Write an essay explaining the key points in the evolution of India&...

Write an essay explaining the key points in the evolution of India’s economic development model. You may use Vijay Joshi’s book as your main text.

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The evolution of India’s economic development model

Introduction
India has increasingly become a benchmark economic development model in the world. Jaitley relates that access to critical services, standards of living, and material well-being have improved at an unprecedented rate to reach degrees that human history has never recorded . The chief driver of some of these developments is primarily economic convergence. Economic convergence refers to the process of poorer nations catching up with the developed or richer ones. The concept also relates to closing of gaps between more impoverished and more prosperous countries in standards of living. India's 2017-2018 economic growth was 7.2%, which then marked its global economic development dominance. Until this point in the 2018-2019 financial year, the rate has already reached 7% and is expected to grow even further. Surprisingly, China’s economic development is expected to reach the 6.2% level in the fiscal year ending 2019. In the previous year, China recorded a growth rate of 6.6%. For some time now, China is thought of as rapidly becoming the new world superpower. However, from the statistics above, India is rightfully in the same position, a fact that mainly goes unnoticed to many people. Nevertheless, the journey towards economic excellence has been long for India. This paper will attempt to document the most exciting points in the evolution of the Indian economic development model.

The beginnings
It all started during the ancient regime from 1947 to 1980. In this period, two prime ministers dominated the national political sphere. First came Jawaharlal Nehru and then Indira Gandhi, his daughter. During the initial years of his reign, Nehru focused primarily on stabilizing the country following the trauma of partition. In 1950/51, Nehru introduced planned economic development, however on an indicative basis. It was not until the 1956/57 period that the president initiated detailed, inter-sectoral, large-scale planning. Among others, this masterplan was justified by a previous acute foreign exchange crisis that had hit India. Hence, the government saw it ideal for controlling the economic activity of the private sector.

Consequently, the economic development improved, reaching 3.9% a year. The master plan had sparked a rapid increase in public investment . While this was the case, efficiencies and rigidities of the control systems build-up problems such that a quiet crisis in the country was diagnosed. Indeed, in the early years of the 1960s, India was a low-income country with a per capita income of $1,033 . In 1964, Lal Bahadur Shastri succeeded Nehru following his death. Shastri was also influential in the expansion of the Indian economy . Thus, he made one stride; offering strong support for a green revolution to transform the Indian agriculture sector. He did so by promoting the introduction of new seeds besides novel agricultural technology. Unfortunately, Lal Bahadur Shastri died in 1966, and his reign was taken over by Nehru’s daughter. Indira Gandhi was faced with one colossal task; to address the rapidly and sharply rising inflation. Pressurized by the IMF,...