Economy during Indira Government vs. Economy during Nehru Government

Attribute	Economy during Indira Government	Economy during Nehru Government
GDP Growth	Varied between 3-5%	Varied between 4-6%
Industrialization	Focus on nationalization of industries	Focus on setting up public sector enterprises
Agricultural Policies	Green Revolution initiated	Focus on land reforms
Foreign Policy Impact	Shift towards socialist policies	Non-alignment policy

Economic Policies

During the Nehru government, the economic policies were focused on industrialization and self-reliance. The government implemented the Five-Year Plans to boost economic growth and development. The public sector was given a prominent role in the economy, with the establishment of industries in key sectors such as steel, coal, and heavy machinery. The government also focused on agrarian reforms to improve agricultural productivity.

On the other hand, during the Indira government, the economic policies shifted towards a more socialist approach. The government nationalized major banks and insurance companies to ensure greater control over the financial sector. The focus was on reducing income inequality and poverty through measures such as land reforms and the national rural employment guarantee scheme.

Foreign Trade

Under the Nehru government, India followed a policy of non-alignment in foreign affairs, which also extended to trade relations. The government focused on building diplomatic ties with various countries to promote trade and economic cooperation. Import substitution was a key strategy to reduce dependence on foreign goods and promote domestic industries.

During the Indira government, there was a shift towards a more protectionist approach in foreign trade. The government imposed high tariffs on imports to protect domestic industries from foreign competition. This led to a decrease in imports and a focus on promoting exports to improve the balance of trade.

Infrastructure Development

The Nehru government laid the foundation for infrastructure development in India by investing in key sectors such as transportation, communication, and energy. The government initiated projects such as the building of dams, highways, and railways to improve connectivity and facilitate economic growth. The focus was on creating a strong infrastructure backbone to support industrialization and urbanization.

Under the Indira government, there was a continued emphasis on infrastructure development, with a focus on expanding access to basic services such as electricity, water, and sanitation. The government invested in rural infrastructure to improve living standards in rural areas and reduce disparities between urban and rural areas.

Overall Economic Performance

During the Nehru government, India experienced steady economic growth, with a focus on building a strong industrial base and achieving self-sufficiency in key sectors. The economy faced challenges such as food shortages and inflation, but overall, there was progress in terms of industrial development and infrastructure growth.

Under the Indira government, the economy faced challenges such as high inflation, rising fiscal deficits, and a balance of payments crisis. The government implemented measures such as devaluation of the currency and austerity measures to stabilize the economy. Despite these challenges, there were also achievements in terms of poverty reduction and social welfare programs.