The New Economic Policy – 1921 of Lenin had influenced the policies adopted by India soon after independence. Evaluate.

y ├── De-industrialisation of rural economy & no sound policy of Industrialisation │ └── Too much dependence on British industrial goods ├── land inequalities with landless peasants in huge number at the cost of Absentee landlordism │ └── Peasant discontents └── Poverty > 80% of Indians were languishing └── Huge unemployment

Additional points under the tree:

• Famine like conditions especially in Bengal Region Famine of 1943
• Regional imbalances
• Distorted cropping patterns: Food grain production was low & commercial crops were grown largely

Overall India was made into an economy which could only supply raw material to the outer world.

Policies Undertaken

→ land Reforms diagram

• Abolition of Zamindari
• Land ceiling Act
• Tenancy Reforms → More rights to producers in Agriculture to invest in technology to increase productivity. → Protectionism to Industries - like steel, cotton etc. → Mahalanobis Model was followed - state control of heavy industries, supplemented by private - cottage/consumer industries → Planning was undertaken - optimising the given resources & correcting regional imbalances → Irrigation infrastructure was created - Canals, Dams. → Import of needed machinery for factories & imposing customs duty on other products to promote indigenous consumption

The policies undertaken by Nehru in post-Independent era has much to its credit.

for eg,

• It made adequate economic growth.
• Some Basic Industries were established like steel & iron.
• Agriculture development prepared a ground for subsequent Green Revolution.
• Land Reforms were to an extent successful.
• Addressed Unemployment.

However, the policies had several inconsistencies & unintended consequences also.

eg -

• peasant discontent due to failure of land reforms → Naxalism
• No sound manufacturing base.
• ill effects of Green Revolution
• existence of Regional imbalances & dominance of Agriculture employment - even after 15 yrs of Independence.