2024-03-27
brits take raw materials from India to UK. for this they did not develop Indian economy. for that agriculture sector is in a backward position and industrial sector didn't develop.
50-51: per Capati was 240 rupees. now it more than 100K.
50-51, less than 17% people was literacy rate. now it is in 77.7%.
41-51 birth rate was at 3.99 and death rate 2.74 and population growth at 1.25%. first stage of demographic dividend as both birth and death rate is high. due to lack of medical facilities, low level of nutritional food and poverty.
economy was based on agriculture, around 75% of people depends on it. but not self-sufficient as agricultural sector entirely depended on rain and weather.
vicious circle of poverty: low rate of savings -> low rate of investment -> low production -> low per capital income. [at this time industrial activity was very low, big proportion of industries were concentrated in few cities like Mumbai(cotton textile), Calcutt(tea plantation)]. to tackle poverty people needs job -> need more production -> need investment -> {bank loan, FDI, investment from within, give money to people by the government}. brits did not invent in India and not allow others to invent(from and outside).
before 5-year plans -> government focus on agriculture and industries. for that government focus on transportation, infra, communication, banking and trade etc. which needed for both developments. agriculture had to be fast developed, as it provides food security and raw materials to industries. similarly industrial growth provides sustainable development for the economy. -> MSME provides employment, whereas big industries provide machineries required for MSME to produce commodities. government focus small to big scale industries.
for achieving both sectors development and their requirements like infra, transportation, communication, banking, trade. government launched a plane economic modal, which balance all of these sectors from 1951 April.