Development Policies and Experience
UNIT UNIT
I I I
DEVELOPMENT POLICIES AND EXPERIENCE (1947-90)
The two chapters in this unit give us an overview of the state of the Indian economy as it was at the eve of independence till after four decades of planned development, which was a path that India chose. This meant that the Government of India had to take a series of steps such as the establishment of the Planning Commission and announcement of five year plans. An overview of the goals of five year plans and a critical appraisal of the merits and limitations of planned development has been covered in this unit.
1
INDIAN ECONOMY
ON THE
EVE
OF
INDEPENDENCE
After studying this chapter, the learners will
• •
become familiar with the state of the Indian economy in 1947, the year of India’s Independence understand the factors that led to the underdevelopment and stagnation of the Indian economy.
“India is the pivot of our Empire... If the Empire loses any other part of its Dominion we can survive, but if we lose India, the sun of our Empire will have set.” Victor Alexander Vruce, the Viceroy of British India in 1894
1.1 INTRODUCTION
The primary objective of this book, Indian Economic Development, is to familiarise you with the basic features of the Indian economy, and its development, as it is today, in the aftermath of Independence. However, it is equally important to know something about the country’s economic past even as you learn about its present state and future prospects. So, let us first look at the state of India’s economy prior to the country’s independence and form an idea of the various considerations that shaped India’s post-independence development strategy. The structure of India’s presentday economy is not just of current making; it has its roots steeped in history, particularly in the period when India was under British rule which lasted for almost two centuries before India finally won its independence on 15 August 1947. The sole purpose of the
I I I
DEVELOPMENT POLICIES AND EXPERIENCE (1947-90)
The two chapters in this unit give us an overview of the state of the Indian economy as it was at the eve of independence till after four decades of planned development, which was a path that India chose. This meant that the Government of India had to take a series of steps such as the establishment of the Planning Commission and announcement of five year plans. An overview of the goals of five year plans and a critical appraisal of the merits and limitations of planned development has been covered in this unit.
1
INDIAN ECONOMY
ON THE
EVE
OF
INDEPENDENCE
After studying this chapter, the learners will
• •
become familiar with the state of the Indian economy in 1947, the year of India’s Independence understand the factors that led to the underdevelopment and stagnation of the Indian economy.
“India is the pivot of our Empire... If the Empire loses any other part of its Dominion we can survive, but if we lose India, the sun of our Empire will have set.” Victor Alexander Vruce, the Viceroy of British India in 1894
1.1 INTRODUCTION
The primary objective of this book, Indian Economic Development, is to familiarise you with the basic features of the Indian economy, and its development, as it is today, in the aftermath of Independence. However, it is equally important to know something about the country’s economic past even as you learn about its present state and future prospects. So, let us first look at the state of India’s economy prior to the country’s independence and form an idea of the various considerations that shaped India’s post-independence development strategy. The structure of India’s presentday economy is not just of current making; it has its roots steeped in history, particularly in the period when India was under British rule which lasted for almost two centuries before India finally won its independence on 15 August 1947. The sole purpose of the
References: 2 . 3 . 4 . BADEN-POWELL, B.H. 1892. The Land Systems of British India, Vols I, II and III. Oxford Clarendon Press, Oxford. BUCHANAN, D.H. 1966. Development of Capitalist Enterprise in India. Frank Cass and Co, London. CHANDRA, BIPAN. 1993. ‘The Colonial Legacy’ in Bimal Jalan (ed.), The Indian Economy: Problems and Prospects. Penguin Books, New Delhi. DUTT, R.C. 1963. Economic History of India, Vols. I and II. Ministry of Information and Broadcasting, Government of India, New Delhi. KUMAR, D. AND MEGHNAD DESAI (Eds.). 1983. Cambridge Economic History of India. Cambridge University Press, Cambridge. MILL, JAMES.1972. History of British India. Associated Publishing House, New Delhi. PRASAD, RAJENDRA. 1946. India Divided. Hind Kitabs, Bombay. SEN, AMARTYA. 1999. Poverty and Famines. Oxford University Press, New Delhi. INDIAN ECONOMY ON THE EVE OF INDEPENDENCE 1 5