India Emerging Into A Solid Economy From 1947-2020

According To The International Monetary Fund, India ranked 142nd By GDP And 124th By GDP In 2020.

India got independence on 15th August 1947, and now it’s been 70 years since our independence. In 1947  India was an agrarian Economy; Whereas after 70 years, 70% of Indian citizens are still surviving on agriculture. The Nation’s GDP has increased from Rs 2,939 billion during 1950-51 to Rs 56,330 billion during 2011-12 (2004-05 constant prices). In 2018-19, India’s GDP was valued at an estimated Rs 1,40,776 billion (2011-12 constant prices). 

At the same time, the ordinary Indian citizen earned a living off just around Rs 7,513 during 1950-51; Which rose to Rs 41,255 during 2011-12 (2004-05 constant prices). Further to Rs 92,565 during 2018-19 (2011-12 constant prices). The per capita income raised in real terms, notwithstanding a notable increase in the country’s population.

The economy in the 1950s-1965

The most significant event of India the Economy during the 1950s and 1965 was the Green Revolution. The Green Revolution, is commonly known as the Third Agricultural Revolution, is collecting research on technology change. Its initiatives were to increased agricultural production. The Revolution marked a great increase in the stocks of food grains such as rice and wheat. Due to the use of high-yielding varieties, including pesticides, and better management techniques. Mexico inspired the Green Revolution in India. Mexico is the ‘birthplace’ and ‘burial territory’ of the Green Revolution.

The economy in 1965-1975

As the Green revolution grew, and the Economy turned towards a boom period. Internal politics invaded India’s prosperity as in 1975, India was under a National Emergency. Due to which the Indian Economy experienced a setback. A lot of businesses lost their identities in the process. Also, there is no data available on Economic downfall during the National Emergency.

The economy in 1975-991

The year 1991 was the era of economic reforms. Where the World Bank laid some criteria for granting the loan to the Indian Economy. That was the time when India stepped into a Globalized Economy. The reforms allowed the Indian market for private participation and easy industrial licensing. All these reforms were included in the Budget of 1991-92.

Some of the important policy initiatives in the budget for the year 1991-92 for improving the Fiscal Imbalance were:

  • Reduction in fertilizer aid.
  • Cancellation of subsidy on sugar.
  • Disinvestment of a part of the Government’s equity holdings in elite public sector undertakings.
  • Recognition of significant recommendations of the Tax Reforms Committee headed by Raja Chelliah.

The economy in 2000-2020

The Goods and Service Tax journey began in 2000; When a commission was established to draft law. It took 17 years for the Law to evolve into a Bill. In 2017, the GST Bill passed in the Lok Sabha and Rajya Sabha. On 1st July 2017, the GST Law came into force. GST is the Goods and Services Tax; it is an indirect tax that has displaced India’s indirect taxes, such as the excise duty, VAT, services tax, etc. On 8th November 2016, India witnessed an important Economic event: Demonetization. 

Demonetization is the withdrawal of a note, coin, or precious metal from use as legal tender. The Government of India proclaimed the demonetization of all ₹1,000 and ₹500 banknotes of the Mahatma Gandhi Series used in India. It also proclaimed the issuance of new ₹2,000 and ₹500 banknotes in the clearinghouse for the demonetized banknotes.

The year 2020 is known as the dark year worldwide. COVID19 pandemic has affected the Global Economy adversely. It is the world’s fifth-largest economy by nominal GDP and the third-largest by acquiring power parity. According to the International Monetary Fund, India ranked 142nd by GDP and 124th by GDP in 2020.