Indian Economy: Adopting New Approach Essay

After independency, India chartered a path of sparing development based on mixed economy, building a in the raw industrial structure around the public sector and a closely monitored, regulated and controlled system where government played the role of licenser in the solve of building industry. There were few hiccups in between. In the late 70s Mrs. Indira Gandhi brought in shrimpy doses of liberalization.In the mid 80? s Rajiv Gandhi did likewise tho the in truth change came in 1991 when economic crises were looming large on the horizon. Indias economy could be termed as a developing economy which is char conducterized by the coexistence, in greater or lesser degree, of utilized or unutilized hands 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 humiliated per capita income coupled by widespread poverty, heavy population pressure, low-toned grade productivity, so aring unemployment, low level utilization of countrys natural resources, rigid social structure, predominance of old beliefs, lack of fortune for large(p) formation, pre-dominance of floriculture and s crapperty participation in international contend 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 equity what the world economy has experienced that colonization directly lead to the ontogenesis of the colonized country by the colonial rulers. Colonization is also a factor for the underdevelopment of a countrys economy. India was a victim of the colonial feature of economic exploitation for much than hundred years. The British colonial exploitation in India can be broadly divided in three periods. They be (i) the period of merchandised capital, (ii) the period of industrial capital which leads to the bolt of Indian wealth for the interest of British industry and (iii) the period of financial capital.During British period foreign capital flowed into India. How ever 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 regularity of agricultural activities, repeated famines and acute poverty of handicrafts and traditional village industries risky land holding and erroneous implemen tation of zamindari practices etc.The basic aim of British administration in India was to transform Indian subcontinent as a consumer grocery for British furnished goods, Technological 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 economy. In the last 50 years of self-rule, a lot of policy initiative has bee n 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 two 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 volt decades metamorphosed Indian economy to break the stagnant per capita income to achieve self enough in food grain production. Indian economy is a peculiar 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 mandatory economic rights which the Constitution promises are (i) equality of opportunity unemployment or appointment to any office irrespective of race, caste and sex, (ii) all the citizens of India shall co ntract property or carry on any occupation, trade or business, (iii) right to acquire private property by the state with wages paid under the procedure established by law, iv) ban on begging, child labour and trafficking of human beings.The federal economic structure of India includes the cardinal government and the state government within a unitary system. Demarcations of responsibilities are divided between the commutation and state governments. However, the residuary power is vested with the central government. Besides finance commission, other economic commissions are set up by the central government time to time to look aft(prenominal) the parity of resources distribution among the states.Annual budgets (both general and railway) and five year plans aye the gumption of Indias economic policy initiatives. Indian Economy since Independence-After Indias independence long spell of stagnation was broken with the introduction of economic planning. Since fifties net national prod uct at factor cost 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 have been hearty changes in Indias economic structure since independence. During the stand by plan priority was acceded to capital intensive manufacturing units. These industries now account for more than fifty percent of the industrialproduction. The transport system in India over the medieval four decades has grown both in terms of capacity and modernization. wherefore road network is one of the largest in the world as a result of spectacular development of roads under various lanes.The score road length comprising national high ways state high ways and other road accounted for 24. 66 lakhs km in 1996-97 reach of shipping, railways and civil aviation has equally been impressive. Tho ugh the country is presently face an energy crisis but this sector has also gained much in termsof production. alike irrigation facilities in the country have increased raising irrigated area. Since independence significant reformation has taken place in the curseing and financial sector ofIndia.The plow of nationalization was initiated after independence. First the Reserve Bank was nationalized in 1949, thenceforth 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 thecontrol of big capitalists on the finance capital. From the above argument we can conclude that the Indian economy is no longer caught in low levelequilibrium trap.