Economics 2022 Paper II 50 marks Highlight

Q2

(a) Highlight the major features of National Income trend and its sectoral composition during the last five decades. (20 marks) (b) Describe in brief the factors that led to the establishment of Reserve Bank of India (RBI) in the country. (15 marks) (c) Discuss, how the green revolution has affected the indigenous crops in India? What measures have been initiated by the Government in the later years to improve the productivity? (15 marks)

हिंदी में प्रश्न पढ़ें

(a) विगत पांच दशकों में राष्ट्रीय आय की प्रवृत्ति तथा इसकी क्षेत्रीय संरचना की प्रमुख विशेषताओं को चिह्नांकित कीजिए । (20 अंक) (b) उन कारकों को संक्षेप में बताइये जिनके फलस्वरूप देश में भारतीय रिजर्व बैंक की स्थापना हुई । (15 अंक) (c) विवेचना कीजिए कि किस प्रकार हरित क्रांति ने भारत में देशज फसलों को प्रभावित किया है । उत्पादकता में सुधार हेतु, सरकार द्वारा बाद के वर्षों में कौन से उपाय शुरू किए गये हैं ? (15 अंक)

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Directive word: Highlight

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How this answer will be evaluated

Approach

The directive 'highlight' for part (a) demands focused presentation of key trends with supporting data, while parts (b) and (c) require descriptive and analytical treatment respectively. Allocate approximately 40% of word budget to part (a) given its 20 marks, 30% each to parts (b) and (c). Structure with a brief composite introduction, then address each sub-part sequentially with clear sub-headings, and conclude with integrated policy insights on sustainable agricultural growth and financial stability.

Key points expected

  • Part (a): Trend of rising GDP growth rate from 'Hindu rate of growth' (~3.5%) to post-liberalization acceleration; sectoral shift from agriculture dominance to services-led growth with declining share of agriculture and rising share of tertiary sector
  • Part (a): Specific data points - agriculture's share falling from ~50% (1970s) to ~15% currently; services rising to ~55%; manufacturing stagnation around 15-17%
  • Part (b): Pre-RBI monetary chaos under British rule - multiple currency systems, exchange rate instability, need for centralized banking after 1919-1929 economic fluctuations
  • Part (b): Hilton Young Commission (1926) recommendations, RBI Act 1934, commencement of operations April 1, 1935 as shareholders' bank nationalized in 1949
  • Part (c): Green Revolution's displacement of indigenous crops - loss of crop diversity, marginalization of millets (jowar, bajra, ragi), pulses and oilseeds; ecological concerns of water depletion and soil degradation
  • Part (c): Government measures - National Food Security Mission (2007), Rashtriya Krishi Vikas Yojana, promotion of millets as nutri-cereals, organic farming initiatives, PM-KISAN and crop diversification programs

Evaluation rubric

DimensionWeightMax marksExcellentAveragePoor
Concept correctness22%11Precisely defines national income concepts (GDP, GVA, sectoral classification); accurately explains RBI's role as banker to government and banker's bank; correctly identifies HYV wheat/rice focus of Green Revolution and distinguishes between growth vs. distributional outcomesBasic understanding of national income trends and RBI functions; some confusion between GDP and GNP or between central bank and commercial bank roles; superficial treatment of Green Revolution impactsFundamental errors in economic concepts, misidentifies RBI establishment date or purpose, conflates Green Revolution with White/Blue Revolutions, or presents factually incorrect sectoral composition data
Diagram / model14%7Includes well-labeled diagram showing structural transformation (Clark-Fisher model or Kuznets curve) for part (a); may include flow chart of RBI's organizational evolution for part (b) or crop diversification pyramid for part (c)Simple trend line showing GDP growth or basic pie chart of sectoral shares; diagram present but not fully integrated with explanation or missing labelsNo diagrams where appropriate, or diagrams with major errors (wrong axes, mislabeled sectors, incorrect time periods) that detract from answer quality
Quantitative reasoning20%10Provides specific data: GDP growth phases (3.5% 1950-80, 5.5% 1980-2000, 6-7% post-2000); sectoral shares with approximate years; RBI capitalization figures; area under HYVs; current millet production revival statisticsMentions general trends without specific figures or provides approximate data without time references; vague statements like 'agriculture declined significantly'No quantitative support, or uses completely outdated/wrong statistics (e.g., claiming agriculture still 40% of GDP, or RBI established in 1947); confuses absolute and relative figures
Indian / empirical examples22%11For (a): cites specific plan periods and reforms (1991 liberalization, 2008 crisis impact); for (b): references Hilton Young Commission, Presidency banks merger, 1949 nationalization; for (c): names Punjab-Haryana wheat focus, loss of Kolli Hills millet varieties, revival through Odisha Millet Mission or Karnataka's ragi promotionGeneral references to 'northern states' for Green Revolution or 'British rule' for RBI without specificity; mentions some schemes but without state-level or crop-specific examplesNo Indian examples, uses generic international comparisons only, or factually wrong examples (attributing Green Revolution to eastern states, confusing RBI with SBI establishment)
Policy implication22%11Connects sectoral shifts to manufacturing policy (Make in India), RBI's evolving mandate (inflation targeting, financial inclusion); critiques input-intensive agriculture and advocates sustainable intensification, millet inclusion in PDS, and climate-resilient cropping systems with specific current schemesMentions need for balanced growth or crop diversification without detailed policy linkage; generic statement about RBI's importance for monetary stabilityNo policy discussion, or irrelevant policy suggestions (e.g., suggesting RBI should control fiscal deficit directly, or recommending export-oriented agriculture for water-scarce regions without nuance)

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