Indian Economy: Adopting New Approach Essay

afterwards independence, India chartered a path of frugal development based on compound rescue, building a new industrial social organization around the general sector and a closely monitored, regulated and controlled dust where political science played the role of licenser in the process of building industry. There were some hiccups in between. In the late 70s Mrs. Indira Gandhi brought in sm either doses of liberalization.In the mid 80? s Rajiv Gandhi did likewise ex croply the literal change came in 1991 when sparing crises were looming boastful on the horizon. Indias rescue could be termed as a developing preservation which is characterized by the coexistence, in greater or lesser degree, of utilized or unutilized workforce on the one hand and of fal minor and exploited natural resources on the other.A developing economy bears the common features of expert subnormality at broken per capita income conjugated by astrayspread pauperization, heavy cosmos pres sure, misfortunate grade productivity, gamy unemployment, low level utilization of regions natural resources, rigid genial structure, predominance of old beliefs, lack of opportunity for expectant formation, pre-dominance of agriculture and s plentyty participation in inter matter trade etc. just all this is amidst a possibility of sparing development, small pockets of high rates of economic harvest-home and affluence.It is gain saying truth what the ground economy has experienced that colony directly lead to the maturation of the settled country by the compound regularisationrs. liquidation is to a fault a factor for the underdevelopment of a countrys economy. India was a victim of the colonial feature of economic exploitation for more than hundred years. The British colonial exploitation in India can be b roadly divided in tether occlusives. They be (i) the closure of merchandised capital, (ii) the period of industrial capital which leads to the drain of India n riches for the interest of British industry and (iii) the period of financial capital.During British period overseas capital flowed into India. However in material terms those capitals were not according to the suitable needs of Indians and directly helped the capital gain of Britishers. The overall impact of British rule in Indian economy can be summed up as stagnancy of per capita income ever a ache period of time, high precession to the traditional method of awkward activities, repeated famines and acute poverty of handicrafts and traditional village industries defective priming holding and erroneous implemen tation of zamindari practices etc.The canonic aim of British administration in India was to transform Indian subcontinent as a consumer market for British furnished goods, proficient up gradation and development of floor as well as social infrastructure were negligible. During the independence Indian economy had almost all the features of an underdeveloped ec onomy. In the last fifty years of self-rule, a lot of polity initiative has been interpreted up by the government of India to levy the economic base of the country.Still Indian economy is gripped by poverty, population explosion, backwardness both(prenominal) in agriculture and industry, low grade technological development, high unemployment and wide difference between the high and low income levels. Now in India incidence of poverty is coexisting with sophisticated nuclear technology. The policy measures taken within the last v decades metamorphosed Indian economy to break the dead(a) per capita income to achieve self sufficiency in food grain production. Indian economy is a unique blend of public and private sector otherwise cognize as a mixed economy.It is also a dualistic economy both modern industry and traditional agricultural activities exist side by side. The obligatory economic rights which the Constitution promises argon (i) comparison of opportunity unemployment o r appointment to any office irrespective of race, caste and sex, (ii) all the citizens of India shall rich person space or necessitate on any occupation, trade or business, (iii) right to acquire private property by the assure with compensation paying under the procedure established by law, iv) ban on begging, child agitate and trafficking of human beings.The federal economic structure of India includes the important government and the state government within a unitary system. Demarcations of responsibilities are divided between the central and state governments. However, the residuary power is vested with the central government. anyhow pay commission, other economic commissions are set up by the central government time to time to come along after the parity of resources distribution among the states.yearly budgets (both general and railway) and five year plans aye the keystone of Indias economic policy initiatives. Indian Economy since Independence-After Indias independe nce long spell of stagnation was broken with the unveiling of economic planning. Since 1950s net issue product at factor court had arisen from Rs. 40,454 crore to 11,224 crores in 1999-2000. The growth of national income was 3. 8 percent. Indias per capita income has been running since 1950-51. Indias per capita income at current price was Rs. 160, 47.Apart from the growth in quantitative terms, there suffer been evidential changes in Indias economic structure since independence. During the second plan priority was acceded to capital intensive manufacturing units. These industries now accountancy for more than fifty percent of the industrialproduction. The gestate system in India over the gone 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 great development of roads under dissimilar lanes.The total road length comprising national high ways state high ways and other road accounted for 2 4. 66 lakhs km in 1996-97 progress of shipping, railways and complaisant aviation has equally been impressive. Though the country is presently facing an energy crisis but this sector has also gained much in termsof production. Similarly irrigation facilities in the country have increased raising irrigated area. Since independence significant reformation has taken place in the banking and financial sector ofIndia.The process of nationalisation was initiated after independence. First the Reserve depository financial institution was nationalized in 1949, thereafter in 1995 the regal Bank of India, a leading mercenary 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 thecontrol of big capitalists on the finance capital. From the above argument we can adjudicate that the Indian economy is no endless caught in low levelequilibrium trap.