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Indian Economy
English
362 b
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From 1950 to 1980, the development pattern of India was characterized by strong centralized planning, government ownership of basic and key industries, excessive regulation and control of private enterprise, trade protectionism through tariff and non-tariff barriers, and a cautious and selective approach towards foreign capital. It was a quota, permit, and license regime guided and controlled by a bureaucracy trained in colonial style. This so-called inward-looking, import substitution strategy of economic development began to be widely questioned with the beginning of 1980s. Policy makers started realizing the drawbacks of this strategy, which inhibited competitiveness and efficiency, and produced a much lower rate of growth than expected. Consequently, economic reforms were set in motion, though on a modest scale, when controls on industries were reduced by India's 1985 industrial policy. The economic reforms program got a big boost when the government announced a new industrial poli
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