Essay on "The recent changes in the economic system of India and their impacts."
Answers
Colonization is also a factor for the underdevelopment of a country’s economy. India was a victim of the colonial feature of economic exploitation for more than hundred years.
The British colonial exploitation in India can be broadly divided in three periods. They are (i) the period of merchandised capital, (ii) the period of industrial capital which leads to the drain of Indian wealth for the interest of British industry and (iii) the period of financial capital.
During British period foreign capital flowed into India. However in real terms those capitals were not according to the proper needs of Indians and directly helped the capital growth of Britishers.
The overall impact of British rule in Indian economy can be summed up as stagnation of per capita income ever a long period of time, high priority to the traditional method of agricultural activities, repeated famines and acute poverty of handicrafts and traditional village industries defective land holding and erroneous implementation of zamindari practices etc.India’s economy could be termed as a developing economy which is characterized by the co-existence, in greater or lesser degree, of utilized or unutilized manpower on the one hand and of unexploited and exploited natural resources on the other.
A developing economy bears the common features of technological backwardness at low per capita income coupled by widespread poverty, heavy population pressure, low grade productivity, high unemployment, low level utilization of country’s natural resources, rigid social structure, pre-dominance of old beliefs, lack of opportunity for capital formation, pre-dominance of agriculture and scanty participation in international trade etc.
But all this is amidst a possibility of economic development, small pockets of high rates of economic growth and affluence.
It is gain saying truth what the world economy has experienced that colonization directly lead to the exploitation of the colonized country by the colonial rulers.
Economic reforms were introduced by the Government of India in July 1991. The reform process has completed 17 years. It would, therefore, be both interesting and instructive to make an overall assessment of the reform process so as to ascertain whether the country is moving in the right direction, or, to terminate the reform process altogether.
Goals:
The objectives of the reform process were:
(a) To promote a faster rate of growth,
(b) To enlarge employment potential leading to full employment,
(c) To reduce the incidence of poverty,
(d) To promote equity, leading to a better deal for the poor and less well-off sections of society,
(e) Reduction of regional disparities, i.e., the gap between the rich and the poor states, and
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