INDIAN ECONOMY: ADOPTING NEW APPROACH

After independence India chartered a path of economic development based on mixed economy, building a new industrial structure around the public sector and closely monitored regulated and controlled system where government played the role of license are in the process of building industry. There were few hiccups in between. In the late 70s Mrs. Indira Gandhi brought in a small doses of liberalization. In the mid 80s Rajiv Gandhi did likewise but the real change came in 1991 when economic crisis were looming large on the horizon.


India’s economy could be termed as a developing economy which is characterized by the coexistence in greater or lesser degree of utilized or unutilised manpower on the one hand and the UN employed and exploited natural resources on the other. A developing economy bears the common features of technological backwardness at lower per capita income coupled widespread, poverty heavy population pressure, low grade productivity, high unemployment, low level utilization of countries natural resources, rigid social structure, pre-dominance of old beliefs, lack of opportunities for capital formation, predominance of agriculture and scanty participation in international trade etc. But all this is amidst a possibility of economic development, a small pockets of high rates of economic growth and affluence.


It is gain saying truth what the word economy has experienced that colonisation directly led to the exploitation of the colonized country by the colonial rules. colonization is also a factor for the underdevelopment of a country’s economy India was a victim of the colonial features of economic exploitations for more than 100 years.


The British colonial exploitation in India can be broadly divided in three periods they are: (1)the period of merchandise capital, (2) the period of industrial capital which led to the train of Indian wealth for the interest of British industry,(3) and the period of financial capital.


During British period Foreign capital flowed into India. However in real terms who is capital were not according to the proper needs of the Indians and directly helped the capital growth of Britishers .The overall impact of British rule in India economy can be Summed up as stagnation of per capita income over a long period of time, high priority to the traditional method of agricultural activities, repeated feminism and acute poverty of handicrafts and traditional village industries defecting landholding and arrow erroneous implementations of Zamindari practice etc.


The basic aim of British administration in India was to transform Indian subcontinent as a consumer market for British finished goods, technological upgradation and development of infrastructure as infrastructure were negligible.


The federal economic structure of India includes the central government and the state governments within a unitary system. Demarcation of responsibilities are divided between the central and state government. However, the residuary power is vested with the central government beside finance Commission other economic commissions are set by the central government time to time to look after the parity of resources distribution among the states. Annual budgets and five year plans are the backbone of Indian economic policy initiative.


Indian economies since independence: after India’s independence long spell of stagnation and I was broken with the introduction of economic planning since 1950 net national product at factor cost add arising from 40,454 crore – 11,224 color in 1999-2000. the growth of national income was 3.8% India’s per capita income has been running since 1950 to 1951 India’s for capita income at current price was rupees 1, 60,000 16,047 apart from the growth in quantitative terms there have been significant chances in India ‘s economic structure since independence. During the second plan priority was acting kid in capital intensive manufacturing units these industries now account for more than fifty percent of the industrial production the transport system in India over the past four decades has grown both in terms of capacity and modernization. Then road network is one of the largest in the world as a result of spectacular development of roads under various lanes.The total Rode length comprising national highways state highways and other roads accounted for 24,066 km in 1996 to 7 in progress in of shipping railway of Civil Aviation has equally been impressive thought the country is presently facing an energy crisis but this sector has also gained much in terms of production. similarly irrigation facilities in India in the country have increased raising irrigated areas.


Since independence significant reformation has taken place in the banking and finance sector of India the process of nationalization was initiated after independence first the Reserve Bank was nationalized in 1949 thereafter in 1995 the imperial Bank of India a leading commercial Bank of that time was nationalized and renamed the State Bank of India. in 1969 fourteen big commercial banks were nationalized this act of government undermined the control of big capitalist on the finance capital.


From the above arguments we can conclude that the Indian economy is no longer caught in low equilibrium traps.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

Do follow me on FacebookTwitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge

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