Analyse Transition of Indian Economy

independence to 1991 Indian economic policy after liberty was influenced by the colonial experience (which was seen by Indian leading as exploitative in nature) and by those leaders flick to Fabian socialism. Policy tended towards protectionism, with a strong emphasis on import substitution, industrialization, state intervention in labour and monetary markets, a large public sector, pedigree regulation, and primal planning. Five-Year Plans of India resembled central planning in the Soviet Union. Steel, mining, machine tools, water, telecommunications, insurance, and electrical plants, among former(a) industries, were effectively nationalized in the mid-1950s. Capitalism and Private enterprise did not exist before 1991. Elaborate licences, regulations and the accompanying red tape, commonly referred to as Licence Raj, were required to set up business in India between 1947 and 1990. ****************************************************************************** India was a typical backward deliverance in terms of industrialisation at the time of Independence in 1947. This was the result of colonisation and systematic exploitation of the Indian thriftiness by the British during the 19th century and the first gear half of the 20th century.

India`s development pattern during 1950-80 was characterised by strong centralised planning, Government ownership of basic and happen upon industries, excessive regulation and control of private enterprise, trade protectionism through tariff and non-tariff barriers and a cautious and selective approach towards outside(prenominal) capital. Policy makers started realising the drawbacks of this strategy which inhibited competitiveness and efficiency and produced a much lower rate of growth than expected.     The last ecstasy of the 20th century was momentous in the economic narration of India as it witnessed a successful transition of India from a controlled, inward looking, and slow growing economy to a liberalised and open economy that has now found a... If you want to get a all-embracing essay, order it on our website: Orderessay

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