Subject: – Business research methodology
Author – Dhanashree pawar

Indian Economy

1. Indian economy after independence
Indian economy went through severe change after the independence in 1947, India has achieved tremendous progress in raising growth, income levels and standards of living. The gross domestic product (GDP) increased from Rs 2,939 billion during 1950-51 to Rs 56,330 billion during 2011-12. Mechanism of a mixed economy where both public and private sectors co-exist. The Industrial Policy Resolution of 1948 proposed a mixed economy. India’s forex reserves now the world’s fifth-largest. India initiated planning for national economic development with the establishment of the Planning Commission. The time when India got independence economy was growing slowly but over the time of period Indian economy took pace and went up there were so many factors which helped Indian economy to grow faster like five-year plans.

2. Introduction of five-year plan
Since economic reforms were launched in the summer of 1991, India had a positive image in the world politics. The aim of the First Five Year Plan (1951-56) was to raise domestic savings for growth and to help the economy. Second Five-Year Plan (Nehru-Mahala Nobis Plan). The industrialization strategy articulated by Professor Mahala Nobis placed emphasis on the development of heavy industries and envisaged a dominant role for the public sector in the economy. It was not only the second fastest growing economy. India was ranked fifth amongst 112 countries in wielding economic clout globally after the US, China, Japan and Germany, and ahead of European powers France and the UK. robust economic growth enabled more than 90 million people escape extreme poverty and improve their living standards but as every coin has two side same way there were also some flaws in five-year plan.

3. Failure of five-year plan
Soon became clear that the actual results of this strategy were far below expectations. Instead of showing high growth, high public savings and a high degree of self-reliance, India was actually showing one of the lowest rates of growth in the developing world with a rising public deficit and a periodic balance of payment crises. Between 1950 and 1990, India’s growth rate averaged less than 4 per cent per annum. At last there was also scope for green revolution that took place.

4. Revolutions
The green revolution model of high-input industrial agriculture has become the established way of doing agriculture in India. The early 1960s was the phase of the green revolution in India. It led to an increase in higher-yielding varieties of seeds due to improved agronomic technology. It allowed the then developing country, India, to overcome poor agricultural productivity. An increase in the production of food grains by using various modern technologies and farming products like fertilizers, high yielding variety (HYV) seeds, irrigation facilities, and pesticides. Founded by the Indian geneticist M.S. Swaminathan.

5. Recent changes in economy
In the recent decades India has faced significant changes in the economy as a whole. This process includes the changes in innovation activities and also globally strategic research and development. Global innovation in multinational company is the core factor to change in economy. Technological alliance in local and multinational partners has given new direction and also outsourcing of the basic research components is innovation to service provider there were more liberal rule on foreign direct investment permission for foreign investments across almost all sectors of the economy, including in private health care insurance. Other than that technology also played important role in economy.

6. Cycles of technology system in economy
Cycle of the technology system got change with the time it involves product design with product focus. When the product development completed the focus automatically shifts to production process and improvement of the product because production process is as important as product development and also product improvement. The skill and investment required in the production process and improvement of the product is high. Rapid market growth can be achieved through this process. Other than that firm’s growth and capturing market share. Capital and cost management skills are equally important in technology cycle. As this cycle changes there is also possibility of many changes will occur in consequences to the above as the one factor change other also tends to change. Import and export was another change that shaped Indian economy.

7. Economy in import and export
Import and export trade are pillar of every country’s economy. It creates perfect balance in production process demand and supply forces so basically it helps the economy to work smoothly. The emerging economies have a significant contribution of import and export happens in specific country. Emerging economies, frontier economies, and backward economies will reach the equilibrium point of their specified economy international trade studies usually considered trade cost factors, such as distance, transportation cost, and tax but this study only examined the geopolitical risk and energy import and export trade volume of an economy as a whole, and did not distinguish the risk and trade between an economy and a single object. If we can measure the geopolitical risk between the target economy and the specific object, this may be the direction of further research in the future. Other than import and export agriculture also irreplaceable part of Indian economy.

8. Economy In agriculture
India has been agrarian economy since the beginning and more than half of the population of Indian is dependent on the agriculture. Agricultural economy is emerging in India as the technology is getting used. Conventional model of agricultural production with limited diversity in production systems and also use of high chemical input has taught us a valuable lesson as it is adversely impacting the environment and also the agricultural crop, agricultural pattern and also land the essential ecosystem services, the soil health and the long-term sustainability of our food systems Mainstreaming biodiversity in production landscapes ensures conservation and sustainable use of agricultural biodiversity agriculture is the biggest land user and the biggest employer in India. Nearly 55% of the population relies on agriculture and related activities for their livelihood. Smallholder and marginal farmers account for 86.2% of all farmers in India owing just 47.3% of the total area sown to crops.

9. Indian economy & recession
As the economy grows over the period of time there is also possibility of recession in the economy. Recession has many negative impacts on the county’s growth and people like inflation, unemployment, decrease in money value. There is statistical relationship between inflation and unemployment. Negative relationship between money wage growth (inflation) and unemployment. Unemployment has high costs, while inflation is a minor low at low inflation rates. Therefore, with reasonable limits based on the public’s preferences, policymakers could tolerate some more inflation to reduce unemployment. Monetary policy has a short-term impact on inflation and the country-wide demand for goods and services. During inflationary times, contractionary monetary policy by reducing money supply or increasing interest rates reduces the price levels. The significant challenges associated with monetary policy include the time lag between the policy changes and economic outcomes. Indian economic recession took severe hit in the year 2020 when covid-19 outburst happed.

10. Economy after covid-19
Indian government issued lockdown in 2020 to battle with covid -19 increasing cases however that situation took large impact on each and every single life of every person. As a result, many things got impacted because of that one of it was huge consumption as all the people were in the house so eventually work life changes personal and social life changes and eventually energy consumption also took big lap. India’s power consumption shrunk 9.24% and 22.75% in March and April. But however, it took long time to get settled with this change. Though the covid had changes each and every aspect of life also the economy has taken serious hit during the lockdown crisis.

Conclusion
Since the independence there were a lot of changes in the economy as we see some were positive and some were negative changes one economy has to come through. Asia’s third largest economy But the economy have taken serious hit when covid -19 happen and the whole county went into the lockdown many small business were shut down take a name of an service or industry has impacted with covid-19 like hotel industry, tourism industry these are some of the example that we can names but other than that there are thousands of small vendor from the unorganized sector of an Indian economy were tend to shut and after a lot of economic policy and year and year of plan those families were earlier in below poverty line recently has come beyond that but since lockdown as the whole of the country was shut many of the families once again went into the below poverty line. While economies worldwide have been hit hard, India has suffered one of the largest contractions. During the 2020/21 financial year, the rates of decline in GDP for the world were 3.3% and 2.2% for emerging market and developing economies. Urban workers aged 18-40 during the first lockdown quarter, finding that a majority of them who had work before the pandemic were left with no work or no pay. After the first lockdown in April to June 2020, 20% of those sampled were out of work, another 9% were employed but had zero hours of work and 81% had no work or pay at all. More than a year has passed since India’s first national lockdown was announced. There was talk of a trade-off between lives and livelihoods when the Covid-19 crisis erupted last year. As India struggles in the second wave, it is clear that the country did poorly in both dimensions. While India’s policy response was strong in terms of some aspects of lockdown stringency, it was ineffective in dealing with both the public health and economic aspects of the crisis. What’s more, it failed to limit the damaging impact of the crisis on the most vulnerable sections of the population.
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