INDIA‘S SOCIAL CHARACTERISITCS

• India’s population was growing at rate of 2%.

• Half of its population were illiterate.
• Poverty an infant mortality rate were among the highest in the
world.
• Political leaders to gain votes brought reservations policies.
• During 1990, gross investment in agriculture declined.
 Changing Economic Strategies
• Nehru shaped economic strategy by launching 5 year plan.
• Limit the outflow of foreign exchange and encourage domestic
production.
• Capital goods were divided into 2 categories;
1. restricted goods
2. OGL
• Government invested heavily in public sector industry with
nationalisation occurring in waves .
• By nationalising financial sector govt. became the primary
source of capital for private enterprise.
• The annual subsidy to farmers cost the govt. about $1.9
billion in 1980.
• Govt. regulated prices of essentials like coal, steel,
pharmaceuticals, etc. to control inflation but also to ensure
profitability of SOE.
• India’s industrial policy in 1970 and 1980 had mixed success.