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1036 Words Essay on 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 co-existence, 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, pre-dominance 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 financial capital. During British period foreign capital flowed into India. However in real terms those capitals were not according to the proper needs of Indians and directly helped the capital growth of Britishers. The overall impact of British rule in Indian economy can be summed up as stagnation of per capita income ever a long period of time, high priority to the traditional method of agricultural activities, repeated famines and acute poverty of handicrafts and traditional village industries defective land holding and erroneous implementation of zamindari practices etc. The basic aim of British administration in India was to transform Indian subcontinent as a consumer market for British furnished goods, Technological up gradation and development of infrastructure as well as social infrastructure were negligible. During the independence Indian economy had almost all the features of an underdeveloped economy. In the last fifty years of self-rule, a lot of policy initiative has been taken up by the government of India to upgrade the economic base of the country. Still Indian economy is gripped by poverty, population explosion, backwardness both 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 five decades metamorphosed Indian economy to break the stagnant per capita income to achieve self sufficiency in food grain production. Indian economy is a unique blend of public and private sector otherwise known as a mixed economy. It is also a dualistic economy both modern industry and traditional agricultural activities exist side by side. The...
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