India’s economy post-British Rule was in shambles. By the end of the British Rule in India, official census’s stated that India’s literacy rate was only about 12% (According to Oxfam) and much of India’s economy relied primarily on revenue from agriculture; recognising the importance of building the primary sector of the economy, Jawaharlal Nehru initiated the first five-year plan in 1951, with the intention of India to be a more independent economy. The plan, based on the famous Harrod-Domar model, was a Keynesian approach aimed at revitalising the economy through low investment while focussing on “more efficient growth rate and income”. The plan was a resounding success; the GDP growth rate intended before the implementation of the plan was 2.1%, yet by 1956, the growth rate had risen to 3.6%. The first five-year plan was a significant step toward building Independent India’s economy.
You must log in to post a comment.