Nehru India Case Study

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Q1. What were the government policies and business environment in the Jawaharlal Nehru era post independence? Post Independence, India had to exacerbate the structural economic policies at the cost associated with the partition of British India. Jawaharlal Nehru was a firm believer that India needed a socialist model considering the condition of Indian economy, leading to technological revolution in India by maximizing the steep production. He proposed no taxation for the farmers, considered for minimum wages and also gave certain benefits to the blue collars. He further knew the importance of heavy industries and infrastructure development, and, therefore favored their operations. This resulted in the development of dams, canals, hydro power…show more content…
There were major problems sustaining in the market. The government came across widespread disenchantment over rising prices of commodities, unemployment, economic stagnation and a food crisis. Indira was popular for being completely different from her father, in adapting a tighter approach on the economy in comparison to the socialist approach by Nehru. She further promoted various state owned enterprises to grow in the economy though they couldn’t be profitable. Moreover, due to the stringent laws, they couldn’t shut down. All this led to more than 75% of the enterprises to be in losses by 1980s. Another major change she brought in the economy was that she agreed to the most debatable problem of devaluating the Indian rupee, thereby increasing the export and leading to inflation. Furthermore, 14 banks were nationalized, leading to bankruptcy for majority of banks. Monopolies Restrictive Trade Practices Act of 1969 acted as the final nail in the coffin as it limited the companies from investing in the Indian economy. This led to companies like Aditya Birla to establish its companies in Indonesia, Thailand and Hong Kong. These resulted in the economic suppression for a continuous of 40 years by focusing on anti west and anti free policies. The government tried to work towards a better economy by solving the problem of food crisis by improving the productivity through Green Revolution.…show more content…
The Indian steel industry starting expanding in European markets with the major steel giants like Tata steel and Mittal steel acquiring stakes in the foreign companies. The GDP was India was estimated at 8% to that of USA in the 21st century. The most valuable step taken by the BJP government during that phase was to introduce the universal license in the telecommunication sector thereby enabling the companies to provide both CDMA and GSM services. They further started the Golden quadrilateral road network connecting 4 metro cities with the various regions, thus making it easier for trade. Also, with the right focus on maintaining the improving the living conditions, giving opportunities to companies to invest in India, the GDP of India kept on

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