Below is a trend chart of India’s GDP per capita from 1962 to 1980—it shows a long period of
sluggish or slow growth, followed by a modest pickup toward the late 1970s .
Indian Economy: 1959–1990 – Explained Simply
1. Early Years (1950s–1960s): Building the Base
● After independence, India adopted a mixed, centrally planned economy with heavy
emphasis on public sector growth—think large dams, steel plants, and industrial
projects.
● Agriculture remained the backbone of the economy; industrial growth was gradual, and
improvements in per capita income were modest.
2. Stagnation & Challenges (Mid-1960s to Late 1970s)
● This period saw economic stagnation marked by wars, droughts, and oil shocks.
● Growth slowed significantly. As shown in the chart, GDP per capita remained flat from
roughly 1965 to the late 1970s .
● Structural rigidities—inefficient public enterprises, restrictive trade policies, and
bureaucratic hurdles—kept the economy from taking off.
3. Late 1970s to 1990: Early Slow Take-Off
● Beginning in the late 1970s and through the 1980s, hints of an economic turnaround
appeared.
● Growth factors included increased machinery investment, gradual easing of trade
restrictions, and productivity improvements .
● Nevertheless, this growth was still limited by the dominant regulatory framework (the
“License Raj”) and closed trade policies.
Summary Table
Phase Era Characteristics
Post-independen 1950s–early 1960s Slow development, industrial foundation building
ce
Stagnation Mid-1960s–late Low GDP per capita growth, economic challenges
1970s
Early recovery Late 1970s–1990 Rising investment and productivity—but reforms
held back
Why It Matters
This phase laid the groundwork for the more radical reforms of the 1990s. The late 1970s
improvements—though small—were critical in demonstrating that structural changes and better
investment strategies could spur growth.
Common Types of Data and Their Organization
1. Types of Data
● Quantitative Data
○ Discrete: Countable values (e.g., number of students, villages).
○ Continuous: Can take any value within range (e.g., income, production levels).
● Qualitative (Categorical) Data
○ Nominal: Categories without order (e.g., regions—North, South).
○ Ordinal: Categories with a meaningful order (e.g., income groups—Low,
Medium, High).
2. Levels of Measurement
● Nominal
● Ordinal
● Interval: Differences are meaningful (e.g., temperature).
● Ratio: Like interval, but with a true zero (e.g., GDP, population).
3. Methods of Data Collection
● Primary Sources: Direct data collection (e.g., surveys, questionnaires, censuses, field
observations).
● Secondary Sources: Pre-existing data (e.g., government reports, statistical yearbooks,
NSSO, RBI publications).
4. Classification of Data
● Chronological: Organized by time (e.g., year-wise GDP).
● Geographic/Spatial: Organized by region or state.
● Attributes/Features-Based: Grouped by economic characteristics (e.g.,
sector—agriculture, industry, services).
5. Tabulation of Data
● Simple Tables: Single variable (e.g., population by year).
● One-way Tabulation: Frequency distribution of one variable.
● Two-way/Contingency Tables: Cross-tabulations (e.g., production across states and
years).
6. Presentation through Charts/Graphs
● Bar Charts / Histograms
● Pie Charts
● Line Graphs / Time-series Charts
● Frequency Polygons / Ogives
● Scatter Plots
7. Statistical Measures
● Position: Mean, median, mode.
● Dispersion: Range, variance, standard deviation, quartiles.
How This Likely Applies to Your Chapter
● Data Categories: You’d typically see categories like sectoral contributions (agriculture,
industry, services), population, GDP or per-capita income.
● Collection Sources: Likely references to national-level sources like National Accounts,
Ministry of Statistics, Economic Survey, or RBI.
● Tables and Graphs: You’d expect year-wise tables on population/GDP, pie charts of
sectoral shares, line graphs showing growth trends.
● Statistical Measures: The chapter might estimate averages (e.g. average GDP growth)
or variability (e.g. income distribution across states) using mean, median, or standard
deviation.
Here’s a visual snapshot of how India's economy evolved from the 1950s through 1990:
1. Sectoral GDP Contribution (1950–2015)
Shows how agriculture, industry, and services contributed to India’s GDP over time.
2. Sectoral Share Trend (1950–2013)
Highlights shifts in the economic structure—particularly the decline of agriculture and
rise of services.
3. GDP per Capita Trend (1962–1980)
Illustrates sluggish growth and the early upward trend from the late 1970s.
4. India’s GDP Story Across Decades
Captures decadal GDP growth, literacy, population, life expectancy, and trade till
modern times.
1. Types of Data & Organization
● By Type:
○ Quantitative: GDP, per capita income, literacy rate (numerical)
○ Qualitative: Sector categories (Agriculture, Industry, Services), literacy levels
(e.g., literate/illiterate)
● By Measurement Levels:
○ Nominal: GDP in current prices
○ Ratio: Per capita income (true zero exists)
○ Ordinal: Literacy categories (basic → advanced)
● Sources:
○ Primary Data: Surveys, censuses
○ Secondary Data: Government reports (Economic Survey, Ministry of Statistics),
RBI, NSSO
2. Classification & Tabulation
● Chronological: Year-wise GDP, population
● Geographic: Sector contribution across years and regions
● Attribute-Based: Sector shares over time, literacy trends
● Tabulations: Simple tables (e.g., GDP by year), cross-tabulations (sector vs. time)
3. Data Visualization
● Bar/Column Charts: Sector contributions (image 1)
● Line Graphs: Sector share trends and GDP per capita trends (images 2 and 3)
● Infographics: Comprehensive summary of decadal shifts across multiple indicators
(image 4)
4. Statistical Measures
Let’s use a simple example data of annual GDP growth rates (simulated):
Year Growth Rate (%)
A 3.5
B 4.0
C 2.5
D 5.0
E 4.5
●
Mean (Average): (3.5 + 4 + 2.5 + 5 + 4.5) / 5 = 3.9%
● Median: Middle value when sorted [2.5, 3.5, 4, 4.5, 5] → 4%
● Mode: None (no repeating values)
● Standard Deviation:
1. Differences from mean: –0.4, 0.1, –1.4, 1.1, 0.6
2. Squared: 0.16, 0.01, 1.96, 1.21, 0.36
3. Variance: sum / 5 ≈ 0.74
4. SD: √0.74 ≈ 0.86%
This example illustrates how you’d compute averages and measure variability in the economy’s
growth.
5. Illustrating with Real Indian Economy Data
● Sectoral Shifts: Agriculture’s share declined, while services gained momentum.
● Per Capita Income: Slow rise post-independence, with modest acceleration from late
1970s.
● Broader Trends: Decadal GDP growth stayed moderate in the 1960s–70s, dropped in
the 1980s, then surged post-1990s. Literacy and life expectancy rose steadily; exports
started gaining prominent growth from the 1980s onward.
Summary
Component Example/Data
Data Types GDP, literacy (quantitative); sectors (categorical)
Organization By year, by sector, by region
Sources Government data, statistical reports
Visualization Tools Charts, graphs, infographics
Statistics (Avg, SD) Sample calculation showing application
Possible Questions & Answers
1. Objective (MCQ / One-mark)
1. What is the class midpoint?
○ Answer: It’s the average of the upper and lower class limits. (KSEEB Solutions)
2. The frequency distribution of two variables is called?
○ Answer: Bivariate distribution. (KSEEB Solutions)
3. In the exclusive method of classification...
○ Answer: The upper class limit of a class is excluded from that class. (KSEEB
Solutions)
4. What is primary data?
○ Answer: Data collected directly by the investigator. (KSEEB Solutions)
5. Which method gives better results: census or sample survey?
○ Answer: Census covers the entire population and thus gives more accurate data.
(KSEEB Solutions)
2. Short-Answer (2-marks)
1. Define classification in statistics.
○ Answer: Classification is the grouping of related data into classes. (KSEEB
Solutions)
2. Define continuous series with an example.
○ Answer: A continuous series groups data into continuous intervals, such as age
groups like 0–5, 5–10, etc. (KSEEB Solutions)
3. Differentiate between absolute error and relative error.
○ Answer:
■ Absolute error = Actual value – Estimated value
■ Relative error = (Absolute error) / (Estimated value) (KSEEB Solutions)
4. What is cumulative frequency series?
○ Answer: A series where frequencies are successively added across class
intervals. (KSEEB Solutions)
5. What is a statistical enquiry?
○ Answer: A search for knowledge using statistical methods, consisting of planning
and execution stages. (KSEEB Solutions)
3. Short / Medium-Answer (4-marks)
1. What are the stages of statistical enquiry?
○ Answer:
■ Planning and preparation
■ Execution of the survey (KSEEB Solutions)
2. What factors must be considered in planning an enquiry?
○ Answer: Objective, scope, measurement units, data sources, collection methods,
questionnaire format, required accuracy, and type of enquiry. (KSEEB Solutions)
3. Differentiate between discrete and continuous variables.
○ Answer:
■ Discrete variables can take only specific values (e.g., number of
students).
■ Continuous variables can take any value in a range (e.g., height).
(KSEEB Solutions)
4. Explain terms: frequency distribution, class limits, class interval, class mark,
frequency curve.
○ Answer:
■ Frequency distribution: Shows how data is distributed across classes.
■ Class limits: The lower and upper bounds of a class.
■ Class interval: Difference between upper and lower limits.
■ Class mark: Midpoint of a class (average of limits).
■ Frequency curve: Graphic of frequencies plotted using class marks vs
frequencies. (KSEEB Solutions)
4. Long-Answer / Problem-Solving (6-marks)
1. Using given data, compute range, group frequencies, and interpret.
○ Answer: Typically involves identifying the largest and smallest values to compute
the range, then preparing a frequency distribution table using inclusive or
exclusive classification, and interpreting patterns. (See worked examples in
Question Bank.) (KSEEB Solutions)
2. Distinguish between error and mistake with examples.
○ Answer:
■ Error: The technical statistical difference between true and estimated
values.
■ Mistake: Fault due to miscalculation or wrong method. (KSEEB Solutions)
Summary Table
Question Type Sample Topics Covered
Multiple Choice Class midpoint, classification methods
Short Answer Definitions, differences, stages
Medium Answer Planning stages, variables, terminology
Long Answer Computations, error types,
interpretations