ABSTRACT
This chapter describes the historical evolution of development strategy and investigates the India’s long-term macroeconomic performance by showing the macroeconomic time series. It investigates India’s long-term macroeconomic performance by focusing on economic growth rate, per capita income, rate of inflation, agriculture, fiscal balance, current account balance, and exchange rate. The identification of economic growth crises shows the intuitive direction of change in development strategy described by depicting the directing arrows. The development of agriculture was the driving force behind independence from weather conditions, and a fundamentally determinant factor on key macroeconomic variables such as economic growth and inflation. The chapter offers a brief description of the history of development strategy in India from independence to the present. This transitional period witnessed the making of the Constitution of India, the settling of the political turmoil over partition, and the territorial integration of princely states into India. In 1956, the Industrial Policy Resolution (IPR) was adopted in the Indian parliament.
