Economic Economic Development of IndiaDevelopment of India

ProblemsProblems

Build Agriculture and Build Agriculture and IndustryIndustry– Food and manufactured Food and manufactured

goodsgoods

ProblemsProblems

Agriculture:Agriculture:– Poor soilPoor soil– Inefficient farming methods Inefficient farming methods – Needed to increase crop outputNeeded to increase crop output– Land distributionLand distribution– Tenant farmingTenant farming– overpopulationoverpopulation

ProblemsProblems

Industry:Industry:– Dependence on imported Dependence on imported

manufactured goods, machines, and manufactured goods, machines, and oiloil

– Gov’t run businesses inefficientGov’t run businesses inefficient– Limited foreign investmentLimited foreign investment

SolutionsSolutions

Gov’t took lead to develop Gov’t took lead to develop Agriculture and IndustryAgriculture and Industry

SolutionsSolutions

Nehru: Nehru: – Socialist principlesSocialist principles– series of five year plans with limited series of five year plans with limited

foreign investment – mixed economyforeign investment – mixed economy– Factories to produce manufactured Factories to produce manufactured

goodsgoods– gov’t: steel, mining, textile, gov’t: steel, mining, textile,

transportation, energytransportation, energy– private: consumer goodsprivate: consumer goods

SolutionsSolutions

Rajiv: Rajiv:

– liberalized economy: liberalized economy: stimulated economic growth stimulated economic growth in Indiain India

Encouraged private enterpriseEncouraged private enterprise

– Foreign partnershipsForeign partnerships

SolutionsSolutions

moved from socialism (Nehru 1950-60) moved from socialism (Nehru 1950-60) to free/private enterprise and the to free/private enterprise and the liberalization of the economy (Rajiv liberalization of the economy (Rajiv Gandhi 1980)Gandhi 1980)

Agriculture: Agriculture: – gov’t irrigation systemsgov’t irrigation systems– New machinesNew machines– Green Revolution (video): use technology to (video): use technology to

increase output of cropsincrease output of crops– Land reform Land reform

India’s Economic GoalIndia’s Economic Goal

create a modern industrialized create a modern industrialized nation nation

self sufficient self sufficient – Video -Video - India's Economy: The Road Ahead