ABSTRACT
This chapter depicts the process of transition of the colonial Indian economy, completely subordinate to the British economy and social development, to a planned and controlled developing economy and further to an emerging market economy. It describes the major economic developments shaping India in the globalized era. It highlights the changes in agrarian relations, the structural transformation in the industries, change from an inward-oriented policy regime to a WTO-governed outward reform strategy in the form of New Economic Policy, gradual abolition of the licensing raj system, changes in the foreign investment and exchange rate mechanism. It also highlights the change in the planning system to inclusive growth to finally a transition of the Planning Commission to NITI Aayog. It provides a brief description of the various shocks like the Global Financial Crisis (2008), sovereign debt crisis and the latest corona pandemic. It also talks about the episode of demonetization, introduction of Goods and Services Tax (GST), and transition to a cashless digital economy. In other words, this chapter provides a brief overview of the major changes that have taken place in India and abroad which had some impact on the structural change of India since independence. India became the President of the G-20 group of countries at the end of 2022. This places it in a unique position to play a global leadership role.
