economic development in pre britishPre british, british, post british

economic development in pre british

1. Economic Development in Post-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 Colonial pattern — 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-Year Plan (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 from a 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 of heavy 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 development in 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