Indian Economy: Adopting New Approach

Topics: Economics, British Raj, Economic development Pages: 3 (1048 words) Published: June 24, 2013
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 a closely monitored, regulated and controlled system where government played the role of licenser in the process of building industry. There were few hiccups in between. In the late 70s Mrs. Indira Gandhi brought in small doses of liberalization. In the mid 80′s Rajiv Gandhi did likewise but the real change came in 1991 when economic crises 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 unutilized manpower on the one hand and of unexploited and exploited natural resources on the other. A developing economy bears the common features of technological backwardness at low per capita income coupled by widespread poverty, heavy population pressure, low grade productivity, high unemployment, low level utilization of country’s natural resources, rigid social structure, predominance of old beliefs, lack of opportunity for capital formation, pre-dominance of agriculture and scanty participation in international trade etc.

But all this is amidst a possibility of economic development, small pockets of high rates of economic growth and affluence. It is gain saying truth what the world economy has experienced that colonization directly lead to the exploitation of the colonized country by the colonial rulers. Colonization is also a factor for the underdevelopment of a country’s 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 broadly divided in three periods. They are (i) the period of merchandised capital, (ii) the period of industrial capital which leads to the drain of Indian wealth for the interest of British industry and (iii) the period of...
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