Economic Development of India

Post 1990 ' Economic Development of India ' can be attributed to globalization and liberalization of Indian Economy. Till the end of 1980s ' Economic Development of India ' suffered stagnation due to protectionism both internally and externally.

India was predominantly an agriculture based country and the British colonial government did not pursue any active agricultural and 'welfare of the rural population', policy. Most of the commissions which were set-up for ' Economic Development of India' were unsuccessful. The food crisis during World War II, made the Government realize the need for growing more food and to be self sufficient. Famine in Bengal in 1943 forced the government to release its first agriculture policy statement and which formed the basis of many of the policies adopted thereafter, especially in the First 5-Year Plan. The 5-year plans played a pivotal role in ' I ndia Economic Development ' and they are summarized as follows:

• The first four 5-year plans involved a total public sector disbursement of Rs.314.1 billion. The first plan prioritized agriculture and power projects.
• The second plan focused on new industrial policy, rapid industrialization and envisaged 25% increase in national income.
• The third plan targeted rapid industrialization, with 24.6% outlay on transport and communications and 20.1% on industry and minerals.
• The fourth plan stressed on agriculture and allied sectors and received around 27%, while industry and minerals outlay was 18.5%, transport and communications stood at 18.4%, and power development at 17.8%.
• The fifth plan envisaged removal of poverty and the attainment of self-reliance. A total spent of Rs.393.2 billion was allocated, and actual expenditures amounted to Rs.394.2 billion.
• The sixth plan targeted developmental plans and the projected outlays amounted to Rs.975 billion.
• The seventh plan projected 5% overall GDP growth (which was surpassed) based on increases of 4% in agricultural and and 8% industrial output. And spent amounted to Rs.1,800 billion.
• The eighth development plan laid the foundation for long-term economic gains. The eighth plan was a grand success and economic growth rose to 6% a year, generated more employment, poverty was curtailed, exports increased many folds, and inflation declined substantially.
• The ninth plan witnessed overall stupendous improvement in the GDP growth rate from an average of about 5.7% to about 6.1% and increased literacy from 52% in 1991 to 65% in 2001.