chapter  7
8 Pages

Modernization and Development with Indian Characteristics

WithRobert C. Oberst, Yogendra K. Malik, Charles H. Kennedy, Ashok Kapur, Mahendra Lawoti, Syedur Rahman, Ahrar Ahmad

India's approach to development and modernization issues was, and remains, state centric, although limited economic reforms since 1991 have fostered significant economic growth of the private sector. Indian politics underwent a dramatic change with Indira Gandhi's rise to a dominant position in national politics. Gandhi transformed the Congress Party beyond recognition. India's planned economic development has been directed toward achieving a high economic growth rate, building the country's industrial and technological self-reliance, creating full employment, and achieving social justice by removing gross social inequalities. The original development philosophy, conceived in the late 1930s and officially adopted in the constitution and in the government's policy after 1947, had the following characteristics: In 1938, the National Planning Committee was set up to propose a policy for India's economic development. Its approach was based on state intervention and centralized planning in all major sectors, and the principle was service before profit.