Download to read offline
economic development in pre britishPre british, british, post british
- 1. Economic Development inPost-British India (After 1947) After India gained independence in 1947, the country inherited an economy devastated by nearly two centuries of British colonial rule — stagnant agriculture, deindustrialization, low income, widespread poverty, and illiteracy. Thus, economic development in post-British India refers to the systematic efforts made by the Indian government to rebuild, modernize, and transform the economy from a colonial, agrarian structure into a self-reliant, industrialized, and modern economy. 1. The Condition of the Indian Economy at Independence (1947) India started its journey of economic development under very difficult circumstances: Aspect Condition in 1947 Agriculture Backward, low productivity, frequent famines Industry Weak; limited to textiles, jute, and small-scale sectors Infrastructure Developed mainly for colonial trade (railways, ports) Literacy Only about 16% Life expectancy Around 32 years Poverty Extremely high (more than half the population below poverty line) Unemployment Very high due to population pressure
- 2. Foreign trade Colonialpattern — exports of raw materials, imports of manufactured goods 🇮🇳Independent India faced the twin challenge of economic reconstruction and social transformation. 2. Meaning of Economic Development in Post-British Context Economic Development in post-independence India means: “A process of long-term improvement in the standard of living, reduction of poverty, and expansion of economic opportunities for all citizens.” It involves: ● Increase in national income and per capita income, ● Modernization of agriculture and industry, ● Reduction of inequality and unemployment, ● Human development (education, health, welfare), and ● Self-reliance and independence from foreign control. 3. Objectives of Economic Development After Independence The new Indian leadership, under Pandit Jawaharlal Nehru and others, set clear national objectives: 1. Rapid economic growth — to raise income and employment. 2. Self-reliance — reduce dependence on foreign countries.
- 3. 3. Social justice— reduce inequality, poverty, and discrimination. 4. Modernization — adopt science, technology, and industrial methods. 5. Economic planning — ensure coordinated and balanced development. 6. Democratic socialism — combine democracy with a welfare-oriented state. 🏗️The government saw planning as the key instrument to achieve these goals. 4. Economic Planning in India (a) Planning Commission ● Established in 1950, with Pandit Nehru as its first Chairman. ● Task: To assess resources, set targets, and prepare Five-Year Plans for national development. (b) Five-Year Plans (1951–2017) ● India adopted the Soviet model of planned economic development, emphasizing public sector growth and state intervention. Let’s briefly review the key plans: 1️⃣ First Five-Year Plan (1951–1956) ● Focus: Agriculture, irrigation, and power (to recover from Partition and food shortages). ● Achievements: Foodgrain output increased, community development started. ● Growth rate: 3.6% (target 2.1%) — a success.
- 4. 2️⃣ Second Five-YearPlan (1956–1961) ● Based on P.C. Mahalanobis model. ● Focus: Industrialization, especially heavy industries and public sector. ● Establishment of steel plants (Bhilai, Durgapur, Rourkela). ● Growth rate: 4.1%. ● Foundation of India’s industrial base. 3️⃣ Third Five-Year Plan (1961–1966) ● Focus: Self-reliance and agriculture. ● Droughts and the 1965 war affected progress. ● Led to food crisis and import of grains (PL-480 from the US). 4️⃣ Plan Holidays (1966–1969) ● Due to crisis, plans suspended; focus shifted to stabilization and agriculture. ● Green Revolution began — adoption of HYV seeds, fertilizers, irrigation. 5️⃣ Fourth Five-Year Plan (1969–1974) ● Objective: Growth with stability and self-reliance. ● Nationalization of banks (1969). ● Success in agriculture; inflation due to oil crisis.
- 5. 6️⃣ Fifth Plan(1974–1979) ● Focus: Removal of poverty (Garibi Hatao) and self-reliance. ● Achieved 4.8% growth. ● Ended early by Janata government in 1978. 7️⃣ Sixth Plan (1980–1985) ● Reintroduced planning; focus on poverty alleviation and modernization. ● Growth rate: 5.4%. 8️⃣ Seventh Plan (1985–1990) ● Emphasis on food, work, and productivity. ● Encouraged private sector participation. ● Growth rate: 5.8%. 9️⃣ 1991 – Economic Crisis and Liberalization By 1991, India faced a severe balance of payments crisis. Foreign exchange reserves could finance only a few weeks of imports. To address this, the government launched Economic Reforms — a major turning point. 5. Economic Reforms (Post-1991 Liberalization Period) Reform Objectives:
- 6. To shift froma state-controlled, closed economy to a market-oriented, open economy. Key Policies: 1. Liberalization – Reduction of government control, industrial licensing, and regulation. 2. Privatization – Greater role for private sector; disinvestment of public sector units. 3. Globalization – Integration of Indian economy with world markets; promotion of exports and FDI. 4. Fiscal Reforms – Reducing fiscal deficit, rationalizing taxes. 5. Monetary Reforms – Strengthening financial institutions and capital markets. Impact: ● Economic growth accelerated to 6–8% per annum in subsequent decades. ● Expansion of IT, services, and telecommunications sectors. ● Rise of middle class and consumer markets. ● However, regional disparities and unemployment persisted. 6. Sectoral Development After Independence (a) Agriculture ● Introduction of Green Revolution (1960s–70s): ○ High-yielding seeds, irrigation, and fertilizers. ○ Increased food grain production, achieved self-sufficiency. ● Problems: Uneven regional growth, environmental degradation, and small farm size. (b) Industry
- 7. ● Growth ofheavy industries, engineering, chemicals, automobiles, textiles, and information technology. ● Development of public sector undertakings (PSUs) like BHEL, ONGC, SAIL. ● After 1991: Rise of private sector and foreign investments. (c) Services Sector ● Fastest-growing sector after liberalization. ● Expansion in banking, finance, education, tourism, IT, and telecom. ● India became a global IT and outsourcing hub. 7. Social and Human Development ● Poverty Reduction: Poverty ratio declined from ~55% (1950s) to below 20% (2020s). ● Education: Literacy rose from 16% (1947) to over 75%. ● Health: Life expectancy increased from 32 years to about 70 years. ● Infrastructure: Massive expansion in roads, power, transport, and communication. 📚Focus shifted from mere economic growth to inclusive development — improving quality of life for all. 8. Challenges of Post-British Economic Development Despite progress, several persistent problems remain: 1. Unemployment and underemployment 2. Rural-urban inequality
- 8. 3. Regional imbalances 4.Environmental degradation 5. Population pressure 6. Dependence on imports of energy and technology 7. Income inequality and poverty pockets 9. Recent Developments (2000s–2020s) ● Emergence of India as the 5th largest economy in the world (in GDP terms). ● Growth driven by services, manufacturing, and technology. ● Make in India, Digital India, Atmanirbhar Bharat, and Startup India initiatives to boost self-reliance. ● Increasing focus on sustainable and green development. 10. Summary Table Period Economic Strategy Main Focus Outcome 1947–1950 Reconstruction Agriculture & rehabilitation Stable base 1951–1980 Planned Economy (Socialist) Agriculture, industry, self-reliance Industrial base created 1980–1991 Pre-reform growth Modernization, partial liberalization Growing inefficiencies 1991–Present Liberalized Economy Market reforms, globalization, technology Rapid growth & integration
- 9. 11. Conclusion Economic developmentin post-British India represents a journey from colonial stagnation to self-sustained growth. Through planned development, agricultural modernization, industrialization, and economic reforms, India transformed into a diversified, modern economy. Yet, the pursuit of inclusive and equitable growth