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INDIAN ECONOMY (1950-1990)

CHAPTER -II INDIAN ECONOMY (1950-1990) 1.INTRODUCTION •           Agriculture was the principal source of subsistence for the bulk of the population. •           Secondary and tertiary sectors of the economy were grossly insignificant. •           Majority of the countrymen were living under extreme poverty. •           Life expectancy was extremely low. •           Problems of large scale unemployment and absolute poverty could not find their own solution, left to the forces of supply and demand. •           Direct participation of the government in the process of growth and development was needed. This meant adoption of economic planning . 2.MEANING OF ECONOMIC PLANNING AND FORMATION OF PLANNING COMMISSION IN INDIA A) Meaning :  Planning is a systematic process of achieving the predetermined goals   within the specific period of time. Economic planning means utilization of country’s resources into different development activities in accordance with nationa
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CHAPTER-III {New economic Reforms (LPG)}

CHAPTER -3 NEW ECONOMIC REFORMS MEANING OF ECONOMIC REFORMS  (OR)  NEW ECONOMIC POLICY(NEP)  : The new economic policy started by the government since 1991 in order solve the Economic crisis and to accelerate the rate of economic growth is called Economic Reforms. It is also known as new economic policy which consists of Liberalization, Privatization and Globalization (LPG). This aims at the rendering the economy more efficient, competitive and developed . NEED FOR ECONOMIC REFORMS / RESONS WHY ECONOMIC REFORMS WERE INTRODUCED: 1. Mounting fiscal deficit: Fiscal deficit of the government had been mounting year after year on continuous increase in non-development expenditure. Due to persistent rise in fiscal deficit there was corresponding rise in public debt and interest payment liability there was possibility that the economy might lead to debt-trap situation. Thus it becomes essential for the government to reduce its non development   expenditure and re
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Comparative Development Experience of India and its Neighbours

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  Comparative D evelopment Experience of India and its Neighbours   Development Path of India, Pakistan and China. (i) All the three countries started their development path at the same time. India and Pakistan got independence in 1947 and People ’s Republic of China was established in 1949. (ii) All the three countries had started planning their development strategies in similar ways. India announced its First Five Year Plan in 1951, Pakistan announced in 1956 and China in 1953. (iii) India and Pakistan adopted similar strategies, such as creating a large public sector and raising public expenditure on social development. (iv) Both India and Pakistan had adopted ‘mixed economy’ model but China had adopted ‘Command Economy’ model of economic growth. (v) Till 1980 s , all the three countries had similar growth rates and per capita incomes. (vi) Economic Reforms were implemented in China in 1978, in Pakistan in 1988 and in India in 1991. Development Strategy: A.   China
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