indian economy 1950-90

1. INDIAN ECONOMY (1950-90)
From : PREETI MITTAL
PGT(ECONOMICS)
APS 1,JABALPUR

2. Economic System
• An economic system is a system of
production, resource allocation and
distribution of goods and services within the
society.

4. CAPITALISTIC ECONOMY
• An economic system in which means of
production are owned by the individuals,
and the individuals are free to take their
economic decisions,as guided by the
principle of profit maximisation.
• It is also known as market economy.
• For Eg. U.S.A. , France

5. SOCIALISTIC ECONOMY
• A SOCIALISTIC ECONOMY IS THE ONE
WHICH IS OWNED AND OPERATED BY THE
PUBLIC SECTOR OR CENTRAL AUTHORITY.
• IT IS ALSO KNOWN AS CENTRALLY
PLANNED ECONOMY.
• THE MAIN MOTIVE IS SOCIAL WELFARE.
• For Eg. China and Russia

6. MIXED ECONOMY
• It is the one in which public and private
sector both played an important role.
• Production decisions are governed
largely by the principle of profit
maximization,but not without checks
and balances of social justice.
• For Eg. India and Pakistan.

7. CENTRAL PROBLEMS IN
THREEECONOMIES
• WHAT TO PRODUCE & AT WHAT QUANTITY
• HOW TO PRODUCE
• FOR WHOM TO PRODUCE

8. CAPITALISTIC ECONOMY AND
CENTRAL PROBLEMS
• Only those consumer goods will be produced
that are in demand i.e. goods which give more
profit. For eg. If cars in demand then they will
be produced and if bicycles are in demand
then they will be produed.
• Cheaper techniques of production will be
used.
• Goods will be distributed according to the
purchasing power.

9. Socialistic Economy and central
problems
• Government decides only
- which goods are to be produced.
- Which technique of production is to be used.
- How the goods will be distributed.
Distribution is related with the people need.

10. Mixed Economy and Central Problems
• Govt. and market told together that
- which goods are to be produced
- How to be produced
- For whom to produced.

12. National Development Council
(NDC) – As an apex body
to planning, it was
constituted on 6th
August 1952. No plan
was implemented
without its approval.

13. Plan
• Plan spells out how the resources of the
nation should be put to use.
• Two Types of Plans
• Short term plan(5 yrs.)
• Long term plans(20 yrs.)

14. Architect of Indian Planning
• P C Mahalnobis is known as the architect of
Indian planning.
• 2nd five year plan was based on his idea.
• Educated from Presidency college of Kolkata and
later at Cambridge University , England.
• Fellow member of British royal society.
• Established Indian Statistical Institute(ISI),Kolkata.
• Started Journal ,Sankhya.

15. Mahalnobis Growth Model
• India should built up heavy Industries.
• Such as Tata Iron and steel Industries.
• Self Reliance.

16. Goals Of Five Year Plans
• Growth
• Modernization
• Equity
• Self Reliance

17. • Increase in country’s capacity
to produce goods and
services-larger the stock of
capital-increase in GDP.

18. Adoptng new technology in
place of old technology
Change in social outlook.

19. Every Indian should be able to meet its
basic requirements.
Equity means that every one should get
equal distribution means richer should get
less and poor should get more

20. Dependence on domestically produced goods
,particularly food grains.
The first seven five year plans gave importance to
self reliance which means avoiding
Imports of those goods which can be produced in
India itself.

21. AGRICULTURE
• LAND REFORMS:
Land reforms, primarily , refer to
change in the ownership of
holdings. It was done with the
purpose of increasing agricultural
production, the direct intervention
of government in agrarian structure.
AGRICULTURE

22. AGRICULTURE
Land Ceiling - It was the policy which
recommended the fixation of maximum size of
land which would be owned by an individual.
The purpose of land ceiling was to reduce the
concentration of land ownership in a few hands.

23. AGRICULTURE
Green Revolution –
Green Revolution implies the strategy
related to improving production
technique and productivity in
Agriculture.

24. AGRICULTURE
Economic Subsidies - To assure
availability of fertilizers to the farmers at
reasonable price government is providing
subsidy. A current debate is should subsidy
continue or we may go without subsidy.
Arguments are put forward both in favour and
against subsidy.

25. AGRICULTURE
Favour –
1. Agriculture is a risky business.
2. Farmers are poor and can’t afford new technology and
seeds.
3. Eliminating subsidy will increase income inequality
Against –
1. Main benefit is taken by big farmers.
2. Technology is now adopted by all.
3. It does not benefit the target group and creating a
huge burden on government.

26. • THANK YOU