In this unit, you will basically learn the growth of and structural changes
in the Indian economy particularly since Independence. As most of the
data are available since 1950-51, the study of changes will mostly confine to
the period since 1950-51. In one case, data is available from 1960-61 only.
Towards the end, in a section, we shall use data since 1972-73. The end
year of a series will be determined by the relevant publications giving
the data.
With growth, every economy diversifies itself in terms of contribution
of different economic activities. Besides structural changes in the economy
in terms of contribution of different sectors, you will have an idea as to
how the labour force is engaged in different economic activities.
As it is felt that growth will be hampered if our economic infrastructure
in terms of energy, transport and communication is weak, you shall see
how our economy is faring in this respect. We also feel concerned about our
education, health and housing and, therefore, you will have an idea about
these social sectors as well.
It is understood that there has come a great break in our policies in
1991 in terms of what has come to be known as Liberalization, Privatization
and Globalisation (LPG). We shall, therefore, discuss major policy planks
before and after 1991 and contrast the two sets of policies.
UNIT II
STRUCTURAL CHANGE IN INDIAN ECONOMY
SINCE INDEPENDENCE
CHAPTER 3
Growth and Structural Change in the
Indian Economy
Introduction
In this chapter you will study the growth
of and structural change in the Indian
economy in the last fifty years since
1950-51 for which data on most of the
macro aggregates are available on an
annual basis. We shall concentrate on
the growth of gross domestic product at
factor cost valued at 1993-94 prices. We
shall consider the growth of per capita
national income, also valued at 1993-94
prices, which can be taken as the
simplest indicator of the level of living
or development.
In an earlier chapter, one of the
notions of development was posed in
terms o