Economic Policies
 

Colonial period                  mostly market economics

Nehru Period, 1950's        strong tendency towards English-style socialism,
                                       government investment and control of industry
                                       extensive permits required for trade, business
                                        some talk of land reform

Indira, 1970's                    slightly less government controls

Rajiv, 1980's                     reduce taxes, relax licenses

Rao,
Singh
Deve Gowada 1990's        cut government spending, taxes, reduce controls
 

Results:
 

• creation of a solid industrial base
• GNP per capita growth rates of 3-6%
• industrial growth: 8.5%, manufacturing growth rapidly 1-2-
• agricultural growth, now self-sufficient
• still, lots of poverty
• Much more economic growth than Africa, but not as much as East Asia

Two Special (limited) Success Stories

Kerela (South west tip)

• In past, there was extensive Christian Missionary work and conversion
• People elected socialist state government
• high standards of health services, education, low(er) birth rates, good nutrition
• region still quite poor, but well prepared for migration (including here)

• green revolution (dwarf wheat, tubewell irrigation)
• became the "bread basket" of India, foundation for state procurement
• expansion of farm employment (field management, harvesting, multiple cropping)
• labor migration into region
• mechanization, land consolidation and polarization
• social violence, Sikh nationalism, demands for secession, terrorism

Foreign Policies

1. 1950's - non-aligned
        Friendly with USSR, arms purchases

2. Tensions with Pakistan

     bloody partition, 1974
     wars in 1965, 1971 (split Bangladesh from Pakistan)
     constant tensions over Kashmir, Punjab
     1998 nuclear arms tests, how dangerous is it?

3. The US has supported Pakistan historically (relic of Cold War), so relations
between India and the United States have been surprisingly cool, despite India's democratic system.
 

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