The Political Economy of Economic Policymaking in India

  • Raghbendra Jha


This chapter is an account of economic policymaking in India since independence under various prime ministers from the first, Jawaharlal Nehru, to the current incumbent, Narendra Modi. It begins with an account of the strategy of planned economic development, import substitution, inward-looking policy and relative neglect of agriculture. India’s attempts to meet its various serious challenges are summarized, and the performance of the economy through the period is traced. The various economic reforms that have been carried out are described, and India’s recent emergence as a major economic power is explored.


Prime ministers of India Central planning Feldman–Mahalanobis model Food crisis Economic reforms 


  1. Baru, S. 2014. The Accidental Prime Minister: The Making and Unmaking of Manmohan Singh. New Delhi: Viking.Google Scholar
  2. ———. 2016. 1991: How P.V. Narasimha Rao Made History. New Delhi: Aleph Book Company.Google Scholar
  3. Bhagwati, J. 1996. India Retrospect and Prospect. K.R. Narayanan Oration, Australia South Asia Research Centre.Google Scholar
  4. Bhagwati, J., and T. Srinivasan. 1975. Foreign Trade Regimes and Economic Development: India. Cambridge, MA: NBER.Google Scholar
  5. Bhattacharyya, S., and R. Jha. 2013. Economic Growth, Law and Corruption: The Case of India. Comparative Economic Studies 55 (2): 65–87.CrossRefGoogle Scholar
  6. Bhole, L. 1985. Impacts of Monetary Policy. New Delhi: Himalaya Publishing House.Google Scholar
  7. Bruton, H. 1998. A Reconsideration of Import Substitution. Journal of Economic Literature 36 (2): 903–936.Google Scholar
  8. Chakravarty, S. 1969. Capital and Development Planning. Cambridge: MIT Press.Google Scholar
  9. Cornish, S., and R. Jha. 2017. Trevor Swan and Indian Planning: The lessons of 1958/59. History of Economics Review 67 (1): 2–25. Scholar
  10. Frankel, F. 2005. India’s Political Economy: 1947–2004. New Delhi: Oxford University Press.Google Scholar
  11. Friedman, M. 1955. A Memorandum to the Government of India, 1955. Accessed 6 January 2017.
  12. Gandhi, M. 1909. Hind Swaraj or the Indian Home Rule. Sarvodaya Publications, reprint.Google Scholar
  13. ———. 1947. The India of My Dreams. Bombay.
  14. Jha, R. 2017. Decentralization, Indirect Tax Reforms and Fiscal Federalism in India. In India’s Fiscal Policy: Prescriptions, Pragmatics and Practice, ed. S. Dey. New Delhi and Cambridge: Cambridge University Press.Google Scholar
  15. ———. 2018. India: Economy’ in South Asia 2018. In Routledge Europe Yearbook, South Asia, 238–244. Abingdon: Routledge, 2017.Google Scholar
  16. Jha, R., and N. Truong. 2015. Estimates of Trade Misinvoicing and Their Macroeconomic Outcomes for the Indian Economy. Review of Economics and Finance 5 (2): 19–34.Google Scholar
  17. Jha, S. 1972. Political Elite in Bihar. Bombay: Vora Publishers. Revision of a Work Originally Published in 1967.Google Scholar
  18. Kishwar, M. 2014. Modi, Muslims and Media: Voices from Modi’s Gujarat. New Delhi: Manushri Publishers.Google Scholar
  19. Murphy, K., A. Schleifer, and R. Vishny. 1989. Industrialization and the Big Push. Journal of Political Economy 97 (5): 1003–1026.CrossRefGoogle Scholar
  20. Park, C., and R. Mercado. 2015. Financial Inclusion, Poverty, and Income Inequality in Developing Asia. Asian Development Bank Working Paper No. 426. Manila.Google Scholar
  21. People’s Union for Democratic Rights (PUDR), People’s Union for Civil Liberties (PUCL). 1984. Who are the Guilty: Report of a Joint Inquiry into the Causes and Impact of the Riots in Delhi from 31 October to 10 November. New Delhi.Google Scholar
  22. Rath, N., and V. Patawardhan. 1967. Impact of Assistance under P.L. 480 on Indian Economy, Gokhale Institute of Politics and Economics. Pune: Asia Publishing House.Google Scholar
  23. Rosenstein-Rodan, P. 1943. Problems of Industrialisation of Eastern and Southern Europe. Economic Journal 53 (210/211): 202–211.CrossRefGoogle Scholar
  24. Sarma, N. 1958. Economic Development in India: The First and Second Five-year Plans. Staff Papers, International Monetary Fund 6 (2): 180–238.CrossRefGoogle Scholar
  25. Singh, M. 2007. Use of Participatory Notes in Indian Equity Markets and Recent Regulatory Changes. IMF Working Paper, WP/07/291. Washington, DC.Google Scholar
  26. Singh, T. 2016. India’s Broken Tryst. New Delhi: Harper Collins.Google Scholar
  27. Taneja, S. 1976. India and International Monetary Management. New Delhi: Sterling Publishers.Google Scholar
  28. Thakurdas, P., J. Tata, A. Shroff, J. Matthai, G. Birla, S. Ram, and K. Lalbhai. 1945. Memorandum Outlining a Plan of Economic Development of India. Harmondsworth, UK and New York: Penguin Books.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Raghbendra Jha
    • 1
  1. 1.Arndt-Corden Department of EconomicsAustralian National UniversityActonAustralia

Personalised recommendations