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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. If the value of Investment Multiplier is 5 and the increased income is ₹ 800 crore in an economy, then find the value of change in the investment in the economy.

  2. Which of the following statements are true?

    (A) Quantitative tools control the extent of money supply by changing the CRR.

    (B) There are two types of open market operations – outright and upright.

    (C) A fall in the bank rate can decrease the money supply.

    (D) Selling of a bond by RBI leads to reduction in quantity of reserves.

    (E) The RBI can influence money supply by changing the rate at which it gives loan to the commercial banks.

    Choose the correct answer from the options given below:

  3. Paradox of Thrift means :

  4. Match List-I with List-II:

    List-IList-II
    (A) Bank Rate(I) Securities are pledged in order to repurchase
    (B) Marginal Standing Facility(II) Minimum rate at which funds are provided for long term
    (C) Repo Rate(III) Also known as Penal Interest Rate
    (D) Reverse Repo Rate(IV) Central Bank borrows funds from commercial banks

    Choose the correct answer from the options given below:

  5. Which of the following is not a function of Central Bank ?

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