India's Economic Growth Story since Independence had been lackluster till 1990s. The world only heard stories of poverty,illiteracy,famines,jam-packed slums and a lot similar from this largest democracy.
Though things have not turned-around completely, India has achieved the status of an 'emerging economy' with a robust growth rate which we have been able to maintain since the economic reforms. India has been among a few nations which post 8% GDP growth for the last many years, baring the crisis period. Thanks to the sound financial system and the timely intervening of our regulators, we could post a far better growth rate of 6.2% when the developed world were having a bad time. A diverse and vast working population
(what we call 'The Demographic Dividend'), huge though yet untapped market, progressive economic policies, and our new image of investor friendly nation(though the road is not fully smooth) have helped us to achieve this excellent growth saga.
However, things had been quite different before 1990s. Though India had been having a 4-5% growth since Independence, owing to huge public spending in industry and its mixed economy system, it had been uneven. Some sectors lagged behind. Agriculture, which was the sole livelihood for around 75% of its population, even posted negative growth due to an utter neglect from the part of policy makers and the post dated technology and inputs we had been using. Whereas, with the advent of 'Green Revolution' agriculture sector improved enough to register 4-5% growth from the late sixties onwards.
Meanwhile, industrial growth slowed down as policy makers were busy with 'Green Revolution'. However, service sector has grown incessantly due to increased urbanisation, modernisation, economic reforms and a slew of other reasons including cost competitiveness. Though overall GDP growth rate had been increasing since 1980s, the BOP crisis in 1991 took India to have a u-turn in its economic policies and post high growth henceforth , though uneven , albeit our rhetoric of and continuous efforts to make it inclusive.
Though things have not turned-around completely, India has achieved the status of an 'emerging economy' with a robust growth rate which we have been able to maintain since the economic reforms. India has been among a few nations which post 8% GDP growth for the last many years, baring the crisis period. Thanks to the sound financial system and the timely intervening of our regulators, we could post a far better growth rate of 6.2% when the developed world were having a bad time. A diverse and vast working population
(what we call 'The Demographic Dividend'), huge though yet untapped market, progressive economic policies, and our new image of investor friendly nation(though the road is not fully smooth) have helped us to achieve this excellent growth saga.
However, things had been quite different before 1990s. Though India had been having a 4-5% growth since Independence, owing to huge public spending in industry and its mixed economy system, it had been uneven. Some sectors lagged behind. Agriculture, which was the sole livelihood for around 75% of its population, even posted negative growth due to an utter neglect from the part of policy makers and the post dated technology and inputs we had been using. Whereas, with the advent of 'Green Revolution' agriculture sector improved enough to register 4-5% growth from the late sixties onwards.
Meanwhile, industrial growth slowed down as policy makers were busy with 'Green Revolution'. However, service sector has grown incessantly due to increased urbanisation, modernisation, economic reforms and a slew of other reasons including cost competitiveness. Though overall GDP growth rate had been increasing since 1980s, the BOP crisis in 1991 took India to have a u-turn in its economic policies and post high growth henceforth , though uneven , albeit our rhetoric of and continuous efforts to make it inclusive.
Thanx for sharing this nice information about Indian growth after independence. Industrialization starts right after the independence. Now India have world's strongest economy.
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