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Integral humanism means a human life in which: (1) A human being is not merely thought of only as an ‘economic human being’, but an integration of all characteristics of a human being. (2) It is an ideology which takes into account the mutual relationship of a human being with another and also with the society and the world to make human life happy and prosperous.

Correct option is (D) Indian culture

Pandit Deendayal suggested that the state should decentralize its power by allowing people to decide how much to produce, distribute and consume. The producer of commodities will only have control over production and distribution so that he can prevent wasteful consumption.

Process of using goods ana services for satisfaction of wants is called consumption.

American thinker Thoreau, British writer John Ruskin and Leo Tolstoy.

Pandit Deendayal says that India should limit its consumption, increase its production and distribute it properly among people to raise their standard of living.

Sarvodaya:

• The term ‘Sarvodaya’ refers to ’Universal Uplift’ or ’Progress of AH’.
• Through Sarvodaya, Gandhiji had a vision of a non-violent society in which the helpless, poor and needy are uplifted to a state of wellbeing. Thus, ‘Sarvodaya’ aims at social development.
• According to the ‘Bhagwad Gita’, the same soul dwells in all human beings. Gandhiji adopted this thought and propagated the principle of ‘Sarvodaya’ and urged people to focus on mutual co-operation and love.
• He suggested that socialism based on the concept of ‘Sarvodaya’ can be attained by giving up desires which lead to greed.
• Gandhiji presented the ideas of renunciation, service, reducing dependence on machinery, protection of labour, decentralization of power and prevention of exploitation for successful implementation of ‘Sarvodaya’.
• He disliked the thought that very few people become rich due to the impact of machinery and industry. According to him socialism in true sense should not have any differences between people, and that all are equal.

Gandhiji’s idea of sarvodaya was an inspiration from British writer John Ruskin’s book ‘Unto the last’. From this book, he derived the importance of labor work and ways to eradicate poverty from India.

• The upliftment of all is called sarvodaya.
• Gandhiji envisioned a society which uplifts the deprived, poor and marginalized people and this idea was called sarvodaya.

Gandhiji; Through this theory he gave the motto that people should work and earn their bread and those who do not work have any right to eat.

Correct option is (B) A Satyagrahi

Correct option is (B) 1/4; 1/2

Kautilya further classified import-export taxes as follows:

(a) External charges (taxes): For goods produced in the country.
(b) Internal charges (taxes): For the goods produced in the state or the capital.
(c) ‘Aatithya’ charges (taxes): For the goods imported from foreign regions or states.

It includes taxes on goods imported ‘from foreign regions or states.

The king should charge land tax on the basis of the type of land, its productivity, type of product produced, availability of irrigation facility and type of irrigation.

Kautilya’s thoughts about taxation policy:

• Kautilya gave clear principles of taxation that a state should follow. These principles include short term and long term tax policies, tax limits and tax rates that a king may impose.
• He also gave provisions for increasing tax rates during emergencies.
• As per Kautilya, the king should collect taxes from citizens as ripened fruits are collected from orchards while keeping in mind the economic ability of citizens to pay taxes.
• His taxation policy was such that it made the taxation process simple and less expensive.

Kautilya suggested the following types of taxes in the tax structure:

1. Land tax:

• Kautilya had framed rules to decide the proportion of taxes. He framed these rules on the basis of the type of land, its productivity, type of product produced, availability of irrigation facility and irrigation type.
• He also proposed tax exemptions as an incentive to increase productivity.

2. Import-export taxes:

Kautilya classified import-export taxes as follows:
(a) External charges (taxes): For goods produced in the country.
(b) Internal charges (taxes): For goods produced in the state or the capital.
(c) ‘Aatithya’ charges (taxes): For goods imported from foreign regions or states.

• Kautilya gave rules for putting taxes on various commodities on the basis of type of goods and their importance in economic life.
• He also proposed setting up booths for collecting customs and octroi.
• He also proposed rules for road tax and wealth tax.

(A) Kautilya’s thoughts about state treasury:
As per Kautilya, the state treasury plays a very important role for maintaining prosperity and safety of the state. The unity, stability and administration of the state are directly dependent on the state treasury. He said there are seven sources of income for the state.

They are:

1. Towns
2. Villages
3. Irrigation
4. Mines
5. Forest
6. Animal husbandry and
7. Trade and Commerce.

Kautilya provided following guidance to the kings for growth and maintenance of treasury:

• The king should guard his treasury and always develop new means to increase it.
• The king should collect taxes once in a year.
• The king should not use forceful methods to increase the treasury.
• The king should be gentle while collecting taxes from regions facing famine and drought.
• The king should use public property, promote trade and use gifts, penalties, fines and rewards, production of cash crops, etc. for increasing the state treasury.
• The state treasury mainly consists of physical (tangible) goods and therefore it is necessary to preserve such goods in proper warehouses and use them for public welfare as and when required.
• Kautilya also specified the rates of taxes for various categories of workers. For example, he suggested, to collect 1 /4th of the agricultural production as tax from individual farmers. He also suggested to collect one-half of the produce of individual manufacturers of cotton, wool, silk, wax and medicines as taxes.
• Even today, Kautilya’s thoughts of a welfare state are used by a state for its people.

(B) Kautilya’s thoughts about taxation policy:

• Kautilya gave clear principles of taxation that a state should follow. These principles include short term and long term tax policies, tax limits and tax rates that a king may impose.
• He also gave provisions for increasing tax rates during emergencies.
• As per Kautilya, the king should collect taxes from citizens as ripened fruits are collected from orchards while keeping in mind the economic ability of citizens to pay taxes.
• His taxation policy was such that it made the taxation process simple and less expensive.

Kautilya suggested the following types of taxes in the tax structure:
1. Land tax:

• Kautilya had framed rules to decide the proportion of taxes. He framed these rules on the basis of the type of land, its productivity, type of product produced, availability of irrigation facility and irrigation type.
• He also proposed tax exemptions as an incentive to increase productivity.

2. Import-export taxes:
Kautilya classified import-export taxes as follows:
(a) External charges (taxes): For goods produced in the country.
(b) Internal charges (taxes): For goods produced in the state or the capital.
(c) ‘Aatithya’ charges (taxes): For goods imported from foreign regions or states.

• Kautilya gave rules for putting taxes on various commodities on the basis of type of goods and their importance in economic life.
• He also proposed setting up booths for collecting customs and octroi.
• He also proposed rules for road tax and wealth tax.

Correct option is (A) Kautilya

Correct option is (B) Pandit Deendayal

Correct option is (C) Gandhiji

The principles include short term and long term tax policies, tax limits and tax rates that a king may impose.

Correct option is (D) Gandhiji

Correct option is (D) Both (A) and (B)

Correct option is (C) Gandhiji

Correct option is (A) 7

1. Towns
2. Villages
3. Irrigation
4. Mines
5. Forest
6. Animal husbandry and
7. Trade and Commerce.

In Granthlipi on material called Bhojapatra.

Around 321-300 B.C.

A doctrine proposed by Gandhiji where the owner and heir of abundant wealth voluntarily creates a trust of the excess wealth for the benefit of society and acts as a trustee while owning the wealth is called trusteeship.

The idea which revolves around the human value of not holding excess goods/wealth/ resources, etc. than what is necessary to satisfy one’s wants.

Man is restless due to:

1. (1) Continuously increasing wants
2. Use of complex machines
3. Distribution systems of present times (which create unequal distribution)

Kautilya laid the following guidelines to be followed by the kings and rulers while establishing a state:

• The king should provide basic resources for development of the state. He should make continuous efforts for the development of agriculture and industry.
• He should excavate mines, develop forestry, cattle rearing and markets.
• The king should also open avenues for import-export trade.
• The king should undertake tasks of constructing water reservoirs for farming, temples and ‘dharamshalas’ (guesthouses).
• Teachers, priests and soldiers must be exempted from taxes.
• The king should take care of the helpless farmers during natural calamities.

Pandit Deendayal Upadhyay:

• Pandit Der dayal was born on 25th September, 1916. He had a simple yet gentle personality and sparkling eyes.
• He was a profound philosopher, an integral humanist a scholar in politics and economics yet he lived a simple life.
• During his life of just 52 years, Pandit Deendayal worked for the development of the country by involving people from the lowest strata considering the economic condition of those times.
• He presented his ideas on philosophy, economics, sociology and literature. His scholarly skills earned him a name in the areas of social organization, journalism and politics.

Some of his works include:

• Rashtra Jivan Ki Samasyayen
• Devaluation: A Great Fall
• Political Diary
• Rashtra Chintan
• Integral Humanism
• Rashtra Jivan Ki Disha
• Bharatiya Arthniti: Vikas Kl Disha
• Akhand Bharat Kyon?

Gandhiji’s simple way of life in social, economic and political terms is popularly known as ‘Gandhism’.

Gandhism:

• Gandhiji’s way of life was based on ethics. Hence, he accepted ethical science as the base of the science of politics and economics.
• Gandhiji’s simple way of life in social, economic and political terms is popularly known as ‘Gandhism’.
• However, unlike other economists Gandhiji did not give a specific ideology or principles of economics. Also, he did not classify his ideology into any ‘ specific categories.
• He neither wanted to promote ‘Gandhism’ nor wished to have his own followers.
• He did not claim that he had discovered any new theory or ideology. He simply tried to apply the eternal truths as solutions to life’s routine problems.
• Based on these facts, Gandhism has become a part of economic thought process.

(A) Gandhiji:

• Mohandas Karamchand Gandhi was born in Porbandar, Gujarat. He had a very strong will power and was a firm believer of his ideals. He urged for a realistic and practical approach towards life.
• Truth and non-violence were the two major principles of his ideology.
• He practised his ideologies so that he could remove the difference between a person’s thoughts and deeds.
• He put a strong emphasis on religion and ethics for individual and social life.
• Besides, he also made endless efforts for eradicating untouchability, persuading people not to consume alcohol, attaining communal harmony and empowering women.

(B) Gandhism:

• Gandhiji’s way of life was based on ethics. Hence, he accepted ethical science as the base of the science of politics and economics.
• Gandhiji’s simple way of life in social, economic and political terms is popularly known as ‘Gandhism’.
• However, unlike other economists Gandhiji did not give a specific ideology or principles of economics. Also, he did not classify his ideology into any ‘ specific categories.
• He neither wanted to promote ‘Gandhism’ nor wished to have his own followers.
• He did not claim that he had discovered any new theory or ideology. He simply tried to apply the eternal truths as solutions to life’s routine problems.
• Based on these facts, Gandhism has become a part of economic thought process.

Gandhiji:

• Mohandas Karamchand Gandhi was born in Porbandar, Gujarat. He had a very strong will power and was a firm believer of his ideals. He urged for a realistic and practical approach towards life.
• Truth and non-violence were the two major principles of his ideology.
• He practised his ideologies so that he could remove the difference between a person’s thoughts and deeds.
• He put a strong emphasis on religion and ethics for individual and social life.
• Besides, he also made endless efforts for eradicating untouchability, persuading people not to consume alcohol, attaining communal harmony and empowering women.

Man’s greed and race for increasing his material possessions by ignoring all the ethics leads to the problems of economic life. Hence, Gandhiji propagated the ide4 of simplicity and ‘non-possession’.

Man’s greed and race for increasing his material possessions by ignoring all the ethics leads to the problems of economic life.

• Hence, Gandhiji propagated the idea of ‘non-possession’ and ‘consume to satisfy the needs not the greed’.
• To practice what he preached, Gandhiji followed the principle of ‘simple living and high thinking’ his entire life.
• To explain the relationship between wants and welfare, Gandhiji stated that welfare increases when wants are limited. So he believed real happiness lies in simple living.

• Gandhiji was an avid reader. He used to read books on philosophy, religion, sociology, etc.
• These books greatly influenced Gandhiji’s economic, social and political ideology.
• Gandhiji was greatly influenced by the American thinker Thoreau. Gandhiji adopted the idea of ‘Simple living and high thinking’ from Thoreau’s works.
• Gandhiji’s idea of ‘Sarvodaya’ was an inspiration from British writer John Ruskin’s book ‘Unto the last’. From this book, he derived the importance of labor work and ways to eradicate poverty from India.
• Gandhiji was also influenced by Leo Tolstoy’s works, ‘What shall we do then?’ and ‘The Kingdom of God is within you’.
• He was influenced by the theory of ‘bread labour’ given by Ruskin. Based on this Gandhiji gave the ‘Bread labour’ theory and the motto that people should work and earn their bread and those who do not work have no right to eat.
• Gandhiji’s belief of ‘labouring for one’s own bread’ also exists in one of the shlokas in the 3rd chapter of Hindu Scripture, the ‘Bhagwad Gita’. As per the Gita, ‘One who relishes the fruits without making offerings (without efforts and sharing fruits with others), is indulging in sinful action’.
• Gandhiji in his childhood watched the play ‘Satyawadi Raja Harish Chandra’. This play left an unerasable impression on him. The play taught him the importance of truth and made him a ‘Satyagrahi’.
• Gandhiji’s life was also influenced by scriptures like, the ‘Upnishads’, the ‘ ‘Ramayana’, and the ‘Mahabharata’.
• Saint poets like Kabir, Gurunanak and Narsinh Mehta and his spiritual leader (Guru) Shrimad Rajchandra also influenced Gandhiji’s thoughts.

Pandit Deendayal’s views on decentralized economy:

• In capitalist and socialist system of governance there exists centralized authority and control over assets. This restricts the overall human development.
• So, Pandit Deendayal suggested that the state should adopt a decentralized economic set up which promotes overall development and increases interaction among people.
• He suggested that the state can decentralize its power by allowing people to decide how much to produce, distribute and consume.
• the producer of commodities will only have control over production and distribution so that he can prevent wasteful consumption. This will save national resources which can be then further used in production.
• He believed that decentralization of economic power can help in solving the major problems of Indian economy.
• He also emphasized on developing cottage and small industries.

Correct option is (B) Decentralized economic planning

The Bhagwad Gita, Upnishads, Ramayan and Mahabharata.

• Pandit Deendayal proposed that a country should frame a policy to limit the national consumption and hence make itself self-reliant.
• Not only developing but even developed nations face problems related to insufficient raw materials, increasing crude prices, inflation, race for armament, product quality as well as increasing national stress and environmental issues.
• These countries by limiting their consumption can resolve many of these problems.
• Moreover in countries like India, the standard of living of many people is quite low.
• Pandit Deendayal believed that if such countries limit their consumption and distribute the production properly then the production could reach more people and hence the standard of living can be improved.
• Thus, limited consumption can bring solution to major economic problems.

Saint poets like Kabir, Gurunanak and Narsinh Mehta and his spiritual leader (Guru) Shrimad Rajchandra.

Labor intensive methods of production:

• India is a labour intensive country i.e. labour is found here in abundance whereas capital is scarce.
• Owing to this fact, Pandit Deendayal proposed that India should adopt labour intensive production methods.
• As per him, if India adopts capital intensive methods of production then it would further decrease our scarce capital resources for buying capital technology from foreign nations.
• Moreover, capital intensive methods will employ less labour which will then lead to unemployment.
  He also suggested that India should set up small industries that use simple machines to reduce burden of population on land.
• He emphasized that the motto of our country’s planning should be ‘work for all’. Further, the plans must promote labour intensive methods that can raise employment.

Appointing the successor:

• Gandhiji’s idea of trusteeship aimed at appointing a successor to the wealth of the trust.
• According to him, the legal owners of wealth should become the official trustees. The trust should not be entrusted to the society or the state.
• The actual owner should act as a representative of the society. This way the society will own the resources indirectly.
• The current trustee can name the successor who would be the trustee after her/his death. The new trustee would also be a representative of the assets of the trust and not the owner of the assets. The state must monitor the functioning of the trust.
• The state or society cannot seize the property of the trust. The successor should be appointed through a legal procedure.

Chanakya did deep study of politics, law, economics, management, taxation, social order, trade, agriculture and industry. Based on his extensive knowledge and wisdom he wrote an extensive text named ‘Arthshashtra’ which was widely known as ‘Kautilya’s Arthshashtra’.

Kautilya has laid his thoughts for the following areas of economics:

• Establishment of statehood
• State treasury
• Taxation policy which includes
  (a) Land tax and
  (b) Import-export taxes
• Agriculture and animal husbandry
• Industry

Correct option is (D) Laboring