries. This framework was finalized and implemented leading into the start of the plan period in 1956, based on preceding discussions and committee recommendations like the Karve Committee (1955). Therefore, the resolution/basis would follow the committee's report.
• (A) Green Revolution: The Green Revolution in India began in the mid-1960s, specifically around 1965-1966. It involved the introduction of high-yielding varieties of seeds, irrigation, and fertilizers to increase agricultural production, primarily wheat and rice.
• (D) Exchange rate was made fully convertible for Current Account: India moved towards full convertibility of the rupee on the current account in 1994. This was a major step in India's economic liberalization process initiated in 1991.

Establishing the Chronological Order

Based on the timelines identified for each event, we can arrange them from the earliest to the latest:

1. Setting up of Planning Commission (1950)
2. Karve Committee (1955)
3. Resolution/Basis of Second Five Year Plan (around 1956)
4. Green Revolution (mid-1960s, ~1965-66)
5. Exchange rate fully convertible for Current Account (1994)

Translating this back to the letters:

B (1950) → E (1955) → C (around 1956) → A (mid-1960s) → D (1994)

The chronological sequence is B, E, C, A, D.

Comparing with Options

Let's check which option matches our derived sequence:

• Option 1: B, C, E, A, D (Incorrect: C is before E)
• Option 2: B, E, C, A, D (Matches our sequence)
• Option 3: B, E, C, D, A (Incorrect: D is before A)
• Option 4: B, C, E, D, A (Incorrect: C is before E, D is before A)

The correct chronological order is B, E, C, A, D.

Revision Table: Key Indian Economic Events

Additional Information on Indian Economic Reforms and Planning

Understanding these events provides context for India's economic journey. Here's some additional information:

• Five Year Plans: India adopted a system of Five Year Plans starting in 1951 to guide its economic development. Each plan had specific goals and strategies. The Second Five Year Plan is notable for its focus on industrialization under the Mahalanobis Model.
• Mahalanobis Model: Developed by statistician P.C. Mahalanobis, this model provided the theoretical framework for the Second Five Year Plan. It argued for investment in heavy industries to achieve long-term growth, even at the expense of consumer goods in the short term.
• Economic Liberalization: The reforms initiated in 1991 marked a significant shift from a relatively closed, state-controlled economy towards a more market-oriented one. Full convertibility of the rupee on the current account in 1994 was a part of these reforms, facilitating international trade and transactions.
• Green Revolution Impact: While the Green Revolution significantly increased food grain production, helping India achieve food security, it also had socio-economic and environmental consequences, such as regional disparities and environmental degradation in some areas.

These events highlight different phases and priorities in India's economic policy and development strategy over time.