Every year, on 26 January, the people of India celebrate this day as a national festival, and this day is known by us The Republic Day. Now, the year 2020 has come, and this year will be marked as the 69th Republic Day of India.
Indian Constituent Assembly had adopted the constitution of India on 26 November 1949 but came into effect on 26 January 1950 with a democratic government system, completing the country’s transition towards becoming an independent republic. Now, it has been 72 years, and India has undergone a dramatic transformation to join the club of $5 trillion. Owing to the deindustrialization policy adopted by Britain, India had become hopelessly poor. Our PM Mr. Jawaharlal Nehru’s development model envisaged a dominant role of the state as an all-pervasive entrepreneur and financier of private businesses.
Eight influential industrialists, including J.R.D Tata and G.D. Birla, envisaged a substantial public sector with state interventions and regulations to protect indigenous industries. In 1950, India had set up an organization named Planning Commission to scrutinize things like planning, implementation, and appraisal of five-year plans.
India’s first 5-year plan, launched in 1951, focused on agriculture and irrigation to boost farm output as India was losing precious foreign reserves on food grain imports due to which the economy was grown at an annualized 3.6%, beating the target of 2.1%.
Now, we have seen the second five-year plan (1956-61). It is the plan that laid the foundation for economic modernization to serve long-term growth imperatives of India better. It emphasized rapid industrialization with a focus on heavy industries and capital goods. Most importantly, it should be noted that the second five-year Plan and the Industrial Policy Resolution 1956 is considered as the economic constitution of India and paved the way for the development of the public sector.
During the period of Prime Minister Nehru, it is identified that power and steel as the fundamental bases for planning. One of the Hydel Projects of India named Bhakra-Nangal dams is among the ones that light up homes, run factories, and irrigate crops.
Prime Minister Lal Bahadur Shastri’s focus on food security arose from the 1960s. And it has brought high-yield variety seeds of wheat, setting off what came to be known as the Green Revolution. Following the success of the Green Revolution, Prime Minister Lal Bahadur Shastri focused on the dairy sector.
Under the white resolution, he had assisted Kaira District Co-operative Milk Producers’ to expand its work. And this has led to a rapid increase in milk production. It was the cooperative movement through which self-sufficiency in the dairy sector was achieved that has spread now to more than twelve million dairy farmers across the nation. Decades later, Amul, the brand started by cooperative farmers in Anand, remains a market leader.
Within 8 months of taking over as Prime Minister on 25 May 2014, Prime Minister Shri Narendra Modi replaced the Planning Commission with NITI Aayog (NITI stood for National Institute for Transforming India, in line with Modi’s penchant for acronyms).NITI Aayog now serves as the government’s think tank, formulating medium and long-term strategies and breaking them into year-wise plans after consultation with the states.
Modi’s government introduced the Insolvency and Bankruptcy Code, 2016 (IBC). The code made it possible for lenders to oust errant promoters from a company and hand it over to financially sound owners.A regime that had made India one country, one market was the blanket regime.
India has begun to consider startups as a new business model. The number of new businesses valued at over $1 billion, has also risen every year. The rise of startup companies has created a new ecosystem of an angel and venture funding, and incubators and accelerators—as well as new patterns of consumption in society.
Though the above article may not cover every progress that took place politically, socially, and economically, it narrates the significant reforms and growth in India that took place in the last 71 years.