Metamorphosis of Indian Economy

Recently there was a very popular message circulating on cell phones

In 1990-samosa was 1 rs and call was rs.7

In 2011-samosa is rs.7 and call rs.1

Inflation is same but rates are shifted somewhat….

Message was nice though…

No doubt we have seen a paradigm shift as compared to 1990 to the present time..

We all are aware of India’s condition after independence.we were totally ruined and our economic condition was at its worst.

Welfare of the country and making and economic democracy was the main thing in India at that time.Our first prime minister pundit Jawaharlal Nehru wanted India to be a self sufficient company and started central govt planning on account of soviet union(Russia).The first five year was started in 1951.no doubt they tried to make lots of changes in terms of industry and growth.

But as far as I see the major reforms started in 1971, under Nehru's daughter, Indira Gandhi, the Government tried to eliminate poverty by promoting small, labor intensive enterprises. One of the most wonderful things to happen to the world was the genetic development of high-yielding grain varieties, the Green Revolution, under- ground nuclear tests and development on defense took place in 1974 along with development of various large scale industries.

All these changes were followed by economic reforms by Rajiv Gandhi.as he himself was Imperial college pass out, so when he came to power he increased government support for science and technology and associated industries, and reduced import quotas, taxes and tariffs on technology-based industries, especially computers, airlines, defense and telecommunications.

India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis which will be covered in the next post..or I can say coming up soon…..