Indian Economy 1950–1990

Lesson

Part 1 — the economic system, planning and its goals, and agriculture: land reforms and the Green Revolution.

In this lesson you will

Part 1 at a glance

Concept

Choosing an economic system

Every economy must decide what to produce, how, and for whom.

Table comparing economic systems: in a capitalist economy the market decides; in a socialist economy the state decides; India adopted a mixed economy that kept private enterprise and added state planning and public ownership of key industries
System	Who decides what to produce	India's choice
Capitalist (market)	Market forces of demand and supply; private owners	Kept private enterprise and markets
Socialist	The state owns resources and plans production	Kept state planning and public ownership of key industries
Mixed	Both: the state plans and regulates, private firms produce	Adopted after independence

Concept

A plan spells out how resources are to be used over a period. India's plans covered five years each, within long-term goals.

Planning: the institutions