Indian economy

India is a developing economy. The economic stagnation and the vicious circle of poverty which characterised the pre-independence Indian economy are slowly but steadily giving place to rapid economic activity and higher levels of income under the impact of economic planning. Our present economic ailments are those associated with or arising directly from the problems of economic growth. It is highly important that the Indian students at the under-graduate level understand and appreciate these problems.

The teachers of Indian Economics have, therefore, been feeling the need for a text-book which highlights the problems of growth and presents a new approach to the study of the Indian economy. We have made an attempt to discard the traditional approach to the subject and present a development-oriented study of the

Indian economy. The book is divided into six parts. In Part I, an analysis of the structure of the Indian economy has been. given. The existence of the trap of under-development equilibrium, the basic characteristics of the Indian economy, national income and its components, the distribution of national income and consumption pattern, the study of human and natural resources in the context of economic development, the problems of capital formation provide a broad cross-section of the Indian economy. To make the picture more complete, two chapters, namely, the sociological factors in economic development and economic transition of India giving a brief survey of economic policies during the last 200 years are also included in this section.

Part II of the book relates to the problems of planning. The rationale and philosophical basis of Indian planning, the growth of industrial policy and the growing role of the public sector in Indian economy which provide the ideological background to Indian planning are discussed in the first three chapters of this section. offifteen They are followed by a review of fifteen years of planning, the considerations in the formulation of the Fourth Plan and the pattern of financing the plans. Besides, the role of external assistance in Indian economic development, the significance of price policy in a developing economy like India and the need for mobilising and augmenting the marketable surplus which are the key factors to be operated upon by the planning authority in view of the needs of economic development, are also discussed. The purpose of this section is to present a comprehensive view of the problems of Indian planning, the lessons to be drawn from our experience of planning as also to know the operation of controls and gears in Indian economic system.

After making this survey of the Indian economy at the macro-level, Parts III, IV and VI are devoted to the study of Agricultural Sector, the Industrial Sector and the Tertiary Sector of the Indian V is concerned with the problems of Indian labour.