Beruflich Dokumente
Kultur Dokumente
Krishnamachari Jawaharlal Nehru Morarji Desai T. T. Krishnamachari Sachindra Chaudhuri Morarji Desai Indira Gandhi Yashwantrao Chavan C. Subramaniam H M Patel Choudhary Charan Singh
Term 1946-1947 1947-1949 1949-1951 1951-1957 1957-1958 1958-1959 1959-1964 1964-1965 1965-1967 1967-1970 1970-1971 1971-1975 1975-1977 1977-1979 1979-1980
Education Aligarh Muslim University; Oxford University; Middle Temple University of Madras Madras Christian College Jesus College, Cambridge University of Madras Trinity College, Cambridge; Middle Temple University of Bombay University of Madras University of Calcutta University of Bombay Visva-Bharati University; University of Oxford Pune University University of Madras University of Bombay Meerut University
Finance Minister
Ramaswamy Venkataraman Pranab Mukherjee V.P. Singh S.B. Chavan Madhu Dandavate Yashwant Sinha Manmohan Singh P.Chidambaram Yashwant Sinha
Term
1980-1982 1982-1985 1985-1987 1987-1989 1989-1990 1990-1991 1991-1996 1996-1998 1998-2002
Education
University of Madras University of Calcutta University of Allahabad; University of Pune University of Madras; Osmania University Royal Institute of Science, University of Bombay University of Patna
Jaswant Singh
P.Chidambaram Manmohan Singh Pranab Mukherjee
2002-2004
May 2004 - Nov 2008 Dec 2008 - Jan 2009 Feb 2009 - present
Jawaharlal Nehru, the first prime minister of India, along with the statistician Prasanta Chandra Mahalanobis, formulated and oversaw economic policy during the initial years of the country's existence. They expected favorable outcomes from their strategy, involving the rapid development of heavy industry by both public and private sectors, and based on direct and indirect state intervention, rather than the more extreme Soviet-style central command system.The policy of concentrating simultaneously on capital- and technology-intensive heavy industry and subsidising manual, low-skill cottage industries was criticised by economist Milton Friedman, who thought it would waste capital and labour, and retard the development of small manufacturers.The rate of growth of the Indian economy in the first three decades after independence was derisively referred to as the Hindu rate of growth by economists, because of the unfavourable comparison with growth rates in other Asian countries. Since 1965, the use of high-yielding varieties of seeds, increased fertilizers and improved irrigation facilities collectively contributed to the Green Revolution in India, which improved the condition of agriculture by increasing crop productivity, improving crop patterns and strengthening forward and backward linkages between agriculture and industry.However, it has also been criticised as an unsustainable effort, resulting in the growth of capitalistic farming, ignoring institutional reforms and widening income disparities.
The rate of growth improved in the 1980s. From FY 1980 to FY 1989, the economy grew at an annual rate of 5.5 percent, or 3.3 percent on a per capita basis. Industry grew at an annual rate of 6.6 percent and agriculture at a rate of 3.6 percent. A high rate of investment was a major factor in improved economic growth. Investment went from about 19 percent of GDP in the early 1970s to nearly 25 percent in the early 1980s. India, however, required a higher rate of investment to attain comparable economic growth than did most other low-income developing countries, indicating a lower rate of return on investments. As a result, during the late 1980s India relied increasingly on borrowing from foreign sources . This trend led to a balance of payments crisis in 1990; in order to receive new loans, the government had no choice but to agree to further measures of economic liberalization. This commitment to economic reform was reaffirmed by the government that came to power in June 1991.
Despite a sometimes disappointing rate of growth, the Indian economy was transformed between 1947 and the early 1990s
LIBERALIZATION One example of liberalization was known as "broad-banding." In the earlier period, if a private-sector entrepreneur was given permission to produce something, he produced exactly that and nothing else. Broad-banding meant that as long as he didn't use more raw materials, he was entitled to make something else. What you were entitled to produce was broad-banded, or extended. And that in itself led to an important liberalization of the economy. Manmohan Singh happened to be the finance minister at the time. When he was a young man at Cambridge in the 1950s, he'd written an article that argued that it was a mistake to rely on import substitution, but despite that he'd gone back to India, entered the civil service, and been a loyal civil servant implementing these sorts of policies all those years. But when he became finance minister and was presented with the challenge of finding a way out of the crisis, he set about undertaking a major liberalization of the economy. The macroeconomic part of the package was quite orthodox. After all, if you have a balance-of-payment crisis, if you run out of reserves, you have to fix the balance of payments in a hurry. You really can't start revaluing the exchange rate or spending more, you have to do orthodox things like cutting expenditures, raising taxes, devaluing the exchange rate, and implementing monetary restriction.
CONSEQUENCES The growth translated into a fairly substantial fall in poverty over the course of the 1990s. The 1997 East Asian financial crisis really stopped growth in its tracks in many countries. Those countries, some of them more voluntarily than others, had all liberalized their capital accounts, allowing money to flow in and out fairly liberally. In contrast, in India, if you brought money in, you could take it out again, but domestic Indians weren't allowed to take their money out freely, and India in any event hadn't borrowed a great deal. So it wasn't vulnerable to the 1997 crisis. In the second half of the 1990s one also began seeing the rise of the IT sector. Two explanations are given for why that sector became so successful. The first is that the bureaucrats didn't notice what was happening until it had already happened, so they couldn't really interfere and put up a web of regulations and restrictions. That's probably overly harsh. The other is that the government did some things right. Its founding of the Indian Institutes led to a flow of highly qualified manpower, many of whom found vocation in the IT sector. India at long last found its niche in the world economy, which wasn't in exporting manufactures, like the East Asian countries, but instead was in the services sector, and IT in particular. One important consequence of the 1990s is the sharpening of regional differences within India. The fast-growing states were in the south and west: Maharashtra, Haryana, Delhi, Gujarat, etc. The large states of the Ganghetic plain-Bihar, Uttar Pradesh, Madhya Pradesh, and Orissa--became relatively poorer during the 1990s. Policy, which became more attuned to rewarding success over the 1990s, may have exacerbated these regional differences. All the governments of the 1990s were effectively reforming governments, even if not as strongly as some of us would have liked. They tried to push the reform agenda, and if they were slow, at least there were no big reversals as in Latin America and elsewhere.
INDIRA GANDHI
Gandhis legacy has largely been remembered, at least by her critics, in the context of her decision to bring the country under Emergency rule in 1975 to retain political power and the bloody riots that broke out after her 1984 assassination. It is my sense that a lot of newsprint and air time would be devoted to these aspects this week. Context had been set in 1979 with the onset of an external sector crisis triggered after the second oil shock. By the time Gandhi regained power, the situation was rapidly deteriorating. There was no option other than to approach the International Monetary Fund (IMF) for assistance. Eventually, a loan came througharound $6 billion (Rs27,900 crore today), at that time the largest to any developing country, to be disbursed over a three-year period and in three tranchesin November 1981. By that time, the economy recovered and her government decided to exit the loan programme in 1984 and in the process also avoided implementing an IMF reform programme. Gandhi was shrewd enough to realize that the country was not prepared for such a rapid structural transformation. Though the programme ceased to bind India, the process of reform had already been initiated. Not surprisingly, therefore, if you look back, the biggest reform initiatives came immediately after. Revamp of the public sector was kicked off by spinning off the telecom circles in Mumbai and Delhi into separate corporate entities under Mahanagar Telephone Nigam Ltd in 1987; the Long Term Fiscal Policy, 1984, which is the basis of all tax and fiscal reform; selective delicensing of industry. And, it was Yashwant Sinha in his aborted 1990 budget who first formally referred to public sector disinvestment. To sum up, then, economic reform, as we know of it today, was first initiated in 1980-81 and then accelerated at an unprecedented pace in 1991. That she laid the foundation is, to me, the laudable part of Gandhis legacy to this country.
Following the advice of International Monetary Fund in 1991, Singh as Finance Minister, freed India from the License Raj, source of slow economic growth and corruption in the Indian economy for decades. He liberalized the Indian economy, allowing it to speed up development dramatically. During his term as Prime Minister, Singh continued to encourage growth in the Indian market, enjoying widespread success in these matters. Singh, along with the former Finance Minister, P. Chidambaram, have presided over a period where the Indian economy has grown with an 89% economic growth rate. In 2007, India achieved its highest GDP growth rate of 9% and became the second fastest growing major economy in the world.[ Singh is now a strong supporter of globalization, seeing India's immense labor capacity as a path to delivering Indian goods in a worldwide market and eventually relieving large-scale poverty.[ Singh's government has continued the Golden Quadrilateral and the highway modernization program that was initiated by Vajpayee's government. Singh has also been working on reforming the banking and financial sectors, as well as public sector companies. The Finance ministry has been working towards relieving farmers of their debt and has been working towards pro-industry policies. In 2005, Singh's government introduced the value added tax, replacing sales tax. In 2007 and early 2008, the global problem of inflation impacted India
Indian economy is changed from no mans land to a prospering land. Thanks to our reformer to do all these work for our development .