The basis of Gandhian Economy is

Question

Question

Answer 1

Concept:

Gandhian economy:

This school of economic thought was based on the spiritual and socio-economic principles, laid by Mahatma Gandhi.
He found that western economic systems were unsustainable and devastating to the human spirits as they were based on the multiplication of needs.
Gandhi's model was aimed at fulfilment of needs, so this model contained elements of protectionism, nationalism, non-violence and rejection of class war in favour of socio-economic harmony.
Gandhiji worked to develop ways to fight India's extreme poverty, backwardness and socio-economic challenges.
Gandhi's campaign of swadeshi and non-cooperation was centred on principles of economic self-sufficiency.

Explanation:

Gandhiji's approach to small-scale and cottage industries:

In India, small-scale and cottage industries are the most important employment-providing sectors of the economy.
He laid stress on khadi, handloom, sericulture and handicrafts.
They play a very important role in:
- Generation of job.
- Expansion of small-scale sector and its share in industrial output.
- Equitable distribution of national income.
- Promotion to small entrepreneurs.
- Less industrial disputes.
- Small scale industries have larger employment potential, as compared to large industries.

Thus, the basis of the Gandhian Economy is Khadi and Cottage Industries-based growth.