Indian economic development largely depends on rural economy. Infrastructure development is an aspect of the Indian economy that is crying for immediate attention. Indian economic programmes call for balance betweensocialism and capitalism as defined in Mixed Economy by the first Prime Minister of India, Shree Jawaharlal Nehru.Mixed Economy is a contribution of India to the world as was Neutrality or Non-Aligned Movement in world politics.Schemes like free mid-day meals to students in Government Schools that was first introduced in India for thebenefit of the children of the lower income groups of the society by popular film-star turned politician and former Chief Minister of the southern state of Tamil Nadu, Shree M.G. Ramachandran, are gaining popularity throughout India and are being adopted by increasing number of states through the length and breadth of India with the active financial support and encouragement of the Central Government. The scheme is gradually expanded with the passage of timeto higher age groups of the students to cover more students under the scheme.India of late is also resorting to reduction in custom and excise duties to encourage trade and industry whileincrease in taxes on undesirable items like tobacco products and alcohol is the ruling trend. Rationalisation of taxesincluding income tax and customs and excise duties covering reduction in their rates is injecting new life to the Indianeconomy.
The Indian government budgeted to spend about ten trillionrupees in 2009-2010, about three trillion more than the previous year