Economic Growth in Nehru Era – The Recovery of India

Economic Growth in Nehru Era: Economic Policies Growth during the Nehru Era has always been subject to several controversies. But it is very crucial to put the Economic Policies of Nehru in context for better appreciation of his policies. The dedication of Nehru towards the case of the nation’s development always remained unquestionable and it is also a truth that most of his policies and speculations were endangered by the unexpected partition that took place during India’s Independence. This partition brought extraordinary cleft in the economic resources of India. It is also confessed by Nehru himself that partition brought a huge amount of issues including the great rift in the industrial and agriculture sectors.

Economic Growth in Nehru Era – Reforms of Nehru in Early India

Economic Growth in Nehru Era

Being the first Prime Minister of India after Independence, Nehru first launched a variety of economic reforms. He believed that the state has control over the economic sectors of India. He has introduced laws for land redistribution and to cope up with the economic discrepancy in Indian state this land redistribution law was launched. The major Economic Policies Growth Nehru Era was the introduction of the Five Years Plan launched in 1951. This reform was launched to determine the mode of government expenditure and grants in major development sectors.

Ideology Guiding for Economic Policies of Nehru

The Economic Policies Growth Nehru Era was always considered to be Socialist in nature and there is no doubt that socialism plays a pivotal role in the ideology makeup of Nehru. But Nehru himself deprived of any type of overt socialist tendencies in his economic policies. It supported a type of mixed economy. Any type of unquestioned ideologies in adherence to the form of economic tenet or ism he comprehended was detrimental for Economic Policies Growth in India. He actually desired a viable approach in shaping the economic policies which would suit the present needs of the country.

State Control in Economic Growth in Nehru Era

The unique and debated characteristic of Economic Policies of Nehru was the higher central and state control which was practiced in the business and industrial sectors of India. As per Nehru, the state would have higher control over all key sectors of the country’s economy, either state-wise or centrally. Because of his emphasis on state control, the stress on industrial policies was somehow seemed to be undermined. The license rules and strict state laws put a huge amount of restraint on the free execution of industrial policies. Both farmers, as well as business owners, found to be at the receiving end of the strict state control policies and higher taxation. Unemployment, as well as poverty, was widespread across the country during the reign of Nehru.

Industrial Policies of Nehru

For Economic Policies Growth in India Nehru considered maintaining a balance between the urban and rural sectors in his economic policies. He also confirmed that there will be no contradiction between these two sectors and both can go hand in hand. He also opposed to carrying forward the traditional old city versus village controversy and hoped that both can go hand in hand. Nehru also intended to harness and exploit the natural resources of India for the betterment of the countrymen.

The primary sector which he identified was hydroelectricity and due to this reason, several dams were created to achieve this. These dams will not only harness the energy, but it would also support the irrigation to a greater extent. Nehru also considered that these dams would be the figure of the collective growth of India because dams were the platform where agriculture and engineering would meet in the common platform. He also looked forward to the nuclear growth during his reign as Prime Minister of India.

The Views of Nehru on Rural Economy

The Policies of Nehru towards the rural economy were also very strong and important. He felt for the rural development of India very determinably and put all his efforts in boosting the cottage industries. He strongly believed that cottage and other rural industries of India played a pivotal role in the economic fabric of the nation. But most of the rural industry development schemes were designed as a part of community development.

The Economic Policies Growth Nehru Era was often blamed for the poor economy of the nation in that subsequent year. But it can’t be denied that all his reforms and economic policies were necessities by the very needs of that time.