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INDIA BEFORE INDEPENDENCE

1. India was a colonial
2. Before the industrial revolution in England the east India company exported good, textile,
after the industrial revolution the Britain were the raw material was there and market as a India
3. at the time of independences, literacy was 17% and 32.5 years of age expectancy
4. they never support the India industrialization, and if infrastructure not built to industrialize
but export India raw material
5. before commercial agriculture the production was of food crops. But after this India
produces the commercial cash crop, like cotton from Bombay, wheat from Punjab, jute from
Bengal were transfer to the sub urban center and the to England. this all was done by railway
they commercial crops from various part of country and they bring back machine made good to
India it let ruin the Indian industries
6. stagnation is called as pre independences, aggregate real output estimate at less than 2
percent no per capital growth from 1600 to 1870 and 0.2 from 1870 to 1947

Post India independences

The political leader and the industrialists both were very much aware and conscious
about the economics inherited

.T

 State /GOVERNMENT SHOULD BE GIVEN A DIRECT REPONSIBILTY FOR DEVELOPMENT

 AN AMBITIOUS AND VITAL ROLEM TO BE ASSIFNED TO THE PUBLIC SECTOR
 NESCESSITY FOR THE DEVELPOMNT OF HEAVY INDUSTRIES
 DICOURAGE TO FOREIGN INVESTMENT
 THE NEED FOR ECONOMICS PLANNING

AGRICULTURE VS. INDUSTRY

1] The political leaders selected industry as the leading forces of economy

2] Given the available resources base, India lacked all pre requisites for industry

 Almost no presences of infrastructure sectors, i.e power and transport

 Negligible presences of the infrastructure industries i.e iron and steel, cement, coal
 Lack of investible capital- either by government or private sector
 Lack of skilled manpower
 Absences of a market for industrial good

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 Reasons for option industry as economy prime
moving forces
 India opted to industrialize the economy as well as modernize the tradition mode of farming
 International organization support
 Second world war proved the supremacy of defenses power
 Industries efficacy example of European nation
 Socio economics consensus among India on need moderation

Post independences
 India was declaring as the plan and mixed economy; India went for the plan economy so that
it could play an active role in allocation of resources and mobilize them for equitable growth and
development
 India decision for a planned economy was made be some contemporary experiences in world

1. The great depration of 1929 and the reconstruction challenges after the second world war
2. Around the same time the command economics of the union and east European countries
making news about their faster economic growth

Emphasis on public sectors

The reason behind the expansion for public sector were;

1] Infrastructure needs;
 Every economy needs suitable level of infrastructure
 They need heavy capital investment as well as engineering and technology support
 Expansion of infrastructure was not possible by the private sector of the time as they could not
manager the following component

2] Industrial needs;

1. For industrialization there should be some industries present

2. These industries have been called by different name, infrastructure industries, core industries
and core sector

3. The industries are (%) weight in index of core industries

 3.1 Refinery products (28.04)

3.2 Electricity (19.85)

3.3 Steel (17.92)

 The combined weight of these three industries is is 20.27 per cent it is called as Index of
Industries production (IIP)
 These industries also need high level of capital as like infrastructure industries. At time of
independences, cement industry has strength in private sector
 In iron and steel industries a long private company was present
 The crude oil and refining were just beginning
 Along with land reform, the reservation was provided to weaker section in government jobs
 This reservation was an economics tool for social change
 Nehru mentions the PSU as the temple of modern India.

An underdelvelpment economy is chaeacterised by the existences of unutilized or underutilized

manpower on one the hand and of unexplioited natural resouces

County classified in income level

India comes in the lower middel income group

What is the per capilat income of india in 2021