ECONOMY

At 75 today, India has certainly traversed a remarkably-inspiring journey.

Today, India entered the 75th year of independence. After a long freedom struggle and sacrifices of crores of Indians, the country could finally be free of the British rule. The political leaders of free India laid a strong foundation of democracy, nurtured unity in diversity and established the basic tenets of the nation, based on social justice and economic parity.


Amid the joy of freedom, young India had to go through an agonizing period of partition and wars with neighbouring Pakistan and China. External security apart, internally, India was afflicted by poverty, deprivation and many other ills of a young nation. But India strode single-mindedly towards peace, growth and progress and secured a place of pride among the nations of the world. At 75 today, India has certainly traversed a remarkably-inspiring journey.


It would definitely be in order to retrace the extraordinary achievements made by the country and focus on the formidable challenges present before it. At the dawn of independence, Indian agriculture was in shambles. The country’s severe food shortage had forced it virtually to live from ship to mouth. The government took a series of measures, and the ensuing Green Revolution of the 1970s turned India into the world’s largest producer of many

foodgrains, vegetables and fruits.


There were no large industries worthy of mention in the early years of free India. Except for cotton and jute, most of the industries were of small and cottage scale. The industrial policy introduced during the second five-year plan, beginning in 1956, gave a big thrust to large-scale industrialisation with government support in the public sector. Big iron and steel, coal, chemical and metal industries were set up in the public sector, mainly because the private sector neither had that amount of capital nor was it interested in most of those sectors. Moreover, the government took the lead in setting up modern infrastructure, be they ports, airports, roads or rail network.


A little over four decades after independence though, the old model of government-led economic growth seemed to crumble. This led to economic liberalisation of 1991. Post-liberalisation, there has been a dramatic change in the country’s economic landscape, with the State ceding space to the private sector in most of the sectors. Almost every sector – be it telecom, power, automobile, information technology, pharmaceutical, banking and financial services – has grown tremendously, thus contributing immensely to economic growth.


There was nothing wrong with the State control in the initial days of independence. In fact, mixed economy – a combination of both public and private sectors driving the economy – was the trend worldwide then. Perhaps, India stuck on to this model for quite too long, leading to the economic crisis of 1991.


Meanwhile, three decades after economic liberalisation, there is a general view that growth has been lopsided, leaving out some sectors of the economy and sections of society way behind. Besides, rising inequality, sliding key human development indicators and jobless growth are raising many troubling questions on the right growth model. At the same time, growing intolerance and weakened institutions are tarnishing the credentials of India as the world’s largest democracy.


At 75, this is the most appropriate time for India to introspect seriously, make course corrections, wherever necessary, and embark on a new journey with renewed confidence.

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