ABSTRACT

This chapter examines the American pre-war and post-war ideas that became the bedrock of postcolonial Indian political economy. It argues that it was Americans and not the Soviets that played a crucial role in guiding India’s economic and modernization plans, community development schemes and public administration system. America enjoyed the “first mover” advantage in India. The pre-war package received by India contained three ideas– New Deal, Tennessee Valley Authority (TVA) and American Civil Liberties Union (ACLU). The pre-war package from America gave India its postcolonial ideology. The New Deal was a mixed-economy magic wand that could be emulated without the guilt of remaining moored to capitalism. The TVA was a blueprint for big dams that was copied to create “temples of modern India”. The ACLU provided an antidote to class antagonism.

Americanism in its post-war avatar penetrated the Indian governance model. Postcolonial India subscribed to American expertise for most of its economic and social developmental projects. India’s commitment to the American ideas of mixed economy, modernization and civil liberties introduced left-liberalism in Indian politics and led India to develop a “socialistic pattern” of economy.