Chapter 2 - 2 Indian Economy 1950-1990 After studying this...

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After studying this chapter, the learners will come to know the goals of India’s five year plans know about the development policies in different sectors such as agriculture and industry from 1950-1990 learn to think about the merits and limitations of a regulated economy. Indian Economy 1950-1990 2
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17 INDIAN ECONOMY 1950-1990 2.1 I NTRODUCTION On 15 August 1947, India woke to a new dawn of freedom: finally we were masters of our own destiny after some two hundred years of British rule; the job of nation building was now in our own hands. The leaders of independent India had to decide, among other things, the type of economic system most suitable for our nation, a system which would promote the welfare of all rather than a few. There are different types of economic systems (see Box 2.1) and among them, socialism appealed to Jawaharlal Nehru the most. However, he was not in favour of the kind of socialism established in the former Soviet Union where all the means of production, i.e., all the factories and farms in the country, were owned by the government. There was no private property. It is not possible in a democracy like India for the government to change the ownership pattern of land and other properties of its citizens in the way that it was done in the former Soviet Union. Nehru, and many other leaders and thinkers of the newly independent India, sought an alternative to the extreme versions of capitalism and socialism. Basically sympathising with the socialist outlook, they found the answer in an economic system which, in their view, combined the best features of socialism without its drawbacks. In this view, India would be a ‘socialist’ society with a strong public sector but also with private property and democracy; the government would ‘plan’ (see Box 2.2) for the The central objective of Planning in India. .. is to initiate a process of development which will raise the living standards and open out to the people new opportunities for a richer and more varied life. First Five Year Plan Work These Out ¾ Prepare a chart on the different types of economic systems prevalent in the world. List out the countries as capitalist, socialist and mixed economy. ¾ Plan a class trip to an agriculture farm. Divide the class into seven groups with each group to plan a specific goal, for example, the purpose of the visit, money expenditure involved, time taken, resources, people accompanying the group and who need to be contacted, possible places of visit, possible questions to be asked etc. Now, with the help of your teacher, compile these specific goals and compare with long-term goals of successful visit to an agricultural farm.
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18 INDIAN ECONOMIC DEVELOPMENT Box 2.1: Types of Economic Systems Every society has to answer three questions ¾ What goods and services should be produced in the country?
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This note was uploaded on 01/19/2012 for the course ECONOMICS 3EN taught by Professor Dwaynesmith during the Fall '09 term at Central European University.

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Chapter 2 - 2 Indian Economy 1950-1990 After studying this...

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