(i) The policy aimed at correcting the weaknesses and rigidities in the various sectors of the economy - industry, trade, fiscal and agriculture.
(ii) To liberate the industry from licensing system.
(iii) To reduce the role of public sector.
(iv) To encourage foreign participation in India's industrial development.

(i) After Independence, the government adopted planned economic development.
(ii) The main objective of planning was social welfare.
(iii) Before Independence commercial banks were in the private sector.
(iv) These banks did not help the government to achieve the social objectives of planning.
(v) So the government nationalised 14 major commercial banks on 19th July 1969 and 6 more banks in 1980.

Zamindari system or Landlord-Tenant system:
(i) In 1793, Lord Cornwallis introduced Permanent Settlement Act.
(ii) Zamindars were the owners of the land and had to pay land revenue to the government.
(iii) The share of the government in total rent collected was fixed at 10/11th, the balance went to the Zamindar as remuneration.
Mahalwari system or Communal Farming system:
(i) This system was followed in Madhya Pradesh and Punjab.
(ii) The ownership of the land was maintained by a collective body of villagers.
(iii) They distributed land among the peasants, collected revenue from them and paid it to the state.
Ryotwari system or Owner-Cultivator system:
(i) This system was first introduced in TamilNadu and later to Maharashtra, Gujarat, Assam, Coorg, East Punjab and Madhya Pradesh.
(ii) The ownership rights of use and control of land were held by the tiller himself.
(iii) There was direct relationship between owners and tillers. This system was the least oppressive system before Independence.

(i) Indian handicraft products had worldwide market. India exported hand-woven cotton and silk fabrics, Calicoes, artistic wares, wood carving.
(ii) Through discriminatory tariff policy, the British government purposefully destroyed the handicrafts.
(iii) With the disappearance of nawabs and kings, there was no one to protect the Indian handicrafts.
(iv) The Indian products could not compete with machine-made products.
(v) The introduction of railways in India increased the domestic market for British goods.

(i) The period of merchant capital was from 1757 to 1813.
(ii) The only aim of the East India Company was to earn profit by establishing monopoly trade in goods with India and East Indies.
(iii) When Bengal and South India came under the political shake of the East India Company in 1750s and 1760s, the objective of monopoly trade was fulfilled.
(iv) The company generated huge surpluses which were sent to England.
(v) The officers of the company were unscrupulous and corrupt.