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Rapid Economic Growth Increase in Employment Reduction of inequality of income

   Positive Economic role of the state Co-existence of public and private sectors Combined feature of socialism and capitalism .

 Mahalanobis model of growth ◦ Investment in heavy industry to achieve Industrialisation ◦ Coal. iron and steel. chemicals   Make India independent of foreign imports Dominant role of Public Sector . electricity. heavy machinery.

      Areas hitherto reserved for public sector were opened to private sector End to License Raj Foreign direct investment upto 51% in high priority sectors Chronically sick PSUs were referred to BIFR Greater autonomy given to PSU management Economy was opened to encourage more exports .

    Narrow focus Model bypasses agriculture and agrobased industries which are major source of employment Small and medium sectors hit by free entry of MNCs Greater rise in imports .

       Mounting Losses Political factors influence decision about location Delays in completion and increase in cost of construction Over Capitalisation Price Policy Excess Manpower Inefficient Management .

Phones. Cyber Cafes  Knowledge Connectivity ◦ School. hospital  Economic Connectivity ◦ Commodities and services of daily use can be procured and sold by villagers .  Providing Urban Amenities in Rural Areas Physical Connectivity ◦ Road  Electronic Connectivity ◦ Public Call offices.