Category: Maharashtra State Board Notes

By going through these Maharashtra State Board Class 12 Economics Notes Chapter 6 Index Numbers students can recall all the concepts quickly.

Maharashtra State Board Class 12 Economics Notes Chapter 6 Index Numbers

Definition:
Spiegel defines Index Number as, “statistical measures designed to show the changes in a variable or a group of related variables with respect to time, geographical location, other characteristics such as income, profession, etc. ”

Hence, Index Numbers are :

• These are specialized forms of averages.
• These measures the net changes in a group of related variables like price, quantity, cost of living, etc.
• These are expressed in percentage without using the percentage sign.
• These are also known as economic barometers.
• They always refer to two periods, i.e. base year and the current year.
• Price Index Number P₀₁ = \(\frac{p_{1}}{p_{0}}\) x 100

where P₀₁ = Price Index Number
p₁ = Price of the commodity in the current year.
p₀ = Price of the commodity in the base year.

Types of Index Numbers:

Significance or Uses of Index Numbers:

• They help in formulating economic and business policies.
• They help in the study of economic trends and tendencies.
• They are considered as economic barometers as they measure economic changes over period of time.
• They help in the measurement of Inflation.
• They help in presenting financial data in real terms.
• They help in determining depreciation cost.
• They help the government to adjust national income.

Steps Involved in Construction of Index Numbers:

• Purpose of Index Number
• Selection of the base year
• Selection of commodities
• Selection of prices
• Selection of suitable averages
• Selection of formula
• Assigning proper weights.

Limitations of Index Numbers:
Although index numbers are very useful to business and industry they suffer from following
limitations:

• Bias in the data
• Based on samples
• Misuse of index numbers
• Defects in the formulae
• Changes in the economy
• Neglecting Qualitative changes
• Arbitrary weights
• Limited scope

Because of all these limitations, sometimes economists do not get desired results.

Different Methods of Constructing Index Numbers:
Following chart helps us to know different methods of constructing Index Numbers:

Simple Index Number: It is constructed when all the items like food, clothing, transport, housing, etc. are given equal importance. There are three different methods of constructing it.

→ Price Index Number: It is constructed by using following formula: P_o1 = \(\frac{\Sigma p_{1}}{\Sigma p_{0}} \) × 100 where – p₀₁ Price Index
Σp₁ = Total of the current year prices of various commodities.
Σp₀ = Total of base year prices of various commodities.

→ Quantity Index Number (Q₀₁): It is calculated by using following formula :
Q₀₁ = \(\frac{\Sigma q_{1}}{\Sigma q_{0}}\) × 100
where, Σq₁ = Sum total of current year quantities of commodities.
Σq₀ = Sum total of base year quantities of commodities.

→ Value Index Number (V₀₁): It is calculated by using following formula :
V₀₁ = \(\frac{\Sigma p_{1} q_{1}}{\Sigma p_{0} q_{0}}\) × 100
where, Ep₁q₁ = Sum total of product of prices and quantities of current year.
Ep₀q_o= Sum total of product of prices and quantities of base year.

Weighted Index Number: Under this method physical quantities are used as weights. Therefore prices themselves are weighted by quantities. We can take either the base year quantities or current year quantities as weights or the average of the two.

These index numbers are simple aggregative type with the fundamental difference that weights are assigned to various items included in the index. There are various methods of constructing weighted index numbers such as :

1. Laspeyres Price Index Number
2. Paasche’s Price Index Number

Laspeyre’s Price Index Number: This method was derived by Laspeyre’s, a German economist in 1871. In this method, weight are determined by quantities in the base year. He used the following
formula: P₀₁ = \(\frac{\Sigma p_{1} q_{0}}{\Sigma p_{0} q_{0}}\) x 100

where P₀₁ = Price Index
p₀ = Price of the base year
p₀ = Price of the current year
q₀ = Quantities of the base year
Σp₁q₀= Add all the products of p₁ and q₀
Σp₀q₀= Add all the products of p₀ and q₀

Paasche’s Price Index Number: This method was derived by Paasche, a German economist in 1874. In this method weight of the current year are used as base year. He used the following
formula: P₀₁ =\( \) x 100

where P₀₁ = Price of the current year
p₀ = Price of the base year
p₁ = Price of the current year
q₁ = Quantities of the current year
Σp₁q₁ Add all the products of p₁ and q₁
Σp₀q₀= Add all the products of p₀ and q₁.

By going through these Maharashtra State Board Class 12 Economics Notes Chapter 10 Foreign Trade of India students can recall all the concepts quickly.

Maharashtra State Board Class 12 Economics Notes Chapter 10 Foreign Trade of India

Internal Trade:
It means exchange of goods and services within the country.

Foreign Trade:
It means exchange of goods and services between two or more countries. Foreign trade is the exchange of goods and services between two or more countries, Foreign trade is the trade across the boundaries of a country.

Definitions –
According to Wasserman and Hultman, “International Trade consists of transaction between residents of different countries.”

Types of Foreign Trade:

1. Import Trade
2. Export Trade
3. Entrepot Trade

→ Import Trade: It is buying of goods and services from other country by home country. Excessive import can have a negative impact on the home country. E.g. India buying petroleum from Iraq, Kuwait, etc.

→ Export Trade: It is selling of goods and services by home country to another country. Excessive export can have a positive impact on the home country. E.g. India exporting tea and spices to USA, China, etc.

→ Entrepot Trade: It means buying of goods and services from one country and then selling them to another country. E.g. England importing cotton from India making readymade garments from it and selling them to Malaysia.

Role / Need / Importance of Foreign Trade:

→ To earn foreign exchange: Foreign trade plays a very important role in earning foreign exchanges. This foreign exchange can be used to import advanced technology and machinery from developed countries.

→  Encourage investment: Foreign trade leads to an increase in total investment in an economy. The increase in investment helps to produce more goods and services for export.

→ Division of labour and specialization: It helps to increase the productivity of a firm or economy. Under specialization, specific work is given to the workers within a production process. E.g. some workers will design the cars, some workers will work on assembly line, some workers will work on testing cars, some workers will work on marketing of cars.

→ Optimum allocation and utilization of resources: Due to foreign trade, those goods are produced which have demand in international market. There is maximum allocation and utilisation of resources to produce more goods and services for export.

→ Stability in price level: Foreign trade helps to control the changes in price level by keeping demand and supply position stable.

→ Availability of multiple choices: Due to availability of imported goods, its help to improve standard of living of the people in the country.

→ Promotes economic development: The foreign trade plays a major role in increasing the national income, standard of living of the people, increased collaboration with foreign government or organisation, etc. which stimulates economic development.

→ Brings reputation and helps earn goodwill: Exporting country can earn reputation and goodwill in the international market through foreign trade. E.g. Japan in electronic goods – Panasonic, Canon, Sony, Hitachi, Germany in automobile – BMW, Audi, Mercedes-Benz, Volks Wagen, Porsche, USA in computers -Dell, HP, IBM, USA in food – Mcdonald, KFC.

→ Helpful during natural calamities: Foreign trade enables a country to import food grains and medicines from other countries to help the affected people during natural calamities.

→ Promotes World Peace: Foreign trade brings countries to closer, leading to world peace and integrity.

Features of Composition of India’s Foreign Trade:
There are many changes in India’s foreign trade from last seven decades (70 years)

→ Gross National Income: India’s foreign trade has great significance for its GNP. It increased up to 48.8% in the year 2016-17.

→ Change in composition of exports: After independence, there was change in the composition of India’s export trade from primary products to manufactured goods.

→ Change in composition of imports: After independence, there was change in the composition of India’s import trade from consumer goods to capital goods.

→ Development of new ports: India’s foreign trade is handled mainly by Mumbai, Calcutta and Chennai ports. India has developed more new ports at Kandla, Cochin, Vishakhapatnam, etc.

→ Oceanic Trade: Most of India’s foreign trade is by sea. About 68% of India’s trade is by sea.

→ Rise in volume and value of trade: After economic reforms (1990-91), the volume and value of India’s imports and export has increased.

Trends in India’s Export:
Engineering goods: Engineering goods includes transport equipment, automobiles and auto components, machinery and instruments. India’s top export item is engineering goods, accounting for 22.5 per cent in India’s total export in 2014-15 and this share has increased up to 25% in the year 2017-18. India is exporting engineering goods to Sri Lanka, UAE and USA.

→ Petroleum products: India’s refining capacity has increased significantly since 2001-02, due to which India turned a net exporter of petroleum refinery products. In the year 2013-14 the share of petroleum products in total export was 20.1% and in the year 2016-17, it declined upto 11.07%.

→ Chemicals and chemical products: It included drugs (medicines and pharmaceuticals). This is one sector where India is highly competitive on both quality and pricing factor. India became global hub for pharma production. India is exporting its chemical and chemical products to USA, China and Germany. The share of this item was 10.4% in 2014-15.

→ Gems and Jewellery: Gems and Jewellery plays an important role in earning the foreign exchange for India. In the year 2014-15 the share of Gems and Jewellery was 13.3% in India’s total export and it declined upto 5.32% in the year 2018-19.

→ Textiles and readymade garments: India’s readymade garments have huge demand in the international market. India is exporting textiles to USA, China and Bangladesh. India is exporting readymade garments to USA, UAE and UK. In the year 2014-15 India’s export of textile and garment was 11.3% of total export of India and it has declined up to 6.3% in the year 2016-17. ,

Trends in India’s Imports:
India is importing various goods from other countries. Following are the major imported goods of India.

→ Petroleum: It has largest share in India’s import. In the year 2016-17, it has 22.6% share in India’s total import.

→ Gold: After petroleum, the second most imported item is gold. In the year 2011, India’s import of gold was $53.9 billion and in the year 2018-19 it declined upto $32.8 billion.

→ Fertilizers: The share of fertilizers in import expenditure declined from 4.1% in 1990-91 to only 1.3% in 2016-17.

→ Iron and Steel: In the year 2016-17 the share of iron and steel in India’s total import was 2.1%.

Balance of Payments (BOP):

→ According to Ellsworth, “Balance of payments is a summary statement of all the transactions between the residents of one country and the rest of the world.”

→ According to Walter Krause, “The balance of payments of a country is a systematic record of all economic transactions completed between its residents and the rest of the world during a given period of time usually a concept of year. ”

Balance of Trade:

→ According to Bentham, “Balance of trade of a country is the relation over a period between the values of her exports and imports of physical goods.”

→ According to Samuelson, “It export value is greater than the import value, it is called as trade surplus and if import value is greater than export value, then it is called as trade deficit.”

By going through these Maharashtra State Board Class 12 History Notes Chapter 8 World Wars and India students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 8 World Wars and India

→ The most important events of the first half of the 20th Century which changed the world scenario were the two World Wars.

First World War (1914-1918)

Causes of the First World War:

→ Industrial revolution led to increase in industrial production.

→ International competitions among European powers for colonies and economic markets.

→ Rivalry between the European nations and competition to produce more and more destructive weapons.

→ Nationalism.

→ Immediate cause: Assassination of the Austrian Prince Archduke Franz Ferdinand and his wife by a Serbian maniac.

The Course of the War:
There were two groups in the war.
Group 1: Allies: Serbia, Britain, Russia, France, Belgium, U.S.A.
Group 2: The Central Powers: Austria-Hungary, Germany, Turkey, Bulgaria

Germany was defeated in the First World War and the Treaty of Versailles came into force.
An International Organisation called League of Nations was founded after World War First for maintaining peace in the world.

First World War and India:

→ The Britishers compelled India to participate in the world wars. India became the source of procuring help in the form of money, food, clothing and other war supplies including skilled human power, arms and ammunitions, textiles, etc.

→ Production of war supplies increased.

→ There was a sharp increase in demand for the Indian goods.

→ Demand for food supplies increased, grains were exported to England caused shortage of food grains for Indians.

→ India was backward in the matter of air crafts, mechanized war instruments, infantry, military training and others.

→ Montagu-Chelmsford reforms were introduced in India.

Establishment of military academy in India.

→ Lokmanya Tilak and other Indian leaders believed that cooperation offered by the Indian people to Britain will be beneficial to them in future.

→ 11 lakh Hindi soldiers fought in a war. India also contributed 150 crores of rupees to the war expenses.

→ The Kamagata Maru incident: Nearly 30 Indian passengers on a steamship, Kamagata Maru, were short dead by British officers which created public outrage all over India.

→ There was a rise of nationalism in India.

Second World War (1939-1945)

Causes of the Second World War:

→ The Treaty of Versailles and German desire for revenge.

→ Rise of Hitler and Nazi ideology.

→ Hitler began to build up Germany’s arms and weapons.

→ Britain and France thought a stronger Germany would stop the spread of communism from Russia.

→ Hitler attacked and won Sudeten province and Poland. Therefore, England declared war against Germany.

→ Germany conquered Holland, Belgium, France and marched towards England.

→ Successful retreat of Britain’s forces.

→ Winston Churchill became the Prime Minister of England.

→ Hitler violated Non-aggression pact made with Stalin and attacked Soviet Russia.

→ Soviet Russia defeated Germans and the allied nations took over Berlin. Hitler committed suicide.

→ The Pearl Harbour incident- In 1941 Japan attacked Pearl Harbour resulted in America declaring war against Japan. America detonated two atom bombs on Hiroshima and Nagasaki in Japan. At last, Japan surrendered on 15th August 1945 and war came to an end.

Second World War and India:

→ India contributed to the rehabilitation of Malaya, Indonesia and China after the war was over.

→ Exploitation of India by British in order to achieve victory in the war.

→ The British Government established several factories in India to meet the requirement of war supplies.

Impact of World Wars on India:

→ The British Government started forced recruitment of soldiers in India.

→ Extra taxes were levied on Indians for raising funds.

→ Crises of essential commodities increased which led to inflation.

→ Unemployment became rampant in India.

→ Indian become aware of the exploitative rule of British and they decided to join Indian National Movement.

→ The Indian National Congress protested against Viceroy Linlithgow’s announcement of India’s participation in war.

→ When Japanese army reached the eastern border of the India, several volunteers of Azad Hind Sena joined this army under the leadership of Netaji Subhash Chandra Bose in order to attend its goal of independence of India.

Conclusion:
Both the wars were destructive in nature. In order to avoid such wars in future and to maintain peace League of Nations was established after First World War and United Nations after Second World War India is a member of this organization.

Glossary :

→ Nationalism – A feeling of love or pride for your own country, a feeling that your country is better than any other country.

→ Indian National Movement – It was a series of activities or movements with the ultimate aim of ending the British rule in India.

→ Militarism – belief that a country should maintain a strong military capability and be prepared to use it aggressively to defend or promote national interests.

→ Non-aggression pact – A non-aggression pact is a treaty between two or more states countries that includes a promise by the signatories not to engage in military action against each other.

By going through these Maharashtra State Board Class 12 History Notes Chapter 7 Decolonisation to Political Integration of India students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 7 Decolonisation to Political Integration of India

→ In the last lesson, we have studied various revolts that took place in India against British or East India companies.

→ In this lesson, we are going to study ‘Decolonisation’ which means the process of ending British power and all power transferred to the people of India.

→ As we know India was ruled by many kings and kingdoms, India got its independence on August 15, 1947.

→ But, after independence, the princely states had the right to be free or remain independent.

→ Sardar Vallabhbhai Patel played a very important role to unite India. Let’s study the story of various events.

Decolonization to Political Integration of India.
After Independence India had more than 600 princely states. Meanwhile, many movements were started like Non-co-operation movement. Sardar Vallabhbhai Patel handled the situation with great skill and tact and won the confidence of the rulers of these states and they have merged in India, except Junagadh, Hyderabad and Kashmir.

→  Junagadh: Junagadh’s Nawab of Saurashtra wanted to join Pakistan and people from Junagadh wanted to be a part of India. In February 1948, he escaped from India and joined Pakistan. Junagadh became a part of Independent India.

→  Hyderabad: Hyderabad was under the Nizam and had three languages Telugu, Kannada and Marathi. He imposed many restrictions. To fight with Nizam people established Andhra Parishad in Telangana, Maharashtra Parishad in Marathwada and Karnataka Parishad in Karnataka.

→  Swami Ramanand Tirth formed workers organisation called Hyderabad State Congress against Nizam. Later on, Nizam and Kasim Razvi (Razakar Organisation head) had to surrender against Independent nation, campaign started by India called ‘Operation Polo’. In September 1947, Hyderabad merged with India.

→  Kashmir: Story of Kashmir was different, ruler Hari Singh wanted to be independent, neither wanted to join Pakistan nor India. But Pakistan wanted it in Pakistan. Later on, Pakistan attacked Kashmir, Hari Singh asked Pandit Nehru to help him by signing the act.

→ Soon, Indian army were sent, but some part of Kashmir was captured by Pakistan Army. This matter arose in UNO and soon it was declared ‘International Issue’. The constitution of Jammu and Kashmir was drafted, it became part of India. Jammu and Kashmir got special status by ‘Article 370.’

→  Dadra and Nagar-Haveli:
Dadra and Nagar Haveli was under the dominance of Portuguese and a part of Gujarat, near the river Damanganga. It was assumed that after India got independence, Portuguese also would hand over these regions to India. But it was not like that, they did not do so.

→  Many organisations like United Front of Goans, Azad Gomantak Dal started campaign, Portuguese governor tried to suppress it but they failed and Nagar Haveli was captured by people. Soon the branch of Azad Gomantak Dal also captured Dadra. Azad Mukti Sena and Azad Gomantak Dal captured some more parts of it. Many police and administrative offices were attacked. To come back in normal situation, Governor of India was appointed. In August 1954, Dadra and Nagar Haveli became a part of Nation and in 1961 declared status of Union Territory.

→  Goa: Goa was also under the rule of Portuguese. It was necessary to get freedom from Portuguese. For this already committee was formed in Mumbai. Soon this committee started campaign against Portuguese. Dr. Kunha played an important role, started struggle of weapons against Portuguese. He was arrested when he got shot and injured during attack on police station.

→ ‘Maratha’ newspaper was continuously publishing article to gain support for the movement started by Dr. Kunha. This alarmed Pandit Nehru and soon the army was sent for mission in Goa. Army operation was called ‘Operation Vijay’. In this operation the civilians of Goa helped the army to show the places where landmines were planted. Within 48 hours Portuguese surrendered to Indian Army. In 1961, Goa was free from Portuguese after 461 years.

→  Puducherry: Same as Goa, Puducherry was also in hands of the French. It was a clear message to the French Colony that British and Portuguese had left from here, now it is French’s turn. But it was not easy. Puducherry, Chandranagar, West Bengal and many small states were under the French power. French government was not willing to surrender. People of Puducherry came together.

→ Seeing this serious matter Government of India demanded to return the Indian regions captured by French. In 1948 agreement of negotiations were signed and issues of Puducherry were solved. In 1949-50, positive response came from Chandranagar, here also an act was signed. In 1954, all colonies of French were merged in India. In 1963 Puducherry declared to be a ‘Union Territory.’

→ It was not easy to merge all princely states into independent nation. Under the leadership of Pandit Jawaharlal Nehru and Sardar Vallabhbhai Patel all princely states merged with India and became an integral part of the Indian republic. Thus, the process of political integration of India was completed.

Glossary

→ Decolonisation – Leaving it independent

→ Suzerainty – A sìtuation in which a powerful region

→ Integration – Process of integrating

→ Conciliatory – The action or process of ending a disagreement

→ Razakar – A private militia

→ Martyrs – A person who is killed because of their religious or other beliefs Dominion Control

→ Fierce – Severe or extremely strong

→ Unfurled – A sailor a flag; unfold

→ Deported – To force someone to leave a country

→ Eminent – Respected, or important

→ Prevail – To get control

→ Bilateral Government – Involving two groups or countries.

By going through these Maharashtra State Board Class 12 History Notes Chapter 6 Indian Struggle against Colonialism students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 6 Indian Struggle against Colonialism

Struggles before 1857

Revolt of Bhils:

→ In 1818, the British East India Company took complete charge of Khandesh.

→ About 8000 Bhils who resided in the region of Satpuda, Satmala and Ajintha united against the British and started a revolt.

→ Major Morin, Capt. Briggs, Capt. Robinson, Lt. Outram, Major Pitman, Capt. Evans, Capt. Taylor were some of the British officers who successfully crushed the revolt of Bhils.

Revolt of Ramoshis:

→ In Satara district, the Ramoshis revolted under the leadership of Chitursingh.

→ Santaji Naik and Umaji Naik were among the captains heading the Ramoshi groups.

→ The British put an end to the revolt of the Ramoshis.

Freedom Struggle of 1857

Important characteristics of the Revolt of 1857:

• Discontented soldiers of the Indian army.
• Lord Dalhousie’s Doctrine of Lapse.
• Land revenue systems of the British.
• Hurting religious sentiments of Indians.
• Leaders fighting for their own interests.
• Queen’s Proclamation of 1858.

Background of the Founding of Indian National Congress:

• Establishing important associations.
• Foundation of Indian National Congress.

Moderates and Extremists:

1. Resolutions of ‘Swadeshi’ and ‘Boycott’.
2. Partition of Bengal (1905).

Armed Revolutionaries in India:

→ Bhagat Singh, Rajguru, Sukhdev, Vasudev Balwant Phadke were some of the revolutionaries.

→ Abhinav Bharat, Anusheelan Samiti, Gadar Party, Hindustan Socialist Republican Association were some of the revolutionary organisations.

Mahatma Gandhi’s Non-Violent Resistance Movement:
Mahatma Gandhi became the leader of India’s Independence Movement. During his time the following events took place –

• Champaranya Satyagraha 1917.
• Rowlatt Act 1919.
• Jallianwala Bagh Massacre 1919.
• Non-Co-operation Movement 1920.
• Salt Satyagraha 1930.

Azad Hind Sena:

• Azad Hind Sena was built by Rasbihari Bose.
• Azad Hind Sarkar was established by Subhash Chandra Bose in 1943 in Singapore.

Quit India Movement of 1942:

1. Resolution of Quit India Movement was passed on 8th August 1942.
2. Famous call of ‘Do or Die’ given by Gandhiji.
3. Prati Sarkar (Parallel Governments) were established in several parts of India.
4. Creation of two nations-India and Pakistan.
5. Implementation of Constitution of India on 26th January 1950.

Glossary:

→ Regiment – A group of soldiers in the army who are commanded by a particular officer (a colonel)

→ Revolted – To protest in a group often violently.

→ Gadkari – A salaried officer in the Maratha empire who looked after the forts.

→ Cantonment – A military camp

→ Repugnant – Making you feel disgust

→ Platoon – A small group of soldiers

→ Gadar – Uprising

→ Charkha – The Indian spinning wheel

→ Swadeshi – Made in one’s own country

→ Pratisarkar – Parallel government.

By going through these Maharashtra State Board Class 12 History Notes Chapter 5 India: Social and Religious Reforms students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 5 India: Social and Religious Reforms

→ The contribution of Indian social reformers in bringing about change in various aspects of human life especially in the social and educational fields is significant. The social reformers who studied under the new educational system introduced by the British were responsible for this transformation. They brought about social and religious reforms through various socio-religious movements. The efforts of Raja Ram Mohan Roy were the beginning point of these movements.

→ The progress of Indian society was stunted because of superstitions, orthodox way of life, caste discrimination, false social notions, lack of curiosity and rationality that prevailed on a large scale. Progressive values of ‘Freedom, Equality, Fraternity and Humanism’ were adopted to create mass awareness on various social and religious issues.

→ Several religious and social reform organisations came to be established in India. Some of them were the Prarthana Samaj, Satyashodhak Samaj, Arya Samaj to name a few.

→ Social reformers like Sir Sayyad Ahmad Khan, Tarabai Shinde, Maharshi Vitthal Ramji Shinde and many others worked for the upliftment of their own communities.

→ The rulers of princely states too were not far behind. For e.g., Maharaja Sayajirao Gaikwad and Rajarshi Shahu Maharaj.

→ As far as social reforms in Maharashtra are concerned, the list of people who devoted their lives for it is quite extensive. But a few prominent names are worth mentioning for e.g., Karmveer Bhaurao Patil, Punjabrao Deshmukh, Maharshi Dhondo Keshav Karve, Godavari Parulekar, Tarabai Modak and Anutai Wagh.

Glossary

→ Abolish – Formally put an end to (a system. practice or institution)

→ Mundane – Ordinary

→ Periyar – Great Soul

→ Satyagraha – Holding onto truth

→ Reformer – Improver, activist

→ Emancipation – Liberation,

→ freedom Propogation – To preach.

By going through these Maharashtra State Board Class 12 History Notes Chapter 4 Colonialism and the Marathas students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 4 Colonialism and the Marathas

Chhatrapati Shivaji Maharaj was the only Indian ruler who had foreseen the ulterior motives of the Europeans and their ways of infiltration and put up a strong resistance against them. Portuguese, French, Dutch and the British all of them came to India as traders. However, they also grabbed political power. It is often said that they came to India with weighing scales but used swords and ultimately seized the Indian throne.

Portuguese and the Maratha Empire:

→ The Portuguese were the first to arrive in India.

→ Chhatrapati Shivaji Maharaj first came in contact with the Portuguese when he established control over Kalyan and Bhiwandi.

→ Both the Portuguese and the Marathas adopted policies to suit the situation in diplomatic matters.

→ Some important events:

• In 1665, the Portuguese waylaid 13 ships of the Marathas.
• In 1666, the fort of Fonda ruled by Adilshah was under siege by the Marathas.
• In 1667, Chhatrapati Shivaji Maharaj decided to attack the region of Bardesh.
• On 10th February 1670 a treaty was signed between the Marathas and the Portuguese,
• In 1680, the Fonda Fort was captured by the Marathas.
• In March 1773, the Maratha army conquered the Sashti island.

Dutch and the Maratha Empire:
The Dutch established a factory at Vengurla in 1649. Their trade flourished there. However, their trade was severely affected when Chhatrapati Shivaji Maharaj attacked Kudal. In 1665, the Mughal subedar of Surat asked for help for destroying the Maratha naval force. However, the Dutch offered ho help. Chhatrapati Shivaji Maharaj had allowed them to build a factory at Dabhol.

The political relations between the Dutch and the Marathas kept changing to suit the need of the time. The Marathas did not harm the Dutch factory at Surat. Also, during the Karnataka campaign, the Marathas ensured the safety of the Dutch factory and also issued them trading permits. For these favours the Dutch paid tributes to Chhatrapati Shivaji Maharaj. The Dutch factories at Porto Novo/Parangipettai and Tegnapattam/Devanapattinam were unharmed by Chhatrapati Shivaji Maharaj.

French and the Maratha Empire:

→ In 1667, the French established a factory at Rajapur.

→ In 1667, Francois Martin, the Governor-General of Pondicherry obtained permission for opening a factory.

British and the Maratha Empire:

→ Political relations between Chhatrapati Shivaji Maharaj and the British began due to the Afzal Khan episode.

→ Defeat of the British by the Marathas in the Rajapur campaign.

→ Henry Oxenden, a British agent obtained permission to open a British factory at Rajapur

→ An agreement was signed by the British and the Marathas on 12th June 1674.

→ The following were the terms and conditions of the agreement:

• Issuing permissions for the British to trade in Swarajya.
• To open factories in Rajapur, Dabhol, Chaul and Kalyan.
• Right of the Marathas to levy 2.5% octroi on British goods etc.

→  Raghoba’s appeal for help resulted in appointing a British envoy in the Peshwa court in Pune.

→  In 1765, the British took over the fort of Malvan.

→  Treaty of Wadgaon was signed between the British and the Marathas after the British army was defeated by the Marathas.

→ Treaty of Vasai was signed by the British and the Marathas which was not acceptable to Shinde and Holkar.

→  This resulted in the Anglo-Maratha War in 1803. The Marathas were defeated in this war.

→  The Third Anglo-Maratha War was fought in 1817. The Marathas were once again defeated and the Maratha rule ended in 1818.

→  Bajirao Peshwa was granted an annual pension by the British and he spent the rest of his life at Bithoor near Kanpur.

Siddis and the Maratha Empire:

→ Siddis arrived in the latter half of the 15th century from Abyssinia (Ethiopia).

→ Established themselves at Janjira.

→ Siddis were increasingly getting difficult and therefore, Chhatrapati Sambhaji Maharaj decided to curb their movements.

→ Due to repeated Mughal attacks, the Marathas could not pay much attention to other enemies.

→ During the times of Peshwa I (1733C.E.) the Marathas became active against Siddis. Chimajiappa declared war against the Siddis and won it.

→ A treaty was signed by the Marathas and Siddi.

→  The Siddis accepted a feudatory status under the Marathas.

Afghans and the Maratha Empire.

→ The year 1784 witnessed the first invasion of India by AhmadshahAbdali, the king of Afghans. He was defeated by Shahjad Ahmadshah, the elder son of the emperor at Sirhind.

→ In 1751, Abdali invaded India again.

→ In 1757, Abdali invaded India for the third time. Returned to Afghanistan after ransacking the region around Delhi and Mathura.

→ In 1759, Abdali marched back for the fourth time which resulted in the ‘Third Battle of Panipat’ on 14th January 1761 between the Marathas and Abdali.

→ The Maratha army was commanded by Sadashivraobhau and Vishwasrao Peshwa.

→ They confronted each other at Panipat on the banks of the river Yamuna.

→ Both Peshwas were killed.

→ Abdali and his successors returned home never to come back because of the fierce opposition from the Marathas.

→ The British established their supremacy in India once the Maratha rule declined in the 19th century.

Glossary

→ Chauthai – A type of revenue collected from the external territories protected by the Maratha rulers. It used to be one-fourth of the total income of the taxpayer.

→ Ammunition – A supply of bullets and shells.

→ Atrocities – An extremely wicked or cruel act.

→ Alliance – A union or association formed for mutual benefit, especially between countries or organisations.

→ Asylum – The protection granted by a state to someone who has left their home courftry as a political refugee.

→ Mercenary – A professional soldier hired to serve in a foreign army.

→ Emissary – A person sent by one government or political leader to another to take messages or to take part in discussions.

→ Surreptitiously – Secretively.

→ Sovereignty – The authority of a state to govern itself or another state.

→ Waylaid – To wait for and then stop someone, especially to attack that person.

By going through these Maharashtra State Board Class 12 Economics Notes Chapter 7 National Income can recall all the concepts quickly.

Maharashtra State Board Class 12 Economics Notes Chapter 7 National Income

Meaning:
In general sense of the term ‘National Income’ refers to the total money value of all final goods and services produced in the country during a period, usually one year. It includes net income from abroad. But does not include depreciation.

Definitions:

→ Prof. AC. Pigou: ‘The national dividend is that part of the objective income of the community including of course income derived from abroad, which can be measured in money.”

→ Prof. Irving Fisher: “National dividend or income consists solely of services as received by ultimate consumers whether from their material or from their human environments.”

→ National Income Committee: “A National Income estimate measures the volume of commodities and services turned out during a given period counted without duplication.” Here, the National Income is calculated without double counting.

Features of National Income:

→ Macro-Economic Concept: National Income is a macro-economic concept as it is the aggregate income of the country. It includes the value of goods and services produced in the different sectors of the economy.

→ Flow Concept: National Income is the flow óf goods and services produced in the economy during a year. The flow of goods takes place when there is production activity in the economy. It generates flow of income in the form of rent, wages, interest and profit.

→ Money Value: National Income is Money valuation of Goods and Services only. National Income is always expressed in terms of money. Only those goods and services which are exchanged for money are included. Unpaid services like the service of housewife should not be included.

→ Avoid Double Counting: While estimating National Income we include only the value of final goods and services and not the value of intermediate goods or raw materials to avoid double counting.

→ Net Income from Abroad : While estimating National Income net income from abroad i.e. difference between exports and imports (X – M) as well as net income from foreign investment should be included (R – P).

→ Net Aggregate Value : National Income includes net value of goods and services produced. It does not include depreciation cost. Depreciation is wear and tear of capital goods due to their continuous use in production.

→ National Income is calculated at Current and Constant price: National Income when cakulated at the prevailing market price it is called National Income at current price and when it is calculated at the base year price; it is called National Income at constant price.

→ National Income is calculated for one year : National Income is always expressed with reference to a period i.e. generally one financial year from 1st April to 31st March of every year.

Circular Flow of National Income:
The circular flow of National Income and expenditure refer to the process whereby the National
Income and expenditure of an economy flow in a circular manner continuously through time.
The national income is circulated in the economy based on one’s expenditure is another’s income.

→ Two sector economy : In this economy money flows between households and firms.
Y=C+I

→ Three sector economy: In this economy money flows between households, business firms and
government. Y = C + I + G

→ Four sector economy : In this economy money flows among households, sectors, business firms,
government and foreign sectors. Y = C + I + G + (X — M)

Circular Flow of National Income in Simple Economy: It is a two-sector hypothetical model. It consists of (a) household sector (b) firm or business sector.

This model represents a closed economy where there is no foreign sector. There is no government interference.

→ Household Sector: The household are assumed to possess certain specific features:

• Households are the owners of all factors of production land, labour, capital and entrepreneur.
• Their total income consists of returns on their factors of production – rent, wages, interest and profits.
• They are the consumers of consumer goods and services.
• They spend their total income on goods and services produced by the firms.

→ Business Firms: The business firms are assumed to have the following features and functions.

• The firms hire the factors of productions – land, labour and capital – from the household.
• They use the factors of production to produce and sell goods and services to the households.
  The working of a two-sector economy and the circular flow of income and expenditure are illustrated in the diagram below.

In every economy there is the household sector on one hand and business firm on the other hand.

→ Household is the basic consuming unit. It centres around a family. Its main function is to consume goods and services. Business firm is the basic producing unit. Its main function is to produce goods and services with the aim of maximising profits. When the household supplies factor services (land, labour, capital, enterprise) to business firms, business firms supply goods and services to the household. This is known as real flow.

→ In a money economy when the household supplies factor services, there is a flow of income from the business firm to the household in form of rent, wages, interest and profit. This income comes from the firms to the household sector. The household sector uses this income to satisfy the wants.

→ Therefore, there is a flow of consumption expenditure from the household to the business firm. The flow of factor payments from business sector to household sector and corresponding flow of consumption expenditure from household sector to business firms. This is known as money flow.

→ Both the money flow and real flow should balance for the smooth functioning of the economy. If the money flow is greater than real flow, there would be inflation and if the money flow is less than the real flow there would be deflation.

→  In the above diagram, the inner circle represents the Real flow and the outer circle represents the Money flow. There is circular and continuous flow of money income as production is a continuous activity due to never-ending human wants. The circular flow shows interdependence in the economy.

Different Concepts of National Income:

→ Gross Domestic Product (GDP): It is the gross market value of all final goods and services produced within the domestic territory of a country in a year.

GDP=C+I+G+(X-M)
C – Private sector consumption expenditure
I – Private sector investment expenditure
G – Government consumption and Investment expenditure
X – M (Net export value)

→ Gross National Product (GNP): It means the gross value of final goods and services produced annually in a country, which is estimated according to the price prevailing in the market.
GNP=C+I+G+(X-M)+(R–P)
R – Receipts from abroad
P – Payment made abroad.

→ Net Domestic Product (NDP): It is the net market value of all final goods and services produced, within the territorial boundaries of a country in a year.
NDP = GDP- Depreciation

→ Net National Product (NNP): It is the net market value of all final goods and services produced by the residents of a country in a year.
NNP GNP – Depreciation

Concept of Green GNP:
The Green GNP is the measurement of the national income adjusted for degradation of environment. E.g. The national income for a current year is 8,000 units and the degradation of environment is 500 units, so Green GNP is 8000- 500 = 7500 units.

The Green GNP considers the environmental degradation or resource depletion. It is defined as “Green GNP is an indicator of sustainable use of natural environment and equitable distribution of benefits of development.”

Features of Green GNP:

1. There should be sustainable economic development, i.e. economic development should be such that it does not create environmental pollution and degradation.
2. The benefits of sustainable economic development should be equally distributed.
3. In the long period of time it helps to promote economic welfare.
4. It can be measured as follow: Green GNP = GNP – (Net fall in stock of natural capital + pollution load)

Methods of Measuring of National Income (N.I.):
There are three methods of measuring National Income.

(A) Product Method or Output Method.
(B) Factor Cost Method or Income Method.
(C) Expenditure Method or Total Outlay Method.

Any of the three methods can be adopted to measure National Income of a country because National Income can be viewed from three angles viz : from production side, distribution or income side and expenditure side.

i.e. NI = NP = ND = NE.
NP National Product
ND = National Dividend I Income
NE = National Expenditure
In India, National Income accounting is done through a combination of output and income method.

Product Method or Output Method:

This method is also called as Inventory Method.
According to this method economy is divided into various sectors like agriculture, mining,
manufacturing, small enterprises, commerce, transport, communication, etc.

National income by this method can be calculated by either valuing all final goods and services produced during a year at their market price or by adding up all values at each higher stage of production, until these products are turned into final products.

In output method there are two approaches to measure national income.
(1) Final goods approach (2) Value added approach

→ Final Goods Approach Final Product Approach : According to this approach, value of all final goods and services produced in primary, secondary and tertiary sector are included and the value of all intermediate transactions are ignored.

→ Value Added Approach I Value Added Method: To avoid double-counting, the value-added approach is used to estimate the National Income. According to this method, it is necessary to obtain the total of value-added at each stage in the manufacture of a commodity to arrive at Gross National Product. The value-added method can be explained by means of a simple example.

→ In the above example, value of groundnut with shell is ₹  50, after removing shells value of groundnut is 80, after crushing groundnut the value is ₹  120 and when oil is packed in the packets its value is ₹  150.

→  So, the value added at each stage is, raw groundnut ( ₹ 50), groundnut ( ₹ 30), Oil ( ₹ 40), packed oil (₹ 30) so total value added is 150.

To avoid double-counting either the value of final output or the value – added should be taken in estimation of National Income.

The output method is widely used in the underdeveloped countries. In India, this method is applied in agriculture, mining and manufacturing sector.

Precautions:

→ Avoid Double Counting: The value of only final goods and services must be considered and not the value of raw – materials or intermediary goods, etc.

→ Self Consumption Goods: Goods used for self-consumption by farmers should be included in National Income.

→ Price Level Changes to be considered: The values of national output must be expressed in terms of prices in some base year to know the national output in real terms i.e. N.I. at constant price.

→ Net Income from Abroad: Care should be taken to include net income from abroad in National Income.

→ Depreciation: Depreciation of capital assets should be deducted from the value of gross investment during the year.

→ Indirect Taxes and Subsidies: To get National Income, deduct the indirect tax from the market price and add subsidies.

→ Second-Hand Goods: Sale and purchase of second-hand goods should be ignored as it is not a part of current production.

Income Method or Factor Cost Method:
In this method the National Income is treated to be equal to all the incomes accruing to the basic factors of production used in producing the national products. The factors of production are categorised as land, labour, capital and organisation. Accordingly, National Income is treated as the sum of factor payments viz; Rent, Wages, Interest, Profits, Mixed-Income respectively.

Here we look at National Income from distribution side. Information regarding incomes are obtained from income-tax returns, books of accounts, departmental records and reports.

The various incomes that are included in this method are:
NI = R + W + I + P + MI + (X – M)
NI = Rent + Wages + Interest + Profit + Mixed Income + Net Income from Abroad.

Precautions:

→ Exclude Unpaid Services: Only the services which are paid should be included in National Income estimate – unpaid service like service of a housewife should be ignored.

→ Transfer payments not to be included: Transfer payments like gifts, pension, unemployment allowances, lottery prize, etc., should not be included as these incomes are not earned by rendering productive services. Undistributed profits of companies, income from government property, profits from public enterprise should be included.

→ Income from sale of second-hand goods to be excluded: Financial transactions and sale proceeds of second-hand properties and goods are to be excluded since they are not part of current year’s production.

→ Exclude Direct Taxes and Subsidies: Revenue earned through direct tax by the government should be excluded as they are only transfer incomes.

→ Rental value of self-owned houses to be included: The rental value of owner-occupied houses should be included in National Income.

→ Net foreign income should be included: Net income from abroad should be included in National Income estimate i.e. (X -M) and (R – P). In India, the National Income Committee of the CSO uses the income method for estimating the income from service sector like trade, transport, profession and liberal arts, etc.

Expenditure Method or Outlay Method:
National Income can also be calculated by adding up the expenditure incurred on purchase of final goods and services. We can get National Income by summing up all consumption expenditure.
“ investment expenditure made by all individuals, firms as well as the government of a country during a year.
NI=C+I+G+(X-M)+(R-P) ,

→ Consumption Expenditure (C): It includes all expenditure incurred on durable and non-durable goods, and services which are consumed by the consumers. E.g. food, medical care, clothing, car, computer and services, etc.

→ Investment Expenditure (I): It refers to the investment made by private businessmen on capital goods like machinery, plants, factories, warehouses, etc.

→ Government Expenditure (G): It refers to expenditure on consumption and investment –

• Consumption expenditure: are incurred on various administrative services like law and order, defence education, generation and distribution of electricity.
• Investment expenditure: refers to expenditure incurred by government on construction of roads, railways, dams, canals, etc.

→ Net Exports (X – M): It refers to difference between exports and imports of the country. If the exports are more than imports then net exports will be positive, it is called Trade Surplus, and if imports are greater than exports, then net exports will be negative, it is called as Trade Deficit.

→ Net Receipts (R- P): It is the difference between expenditure incurred by foreigners in the country (R) and expenditure incurred abroad by Nationals (P). Net Receipts can also be Positive or Negative.

Precautions:

• To avoid double-counting only those expenditures are to be counted which are incurred on final goods and services.
• Government Expenditure on Transfer payments like unemployment allowance, old age pension, are to be excluded.
• Expenditure on second-hand goods like furniture, house, land, etc. should be excluded.
• Expenditure incurred on purchase of financial assets such as shares, bonds, etc. to be excluded.
• Indirect Tax should be deducted and subsidies should be added.

Out of these methods, the output method and income method are extensively used. Expenditure method is rarely used because of practical difficulties.

In India, the Central Statistical Organisation (CSO) adopts a combination of Output method and Income method to estimate N.I. of India.

Difficulties in the Measurement of National Income:

(A) Theoretical Difficulties:

→ Transfer payment: Transfer payments like pension, unemployment allowance is ignored from national income. If they are included there will be overestimation of national income because these are just an income transferred from the government to people.

→ Unpaid services: Unpaid services like service of housewives are not included due to practical problem of getting exact value. But same work when done by a paid maidservant is included in national income.

→  Illegal income: The income earn from illegal activities is never disclosed by anyone. So, it is very difficult to get data of illegal income, that’s why it is not included in National income, e.g. income from black marketing, smuggling, gambling, etc.

→ Production for self-consumption: It is very difficult to get data and value of goods kept for self-consumption as they do not enter market.

→ Income of foreign firms: Income of foreign firm should be included in the national income of the country where the firm undertakes production work. But the profit earn by these firms are transferred to their home / own country.

→ Valuation of government services: The government is providing various services like education, health, law and order, defence, etc. It is difficult to get exact value of these services. E.g. chest X-ray in private hospital – 500 and same X-ray in government hospital ₹5O.

→ Changing price level: Due to changes in price level it is difficult to get exact value of national income. During the inflation, national income will be much more than actual.

(B) Practical Difficulties or Statistical Difficulties:

→ Problem of double counting: In case of certain goods it is difficult to distinguish properly between final goods and intermediate goods. That’s why problem of double counting arises e.g. flour is final goods for housewife, but it is intermediate goods for the bakery.

→ Existence of non-monetised sector: In India large non-monetised sector exists in rural area specially in agriculture. In agriculture, many places goods and services are exchanged with goods that’s why it is difficult to count in national income.

→ Inadequate and unreliable data: Because of illiteracy it is difficult to get adequate and reliable data from unorganised sector, small enterprises, agriculture, etc.

→ Depreciation: Its difficult to measure exact value of depreciation. There are no uniform common accepted standard rates of depreciation applicable to the various capital assets.

→ Capital gain or loss: Due to capital gain there is overestimation and due to capital loss there is underestimation of national income.

→ Illiteracy and ignorance: Majority of small producer in developing counties are illiterate and ignorant and are not able to keep accounts of their productive activities.

→ Lack of systematic, occupational classification: There is lack of systematic occupational classification, which makes the calculation of national income difficult. Especially in rural areas where many villagers work on farms for some time and also take some other job during off season.

→ Untrained and incompetent staff: Due to untrained and incompetent staff, accurate and timely, information cannot be obtained.

Importance of National Income (NI):

→ For the economÿ: National income data are particularly important for macroeconomic analysis and performance of the economy.

→ National policies: National income gives the data of aggregate economic activities in an economy. So, it is very useful to formulate national policies like employment policy, industrial policy, agricultural policy, export promotion policy, etc.

→ Economic planning: The data of national income is very important tools for long term and short-term economic planning, e.g. planning for aggregate saving, investment, output, etc.

→ Economic research: The data of national income is very useful to the research students to study in detail how income is produced, how it is distributed, how much is spent, saved or taxed.

→ Comparison of standard of living: Because of national income it is possible to do comparison between the standard of living of the people of different countries and home country.

→ Distribution of income: The data of national income is very important to understand the disparities in the income of different sections of the society and to make the policies to reduce the disparities in income.

→ Speed of economic growth: Because of national income it is possible to know the trends or speed of economic growth of our country in relation to previous years.

By going through these Maharashtra State Board Class 12 Geography Notes Chapter 5 Secondary Economic Activities students can recall all the concepts quickly.

Maharashtra State Board Class 12 Geography Notes Chapter 5 Secondary Economic Activities

→ Some products obtained from primary activities are consumed directly by man.

→ However, some products need to be processed to make them more useful and durable.

→ Thus, products obtained from primary activities are used as raw materials in secondary activities.

→ Processing of products from primary activities takes place in manufacturing industries where they are changed into finished product to be sold in markets.

→ Thus, secondary activities increases the value of primary products by transforming raw material into finished products.

Physical Factors

→ Extreme climate is not suitable for the development of industries. Hence, most of the industries develop in the areas of moderate climate.

→ Industries using perishable, heavy, bulky and weight-losing raw materials are located near the raw material producing areas.

→ Water is one of the most important factor for the industries. Power or energy like coal, electricity, etc., are indispensable resources for running the machinery of industries.

→  Different types of industries require different labour. Some industries need semi-skilled whereas some need skilled labour.

→  The cost of transportation and time required to transport raw material and finished product is known as economic distance.

→  Low cost of transportation is deciding factor of location of industry.

→  Large area is necessary for the construction of industry and therefore, flat and well-served areas with transportation facilities are important for the development of industries.

Economic Factors

→ The entire process of manufacturing is futile until the finished goods reach the market. Therefore, nearness to market is an added advantage for quick disposal of finished products.

→ Capital is a very important factor in the development of industries as huge investments is necessary for establishing industries.

Political Factors

→ The government can encourage or discourage the development of industries in certain areas by providing facilities and vice-versa.

→ Governments support establishing zones or regions which are specially developed for industrial production. In India, they are called Special Economic Zones (SEZs).

Other Factors

→ Some productions are decentralized and are arranged at different places to reduce transport cost which is referred to as split location.

→ A proportionate saving in costs gained by an increased level of production is called economy of scale or agglomeration.

→ By using available opportunities according to ‘economies of scale’, the region attracts more and more industries in a region.

Footloose Industries

→ Footloose industries are industries which does not depend much on available resources, production skills and consumers on which it depends can be found in numerous places.

→ Most footloose industries produce low volume and high-value outputs.

Characteristic Features of Industrial Regions

1. Agglomeration of industries.
2. Dense population growth, large labour force.
3. Employment to large working populations.
4. Large banking and credit facilities.
5. A large network of transportation.
6. Excellent communication facilities

Classification based on raw material

→  Agro-based Industries:
Industries using agricultural produce as a raw material are known as agro-based industries.

→  Marine-based Industries :
All those units involved in processing and canning of fish, fish products and other marine products known as marine-based industries.

→  Forest-based Industries :
Industries using products from forests which are processed are known as forest-based industries.

→  Mineral-based Industries :
Industries in which manufacturing is based on minerals are mineral-based industries.

→  Pastoral-based Industries:
Industries which depend upon animals as their raw material are pastoral-based industries.

Classification based on the basis of capital investment

→ Large scale Industries
In India, industries requiring an investment of more than X 10 crore are large-scale industries.

→ Micro, Small and Medium Industries
Micro industries: Here, investment in plant and machinery is not more than X 25 lakh and investment in equipments not more than X 10 lakh.

→ Small scale industries:
Here, investment in plant and machinery more than X 25 lakh but does not exceed X 5 crore and investment in equipment is more than X 10 lakh but not more than X 2 crores.

→ Medium-scale industries:
Here, investment in plant and machinery is more than X 5 crores but does exceed X 10 crores and investment in equipment more than X 2 crores but does not exceed X 5 crores.

→  Cottage or Household Industry
Cottage industry is a basic industry. It needs little capital and involves less transportation cost.

Classification based on nature of output

→  Heavy Industries:
Industries producing materials, which are used as raw material in other industries, are known as heavy industries or basic industries.

→  Light Industries
Industries producing goods for direct consumption for consumers are called light industries or consumer goods industries.

→ Ancillary Industries
Industries which manufacture spare parts to be used in other industries are called ancillary industries.

Classification based on ownerships

→  Public sector industries
Industries owned by the State are called public sector industries.

→ Private-sector industries
Industries owned by private individual or partnerships of private individuals are known as private sector industries.

→  Joint sector industries
Industries which are managed by an individual and government or between two or more governments are called joint sector industries.

→  Co-operative sector industries
A group of people pool their resources to set up and manage industry on cooperative basis are called cooperative sector industries.

→  MNCs
Privately or public owned industries in the process of manufacturing involve more than one country are called multinational corporation.

By going through these Maharashtra State Board Class 12 Geography Notes Chapter 4 Primary Economic Activities students can recall all the concepts quickly.

Maharashtra State Board Class 12 Geography Notes Chapter 4 Primary Economic Activities

→ Primary economic activities are dependent on nature and produce natural resources. They are affected by natural calamities.

Hunting:

→ Hunting was a primitive activity of man to get food; as a result, many animal species have become extinct.

→ Even today hunting is practised in some parts of the world. Example: Bushmen of Kalahari Desert, Pygmies of Equatorial Selvas, Boras, Eskimos of Tundra, etc.

→ Commercial hunting is banned all over the world and many laws have been passed to protect animals.

Gathering:

→ Gathering depends on forest products, such as fruits, roots, tubers, leaves, flowers, medicinal plants, gum, lac, honey, wax, rubber, etc., which are carried out in all the forest-covered areas.

→ In the equatorial rainforests, the climate is humid and unhealthy.

→ Due to the disturbances of reptiles and insects, collection of forest products on a large scale becomes difficult.

Lumbering:

1. An important primary activity.
2. Lumbering is practised in coniferous forest region due to its softwood.

Fishing:

→ Initially fishing started as a primary activity on subsistence level, now it is one of the important economic activity.

→ Development of fishing is greatly affected by number of physical factors as follows:

→ Extensive continental shelf with shallow water.

→ Confluence of warm and cold ocean water currents and availability of plankton.

→ Large size population and limited cultivable land.

→ Absence of alternative occupations.

→ Use of technology and excellent port facilities has increased fishing activity.

→ Cold climate for preservation of fish.

Animal Husbandry:

→ Climate is the most important factor in the development of animal husbandry.

→ It is concentrated between 30°N to 60°N and 30°S to 55°S latitudes.

→ Development of animal husbandry depends upon advancement of technology, advancement of markets and availability of large estates.

Mining:

→ Since ancient times, minerals have been used for making weapons, tools, jewellery, utensils and medicines.

→ Industries using minerals as raw material are located near mining areas.

→ Improved transport facilities are very important for the development of mining activities.

→ Development of mining increases industries, thus improving the economy.

→ Our economic development is closely related to the exploitation of minerals, oil and natural gas.

→ Exploitation of minerals depends upon the ecology of the region, value of minerals, capital investments, technology, skilled labour and climate.

Agriculture:

→ Agriculture is the most important occupation of man.

→ Influencers in the development of agriculture are climate, topography, soil and biotic factors.

→ Socio-economic factors like labour, capital, market, transportation facilities, storage facilities, government policy, population and ownership of land influence agriculture.

→ Greenhouse and playhouse are modern agricultural techniques.