1. India New Traditionalist Economy
2. General characteristics Population size and diversity
Largest Old Traditional economy self-sufficiency jajmani
British Raj / Permit Raj
Long history of long distance trade
Politics dominated by CP , BJP
Deficiencies of growth religion, language, caste, overpopulation
3. History and Culture Origin of religions Hindu caste system
Languages
History prior to British control; British rule since 1757, resistance against railways Curzon line. Ghandi teachings.
Assess impact of British rule impact of textile exports; protectionism; agriculture feeds population; land tenure; food exports 1875 1900. Gains? Railways + education
4. Post-independence CPE and socialism : CP divided. Nehru 4 reasons. Reconcilable?
Indian Planning Commission 5 Year Plans
WW2 Bombay Plan 1943
1951 : License Permit Raj
1st 5YP Keynesian infrastructure
2nd5YP capital goods SOE
3rd 5YP- follow 2nd = high water mark
5. Planning disrupted 4th 5YP abandoned conflict, drought, famine crisis longest GDP decline.
5th 5YP Indira Ghandi input/output modeling, agriculture. Nationalisation.
6th 5YP I allocation matrix Indira out Rajiv in 1984.
7th 5YP relaxation of market restrictions. Plan holiday 1990 1992 reforms started.
8 and 9th 4YP BJP coalition de-regularise
6. Reservation System Massive nationalisation 1980s (p.470)
1984 IG out : JVs authorised
Rajiv relax control of computer industry = take-off. Rise in FDI, economic growth, private I replaced SOE investments
1991 Forex crisis reforms by Rao
Debt, inflation, fiscal deficit.
7. Reforms Identify elements of reform p. 472
WTO demands
Z competition allowed radical ideological reform
Fiscal instability remained
Irritating restrictions remained
Labour markets remain regulated
Lack of bankruptcy laws
8. Remaining Problems Population conditions of living improved poverty
Demographic prerequisites for growth negative.
Regional disparities
I in infrastructure and education
Improve status of women
Hindutva BJP attempt to balance nationalism and market
