Analysis of how the black economy grew in post independence india
Answers
@@ Post Independence our Indian economy was growing as a black economy because of following factors...
** Backward and stagnant agricultural sector :::-----
"" Landlords control..
These mediators gave loan to farmers but at a very high intrest rate that cause a great depth loan on farmers so it reduced the investment in farming..
"" Dependency on rainfall...
Farmers have no type of irrigation facilities do that they had to depend on rain this cause uncertanity of output...
" Low productivity...
As farming was the highly concentrated sector but the output level of this sector was very low....
** Deindustrialization ..:::-----....
"" Control over Indian industries.....
Britishers controlled over our industries and used to take off our opportunities themselves....
"" Loosing reputation of handmade products......
Indian handmade was reputated at past but after Britishers it loosed it value from machine made products...
** Unbalanced trade ::-----
" Larger no of exports of raw material...
From India Britishers used to export large no of raw materials it reduced our opportunities....
"" Larger no of import of final goods....
Final good export unemployed our workers and our economy goes back down...
### Good luck !!!
Arun Kumar is an eminent economist who has been studying the black economy in India for close to four decades. His 1999 book The Black Economy in India is among the foremost accounts of the black-money problem in the country.
In Understanding the Black Economy and Black Money in India: An Enquiry into Causes, Consequences and Remedies, released in February 2017, Kumar discusses the misconceptions around black money, the growth of the black economy and remedies to curtail it. “Suffice it to say that the demonetization has had little effect on the problem of the black economy,” he writes in the introduction to the book. In the following extract from the book, Kumar explains the origin and growth of the black economy—a parallel or illegal economy, which encourages the rise of black money—after 1947. Kumar contends that this economy remains unaffected by demonetisation, and contributes to making socio-economic policies less effective.
Independent India started with high aspirations but a weak democracy because the power was transferred from the colonial masters to a relatively unaccountable political class and a civil service that was accountable mostly to the ruling elite. As the democratic aspirations of the national movement weakened, the political class became more corrupt. The government of India report of 1956 argued for the need to keep the black economy in check so that more resources could be raised for development. It found businesses generating profits from black market activities in all sectors of the economy.