UPSC MainsECONOMICS-PAPER-II201615 Marks150 Words
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Q14.

What were the major hurdles to development as experienced in India during first decade after independence? Discuss them and what steps were taken to remove them?

How to Approach

This question requires a nuanced understanding of the socio-economic conditions prevalent in India immediately after independence and the challenges they posed to development. The answer should be structured chronologically, outlining the major hurdles – agrarian distress, industrial backwardness, infrastructural deficits, social inequalities, and political instability – and then detailing the steps taken to address them, primarily through the Five-Year Plans and initial policy frameworks. Focus on the first decade (1947-1957) and avoid getting sidetracked into later developments. A balanced approach acknowledging both the problems and the efforts made is crucial.

Model Answer

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Introduction

India’s independence in 1947 marked the end of colonial rule but ushered in an era fraught with developmental challenges. The partition had created immense socio-economic disruption, and the newly formed nation inherited a deeply impoverished and fragmented economy. The legacy of colonial exploitation, characterized by de-industrialization and resource extraction, left India with a weak industrial base, a largely agrarian economy vulnerable to monsoon failures, and a severely underdeveloped infrastructure. The first decade after independence (1947-1957) was therefore a period of foundational efforts to address these systemic issues and lay the groundwork for future economic growth.

Major Hurdles to Development (1947-1957)

The initial years after independence were marked by several significant hurdles:

  • Agrarian Distress: The zamindari system, though abolished in many states, continued to create inequalities. Land reforms were slow and unevenly implemented. Dependence on monsoon, coupled with outdated agricultural practices, led to frequent famines and low productivity.
  • Industrial Backwardness: Colonial policies had deliberately stifled the growth of Indian industries. The country lacked capital, technology, and skilled manpower. The existing industrial base was small and concentrated in a few sectors.
  • Infrastructural Deficits: Roads, railways, irrigation facilities, and power generation were woefully inadequate. This hampered agricultural production, industrial growth, and overall economic activity.
  • Social Inequalities: The caste system, gender discrimination, and widespread poverty created significant social barriers to development. Access to education, healthcare, and economic opportunities was highly unequal.
  • Political Instability: The integration of princely states and the aftermath of partition led to political instability and communal tensions, diverting resources away from development.
  • Financial Constraints: The government faced severe financial constraints due to low tax revenues and the burden of refugee rehabilitation.

Steps Taken to Remove Hurdles

The Indian government initiated several measures to address these challenges:

1. Agrarian Reforms

  • Abolition of Zamindari: Several states implemented laws to abolish the zamindari system, aiming to redistribute land ownership. However, implementation varied significantly.
  • Land Ceiling Acts: These acts were introduced to limit the amount of land an individual could own, with surplus land to be redistributed to landless farmers.
  • Community Development Programme (1952): Launched to improve rural livelihoods through integrated development of villages.
  • National Extension Service (1953): Focused on providing agricultural extension services to farmers.

2. Industrial Development

  • Industrial Policy Resolution (1948): Defined the role of the state in industrial development, emphasizing the public sector's dominance in key industries.
  • Establishment of Public Sector Undertakings (PSUs): PSUs were established in strategic sectors like steel (Hindustan Steel Limited, 1954), power, and transportation.
  • Import Substitution Industrialization (ISI): Policies were adopted to promote domestic production and reduce reliance on imports.

3. Infrastructure Development

  • Five-Year Plans: The First Five-Year Plan (1951-1956) focused on irrigation projects (Bhakra-Nangal, Damodar Valley Corporation) and power generation.
  • Railway Expansion: Efforts were made to expand the railway network to improve transportation.
  • Road Development: Road construction was undertaken, though progress was slow.

4. Social Welfare Measures

  • Constitutional Provisions: The Constitution enshrined principles of equality and social justice.
  • Education Expansion: Efforts were made to expand access to education, though literacy rates remained low.
  • Healthcare Initiatives: Primary healthcare centers were established, but healthcare access remained limited.

Table: Key Five-Year Plan Allocations (First Plan - 1951-56)

Sector Percentage of Total Plan Outlay
Irrigation & Power 55%
Transport & Communications 22%
Agriculture & Rural Development 11%
Industry 3%
Social Services 9%

Conclusion

The first decade after independence was a period of immense challenges and foundational efforts. While significant hurdles remained – particularly in land reform implementation and achieving rapid industrialization – the government’s focus on planned development, public sector investment, and social welfare laid the groundwork for future economic progress. The initial steps, though often slow and imperfect, were crucial in establishing a framework for a more equitable and self-reliant India. The emphasis on building a strong public sector and investing in infrastructure proved vital, even if the pace of development was slower than anticipated.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Import Substitution Industrialization (ISI)
A trade and economic policy advocating for the replacement of foreign imports with domestically produced goods, typically through tariffs and other protectionist measures.
Five-Year Plans
Centralized economic planning adopted by India, inspired by the Soviet model, to set national priorities and allocate resources for economic development over five-year periods.

Key Statistics

India's literacy rate in 1951 was only 18.33% (Source: Census of India, 1951).

Source: Census of India, 1951

India’s per capita income in 1950 was estimated to be around ₹730 (approximately $24.33 at the then exchange rate) (Source: National Accounts Statistics, Government of India - based on knowledge cutoff).

Source: National Accounts Statistics, Government of India

Examples

Damodar Valley Corporation (DVC)

Established in 1948, the DVC was a multi-purpose river valley project aimed at controlling floods, generating electricity, and irrigating agricultural land in the Damodar River basin. It served as a model for subsequent river valley projects in India.

Frequently Asked Questions

Why was the public sector given such prominence in the early years of independent India?

The public sector was prioritized due to the belief that it could drive industrialization, address social inequalities, and ensure that economic benefits reached all sections of society. Private capital was limited, and the government felt it had a responsibility to lead economic development.

Topics Covered

HistoryEconomyDevelopmentEconomic PlanningPost-Independence India