Development Policies and Experience (1947–90)

About this unit

This unit traces India's economic journey from colonial rule to the end of the 1980s. It begins with the state of the economy at independence, then studies the planned development strategy adopted after 1950: the goals of the Five Year Plans, reforms in agriculture, the industrial policy that gave the public sector a leading role, and an inward-looking trade policy. Understanding this period explains why India later chose the reforms of 1991.

Key ideas

• Colonial rule left India with a stagnant agriculture, de-industrialisation and a trade pattern serving Britain.
• India adopted a mixed economy with central planning through Five Year Plans.
• The goals of planning were growth, modernisation, self-reliance and equity.
• Land reforms and the Green Revolution reshaped agriculture.
• The Industrial Policy Resolution 1956 reserved key industries for the state and used licensing.
• Import substitution protected domestic industry from foreign competition.

How to prepare

Learn the four goals of planning with an example each, and the main features of land reforms, the Green Revolution and the 1956 policy. Memorise a few stable dates (railways introduced 1850, Planning Commission 1950, first plan 1951, IPR 1956). Expect assertion and case questions that ask you to judge the successes and failures of the period.