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Question

Which committee was set up in 1955 to suggest the role of small-scale industries promoting rural development?

The correct answer is

Karve committee

Understanding the Role of Committees in Indian Economic Planning

India's economic development journey has involved setting up various committees to study specific sectors and recommend policies. One key area has been the development of small-scale industries, particularly their role in promoting rural development and creating employment opportunities in villages and towns.

Identifying the Committee for Small-Scale Industries and Rural Development in 1955

The question asks about a specific committee established in 1955 to suggest the role of small-scale industries in promoting rural development. Let's look at the options provided and their relevance:

  • Mahalanobis committee: This committee was set up in 1960 under the chairmanship of P.C. Mahalanobis. Its primary focus was on studying the distribution of income and levels of living in India. It was not specifically focused on small-scale industries for rural development in 1955.
  • Tendulkar committee: The Suresh Tendulkar Committee was constituted much later (in 2005) to review the methodology for poverty estimation in India. It is not related to small-scale industries or rural development in the 1950s.
  • Karve committee: Also known as the Village and Small-Scale Industries Committee, this committee was indeed set up in 1955. Its mandate was precisely to consider measures for promoting village and small-scale industries so that they could play a significant role in rural development and generating employment.
  • Gokhale committee: There have been various committees named after individuals like Gokhale in different contexts and periods. Without further context, it's difficult to link a prominent "Gokhale committee" specifically to small-scale industries and rural development in 1955 in the same way as the Karve Committee.

Based on the mandates and timelines of these committees, the committee specifically set up in 1955 to suggest the role of small-scale industries in promoting rural development was the Karve Committee.

The Karve Committee (1955): Focus and Recommendations

The Karve Committee, established in 1955 during India's Second Five-Year Plan period (1956-1961), was tasked with recommending policies for the growth of village and small-scale industries. The Second Five-Year Plan placed a strong emphasis on industrialization, and the Karve Committee's role was to ensure that this push for industry also benefited the rural economy and addressed employment challenges. The committee advocated for decentralized industrial development, focusing on small-scale and village industries to spread economic activity across the country, particularly in rural areas.

Key aspects related to the Karve Committee:

  • Year of Establishment: 1955
  • Primary Objective: To suggest measures for promoting village and small-scale industries.
  • Key Focus Area: The role of these industries in rural development and employment generation.
  • Context: Set up during the preparation phase of India's Second Five-Year Plan.

Therefore, the committee that fits the description is the Karve committee.

Comparison of Committees Mentioned
Committee Name Year of Establishment Primary Focus Area
Mahalanobis committee 1960 Income distribution and levels of living
Tendulkar committee 2005 Poverty estimation methodology
Karve committee 1955 Role of village and small-scale industries in rural development and employment
Gokhale committee Various periods Context-dependent, not primarily known for 1955 small industries focus

Conclusion

The committee set up in 1955 specifically to explore and suggest the role of small-scale industries in promoting rural development was the Karve committee.

Revision Table: Committees and Their Focus

Committee Year Main Purpose
Karve Committee (Village and Small-Scale Industries Committee) 1955 Role of small-scale and village industries in rural development and employment.
Mahalanobis Committee 1960 Study of income distribution and living standards.
Tendulkar Committee 2005 Reviewing poverty estimation methodology.

Additional Information: Small-Scale Industries in India

Small-scale industries (SSI) have historically been a crucial part of the Indian economy, recognized for their potential to generate employment, ensure a more equitable distribution of national income, and promote balanced regional development, especially in rural and semi-urban areas. The Indian government has, over the years, implemented various policies and programs to support the growth of the SSI sector, often guided by recommendations from expert committees like the Karve Committee. The focus on decentralized production and the promotion of traditional crafts and industries has been a consistent theme in India's industrial policy, aiming to link industrial growth with rural upliftment.

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Important Questions from Economics and Central Problems of Economy

  1. In addition to limited availability of resources, what is the other reason which compels every economy to decide on how to use its resources?

  2. Read the following facts about the Indian economy during British rule and select the correct facts:

    (A) Commercialisation of agriculture led to production of cash crops which helped British industries back home

    (B) Britain maintained a monopoly control over India's exports and imports

    (C) Basic infrastructure such as railways, ports, water transport, posts and telegraphs did develop to provide basic amenities to the people

    (D) Indian trade was restricted to Britain, China, Russia, and America

    (E) India’s economy remained fundamentally agrarian under the British rule

    Choose the correct answer from the options given below:

  3. In an economy, the problem of choice arises. Arrange the following in order:

    (A) Leads to scarcity of resources

    (B) Demands are unlimited

    (C) Problem of choice arises

    (D) Our resources are limited

    Choose the correct answer from the options given below:

  4. The Chairperson of Planning Commission in India is:

  5. Abbreviate the full form of 'LPG' in the context of Economic Reforms in India in the year 1991:

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