Liberalization and Economic Reforms (1991)
The 1991 economic crisis forced India to liberalize its economy under Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh. Key reforms included:
- Abolition of the License Raj
- Foreign Direct Investment (FDI) liberalization
- Privatization of state-owned enterprises
- Tax reforms and globalization
These reforms spurred rapid GDP growth, averaging around 6-7% annually since the 2000s.
Growth of GDP and Per Capita Income
- GDP Growth: From $36 billion (1950) to $3.7 trillion (2024, PPP terms).
- Per Capita Income: Rose from $60 (1947) to $2,600 (2024).
Major Sectors: Agriculture, Industry, and Services
- Agriculture: Contributes ~15% to GDP but employs 45% of the workforce.
- Industry: Manufacturing (14% of GDP) and construction sectors are expanding.
- Services: IT, finance, and telecom contribute over 50% of GDP.
Pre-Independence Era Before British colonial rule, India was a prosperous economy with thriving trade in textiles, spices, and handicrafts. The colonial period (1757–1947) led to deindustrialization, exploitation of resources, and famines, leaving India impoverished at the time of independence. Post-Independence Economic Policies After 1947, India adopted a mixed economy model with a focus on self-reliance (Swadeshi) and state-led industrialization. The Five-Year Plans, inspired by the Soviet model, emphasized heavy industries, agriculture, and public sector dominance. However, by the 1980s, inefficiencies and slow growth necessitated reforms.
Comments
Post a Comment