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Question

In 1955, a committee was formed for promoting Rural Development through small-scale industries. Choose the name of the committee from the following:

The correct answer is

Karve Committee

Understanding the Committee for Rural Small-Scale Industries in 1955

The question asks about a specific committee formed in 1955 with the objective of promoting rural development, primarily through the growth of small-scale industries. Identifying the correct committee requires knowledge of important committees related to India's economic planning and industrial policy, particularly in the early post-independence era.

Let's examine the options provided:

  • Narasimha Committee: There have been several committees headed by M. Narasimham, most notably those related to banking sector reforms in the 1990s. These are not associated with rural small-scale industries in 1955.
  • Rangarajan Committee: Dr. C. Rangarajan has headed numerous committees on economic matters, but his prominent work and committees are from later periods, not 1955, and cover areas like poverty estimation, balance of payments, and financial sector reforms.
  • Mahalanobis: P.C. Mahalanobis was a key figure in India's planning process and statistics. He was instrumental in formulating the Second Five Year Plan (1956-1961), which focused heavily on heavy industry. While his work influenced industrial policy, "Mahalanobis" is not the name of a specific committee focused *solely* on rural small-scale industries in 1955, although his framework considered the role of small industries alongside large ones.
  • Karve Committee: This committee is indeed the one established in 1955. It is officially known as the Village and Small-Scale Industries Committee. It was set up to make recommendations for the development of village and small-scale industries as part of the Second Five Year Plan framework. Its recommendations emphasized the promotion of these industries for employment generation and balanced regional development, particularly in rural areas.

Therefore, the committee formed in 1955 for promoting rural development through small-scale industries was the Karve Committee.

Analyzing the Karve Committee (1955)

The Karve Committee, or the Village and Small-Scale Industries Committee, played a significant role in shaping India's approach to industrialization, especially concerning the rural sector. Its main mandate was to suggest measures for developing village and small-scale industries so they could contribute effectively to the national economy and employment goals outlined in the Second Five Year Plan.

Key aspects related to the Karve Committee:

  • Formation Year: 1955. This directly matches the year mentioned in the question.
  • Purpose: To promote the development of village and small-scale industries.
  • Focus: Rural development, employment generation, and balanced regional growth.
  • Context: Recommendations were crucial inputs for the Second Five Year Plan (1956-1961).

The committee recognized the potential of small industries in providing livelihoods to a large number of people, especially in rural areas, and in producing consumer goods. Its report influenced government policy regarding financial support, technical assistance, and infrastructure development for these sectors.

Comparing Options and Confirming the Karve Committee

Based on the historical context of India's planned economy and the specific focus on rural small-scale industries in 1955, the Karve Committee is the correct identification.

Let's briefly consider the other options again to reinforce why they are incorrect in this context:

Committee/Person Primary Focus/Period Relevant to 1955 Rural Small Industries?
Narasimha Committee Banking Reforms (1990s) No
Rangarajan Committee Various economic issues (later periods) No
Mahalanobis Planning & Statistics (Second Plan focus on heavy industry, but considered small industries framework) Not a specific committee named 'Mahalanobis' for this purpose in 1955.
Karve Committee Village and Small-Scale Industries Promotion (1955) Yes

The Karve Committee's mandate and formation year precisely align with the description in the question.

Revision Table: Key Committees in Indian Economy

Committee Year Formed Primary Area of Focus
Karve Committee (Village and Small-Scale Industries Committee) 1955 Promotion of rural and small-scale industries
Mahalanobis Committee 1960 (Report on Distribution of Income and Levels of Living) Income distribution, levels of living, economic disparities
Narasimha Committee I 1991 Financial System Reforms (Banking)
Rangarajan Committee Various, e.g., Balance of Payments (1993), Poverty Estimation (2012) Diverse economic issues depending on the specific committee

Additional Information on Rural Development and Small Industries

The focus on village and small-scale industries in the mid-1950s was part of India's strategy for inclusive growth. While the Second Five Year Plan is often remembered for its emphasis on heavy industries, policymakers like Mahalanobis also recognized the critical role of small industries (often referred to as Khadi and Village Industries or KVIC sectors) in providing employment, utilizing local resources, and ensuring a more equitable distribution of economic benefits across regions, particularly rural ones. The Karve Committee's recommendations were vital in integrating this perspective into the overall planning framework, providing justification and direction for government support to these sectors.

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