Features of Economic Policy in India (1950-1990)

The economic policy of India during the period of 1950-1990 can be broadly classified into two phases:

1. The Nehruvian Socialist Model (1950-1980)
2. The Era of Economic Liberalization (1980-1990)

1. Nehruvian Socialist Model (1950-1980)

The main features of the Nehruvian socialist model were:

1. Mixed Economy: The Indian government followed a mixed economy model, where both the public and private sectors coexisted.

2. Five-Year Plans: The government formulated five-year plans to achieve economic growth and development.

3. Land Reforms: The government implemented land reforms to redistribute land from landlords to landless farmers.

4. Public Sector Dominance: The public sector dominated key industries such as steel, coal, and power.

5. Import Substitution: The government adopted an import substitution policy to promote domestic manufacturing and reduce dependence on imports.

6. Foreign Exchange Controls: The government imposed strict foreign exchange controls to prevent capital flight and maintain the value of the Indian rupee.

7. License Raj: The government restricted private sector investment through a complex system of licenses and permits.

8. Price Controls: The government implemented price controls to prevent inflation and ensure affordable prices for essential goods.

2. Era of Economic Liberalization (1980-1990)

The main features of the era of economic liberalization were:

1. Privatization: The government began to sell off public sector enterprises to private investors.

2. Deregulation: The government removed many of the restrictions on private sector investment, such as the license raj.

3. Foreign Investment: The government encouraged foreign investment by easing restrictions on foreign ownership and allowing foreign companies to operate in India.

4. Trade Liberalization: The government reduced tariffs and other barriers to trade to promote exports and attract foreign investment.

5. Fiscal Reforms: The government implemented fiscal reforms to reduce the budget deficit and improve the efficiency of public spending.

6. Financial Sector Reforms: The government liberalized the financial sector by allowing foreign banks to operate in India and introducing new financial instruments such as mutual funds.

In conclusion, the economic policies of India during the period of 1950-1990 underwent significant changes, from the Nehruvian socialist model to the era of economic liberalization. These policies had a major impact on the Indian economy, shaping its growth and development over the years.