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Indian Economy Since Independence, Edited by Uma Kapila, Academic Foundation, New Delhi, 2002. Pp. 944. Rs. 325.00
The Indian economy has been a subject of study and research by economists and research scholars ever since India became Independent in August 1947. The Indian economy was then adversely affected by the consequences of the second World War and also by the partition of India. The Second World War brought in its train inflationary pressures in the economy and shortages of essential goods and services. The partition of the country resulted in the distortion in the economy resulting from the transfer of resources from India to Pakistan. The country was therefore under economic stress and strain. This was, indeed, a challenge to the government which had come to power.
The Government of India had, therefore, to adopt an economic policy which would promote growth and development in the economy with stability. The Government had two options while formulating the economic policy for growth and development. One was to follow the western model of growth and development based on the capitalist road to development. The second alternative was to follow the Russian model of growth and development based on the socialistic principles of development through state ownership and control of the commanding heights of the economy. The government, however, followed the middle path of development based on the mixed economy where the state and the private sector would contribute to growth and development. The Government of India therefore accepted planning as an...