2.

Indian Economy 1950-1990

Economic Planning – is a process under which a central authority defines a set of

targets to be achieved within a specific period of time
Types of Economic system

Capitalist Socialist Mixed/Marketed

• Private ownership • All decisions taken by • Both government and

• Profit maximization is Government. private sector works
main motive. • Keeping in view together.
• Goods produced collective interest of • Ensures private profit
based on purchasing society. and social welfare.
power
 Long period Goals/Objectives

Growth Modernization Self Reliance Equity

• Increase in GDP • Adopting new • Avoiding

and per capita GDP
• Benefits of
technology. imports of those
• Either a larger stock • Change in social economic
goods which can prosperity reach
of productive outlook.
capital, or larger size • Women given equal be produced in a the poor sections
of supporting opportunities country- Import as well.
services like substitution
transport, banking • Self dependent
or an increase in the
efficiency of
productive capital
 Agriculture

Land Reforms Land Ceiling Green revolution

• Abolition of • Fixing maximum • Use of HYV seeds,

Intermediaries size of land to be fertilizer, proper
(Zamindar , jagidars) owned. irrigation.
• Regulation of rent. • 1st phase- 1960-1970-
• Change of Punjab, T.N, Andhra
ownership of land Pradesh.
holding. • 2nd Phase – 1970-1980 –
most areas of a country.
• Marketed Surplus.

Public and Private Sector in
Indian Industrial development
• Lack of Capital with the
Private entrepreneurs.
• Lack of Incentives among
the Private Entrepreneurs
• State Controlling the
commanding heights
Industry and Trade
IPR 1956
• Three fold classification of
industry.
• Industrial Licensing
• Industrial Sops (concession)
Small scale industry
• Karve committee 1955
• Labour intensive
• Location Flexibility.
• Equity Oriented.
 Trade Policy

• Inward looking trade strategy

• Tariffs increased.
• Quotas were put.
• Domestic industry protected permit l