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# System prepended metadata

title: Lecture 1

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21/08/2020 16:01

# Lecture 1

# Economic Dimension

* Paradox in India, huge poverty but huge economy too

## Slow Growth Period

### Economic Planning Model

* State planning instead of a market controlled economy (Five year plans)
* Soviet influenced planning model of efficient utilization of available resources dedicated towards progress
* Focused on:
	* Economic growth
	* Modernization
	* Self reliance
	* Social justice

#### Keynesianism

* Increased

* * *

* All this led to state controlled plainning in economy
* Also called Nehru-Mahalonobis strategy
* Democratic Socialism
* Capital goods industries for long term development of the country


### Nehru Mahalanobis Strategy [2nd to 7th Five Year Plan]


#### Assumptions

* Deficiency of material Capital
* Low capacity to save
* Underemployment in agricultural sector
* Role of market mechanism


#### Major Strategies

* **Capital goods industry**
	* Raising the rate of investment
	* Improve productive capacity
	* Increased import substitution

* **Direct State intervention in economy**
	* Increased interference of state
	* License Raj

* **Agrarian reconstruction**
	* Community development programme
	* Land Reforms:
		* Abolish zamindari system
	
	
```mermaid
graph TD

State-->Dams
State-->Mining
State-->Educational_Institutions

```

#### Impact

* Agriculture Suffered
* Unemployment
* License Raj
	* Allowed path for widespread corruption

