Indian Economy at Sixty Three District Models of Growth

By Mahajan, V. S. | Political Economy Journal of India, January-June 2008 | Go to article overview

Indian Economy at Sixty Three District Models of Growth


Mahajan, V. S., Political Economy Journal of India


There are three distinct phases of Indian economy during the last sixty years. The first phase starts with Nehru's government--roughly starting in 1950 and continued till his death in 1964; the second phase starts with Indira Gandhi's regime from the mid--1960's to her death in 1984--roughly the same period as of Nehru. The third phase starts from Rajiv's government in 1985 with distinct departure from the earlier two phases of limited restricted approach of Nehru and highly restricted approach of Indira Gandhi.

Rajiv's approach was in the favour of liberal economy. He wanted to do away all the restrictions and bring in an era of open economy. But unfortunately he was unsuccessful in it when senior congress leaders warned him about the consequences of such approach and he was thus forced to stick to earlier approach with of course minimum changes here and there. There prevailed a high degree of corruption both among the politicians and bureaucrats. Much of it was due to long time functioning of restrictive economy. The public was highly agitated about government approach towards the common man. Under these circumstances, little surprise that Rajiv's government was defeated in the next elections; and a new coalition government was elected at the centre.

The new coalition also failed to function when there was difference among the ruling leaders and everybody wanted to grab power. The three PM's --V.P.Singh, Charan Singh and Chander Shekhar, each of whom ruled for short time, could not bring about stability. As mis-governance was at its high, it resulted in a heavy loss to the economy, leading to a high debt which India found difficult to clear.

Amidst all the chaos and mistakes, the next elections were held in 1991 resulting in the return of Congress at the centre with a narrow majority. The win by Congress was largely due to the nation's sympathy vote after the death of Rajiv Gandhi. Meanwhile Narasimha Rao was chosen as the prime minister.

The government faced the toughest job of baling out India's shabby economy from the big external debt, which had piled up high. It became difficult to raise loan from the international financial market, because of low credit- worthness of India. As a result, the government approached the World Bank for this, which in turn, agreed to help India provided certain set of conditions were honored by the ruling government, like free the economy from the whole area of restrictive rules and regulations which hindered trade and business, and open its economy to the global economy, which the Indian government agreed to do. The World Bank had also suggested the name of Manmohan Singh to be its finance minister while the government was thinking of Pranab Mukherjee for this office.

It is at this stage that Manmohan Singh emerged as a key figure to execute the whole set of reforms that the world bank wanted while sanctioning the mega loan to India. In fact his emergence from obscurity to the top position in the country was indeed unique.

He was required to seek his membership of Rajya Sabha within a period of six months of his appointment as finance minister. It goes to the credit of Narasimha Rao that he agreed to all the suggestions made by Manmohan Singh and did not interfere in his working. Even when things went wrong, the finance minister was able to sort out them gradually.

Thus the third phase of India's development was of liberal economy, though started by Rajiv Gandhi but not allowed to follow it, it was completed by Manmohan Singh when he was finance minister. It is interesting to note that none of the subsequent governments voted into power after the congress defeat in 1996, interfered with the liberal polices of growth started by Manmohan Singh. Interestingly even the BJP government which had its full five-year term, not only followed what was begun by Manmohan Singh, infact they improved it further by being more liberal and their relationship with the U. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Indian Economy at Sixty Three District Models of Growth
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.