What kind of economic system did india operate under during 1947 to 1990? What kind of system is it moving towards today? What are the impediments to completing this transformation?


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Emma kay answered
  • During 1947 to 1990 India was undergoing serious social reforms. During this period India used a system called central planning. This is basically a system whereby the economic system is decided upon from the top down, and everyone has a role to play in keeping the system running. It focuses on using homegrown produce and does not import in a lot of goods. It also sees people less ruled over and more as part of a big machine, to re-iterate the fact that everybody is more equal. This can also be seen as mild communism.

  • Today, however, the economy of India is a lot more geared towards the capitalist strategy. This basically means that it is fashioned more around money and making profit than caring for the people in the system. Because of this, more and more things are imported and no longer made locally, because more of a profit can be made by buying in. It means that India's role in the world has changed. It is now used by textile firms and other firms to produce cheap clothing for other markets.

  • This is one of the impediments, that its people are sold out and forced to work cheap labor jobs because the system has changed; now it is solely interested in making money. This is a transformation that has happened worldwide and started in the west, mainly by America and closely followed by Britain and the rest of the world.

  • India has not had an easy history; from being ruled by the British in the early 1900s, to being exploited for its cheap labor, the country is one of opposites. There are those that are well off, and those that are still horrifically poor. A lot still needs to be done to help India become the country that it can be.

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