Indian Economy

Passage: Indian Economy

The independence-era Indian economy (from 1947 to 1991) was based on a mixed economy combining features of capitalism and socialism, resulting in an inward-looking, interventionist policies and import-substituting economy that failed to take advantage of the post-war expansion of trade. 

This model contributed to widespread inefficiencies and corruption, and the failings of this system were due largely to its poor implementation.

In 1991, India adopted liberal and free-market principles and liberalized its economy to international trade under the guidance of Manmohan Singh, finance minister from 30 November 2009 to 24 January 2010, and previously under the leadership of P.V. Narasimha Rao, prime minister from 1991 to 1996, who had eliminated License Raj, a pre- and post-British era mechanism of strict government controls on setting up new industry.

 Following these major economic reforms and a strong focus on developing national infrastructure such as the Golden Quadrilateral project by Atal Bihari Vajpayee, prime minister, the country's economic growth progressed at a rapid pace, with relatively large increases in per-capita incomes.