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Recently RBI released report regarding demonetization, whether demonetization helped in curbing black money? Critically analyze
The issue of demonetization is back in the news due to RBI report highlighting that 99.2% of 500 and 1000 Rs notes in circulation have found their own back in Banking System.
Critically examine – you need to do is look at the good and bad of the topic in fair manner.
Bring out the findings of RBI report and assess what it implies.
Discuss the rationale given that suggests that demonetization has been moderately successful in tackling black money – increasing tax base, formalization of economy.
Discuss why demonetization was an abject failure in tackling black money. Highlight reasons such as logistical difficulty in penalizing all those who converted unaccounted money into legal tender, demonetization worked as an unintended amnesty scheme etc.
Examine the other impacts of demonetization which negated any small gains that were made – slow down in GDP, loss of jobs etc.
Conclusions – Give a fair and balanced view on the success/failure of demonetization.
Explain the causes and Phases of Bijolia movement?
The Bijolia movement was a peasant movement in the Bijolia Jagir of the former Mewar state (in present-day Rajasthan in India) against excessive land revenue exactions. Originating in the former Jagir (feudal estate) of Bijolia (near the town of Bijolia in Bhilwara district), the movement gradually spread to neighbouring Jagirs. Leadership to the movement was provided, at different times, by Sitaram Das, Vijay Singh Pathik, and Manikya lal Verma. The movement continued till 1941 after a bitter struggle lasting about half a century, gained national attention and resisted state oppression.
Causes of movement:
Excess land revenue and other taxes were the main cause. Rao salwal kishan singh ji started to collect Lagat (a kind of taxes) collected in extraordinary situation were become common affair.
Movement went through three phases which are summarised as follows:
Ist Phase (1897-1915)
In 1897, a delegation of peasants consisting of Nanji Patel of Berisal and Thakari Patel of Gopal Niwas went to Udaipur and attempted, in vain, to get an audience with the Maharana.
The concessions granted in 1904 did not last. In 1906, Prithvi Singh ascended to the Jagir and withdrew the concessions granted in 1904 and instructed officials to collected increased taxes. Failing to get a hearing from the Jagirdar, some peasants chose not to cultivate their lands and migrated to neighboring Gwalior and Bundi.
2nd phase (1915-1923)
In 1916, war fund contributions were further imposed on the peasants who lead to renewed dissatisfaction. It was in 1916 that Bhoop Singh alias Vijai Singh Pathik arrived in Bijolia and organized the peasants under the Bijolia Kisan Panchayat to oppose payments to the war fund and other taxes.
Leaders of the Bijolia movement attempted to obtain the support of the Indian National Congress (INC).In December 1919, Pathik succeeded in putting a resolution before the INC in support of the Bijolia peasants, but the resolution failed, largely because the INC leadership disfavored agitation in the princely states.
Finally, the Bijolia Agreement was signed on February 11, 1922. The agreement brought about the following changes: reduction in amount of talwar bandhi, no taxes when there was no cultivation, reduction in chatoondtax tax and land revenue, etc.
3rd phase (1923-1941)
By 1928, there was a general complain among the peasants of Bijolia that the agreement of 1922 had been violated by the Jagirdar. The peasants also complained that taxes on unirrigated lands were very high and Jagir authorities were interfering in the affairs of the Bijolia Kisan Panchayat.
What is the Ilbert bill controversy?
- The Ilbert Bill was introduced in 1883 for British India by Lord Ripon.
- The Bill gave Indian judges and magistrates the power to try British offenders in criminal cases at the District level.
- The introduction of the bill led to intense opposition in Britain and from British settlers in India. The Bill played on racial tensions.
- White opposition forced the government to withdraw the bill. This enraged the Indians.
- The bitter controversy deepened antagonism between the British and Indians and was a prelude to the formation of the Indian National Congress.
Write short Note on Medieval Indo-Islamic Architecture.
- With establishment of Turkish rule in India, a new phase coming in history of Indian art and architecture. Turks brought Islamic style of architecture in India. This new style easy significantly different from traditional Indian style. But over a period of time both style underwent assimilation.
Essential feature of Indo -Islamic architecture were
Islamic architecture characterised by uses of arches, domes and minarets. Arches were used for making doors. Dome was used to make roof and minarets were erected in 4 corners of building
- Assimilation of Indian style i.e. trabeate architecture, use of columns and pillars
- Use of lime mortar as binding agent. Which provided solidarity to the monuments and buildings
- Charbhagi style brought by Babar added to the beauty of monuments.
- Double dome architecture was another significant feature of the Indo-Islamic architecture. Eg. Humayun Tomb, Taj Mahal etc.
- Use of new techniques like Pietra deura, calligraphy technique, arabesque etc.
- Elements of Indian architecture like Jali, Chatra, jharaokha, chajja etc.
Right from the beginning of Turkish rule to the age of Mughal rule, process of assimilation of Indian and Islamic continued and it lead to the genesis of new kind of architecture in India. It represents our unique, assimilative cultural identity.
Examine the role of Praja Mandal Movements in Rajasthan’s political awakening. What was the role of Smt. Vijaya Bahin Bhavsar?
In 1927, the All India States People’s Conference was held in Bombay after which the congress allowed people from different Princely States to join the party and the Indian freedom Struggle. In 1927 itself, the Akhil Bhartiya Desi Rajya Lok Parishad or All India Native States Public Council was established in Bombay and Vijay Singh Pathik became its chairperson. In Rajasthan, Rajputana Desi Lok Parishad or Rajputana Native States Public Council was established. These councils laid the foundation for Praja Mandal movement in Rajasthan.
Nature of the Praja Mandal Movements:
- The people of Praja Mandal fought against the Feudalism and colonialism.
- The people of Praja Mandal movement fought against their feudal princes and the British administration simultaneously for their rights.
- The main demand of the Praja Mandal movements was the democratic (fundamental) rights.
Activities of Praja Mandal Movements:
The people of the Praja Mandal Movements implemented the constructive programmes of the Indian National Movement in their princely states.
They established schools, used Khadi, encouraged cottage industries and started agitation against the Untouchability.
Contribution of Praja Mandal:
The Praja Mandal movement not only created a political awakening among the people in the Indian States but also fought for their rights, their share in the government and their dynamic participation in the future political set up of the country. Other contributions included:
- Improvement in Education
- Rise of social equality
- The most important contribution of this organisation was to break the insularity of the peasant movements by linking them with one another in different princely states, as well as with peasant movements in British India.
What are the Jataka tales?
What are Jatakas in history?
About the Jataka Tales Part of the canon of sacred Buddhist literature, this collection of some 550 anecdotes and fables depicts earlier incarnations. sometimes as an animal, sometimes as a human of the being who would become Siddhartha Gautama, the future Buddha.
Jataka is a type of literature from India also known as the Jatakas or the Jataka tales. They contain stories of the previous lives of Gautama Buddha. These include Buddha in both animal and human forms. These stories are extremely popular and are valued in all branches of Buddhism.
Write down the major painting schools of Rajasthan? What are the salient features of Rajasthani and Jain school of miniature paintings?
In the preceding decades of sixteenth Century, the Rajput schools of art began to expand characteristic styles joining aboriginal as well as distant authorities into exclusive styles. Rajasthani painting comprises of 4 major schools that have numerous imaginative styles within them that can be outlined to the different princely states that utilized these artists.
The Major Painting schools of Rajasthan are:
- MEWAR SCHOOL OF PAINTING
- MARWAR SCHOOL OF PAINTING
- HADOTI SCHOOL OF PAINTING
- DHUNDAR SCHOOL OF PAINTING
- KANGRA SCHOOL OF PAINTINGS
Rajasthani School of miniature paintings
The decline of the Mughal miniature paintings resulted in the rise of the Rajasthani School. Rajasthani School of painting can be further divided into various schools depending on the region they were created in. The Mewar School, Marwar School, Hadoti School, Dhundar School, Kangra and Kullu Schools of art are all part of Rajasthani School of painting. Like the Mughal Emperors, the Rajput rulers were also lovers of art and gave their patronage to miniature paintings.
Each Rajputana kingdom had its own distinct style with a few common features. Apart from depicting stories from the Ramayana and the royal lifestyle of kings and queens, Rajasthani miniature paintings often portrayed the legacy of present and past rulers. They also portrayed social values and the changes introduced by kings for the betterment of society. The background of the paintings formed a special feature of the Rajasthani School. Colors used were often bold and contrasting in nature. Natural colors, extracted from plants, minerals, shells, gold, silver and precious stones, were used. The preparation of colors itself would often take weeks and only fine brushes were used. The difficult art of miniature painting still exists in Rajasthan where the painters often use paper, ivory and silk as their canvas. However, natural colors are no longer used as they have been replaced by artificial colors.
Jain School of miniature paintings
One of the earliest schools of miniature paintings in India, the Jain School of painting gained prominence in the 11th century A.D when religious texts like ‘Kalpa Sutra’ and ‘Kalkacharya Katha’ were portrayed in the form of miniature paintings. Like other schools of miniature paintings, Jain School too, displayed its art works on palm leaves, but started using paper from the late 12th century. Natural colors including gold and silver were used to depict the stories. Some of the exclusive features of these paintings include portrayal of enlarged eyes, square shaped hands and portrayal of stylish figures. Also, the colors used were often vibrant and most often than not, colors like green, red, gold and blue were used. The paintings often displayed male figures and goddesses of the Tirthankara. Also, the goddesses shown in the paintings were often heavily ornamented. These paintings began to decline during the late 16th century.
Tell us the Historical Formation of Rajasthan/Explain the integration of Rajasthan?
Rajasthan is one of the 29 states of the Indian Union. During the British rule this part of the land was known as RAJPUTANA i.e. the land of Rajputs, who was the main rulers of the various feudal states existing at that time. Rajasthan was formed as State from the seven stages which are discussed given below:
- Matsya Union
The division of India was manifested by communal agitation on a great scale that overwhelmed the nation. Bharatpur and Alwar were also not secured of these riots. In March 17, 1948, Indian Government took over the supervision of these states as the rulers failed to uphold peace. Neighboring regions to these states were Karauli and Dholpur. On Government advice, all four states agreed to come together to form the Matsya Union.
- Rajasthan Union
On March 25, 1948, ten more states namely Kushalgarh, Banswara, Kota, Bundi, Jhalawar, Tonk, Shahpura, Pratapgarh, Dungarpur and Kishangarh of southern and South-eastern Rajputana joined together to structure another union that is named East Rajasthan.
- United State of Rajasthan
Subsequently, the Udaipur state (Mewar) also got united in Rajasthan union on April 18, 1948. The name was then changed to United Rajasthan. Therefore 15 states of Rajasthan created their own association.
- Greater Rajasthan
On March 30, 1949 the four states viz. Jodhpur, Jaipur, Bikaner and Jaisalmer joined this integration and the region came to be known as the Greater Rajasthan. The principalities of Neemrana and Lawa also joined this. March 30th is now celebrated as the Rajasthan day.
- United state of Greater Rajasthan
On May 15, 1949, the Matsya Union was amalgamated into Greater Rajasthan and thereafter the confederation was named as the united state of Greater Rajasthan.
- United Rajasthan
The only state, Sirohi, had not joined the federation so far. Sirohi state joined the federation on January 26, 1950.
- Re-organized Rajasthan
Ajmer-Merwara region was for long period of time under unswerving British rule and it was fused with Rajasthan in November, 1956 on the proposal of the statement of State Reorganization Commission. Madhya Pradesh’s Bhanpura tehsil and Gujarat’s Abu Tehsil were also merged with Rajasthan at that time.
What is high powered money? How can it be used as a regulatory mechanism by the RBI?
- In simple terms High Powered Money (HPM) is the net or total liability of the monetary authority of any nation.
- In India it is the liability of RBI.
- It is simply the sum of all currency in circulation with the people of country; cash kept in the commercial bank vaults along with the deposits of govt. of the country and commercial banks.
- The term liability basically means that when people/govt/commercial banks produce the currency/claims.
- The RBI has to pay value equal to currency/claim.
- The RBI uses this H.P.M. for regulation of money supply in the economy. By controlling the money supply RBI regulates (i.e tries to regulate) the inflation in economy.
RBI uses the H.P.M for process of money creation. Money creation will increase the supply of money in economy.
When RBI needs to pump extra money in economy it injects a certain amount of high powered money (Say H) into economy. (By purchase of govt bonds/assests etc)
This money increases the total money supply in nation but by what amount??It increases money supply (say M) by not ‘H’, but by a larger amount.
This increased addition of money supply (over the injected value of H) is due to the factor called Money Multiplier!!!
The value of money multiplier is determined by two factors, which are:
- CDR: i.e cash-to-deposit ration. It is the ratio of amount of money people tend to keep with themselves as cash and the amount they deposit in bank acc.
- RDR: Reserve-to-deposit ratio. It is the ratio of amount of money that a bank will keep in its vault (or as reserve with RBI) to the amount of the deposits received by them.
CDR is a behavioral patter of people which can’t be regulated by RBI (eg people will save more during festive season or for upcoming marriage in family etc) However, RDR can be regulated by RBI.
Depending upon the values of RDR and CDR, the amount of money supply increased in economy is determined.
Money multiplier is given as
Money Multiplier= (1+CDR)/ (CDR+RDR)
[Theoretically, Money multiplier is ratio of money in economy i.e money supply (M) to the amount of high powered money (H)]
So when RBI injects H amount as HPM, the actual increase in money supply is – Money Multiplier*H.
Note: Value of money multiplier is greater than one as the value of RDR is less than 1.
Thus when RBI needs to reduce inflation it will reduce HPM in eco to slow down money creation by commercial banks .This will reduce the overall money supply leading to low purchasing power. Which in turn lower the demands and hence cut inflation?
Similarly to increase the price levels in eco RBI will inject more of HPM to increase money supply (which will increase purchasing power of the people thereby increasing demand).
- HPM is only one of the ways used by RBI to regulate economy. It has many powerful ways like SLR, CRR etc. to regulate economy.
- Commercial banks play a very important role in the process of money creation. (By giving out loans for further investments etc)
What are the salient features of Pradhan Mantri Fasal Bima Yojana?
Pradhan Mantri Fasal Bima Yojana:-Ministry of Agriculture & Farmers Welfare
Due to the improved features of Pradhan Mantri Fasal Bima Yojana (PMFBY), the scheme has been received very well and has been opted for by 27 States and Union Territories in one or more seasons since inception.
- The first year of scheme launch i.e. 2016-17 was a good monsoon year, despite which claim ratio was as high as 73%. Further in certain States claim ratios were to the extent of 114% in Andhra Pradesh, 135% in Karnataka, 132% in Kerala and 286% in Tamil Nadu.
- Overall Rs. 15349.68 crore were paid to 139 lakh farmer applicants in 2016-17 alone.
PMFBY is an actuarial premium based scheme under which farmer has to pay maximum premium of 2% for Kharif, 1.5% for Rabi food & oilseed crops and 5% for annual commercial/horticultural crops and remaining part of the actuarial/bided premium is shared equally by the Centre and State Government. One of the objectives of the scheme is to facilitate prompt claims settlement. Towards this the scheme guidelines provide that claims must be settled within two months of harvest subject to timely provision of both yield data and share of premium subsidy by the State Government.
RAS Mains Paper-2 Important Notes
What is Make in India, Start-up India and Stand up India? Write down the advantages, drawbacks in context of India.
- ABOUT MAKE IN INDIA PROGRAM
Abstract: The government launched “Make in India” initiative which aims at promoting India as an investment destination and to establish India as a global hub for manufacturing, design and innovation. The initiative aims to provide favorable environment to the business community so that they can devote their resources, efforts and energy in productive work. A number of steps have been taken by the government to improve the ease of doing business in the country. Rules and procedures have been simplified and a number of products have been taken off licensing requirements. The Department of Industrial Policy & Promotion (DIPP) worked with a group of highly specialised agencies to build brand new infrastructure, including a dedicated help desk and a mobile-first website that packed a wide array of information into a simple, sleek menu. Government has opened up a number of sectors for FDI. The Stand up India Scheme is being launched to promote entrepreneurship among people from schedule caste/schedule tribe and woman who will be provided loans starting from Rs 10 lakhs to Rs 100 lakhs.
The Make in India initiative was launched by Prime Minister in September 2014 as part of a wider set of Nation-building initiatives. Devised to transform India into a global design and manufacturing hub, Make in India was a timely response to a critical situation: by 2013, the much-hyped emerging markets bubble had burst, and India’s growth rate had fallen to its lowest level in a decade. The promise of the BRICS Nations (Brazil, Russia, India, China and South Africa) had faded, and India was tagged as one of the so-called ‘Fragile Five’. Global investors debated whether the world’s largest democracy was a risk or an opportunity. India’s 1.2 billion citizens questioned whether
India was too big to succeed or too big to fail. India was on the brink of severe economic failure.
- Understanding the major initiatives with respect to manufacturing
- Steps taken by government to strengthen secondary sector
Make in India was launched by PM against the backdrop of this crisis, and quickly became a rallying cry for India’s innumerable stakeholders and partners. It was a powerful, galvanising call to action to India’s citizens and business leaders, and an invitation to potential partners and investors around the world. But, Make in India is much more than an inspiring slogan. It represents a comprehensive and unprecedented overhaul of out-dated processes and policies. Most importantly, it represents a complete change of the Government’s mindset – a shift from issuing authority to business partner, in keeping with Prime Minister’s tenet of ‘Minimum Government, Maximum Governance’.
To start a movement, a strategy is needed that inspires, empowers and enables in equal measure. Make in India needed a different kind of campaign: instead of the typical statistics-laden newspaper advertisements, this exercise required messaging that was informative, well-packaged and most importantly, credible. It had to
(a) Inspire confidence in India’s capabilities amongst potential partners abroad, the Indian business community and citizens at large
(b) Provide a framework for a vast amount of technical information on 25 industry sectors; and (c) reach out to a vast local and global audience via social media and constantly keep them updated about opportunities, reforms, etc.
The Make in India initiative has been built on layers of collaborative effort. DIPP initiated this process by inviting participation from Union Ministers, Secretaries to the Government of India, state governments, industry leaders, and various knowledge partners.
Under this initiative, the Government intends to provide a robust infrastructure to business through development of various facilities and institutions. Government also aims at developing industrial corridors and smart.
The Stand up India Scheme is being launched to promote entrepreneurship among people from schedule caste/schedule tribe and woman who will be provided loans starting from Rs 10 lakhs to Rs 100 lakhs.
- Cities to provide a Conducive working environment with state-of-the-art technology
- Efforts are being made to provide skilled manpower through a national skill development programme. Innovation is encouraged through better management of patent and trademarks registration.
- Government has opened up a number of sectors for FDI. The Policy in defence sector has been liberalized and FDI cap has been raised from 26% to 49%. 100% FDI has been allowed in defence sector for modern & state of the art technology on case to case basis.
- 100% FDI under automatic route has been permitted in construction, operation and maintenance in Rail Infrastructure projects.
- Further, liberalization norms for Insurance and Medical Devices have been done. ‘Make in India’ program represents an attitudinal shift in how India relates to investors; not as a permit issuing authority, but as a true business partner. An Investor Facilitation Cell has been created in ‘Invest India’.
- A dedicated team of the Investor Facilitation Cell is there to guide and assist first-time investors.
It is time for India to focus on building competitive advantage on global scale in sectors where we have a large domestic market and certain inherent capabilities. Strategy is all about making choices. The top five priority industries are- Defence, electronics hardware, construction, health care and agro-industries.
However, for India to become a manufacturing nation, it has to quickly move beyond rhetoric to create a clear strategy and favourable policy environment for manufacturing to take off.
- National Manufacturing Competitiveness Council (NMCC) but it needs to foster a more vibrant think tank in its place.
- A close dialogue and partnership between government and the private sector, both domestic and foreign, is critical.
- Indian companies along with Chinese, Japanese, German, American and Swedish companies are all vital partners and we must create an environment that is open and welcoming.
- START-UP INDIA & STAND UP INDIA
- Startup India campaign was launched on 16th January 2016 to promote bank financing for start-up ventures to boost entrepreneurship and encourage start-ups with jobs creation.
- Stand up India was launched on 5th April 2016 to support entrepreneurship among women and SC & ST
The economy of any country depends on its countrymen. Larger the number of employed or working people better be the economy. The Indian government realized that Indian people have the potential to work hardly, all they need is, a promising start up. Many people dream of starting up their own business, but due to financial or other similar issues are unable to do so. So, Indian govt. in the leadership of Narendra Modi has decided to offer a gift as a nation wise program- “Start up India”.
“Start up India” is a revolutionary scheme that has been started to help the people who wish to start their own business. These people have ideas and capability, so the government will give them support to make sure they can implement their ideas and grow. Success of this scheme will eventually make India, a better economy and a strong nation.
- START UP INDIA SCHEME – FROM JOB SEEKERS TO JOB CREATORS:
During his speech at the event, Mr. Modi said that we are trying to make the young job creators rather than job seekers. Technology is evolving with the pace faster than ever. This has given birth to various new businesses like E-commerce, internet marketing etc. So, there is a great scope of development in such areas. Those who plan to start new business are eligible to apply. Startup means an entity, incorporated or registered in India:
- Not prior to five years,
- With annual turnover not exceeding INR 25 crore in any preceding financial year, and
- Working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
- Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence.
- Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years has exceeded INR 25 crore or it has completed 5 years from the date of incorporation/ registration. Provided further that a Startup shall be eligible for tax benefits only after it has obtained certification from the Inter-Ministerial Board, setup for such Purpose.
- STAND UP INDIA:
Prime Minister Narendra Modi launched the ‘Stand up India’ scheme on April 2016 as part of the Government’s efforts to support entrepreneurship among women and SC & ST Communities.
The scheme offers bank loans of between ₹10 lakh (US$15,000) and ₹1 crore (US$150,000) for scheduled castes and scheduled tribes and women setting up new enterprises outside of the farm sector. Debit Card (Ru Pay) for withdrawal of working capital.
- SC/ST and/or Women entrepreneurs, above 18 years of age.
- Loans under the scheme is available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
- In-case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
- Borrower should not be in default to any bank/financial institution.
Start up India Stand up India Scheme – Action Plan in Detail
- E- Registration will be done. The application forms for startup India will be made available in April 2016
- A self certification system will be launched
- A dedicated web portal and mobile app will be developed
- Arrangement of self certificate based compliance
- No inspection during the first 3 years
- 80 percent reduction in the application fee of startup patent
- Easy exit policy
- Inclusion of Credit Guarantee Fund
- Relaxation in Income Tax for first three year
- Special Arrangement for Female applicants
- Introduction of Atal Innovation Mission. Innovation courses will be started for the students 8. CHALLENGES FACED BY GOVERNMENT:
- Fund- 10,000 crore rupees were allocated for this through SIDBI. But bank only puts 15% of total corpus while 85% is put by venture capitalists. VCs are required to get registered with SEBI.
- Partnered initiative- Government is partnering with NITs, IIITs, IISERs and NIPERs to setup 75 start-ups.
- But reform in education is necessary to build entrepreneurship from the starting.
- Ease of doing business is promoted to generate business friendly environment. Still ranked 130 in World Bank Report.
- Single portal system was launched to avoid red tapism and lengthy process.
India is ranked 132nd out of 185 economies in Doing Business 2013 by the World Bank. India’s restrictions on foreign equity ownership are greater than the average of the countries covered by the Investing across Sectors indicators in the South Asia region and of the BRIC (Brazil, Russian Federation, India, and China) countries. India imposes restrictions on foreign equity ownership in many sectors, and in particular in the service industries. Sectors such as railway freight transportation and forestry are dominated by public monopolies and are closed to foreign equity participation. With the exception of certain activities specified by law, foreign ownership in the agriculture sector is also not allowed. These restrictions need to be eased for making India better place for doing business.
Infrastructure tops the list of most surveys on doing business in India. In particular, chronic deficiencies in transportation and power impose prohibitive costs and lower business competitiveness. Multiple enterprise surveys have identified electricity as the biggest constraint. Further, India lags behind on every measure of transport connectivity. Though there have been considerable recent successes spurred by private participation, much needs to be done. However, introduction of UDAY scheme is a good step in this regard. SC and ST community are still far behind to avail these facilities due to many problems like lack of education, social obligations, awareness etc. Gender bias leads gender-gap, according to NSSO only 14% established business is run by women entrepreneurs.
But government initiatives like Start up India and Stand up India are generating hope for better future by Encouragement.
Sound macroeconomic policies are necessary to create a low-inflation, low-interest rate and high-growth environment that is essential for the country’s global manufacturing competitiveness. Given the huge size and vast diversity of the country, a diagnostic for each state may be a more prudent strategy. In any case, instead of big-bang reforms, sustained efforts in multiple directions, which cumulatively generate large effects, are required to relax these constraints so that we can realise the goal of making in India.
What were the Causes and Consequences of First World War?
First World War (World War I) is considered as one of the largest wars in history. The world’s great powers assembled in two opposing alliances: the Allies (British Empire, France and the Russian Empire) versus the Central Powers (Germany and Austria-Hungary). World War-I lasted from 28 July 1914 to 11 November 1918.
The Two Groups: Allies vs Central Powers
Causes of the First World War
In the background there were many conflicts between European nations. Nations grouped among themselves to form military alliances as there were tension and suspicion among them. The causes of the First World War were:
(1) Conflict between Imperialist countries: Ambition of Germany
- Conflict between old imperialist countries (Eg: Britain and France) vs new imperialist countries (Eg: Germany).
- Germany ship – Imperator
- German railway line – from Berlin to Baghdad
(2) Ultra Nationalism
- Pan Slav movement – Russian, Polish, Czech, Serb, Bulgaria and Greek.
- Pan German movement.
(3) Military Alliance
- Triple Alliance or Central Powers (1882) – Germany, Italy, Austria-Hungary.
- Triple Entente or Allies (1907) – Britain, France, Russia.
Note: Although Italy was a member of the Triple Alliance alongside Germany and Austria-Hungary, it did not join the Central Powers, as Austria-Hungary had taken the offensive, against the terms of the alliance. These alliances were reorganized and expanded as more nations entered the war: Italy, Japan and the United States joined the Allies, while the Ottoman Empire and Bulgaria joined the Central Powers.
(4) International Anarchy
- Secret agreement between Britain and France allowing Britain to control Egypt and France to take over Morocco.
- Germany opposed, but settled with a part of French Congo.
- Hague conference of 1882 and 1907 failed to emerge as an international organisation.
(5) Balkan Wars
Many Balkan nations (Serbia, Bulgaria, Albania, Greece and Montenegro) were under the control of Turkey. They defeated Turkey in the First Balkan War. The subsequent war was between the Balkan countries themselves – Eg: Serbia vs Bulgaria.
Defeated countries like Turkey and Bulgaria sought German help.
During German unification, Germany got Alsace-Loraine from France. France wanted to capture Alsace-Loraine back from Germany.
(7) Immediate Cause: assassination of Francis Ferdinand
Austrian Archduke Francis Ferdinand was assassinated by a Serbian native (in Bosnia). Austria declared war on Serbia on 28th July, 1914. [Reason for assassination: Annexation by Austria the Bosnia-Herzegovina, against the congress of Berlin, 1878]
The Course of the War
Group 1 (Allies): Serbia, Russia, Britain, France, USA, Belgium, Portugal, Romania etc
Group 2 (Central Powers): Austria-Hungary, Germany, Italy, Turkey, Bulgaria etc.
War on Western Side: Battle of Marne.
War on Eastern Side: Battle of Tennenberg (Russia was defeated).
War on the Sea: Batter of Dogger Bank (Germany was defeated), Battle of Jutland (Germany retreated).
USA entered in 1917.
Russia withdrew in 1917 after October Revolution.
Treaty of Versailles, Paris
Germany signed a treaty with Allies (Triple Entente) on 28th June 1919. It was signed at Versailles, near Paris. (14 points)
Leaders: Clemenceau – France, Lloyd George – Britain, Woodrow Wilson – USA, Orlando – Italy.
Treaties after World War I
- Treaty of Paris – with Germany
- Treaty of St. Germaine – with Austria
- Treaty of Trianon- with Hungary
- Treaty of Neuilly – with Bulgaria
- Treaty of Severes – with Turkey
Consequences of First World War
- Rule of King ended in Germany: Germany became a republic on November 1918. The German Emperor Kaiser William II fled to Holland.
- Around 1 crore people were killed.
- Unemployment and famine.
- The fall of Russian empire after October revolution (1917) which resulted in the formation of USSR (1922)
- Emergence of USA as a super power.
- Beginning of the end of European supremacy.
- Japan became a powerful country in Asia.
- Poland, Yugoslavia and Czechoslovakia became new independent states.
- Baltic countries – Estonia, Latvia and Lithuania – became independent.
- Rule of Ottomans came to an end in Turkey.
- New boundary lines were drawn for Austria, Germany and Turkey.
- Strengthened independence movements in Asia and Africa.
- League of Nations came into being.
- Germany had to return Alsace-Loraine to France.
- German colonies were shared.
- Germany gave up Saar coal field.
- Germany gave up Polish Corridor, and made city of Danzig independent.
- Monarchy was abolished in Germany, Austria, Hungary, Turkey and Russia.
- The harsh clauses of the Treaty of Versailles finally resulted in the Second World War.
Akbar’s Pragmatic Rajput Policy and its Significance. Analyse
Akbar was a great pragmatist. He was the first Muslim ruler to realize that without the help of the Rajput’s, no permanent empire could be set up in India.
Accordingly, he took measures to secure their cooperation. He treated them as very trustworthy friends and not mere vassals. He abandoned the old policy of repression and persecution of the Rajput’s.
Broadly speaking Akbar’s policy was based on diplomacy and force – the two potent weapons of state craft. But he realized more on diplomacy.
Significance of the Rajput Policy of Akbar:
- Expansion of Akbar’s influence
The policy of friendship contributed to the extension of the Mughal Empire. The Rajput’s had become the ‘Sword and Shield’ of Akbar.
- Military help
The Rajput rulers provided strong military help to Akbar in waging wars and conquering several territories.
- Strengthening of administration
Akbar was able to secure the services of Rajput’s in the efficient running of the administration. Some of the Rajput Governors of Mughal provinces proved very helpful.
- Advantages to Rajputs
The Rajput rulers got honour, high offices, big Jagirs and confidential posts in the royal service. They were also free to devote their resources on welfare pursuits in place of war adventures.
- Cultural integration
According to Dr. Ishwari Prasad, “A new culture – Indo-Muslim culture” was born. Akbar gave encouragement to Sanskrit, Hindi and other regional languages. There is no doubt that the Rajput’s made great contribution in the field of Akbar’s expansion of empire, statecraft, administration, cultural, economic and social progress.