what was the political and economical situations before 1967 ??
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Answers
Answer:
As ever, it is not difficult to recognize the truth of some of these claims. But what this
narrative of rise, decline and recovery cannot account for is the upturn in India’s rate of
economic growth post-1980. The fact is that per capita incomes in India grew on average
at 3.8% in the 1980s, or at more or less the same rate as they grew in the 1990s. There are
three main reasons why this was so. To begin with, as Atul Kohli has argued, the
governments of Indira Gandhi and Rajiv Gandhi (1980-89) began to tilt economic policy
more clearly in the direction of big business.25 The courting of foreign direct investment
was still not a priority through the 1980s, although a few joint ventures were brokered in
the autos sector. Nevertheless, the strongly anti-capital (especially, anti-foreign capital)
rhetoric that Indira Gandhi had deployed in the 1970s was toned down. New initiatives
were introduced that favored established Indian producers. In place of garibi hatao (end
poverty), the political platform on which Indira Gandhi made her name in the early 1970s,
the Congress governments of the 1980s retired those parts of the Monopolies and Trade
Practices Act which made it hard for big business to expand in core sectors like chemicals
and cement. Some efforts were also made to liberalize credit for large companies. Perhaps
most importantly, both Indira and Rajiv Gandhi took steps to tame labor activism in the
organized sector, and to encourage private sector investments with limited tax concessions.
Kohli argues that a major effect of these policy changes was to shift the balance of
capital formation in India through the 1980s. Albeit at the margin, it was the private
corporate sector that now began to contribute more to economic development, while
capital formation in the public sector stabilized after a period of rapid growth in the 1970s.
It seems likely, too, that the growth-inducing effects of a pro-business tilt were augmented
by the gradual diffusion of Green Revolution technologies out of Punjab, Haryana and
parts of south India. West Bengal now became a Green Revolution heartland, following
significant government investment in irrigation and electricity supply.