1. By Prof. Vaishali

2.  Political system: Capitalism and Statism and Welfare state  Indian Political System: Democracy  Indian Economy: ◦ Predominance of agriculture ◦ Rapid population growth ◦ Low per-capita income ◦ Unemployment ◦ Capital-scarce economy

3.  Economic growth started only after launching of First Five Year Plan  During the three decades of Planning, GDP growth rate hovered around 3.5%  During Eighties it was 5.5%  Economic growth is outcome of investments and incremental capital output ratio

4.  Upto Seventh Five Year Plan, public sector were given more emphasize and resources were allocated accordingly  Indian economy was affected badly due to several international and domestic crises  Base year of Eighth Plan registered a very low growth rate

5.  Eighth Plan undertook the task of reorientation and re-examine role of Government and the Planning Process  The Planning process was reoriented to make it more indicative  Optimum utilization of limited resources

6.  Importance of utilization of indigenous capabilities in technology and manufacturing as well as its upgradation to world standards.  Sound policy framework to encourage entrepreneurship

7.  Government took a series of initiatives in respect of the policies related to ◦ Industrial Licensing, ◦ Foreign Investment, ◦ Foreign Technology Agreements, ◦ Public Sector Policy and ◦ Monopolies and Trade Practices Act - MRTP Act.

8.  Industrial Growth during 1990-91 to 2009-10

9.  GDP Growth with sectoral contribution since 1991 till 2010