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India has a diverse marketplace that caters to a wide range of goods and services, from vegetables and clothes to phones and tailoring. 

Scene of a Market

• Before the invention of money, people used the barter system to exchange goods and services, such as trading crops or beads for other items. With the advent of money, markets became more efficient, facilitating easier transactions. 
• Adam Smith, an 18th-century economist, argued that markets grow when people need goods and services they cannot produce themselves, leading to prosperity.
• In this chapter, we will explore how markets function, their role in society, and how they have evolved over time.

What is a Market?

A market is a place where people buy and sell goods and services, called bazaar, haat (Hindi), or mārukatté (Kannada).

• It can be physical(like a shop) or online (using apps or websites).
• Markets provide goods and services to individuals, households, and businesses.
• Example:Hampi Bazaar in the Vijayanagara Empire (16th century) was a thriving market with grains, silk, animals, jewels, and cloth, described by Portuguese travelers like Domingos Paes as “the best-provided city” and by Fernao Nuniz for its abundance.

Hampi Bazaar TodayEvery market has:

• A buyer who wants to purchase.
• A seller who offers goods or services.
• A price, the amount agreed for the transaction (buying/selling).
• Buyers and sellers often negotiate or bargain to agree on a fair price.

Try yourself:

What is a market?

• A.A place to buy and sell goods
• B.A location for farming
• C.A social gathering
• D.A type of currency

View SolutionPrices and Markets

Prices are set by how buyers and sellers interact in a market.

Example with guavas:

• If a seller sets the price at ₹80/kg, but buyers think it’s too high, they offer a lower price. The seller may refuse if it’s not profitable.
• They negotiate until they agree on a mutually agreeable price. If they don’t agree, no transaction happens.

Scenarios:

• High Price: If the price is set too high, few buyers may purchase, prompting the seller to lower the price.
• Low Price: If the price is set too low, many buyers may purchase, but the seller might raise the price to earn more.
• Just Right Price: The price that balances what buyers can pay and what the seller needs to earn. This price is set over time, influenced by demand (how much buyers need) and supply (how much sellers offer)
• As sellers observe buyer behavior, they can assess how much of a product to supply in the future to meet demand while ensuring fair prices.

Examples:

• Vegetables are cheaper at night in weekly markets because sellers want to clear stock before it spoils.
• Garment stores discount woollen clothes at winter’s end to sell leftover stock.

Markets Around Us

Markets exist in many forms and places, serving different needs. Here are the different type of Markets Around Us

Physical and Online Markets

Physical markets:

• Buyers meet sellers in person to buy goods or services with money.
• Examples: weekly markets, haats (vendors with carts selling vegetables or handicrafts), local shops, street food vendors, and malls with many stores.
• Some services, like tailoring, need physical markets because they require in-person contact.

Physical MarketsOnline markets:

• Buyers and sellers transact through apps or websites, even from far away.
• Goods like books, clothes, furniture, groceries, or electronics (TVs, phones) can be bought and delivered to your doorstep.
• Services like online classes are also available.
• Manufacturers buy components online for production.
• Payments are made online, making it convenient.

Pros and cons:

• Physical: Buyers can see and touch goods, but it takes time to visit. Sellers meet customers but need a shop.
• Online: Convenient and offers more choices, but buyers can’t touch goods, and sellers face high competition.

Try yourself:

What influences the price set in a market?

• A.Popularity of products
• B.Weather conditions
• C.Buyers and sellers interaction
• D.Government regulations

View SolutionDomestic and International Markets

Domestic markets:

• Buying and selling happens within a country’s borders.
• Example: Paper for this textbook was bought from paper mills in India.

International markets:

• Trade happens across countries through exports (selling goods to another country) or imports (buying goods from another country).

Stock Market

• India exports: software (North America), chemicals (South America), pharmaceuticals (Africa), machinery (Europe), petroleum (West Asia).
• India imports: aircraft (North America), copper ores (South America), diamonds (Africa), electrical equipment (Europe), crude petroleum (West Asia), vegetable oils (South East Asia).
• In 2024, India was the world’s largest importer of vegetable oils (palm, sunflower, soybean) from Malaysia, Indonesia, and Thailand.

Wholesale and Retail Markets

Wholesale Retail MarketsWholesale markets:

• Wholesalers buy large quantities of goods from producers (e.g., grains, vegetables from farms) and store them in warehouses or cold storage for perishables.
• Goods are sold in mandis or wholesale markets (e.g., Khari Baoli for spices, Bengaluru flower market).
• Wholesale markets also exist for chemicals, electronics, construction materials, and automotive parts.

Supply of Raw Cotton to SuratRetail markets:

• Retailers buy from wholesalers and sell smaller quantities to consumers for personal use.
• Examples: grocery stores, garment shops, salons, movie theatres, restaurants.
• Retailers make goods and services easily available to households.

Distributors:

• Help wholesalers reach retailers when distances or terrains are challenging, like middlemen in the AMUL milk story from Grade 6.

Online markets:

• Manufacturers send goods to aggregators (businesses running online apps/websites).
• Consumers buy through the app, and aggregators pack and deliver the goods.

Example: Surat textile market:

• Asia’s oldest textile hub, with factories making cotton and synthetic textiles.
• Raw cotton comes from mandis in Maharashtra and Gujarat, processed into fabric or garments through weaving and dyeing.
• Wholesalers distribute to retailers across India and internationally, ensuring steady supply.
• Surat’s diamond industry and port/highway networks also boost trade.

The Role of Markets in People’s Lives

Markets connect producers and consumers, providing goods and services people cannot make themselves. Without markets, essentials like rice, wheat, or cloth wouldn’t reach people, causing shortages.

Ima Keithal in Manipur

• Example: Aakriti, an artist, struggles to find buyers for her paintings because art has fewer local buyers, unlike guavas. Artists can use online platforms or galleries to reach buyers.
• Markets build relationships: Families trust tailors, jewelers, or grocers for generations, sometimes settling accounts monthly. Ima Keithal in Manipur, run by 3000 women, sells vegetables, clothes, and crafts, providing income and uniting communities.
• Traditions: In South India, sellers give free haldi and kumkum with purchases as a sign of good wishes.

How Markets Benefit Society

• Markets respond to consumer needs, improving products and society.
• Example: When consumers demand energy-efficient refrigerators, producers make them, saving electricity and helping the environment.
• Markets encourage innovation and better products based on what people want.

Try yourself:

What is a characteristic of wholesale markets?

• A.Sell small quantities to consumers
• B.Buy large quantities from producers
• C.Focus only on online sales
• D.Sell directly to manufacturers

View SolutionGovernment’s Role in the Market

Markets work through the interaction of demand from buyers and supply from sellers. However, when this doesn’t work well, the government steps in to ensure fair pricing and monitor the interaction between consumers and producers.

Label Behind Packet1. Controlling Prices for Protecting Buyers and Sellers

The government sets price limits:

• Maximum prices for essentials like lifesaving drugs to protect buyers.
• Minimum prices for crops like wheat or maize to ensure farmers don’t lose money.
• Minimum wages to ensure fair pay for workers.

Prices must balance: too low, producers stop making goods; too high, buyers can’t afford them. Example: When onion supply drops, prices rise. The government may import onions or control prices to help consumers.2. Ensuring Quality and Safety Standards

• The government checks that goods and services meet quality and safety standards.
• Example: For medicines, the government approves drugs and tests samples to ensure they are safe, protecting consumer health.
• It also monitors weights and measures of packaged goods to ensure correct quantities.
• Historical example:Kautilya’s Arthaśhāstra required traders to give extra ghee to buyers to account for losses in measuring, showing early consumer protection.

3. Mitigating the External Effects of Markets

• Markets can harm the environment, like factories polluting during production.
• The government makes rules to control these effects, e.g., regulating single-use plastics to reduce pollution and health risks.

4. Providing Public Goods

• Public goods like parks, roads, or policing don’t generate profit, so producers don’t provide them.
• The government provides these to ensure citizens’ welfare, as guaranteed by the Constitution.
• Too many rules can disrupt markets, so the government must balance regulation and freedom.

Try yourself:

What does the government do to protect buyers and sellers in the market?

• A.Controls advertising
• B.Eliminates competition
• C.Buys all products
• D.Sets price limits

View SolutionHow Can Consumers Assess the Quality of Products and Services?

• Consumers need to check the quality of goods to make good buying choices.
• Example: Buying marbles for a competition, you’d check price, size, strength, and color to win.
• For products like gram flour, consumers look for quality signs on packages.

Other ways to assess quality:

• Word of mouth: Family or friends recommend trusted products.
• Online reviews: Feedback from other buyers helps decide online purchases.

Let’s See What Each of These Labels Mean

Government certificationson products show they meet quality standards:

1. FSSAI (Food Safety & Standards Authority of India): On food packets, it shows the food is tested and safe to eat.
2. ISI Mark (Indian Standards Institution by Bureau of Indian Standards): On electrical appliances, tires, or paper, it ensures quality and safety.
3. AGMARK (Agriculture Mark): On vegetables, fruits, pulses, or honey, it certifies quality for agricultural products.
4. BEE Star Rating (Bureau of Energy Efficiency): On electronics like TVs or ACs, more stars mean less electricity use, saving money and helping the environment.

Points to Remember

• Markets enable buying and selling at a price set by demand and supply.
• Participants like manufacturers, wholesalers, distributors, and retailers ensure goods reach consumers.
• Markets connect people, promote traditions, and exchange ideas.
• The government regulates markets for fair prices, quality, safety, and environmental protection.
• Consumers assess quality using certifications (FSSAI, ISI, AGMARK, BEE) and reviews.

Difficult Words

• Needs: Things people must have to survive, like food or shelter.
• Wants: Things people desire but don’t need, like toys.
• Market: A place where people buy and sell goods and services.
• Trade: Buying, selling, or exchanging goods and services.
• Price: The amount paid for goods or services, agreed by buyer and seller.
• Transaction: The act of buying or selling something.
• Negotiate: Discussing to agree on a price or deal.
• Demand: The amount of goods or services buyers want at a price.
• Supply: The amount of goods or services sellers offer at a price.
• Physical market: A market where buyers and sellers meet in person.
• Online market: A market where transactions happen through apps or websites.
• Domestic market: Trade within a country’s borders.
• International market: Trade across countries.
• Export: Selling goods to another country.
• Import: Buying goods from another country.
• Wholesaler: A person buying large quantities from producers to sell to retailers.
• Retailer: A person selling small quantities to consumers.
• Distributor: A person supplying goods from wholesalers to retailers.
• Aggregator: A business selling goods online from multiple sellers.
• Cold storage: Warehouses keeping perishable goods fresh at low temperatures.
• Public goods: Services or items available to all, like roads or parks.
• Certification: A mark showing a product meets quality standards.
• FSSAI: Food Safety & Standards Authority of India, ensuring food safety.
• ISI Mark: A quality mark for appliances, tires, or paper.
• AGMARK: A quality mark for agricultural products.
• BEE Star Rating: A mark showing energy efficiency of electronics.

Before the invention of money, people used the barter system to exchange goods and services. For example, crops or beads were traded for other items. The barter system was the earliest form of trade, using items like:

• Cowrie shells
• Salt
• Cloth
• Cattle

However, this system was inefficient. 

Barter System

• Money evolved as a common tool that everyone accepts for buying or selling goods and services, making trade much easier. 
• Today, we use coins, notes, and digital methods (like mobile payments) to conduct transactions. 
• John Maynard Keynes, a renowned economist, stated that money connects the present to the future by helping us save and spend later.

Why Do We Need Money?

The barter system had many problems, making money necessary. For Example: A farmer with an ox needs shoes, a sweater, and medicines but faces these challenges:

• Double coincidence of wants: The farmer must find someone who wants an ox and offers exactly what he needs (shoes, sweater, medicines). This is rare.
• Common standard measure of value: It’s hard to decide how much an ox is worth compared to shoes or medicines, as there’s no agreed value.
• Divisibility: An ox cannot be split into parts for smaller trades, like for a sweater.
• Portability: Carrying an ox or bags of wheat (traded for the ox) to different places is difficult.
• Durability: Wheat rots or gets eaten by rats, so it cannot be stored for long.

These problems made trading slow and complex, so a better system was needed. Money solves these issues by being a common, portable, divisible, and durable way to trade.

Modern barter examples still exist, like:

• Junbeel Mela in Assam, where people trade roots, vegetables, and handmade goods for rice cakes and food.
• Book exchanges, where people swap old books for new ones.
• Trading old clothes for new utensils, benefiting both households and vendors.

Try yourself:

What is one problem of the barter system mentioned in the text?

• A.Double coincidence of wants
• B.High storage cost
• C.Lack of technology
• D.Limited trade locations

View SolutionBasic Functions of Money

Money was invented to make trading easier as the barter system became complex with more goods and longer distances. Money simplifies trade, supports salaries, school fees, and everyday purchases, making life easier than barter.

Main functions of money:

• Medium of exchange: Money is used to buy and sell goods and services, accepted by everyone, unlike barter’s need for double coincidence.
• Store of value: Money can be saved and used later, unlike wheat that rots. For example, a farmer can keep money from selling an ox for future purchases.
• Common denomination: Money measures the value of goods (prices), making it easy to compare items, like books or shoes.
• Standard of deferred payment: Money allows payments to be made later. For example, if a book costs ₹100 but you have ₹50, you can ask the shopkeeper to accept the rest later.

Try yourself:

What is one main function of money?

• A.Medium of exchange
• B.Source of food
• C.Type of clothing
• D.Kind of transportation

View Solution

The Journey of Money

Money has changed over time to meet people’s needs.

Journey of Money

Early forms:

• Items like cowrie shells, Rai stones (giant rock discs in Micronesia), Aztec copper Tajadero, and red feather coils (Solomon Islands) were used as money.

Coinage:

• Coins were one of the earliest forms of money, issued by rulers for transactions in their kingdoms.
• Made from precious metals like gold, silver, or copper alloys, called kārshāpanas or panas in ancient India.
• Had symbols (rupas) like animals, trees, kings, or deities. For example, Chalukya coins had a Varaha (Vishnu avatar) and a parasol; Chola coins had a tiger.
• Powerful rulers’ coins were accepted across kingdoms, boosting trade.
• Roman coins found in Tamil Nadu and Kerala show India’s strong maritime trade with the world, favoring India’s economy.
  Roman Gold Coins
• Modern coins use iron alloys with chromium, silicon, and carbon, and have Hindi and English text. Special coins mark national events.
• In 1947, 1 anna (1/16 of a rupee) could buy a dozen bananas.
• The ₹ symbol, designed by Udaya Kumar in 2010, combines Devanagari “Ra,” Roman “R,” and two stripes for the national flag.

Paper currency:

• Paper money began in China and was introduced in India in the late 18th century by banks like the Bank of Bengal and Bank of Bombay.
  Paper Currency
• Used for higher denominations (e.g., ₹10, ₹100, ₹500), while coins are for smaller ones (e.g., ₹1, ₹5).
• Modern notes have cultural motifs (e.g., on ₹50 or ₹100 notes) and special features like raised marks for the visually impaired to identify denominations.
• The Reserve Bank of India (RBI) is the only legal authority to issue currency in India, ensuring control and preventing illegal printing.
  Try yourself:What were early forms of money mentioned in the text?
  • A.Digital currency
  • B.Cowrie shells
  • C.Paper notes
  • D.Plastic cards
  View Solution

Digital money:

• With technology, money became intangible (cannot be touched), called digital money.
• Example: Krishnappa, a fruit seller, uses a QR code for customers to pay digitally, transferring money to his bank account.
• Other methods include debit cards, credit cards, net banking, and UPI (Unified Payments Interface), moving money directly between bank accounts.
  UPI

Points to Remember

• The barter system was used before money, trading goods like cowrie shells and cattle.
• Money was developed to overcome barter’s limitations, like double coincidence of wants and lack of durability.
• Money evolved from coins and paper currency to digital forms like UPI and QR codes.

Difficult Words

• Barter System: Exchanging goods or services without using money.
• Money: A common tool accepted for buying or selling goods and services.
• Transaction: A business deal, like buying or selling something.
• Commodities: Items used for trade, like cowrie shells or cattle.
• Double coincidence of wants: When two people each have what the other wants for trade.
• Common standard measure of value: An agreed way to measure the worth of goods.
• Divisibility: The ability to split something into smaller parts for trade.
• Portability: The ease of carrying or moving something.
• Durability: The ability of something to last long without damage.
• Medium of exchange: Something accepted by all for buying and selling.
• Store of value: Something that can be saved and used later.
• Common denomination: A way to measure and compare the value of goods.
• Standard of deferred payment: Using money to pay for something later.
• Coinage: Coins used as money, often made by rulers.
• Currency: The money system of a country, like rupees in India.
• Denominations: Different units of money, like ₹1 or ₹100.
• Obverse: The front side of a coin with the main design.
• Digital money: Money in electronic form, not physical coins or notes.
• QR Code: A pattern of squares scanned by phones for digital payments.

Introduction

The Constitution of India is a special document that sets the rules for running the country, adopted on 26 January 1950, celebrated as Republic Day.

Republic Day Parade

• Dr. Rajendra Prasad, India’s first President, said following the Constitution can make India great, but it needs hard work, respect for others’ views, and moral values.
• A constitution is like a rulebook that guides how a country’s government works and protects citizens’ rights.
• The Indian Constitution was shaped by the freedom struggle and India’s cultural heritage.
• It remains important today because it supports democracy and ensures fairness and equality.

What Is a Constitution?

A constitution is a document that lists a country’s basic rules and laws. 

• India’s Constitution is kept safe in a helium-filled glass case in Parliament, showing its importance.
• Important officials like the President, Prime Minister, and judges promise to follow it.

Constitution of India in Helium filled Glass CaseIt explains:

• How the three parts of government (legislature, executive, judiciary) work and their responsibilities.
• Checks and balances to ensure the government is fair and accountable.
• The rights and duties of citizens.
• The country’s long-term goals and values, like equality and justice.

Why we need a constitution:

• It acts like a rulebook, similar to rules in a game (e.g., kabaddi), to settle disputes fairly.
• Without a rulebook, disagreements could cause chaos, as seen in a kabaddi match where players argued over a rule.
• Everyone must agree to follow the constitution to ensure order and fairness.
  Try yourself:What is celebrated as Republic Day in India?
  • A.26 January
  • B.1 November
  • C.2 October
  • D.15 August
  View Solution

Writing the Constitution of India

While fighting for independence from British rule, India planned how to govern itself. Big questions included: What type of government? Who can vote? How to settle disputes?

Constituent Assembly

• A Constituent Assembly was formed in 1946 to answer these questions and write the Constitution.
• Dr. Sachidananda Sinha, the first President of the Assembly, wished for wisdom and fairness in the process.

How Was Our Constitution Developed?

• The Constituent Assembly started on 9 December 1946 with 389 members (later 299 after Partition), including 15 women, representing India’s diverse regions and groups.
• Dr. Rajendra Prasad was the Chairman of the Assembly.
• A Drafting Committee, led by Dr. B.R. Ambedkar, prepared the initial text. Dr. Ambedkar was a social reformer and India’s first Law and Justice Minister.
• It took almost three years to complete, from 1946 to 26 November 1949, when the Constitution was adopted.
• It came into effect on 26 January 1950, now celebrated as Republic Day.
• Members were elected by provincial assemblies, which were chosen by the people, ensuring a democratic process.

What Shaped and Influenced the Indian Constitution?

The Constitution was influenced by three main sources:
Indian Freedom Movement:

• Values like equality, justice, freedom, and fraternity from the freedom struggle were included.
• Freedom movement leaders in the Constituent Assembly brought their experiences.
• It answered key questions, like ensuring universal adult franchise, separation of powers, and protecting fundamental rights.
• It set rules for amending the Constitution and the relationship between Central and State governments.

India’s Civilisational Heritage:

• India’s culture emphasizes unity in diversity, respect for different views, and nature as sacred.
• Ideas like vasudhaiva kutumbakam (world is one family) and sarve bhavantu sukhinah (well-being of all) are part of the Constitution.
• Historical governance systems (janapadas, sanghas, Kauṭilya’s saptanga, rājadharma) focused on people’s roles, influencing Fundamental Duties.

Learnings from Other Countries:

Following the Indian tradition of “Let noble thoughts come from every side,” the Assembly studied other constitutions.

• France: Inspired liberty, equality, and fraternity from the 1789 French Revolution.
• Ireland: Influenced Directive Principles of State Policy.
• USA: Shaped the idea of an independent judiciary.
• Other countries like the UK and Australia also provided ideas.

The Constitution includes illustrations of India’s heritage, like scenes from Mahabharata, Ramayana, Mohenjo-daro, and Mughal architecture, showing cultural pride.

Try yourself:

Who was the first President of the Constituent Assembly?

• A.Dr. B.R. Ambedkar
• B.Dr. B.R. Ambedkar
• C.Dr. Sachidananda Sinha
• D.Dr. Rajendra Prasad

View SolutionKey Features of the Constitution of India

Before we get introduced to Main Features of Indian Constitution, Let’s revise how the government works:

• Legislature: Makes laws.
• Executive: Implements laws, led by the Prime Minister.
• Judiciary: Ensures laws follow the Constitution and decides punishments.
• Separation of powers: Keeps the three parts independent for fairness.
• It has a three-tier system: Central, State, and local (Panchayati Raj) governments, with clear roles.
• The electoral system ensures every adult can vote.

Main features of Indian Constitution:

• Fundamental Rights: Promises like equality (Article 14), freedom (Article 21), education (Article 21-A), and protection from exploitation. Citizens can go to court if these are violated.
• Fundamental Duties: Responsibilities like respecting the Constitution, defending the country, preserving cultural heritage, protecting nature, and ensuring children’s education.
• Directive Principles of State Policy (DPSP): Goals for the government, like improving living standards, ensuring justice (Article 38), protecting the environment (Article 48-A), and promoting health (Article 47). These are guidelines, not enforceable in court.

Begum Aizaz Rasul in 1949 said the Constitution’s equality for women (Article 14) reflects India’s ancient ideal, though social issues had weakened it.The Constitution Is a Living Document

The Constitution can be changed through amendments to meet new needs, making it a living document.

Illustration in Constitution of IndiaExamples of changes:

• Fundamental Duties were added in 1976 (Part IV-A).
• In 2004, the Supreme Court allowed citizens to fly the national flag at home, part of the Right to Freedom of Expression.
• The Panchayati Raj System was added in 1992 via the 73rd Amendment.

Amendments:

• Amendments are debated in Parliament and sometimes state assemblies, with public opinions often considered.
• Popular movements can also lead to changes.
• The Constitution’s text was handwritten by Prem Behari Narain Raizada, and Nandalal Bose illustrated it with scenes from India’s history, making it a work of art.
  Try yourself:What does the executive branch of the government do?
  • A.Decides punishments
  • B.Implements laws
  • C.Ensures fairness
  • D.Makes laws
  View Solution

Understanding the Preamble: The Guiding Values of the Constitution of India

The Preamble is the introduction to the Constitution, summarizing its core values that guide the government and citizens. It reflects the Constitution’s principles, like justice, liberty, and equality, used in policymaking.

Preamble of Indian ConstitutionPreamble of the Indian Constitution explains the Constitution’s purpose and values:

• WE, THE PEOPLE OF INDIA: The Constitution was made by the people through their representatives, not a king or foreign power.
• SOVEREIGN: India makes its own decisions, free from outside control.
• SOCIALIST: Wealth should be shared fairly, and the government reduces economic inequalities. (Added in 1976)
• SECULAR: No official religion; all religions are respected equally. (Added in 1976)
• DEMOCRATIC: People have equal political rights, elect leaders, and hold them accountable.
• REPUBLIC: The head of state is elected, not hereditary.
• JUSTICE: No discrimination based on caste, religion, or gender; the government works for everyone’s welfare.
• LIBERTY: Citizens can think, express, and act freely within reasonable limits.
• EQUALITY: All are equal before the law, with equal opportunities.
• FRATERNITY: Promotes unity and brotherhood among citizens.

Examples in daily life:

• Secular: People can practice their religion freely without state interference.
• Equality: Jobs are open to all, regardless of gender, caste, or religion.

Points to Remember

• The Constitution of India is a rulebook protecting citizens’ rights and listing their duties.
• It was built on India’s civilizational heritage, the freedom struggle, and ideas from other countries’ constitutions.
• Key features include the structure of government, Fundamental Rights, Fundamental Duties, and Directive Principles.
• It is a living document, changeable through amendments to meet new needs.

Difficult Words

• Constitution: A document with a country’s basic rules and laws.
• Legislature: The government part that makes laws.
• Executive: The government part that implements laws.
• Judiciary: The government part that ensures laws are followed and settles disputes.
• Checks and balances: Systems to ensure the government is fair and accountable.
• Fundamental Rights: Basic rights like equality and freedom that citizens can demand in court.
• Fundamental Duties: Responsibilities of citizens, like respecting the Constitution.
• Directive Principles of State Policy: Guidelines for the government to improve the country, not enforceable in court.
• Constituent Assembly: The group that wrote the Indian Constitution.
• Republic Day: 26 January, when the Constitution came into effect in 1950.
• Universal adult franchise: The right of all adults to vote.
• Separation of powers: Keeping the legislature, executive, and judiciary independent.
• Amendment: A change made to the Constitution.
• Preamble: The introduction to the Constitution, stating its values.
• Sovereign: A country’s right to make its own decisions without outside control.
• Socialist: A system to share wealth fairly and reduce inequalities.
• Secular: Treating all religions equally with no official religion.
• Democratic: A government where people elect leaders and hold them accountable.
• Republic: A country with an elected head, not a king.
• Justice: Fair treatment for all, reducing discrimination.
• Liberty: Freedom to think, speak, and act within limits.
• Equality: Equal treatment and opportunities for all.
• Fraternity: Unity and brotherhood among citizens.

Introduction

A government is a system that runs a country, making rules and ensuring people’s safety and welfare. Kauṭilya in his book Arthaśhāstra said a ruler’s duties are: protecting the country from enemies (raksha), keeping peace inside (pālana), and caring for people’s well-being.

• There are different types of governments, like democracy, monarchy, and others, each working differently.
• Governments get their power from different sources, such as the people in a democracy or a king in a monarchy.
• Governments interact with people by making laws, providing services, and ensuring fairness.
• Democracy is important because it gives people a voice in how their country is run.

What is Government? What are its Functions?

A government is a group that manages a country, making sure it runs smoothly. India has a democratic government, but other countries have different types.

Government has many roles:

• Keeping law and order so society is safe.
• Ensuring peace, stability, and security for everyone.
• Managing relations with other countries.
• Protecting the country through national defence.
• Providing important services like education, healthcare, and roads.
• Managing the economy, like trade and money matters.
• Working for people’s welfare to improve their lives.

What is Democracy?

Democracy means “rule of the people,” where the people are the source of power. 

Voting in India to Elect Government

Example: In a school, students need to manage tasks like timetables, sports, and meals. A Student Committee can be formed to make and follow rules.Three ways to form the committee were suggested:

• Every student joins the committee (hard to manage).
• The Head Teacher picks students (not everyone’s voice is heard).
• Students vote for representatives from each grade (fairest way).

The third way, where students choose representatives, is like a democracy because it includes everyone’s voice. Abraham Lincoln, a US president, called democracy a “government of the people, by the people, for the people.”Functions of Government

In a democracy, people choose representatives to do these jobs, but the process differs in each country. Like a school committee, a government has three main jobs:

• Legislative function: Making rules (laws) to run the country.
• Executive function: Carrying out the rules and managing the country.
• Judicial function: Ensuring everyone follows the rules and settling disputes.
  Try yourself:What is the fairest way to form a student committee?
  • A.No committee is formed
  • B.Every student joins the committee
  • C.The Head Teacher picks students
  • D.Students vote for representatives from each grade
  View Solution

What Makes Governments Different?

Governments vary because each country has its own history, culture, and goals.
Key differences include:

• Who decides what the government is?
• How is the government formed?
• What are the parts of the government, and what do they do?
• What goals is the government working for?

Key Differences Between Governments

• Who decides “this is the government”?
  In a democracy, the people decide through voting. In a theocracy, religious beliefs and leaders give power.
• How is the government formed?
  In a democracy, it’s through elections. In a monarchy, a king or queen from the family rules.
• What are the parts of the government? 
  ​The legislative, executive, and judiciary parts may be separate or combined. In democracies, rules are often in a constitution. In monarchies, the king may decide.
• What is the government working for?
  Some governments, like India’s, aim for equality and prosperity for all. Others may focus on certain groups or families.

Democratic Governments Around the World

• Democracy is the most popular government type today, but democracies differ in how they work.
• Some countries adopted democracy long ago: USA (1787), Switzerland (1848), India (1947), Germany (1949), Kenya (1964), Nepal (2008).

Fundamental Principles of Democracy

• Equality: Everyone is treated the same, with equal access to education, health, and laws.
• Freedom: People can make choices and express opinions freely.
• Representative participation: People choose representatives through elections.
• Universal adult franchise: Every adult can vote to choose representatives.
• Fundamental rights: Rights like equality, free speech, and protection from exploitation are guarded.
• Independent judiciary: Courts protect rights and ensure laws are followed by everyone, including the government.

These principles are ideals, not always fully achieved. For example, India gave all adults voting rights in 1950, but Switzerland gave women voting rights only in 1971.Different Forms of Democratic Governments

• Direct democracy: All citizens directly make rules and decisions. Used in small places like parts of Switzerland, but hard in big countries.
• Representative democracy: People elect representatives to govern, like in India. Elections happen regularly (every 5 years in India, 4 years in the USA). 
  Here are two Types of representative democracy:
  1. Parliamentary democracy: The executive (prime minister and ministers) is part of the legislature (parliament). They need the legislature’s support (e.g., Lok Sabha in India). People elect the legislature, not the executive.
  2. Presidential democracy: The president is elected separately and works independently of the legislature (e.g., USA). In India, states like Rajasthan have their own governments but are guided by the Union Government.
  Try yourself:How is a government formed in a democracy?
  • A.Through military force
  • B.By religious leaders
  • C.By royal decree
  • D.Through elections
  View Solution

What Do These Terms Mean?

• Executive: The part of government that carries out laws. Its election process varies by country.
• Legislature: The group that makes laws, called Parliament in India and Congress in the USA. It often has two parts: Upper House (e.g., Rajya Sabha) and Lower House (e.g., Lok Sabha). 
  1. Lower House: Elected directly by people, usually more powerful (e.g., Lok Sabha in India).
  2. Upper House: Elected or nominated, less powerful (e.g., Rajya Sabha in India).
• Separation of Power: The legislature, executive, and judiciary work independently without interfering with each other.

A Peek into History

In ancient India, the Vajji mahajanapada (Lichchhavi clan) was an early republic. Leaders were chosen based on merit, and clans met to solve issues, ensuring people’s welfare.

• Republic: A government where the head is elected, not a hereditary king.
• Uttaramerur inscriptions from the 10th century CE in Tamil Nadu show how the Chola village sabha elected members using sealed ballot boxes. Rules included qualifications, duties, and removal for corruption.
  Chola Period Inscriptions
• In ancient Greece and Rome (5th–4th century BCE), republics existed, but only free men could vote, excluding women and slaves.

Other Forms of Government

1. Monarchy: Ruled by a king or queen(monarch), usually hereditary.

• In ancient India, mahajanapadas had kings advised by sabhā or samiti. Empires gave kings more power, but they relied on ministers and scholars for dharma.
• Some kings claimed divine power, but in India, kings followed rājadharma, ruling fairly for people’s welfare.
• Example from Mahābhārata: Bhīshma taught Yudhiṣhṭhira that a king prioritizes people’s welfare, applies laws fairly, avoids ego, and seeks wise advice.
• Example from Rajatarangini (12th century CE): King Chandrapiḍa respected a cobbler’s hut, showing fairness and dharma.

Monarchies Today:  Here are the types of modern monarchies

• Absolute monarchy: The monarch has full power (e.g., Saudi Arabia, where the king rules by Islamic law but has advisors).
• Constitutional monarchy: The monarch has little power, and a parliament governs (e.g., United Kingdom, where the prime minister and parliament hold power).
  King Charles in a Ceremonial Coach

2. Theocracy: Ruled by religious rules and leaders.

• Iran (Islamic Republic of Iran) combines theocracy and democracy. The Supreme Leader, chosen by clerics, has ultimate power, guided by Islamic principles. An elected president and parliament handle daily governance.
• Other theocracies: Afghanistan and Vatican City.

3. Dictatorship: One person or small group has unlimited power, not bound by laws.
Adolf Hitler

• Example: Adolf Hitler in Germany (1933–1945) became a dictator, caused the Holocaust (killing six million Jews), and started World War II.
• Example: Idi Amin in Uganda killed thousands and forced Indians to flee.
• Example: In North Korea, Shane’s life shows strict rules on haircuts, clothes, and internet access, with the government watching closely, unlike a democracy.

4. Oligarchy: A small, powerful group (often wealthy families) makes decisions.

• In ancient Greece, aristocratic families ruled as oligarchies.
• Today, some democracies may act like oligarchies if a few rich or powerful people control decisions.
  Try yourself:What is the role of the executive branch in government?
  • A.Monitors elections
  • B.Carries out laws
  • C.Makes laws
  • D.Interprets laws
  View Solution

Why Democracy Matters

Democracy is considered better than other governments because it gives people more rights and choices.

• In a democracy, people can choose how to live, speak, dress, and believe, as long as they don’t harm others.
• The government is accountable to the people, protecting their rights and providing basic needs.
• If the government fails, people can change it through elections.
• Democracy has challenges like corruption, wealth gaps, and control by a few, but citizens must stay alert to fix these.
• More than half the world’s countries are democracies because they value people’s freedom and well-being.

Comparison of government types:

• Universal adult franchise: Only in democracy (Yes); not in dictatorship, absolute monarchy, or oligarchy (No).
• Equality: Democracy aims for equality (Yes); others often don’t (No).
• Freedom of speech: Allowed in democracy (Yes); limited or absent in others (No).
• Separation of powers: Present in democracy (Yes); often absent in others (No).
• Well-being of all: Democracy focuses on all citizens (Yes); others may prioritize certain groups (No).

Points to Remember

• Government runs a country, and different types answer: Who decides the government? What are its parts? What are its goals?
• Democracy is the most popular government type, with variations like direct and representative democracy.
• Representative democracy has two types: parliamentary (like India) and presidential.
• Other government types include monarchy, theocracy, dictatorship, and oligarchy.
• Democracy matters but faces challenges, and citizens must stay vigilant.

Difficult Words

• Government: The system that manages a country, making rules and providing services.
• Democracy: A government where people choose their leaders through voting.
• Representative: A person chosen to act or decide for others.
• Legislative: The job of making laws.
• Executive: The job of carrying out laws and managing the country.
• Judicial: The job of ensuring laws are followed and settling disputes.
• Constitution: A book of basic rules for running a country.
• Universal adult franchise: The right of all adults to vote.
• Fundamental rights: Basic rights like equality and free speech protected in a democracy.
• Independent judiciary: Courts that work separately from other government parts to protect rights.
• Republic: A government with an elected head, not a king.
• Monarchy: A government led by a king or queen.
• Theocracy: A government ruled by religious leaders and rules.
• Dictatorship: A government where one person or group has all power.
• Oligarchy: A government where a small, powerful group rules.
• Accountability: The government’s responsibility to answer to the people.
• Sovereign: A government’s independent power, free from outside control.
• Rājadharma: The duty of a king to rule fairly according to moral principles.

Introduction

Sacredness is about places, journeys, or natural elements that are holy and deeply respected in religious or spiritual beliefs. In India, the land becomes sacred through pilgrimages, sacred sites, and the belief that nature, like rivers and mountains, is divine.

• Sacred sites and pilgrimage networks connect people across India, shaping their culture and traditions.
• Sacred geography helped unite India’s diverse regions by encouraging cultural exchange and shared values.

What is ‘Sacredness’?

Sacredness means something holy or deeply meaningful in religion or spirituality, deserving respect. It can be a special place, like a shrine, or a journey, like a pilgrimage, that feels divine. Sacredness is linked to geography (land, rivers, mountains), traditions, and India’s unique culture.

Sacred Places in IndiaEvery religion in India has its own sacred places:

• Islam: Dargah Sharif in Ajmer, Rajasthan, is visited for prayers.
• Christianity: Velankanni Church in Tamil Nadu attracts many visitors.
• Buddhism: Great Stūpa at Sanchi and Mahabodhi Stūpa in Bodh Gaya, where Buddha attained enlightenment, draw millions.
• Sikhism: Takhts like Akal Takht in Amritsar and Takht Sri Patna Sahib are spiritual centers linked to Sikh Gurus.
• Jainism: Places like Mount Abu and Shatruñjaya hill in Gujarat are sacred due to Tirthankaras’ events.
• People of different faiths visit these sites, showing India’s shared respect for sacred places.
  Try yourself:What does ‘sacredness’ mean?
  • A.A historical event
  • B.A type of geographical feature
  • C.A form of government
  • D.Something holy or meaningful in religion
  View Solution

Pilgrimages

Pilgrimages, or tīrthayātrās, are journeys to sacred sites called tīrthas, important in Indian culture for over 3,000 years.

Pilgrimages

• They are both a physical trip and an inner journey, following a special code of conduct.
• Pilgrims travel across India, from Badrinath in the Himalayas to Kanyakumari in the south, making the entire land sacred.
• An example from historian Dharampal: A group from near Lucknow traveled for three months to Rameswaram, carrying food supplies, and then went to Haridwar without stopping in Delhi, showing their dedication.
• Pilgrimages connect people, as seen in Sikh Gurus like Guru Nanak, who visited places like Haridwar, Prayag, and Puri.
• The Sabarimala temple in Kerala, dedicated to Ayyappa, attracts over 10 million pilgrims yearly, reached by a tough trek symbolizing spiritual challenges.

More Sacred Sites

• In Hinduism, folk, and tribal beliefs, nature like mountains, rivers, trees, and animals is sacred.
• Rivers are seen as devis (goddesses), and some trees, plants, and animals are holy, reflecting a belief in a divine presence in nature.
• The entire Earth is considered Mother Earth or Bhudevi.

Vishnu in boar formExamples of sacred sites:

• Niyam Dongar hill in Jharkhand, sacred to the Dongria Khond tribe as the home of Niyam Raja, where cutting trees is forbidden.
• In Sikkim, sacred mountains, caves, lakes, and hot springs are protected from damage.
• In the Nilgiris, the Toda tribe considers mountain peaks, plants, Shola forests, wetlands, and stones sacred.
  Try yourself:What is a pilgrimage in Indian culture?
  • A.A journey to sacred sites
  • B.A type of festival
  • C.A form of meditation
  • D.A cooking tradition
  View Solution

Becoming Aware of Sacred Geography

Sacred geography refers to sacred sites across India that are interconnected, forming networks. The Char Dhām Yātrā includes four sites in India’s north, south, east, and west, encouraging travel across the country.

Char Dhams

• The 12 Jyotirlingas, sacred to Śhiva, and 51 Shakti Pithas, linked to Shakti, cover India’s map, including Bangladesh and Pakistan.
• A story about the Shakti Pithas: When Sati died, Viṣhṇu cut her body, and parts fell across India, making those places sacred as the divine mother’s body.
• These networks make the entire land sacred, uniting India’s diverse regions.
• Pilgrims traveling to these sites encounter different languages, customs, and foods, but also see shared Indian values.

Sacred Ecology

Tīrthas are often near rivers, lakes, forests, or mountains, seen as sacred spaces called punyakshetra. Viewing nature as sacred helps protect it, as humans feel connected to it. Sacred ecology blends geography, culture, and spirituality to preserve nature.

Rivers and Sangams (Confluence of Rivers)

• Rivers have been worshipped since Vedic times, as seen in the Nadistuti Sūkta of the Rigveda, praising 19 ancient rivers.
• Rituals invoke rivers like Ganga, Yamuna, Godavari, Sarasvati, Narmada, Sindhu, and Kaveri.
• These rivers are lifelines, and their sources, tributaries, and paths are sacred, visited by pilgrims.
• People respectfully call rivers “Ganga ji” or “Yamuna ji” in local languages.
• Sangams, where rivers meet, like in Prayagraj (Ganga, Yamuna, and invisible Sarasvati), are especially holy.

Kumbh Mela

• The Kumbh Mela is a major pilgrimage held every six years in Haridwar, Prayagraj, Nashik, and Ujjain.

Kumbh Mela

• It comes from the legend of amrita manthana, where gods and demons churned the ocean for amrita (nectar).
• Viṣhṇu, as Mohini, took the amrita pitcher, and drops fell at the four Kumbh Mela sites, making them holy.
• A dip in the rivers during the Kumbh Mela is considered very auspicious.
• In 2025, about 660 million people joined the Kumbh Mela, showing its importance.
• UNESCO listed the Kumbh Mela as an “intangible heritage of the world” for its cultural value.
  Try yourself:What is the significance of the Kumbh Mela?
  • A.All of the above.
  • B.It is listed as a UNESCO heritage site.
  • C.It involves churning the ocean for amrita.
  • D.It is a major pilgrimage held every six years.
  View Solution

Mountains and Forests

Mountains are linked to legends and deities, seen as gateways to heaven due to their height. Many tīrthas and temples, like those in the Himalayas, are on hilltops, symbolizing a spiritual journey.

Sacred Mountains

• Pilgrims once walked tough mountain trails, testing their physical and mental strength, though roads now make access easier.
• Forests are sacred in many traditions, often seen as homes of deities.

Trees, Forests and Sacred Groves

Trees like the peepul (bodhi tree) are sacred in Hinduism, Buddhism, Sikhism, and Jainism, often adorned with turmeric and kumkum. The peepul at Mahabodhi Temple in Bodh Gaya is believed to be linked to the tree under which Buddha attained enlightenment

MahaBodhi Temple at Bodh Gaya

• Peepul trees have medical uses (leaves for skin, bark for stomach issues) and support birds and animals year-round.
• A Mohenjo-daro seal shows peepul leaves, proving its importance for millennia.
• Sacred groves are protected forests seen as deity homes, like Ryngkew in Meghalaya, preserving biodiversity and water bodies.
• Examples of sacred grove names: kāvu (Malayalam), kovilkadu (Tamil), devare kādu (Kannada), devarāi (Marathi), sarnā (Jharkhand).
• In Thanjavur, Tamil Nadu, sacred groves’ deities protect fruit bats, which help pollinate flowers and spread seeds, creating harmony between nature and humans.
• Many sacred groves are shrinking due to farming and industry, but some communities still protect them.

From Pilgrimage to Trade

• Pilgrims and traders often meet on pilgrimage routes, benefiting both.
• Pilgrims buy goods from traders, and some traders visit sacred sites while selling wares.
• Pilgrimage routes and trade routes often overlap, like Uttarapatha (northwest to east) and Dakshinapatha (Kaushambi to Pratiṣhṭhāna).
• Traded goods included shells, pearls, gold, diamonds, cotton, spices, and sandalwood.
• These interactions led to sharing of goods, ideas, and stories, enriching India’s culture.

Sacred Geography beyond India

Sacred geography exists outside India too.

• Ancient Greece had sacred mountains and groves.
• Native Americans saw nature as sacred.
• The Maoris of New Zealand view Taranaki Maunga mountain as an ancestor, recently given human-like rights to protect it.
• Community elders speak for sacred places to prevent harm, ensuring their preservation.

Restoring and Conserving the Sacred

• The bond between people and sacred geography sustained Indian civilization for thousands of years, creating shared values.

Pollution at Sacred Sites

• Today, this bond is strained as sacred places like rivers (Yamuna, Mahanadi, Kaveri) are polluted.
• When rivers or mountains face harm from overuse or development, people speak up to protect their deities and environment.
• Sacred geography supports sustainability, offering lessons for global environmental care.
• It is everyone’s duty to protect sacred places, as reminded by India’s Constitution.
  Try yourself:What is the peepul tree known for in various religions?
  • A.Being used for furniture
  • B.Providing shade
  • C.Being a home for deities
  • D.Growing fruit
  View Solution

Points to Remember

• All religions in India have sacred places across the land.
• In Buddhism, Jainism, and Sikhism, sacred sites are linked to great figures or events.
• Hinduism has many pilgrimage sites, supporting personal growth, trade, and cultural unity across India.
• In Hindu, tribal, and folk traditions, the land itself is sacred.
• Sacred places are polluted due to neglect, and it is our duty to protect them as part of our national heritage.

Difficult Words

• Sacredness: The quality of being holy or deeply respected in religion or spirituality.
• Pilgrimage: A journey to a sacred place for religious or spiritual reasons.
• Shrine: A holy place linked to a divine figure, relic, or spiritual person.
• Relic: A body part or belonging of a holy person kept for reverence.
• Tīrthayātrā: A pilgrimage to a sacred site in Indian traditions.
• Tirthankara: In Jainism, a supreme teacher who guides people to a higher life.
• Punyakshetra: A sacred space, like a riverbank or mountain, in Indian beliefs.
• Char Dhām Yātrā: A pilgrimage to four sacred sites in India’s north, south, east, and west.
• Jyotirlingas: 12 sacred shrines dedicated to Śhiva in Hinduism.
• Shakti Pithas: 51 sacred sites linked to the goddess Shakti.
• Nadistuti Sūkta: A Vedic hymn praising rivers.
• Sangam: The meeting point of rivers, considered holy.
• Kumbh Mela: A major pilgrimage at four sacred river sites, held every six years.
• Amrita: Divine nectar of immortality in Hindu stories.
• Sacred Groves: Protected forests seen as homes of deities, preserving nature.
• Biodiversity: The variety of plants and animals in a place.
• Sustainability: Using resources carefully to protect the environment for the future.