Section I overview of India’s economic development i.
the economic development stage after India’s independence.
Before independence, due to the long-term cruel exploitation and plunder of British colonists, the national economic foundation is very weak, and the main economic lifeline is in the hands of British monopoly capital, resulting in the decline of Indian agriculture, industrial stagnation and extreme poverty of the national economy.
After 50 years of development after independence, its economy has changed significantly.
In general, India’s economic development can be divided into three stages after independence.
The first stage: from 1947 to 1956, that is, from India’s independence to the end of the first five year plan, it is a period of economic recovery.
The partition of India and Pakistan not only caused great hatred between Hindus and Muslims, but also disrupted the already unbalanced national economy.
After partition, big cities and industries were distributed in India, while raw material producing areas and grain producing areas were mostly distributed in Pakistan.
According to statistics, 91% of the large industries such as steel, jute and papermaking remain in India, while Pakistan produces 38% of cotton and 80% of jute.
This made India spend huge amounts of foreign exchange to import jute, cotton and grain in the early days of independence.
At the beginning of India’s independence, industrial and agricultural production decreased significantly.
The total index of industrial production decreased from 108.
4 in 1948 to 105 in 1950.
Agriculture fell to 95.
6 in 1950-1951, and grain fell to 90.5. In order to change this situation, the Indian government formulated the “first five year plan” (1951-1956), which aims to improve people’s living standards and change India’s stagnant economic structure, so as to lay a solid foundation for future economic development.
Through efforts, the average growth rate of India’s national economy reached 3.
6% at the end of the first five year plan, exceeding the original target of 2.1%. Within five years, industrial production increased by 25% and agricultural production increased by 22.2%. According to the prices from 1970 to 1971, the average annual growth of industrial production is 7.
4%, the average annual growth of agricultural production is 4.
3%, and the average annual growth of national income is 3.6%. During this period, prices were relatively stable, and the real wages of factory workers returned to the pre war level (1939).
During the first five year plan period, the land reform of canceling middleman landlords was also implemented, and 40% of the cultivated land was transferred to small and medium-sized landlords and wealthy farmers, which alleviated the class contradictions in rural areas to a certain extent and promoted the development of agricultural capitalism in India.
The second stage: from 1956 to 1966, that is, 10 years after the implementation of the “Fifth Five Year Plan” and “third five year plan”, is the formation period of India’s industrial system.
According to Nehru’s economic development strategy, India’s “Fifth Five Year Plan” and “third five year plan” emphasize giving priority to the development of heavy industry centered on machinery manufacturing industry.
During the two five-year plans, the state concentrated its investment in various heavy and basic industries such as electric power, metallurgy, mining, machinery manufacturing, chemical raw materials, oil extraction, kerosene, petrochemical industry and chemical fertilizer, thus forming a relatively complete industrial system.
After 10 years of efforts, industrial production nearly doubled, and the total index rose from 136 in 1956 (100 in 1950) to 264.
4 in 1966.
The fastest-growing industrial products are mechanical equipment and durable consumer goods for production services, including 21 times more machine tools, 7 times more internal combustion engines, 5 times more power pumps, 4 times more generators and 6 times more household refrigerators.
In addition, sugar and oil increased by 14% and 13% respectively, while machine spun cotton decreased by 15.2%. While actively developing state-owned enterprises, the Indian government also encourages private monopoly consortia and new industries built in cooperation with foreign capital.
The number of state-owned enterprises in India increased from 21 to 74, and the investment increased 29 times, from 810 million rupees to 24.
15 billion rupees.
The investment of domestic and foreign monopoly organizations in India increased by 132.
5%, from rs.
4783 million to rs.
The total assets of India’s five largest consortia increased nearly twice from rs.
4544 million in 1958 to rs.
13194 million in 1966.
In agriculture, Nehru’s strategy is to implement rural development plans and cooperatives.
The core of the former is to establish a set of Cooperative Council system to make it a basic economic and administrative unit in rural areas.
It is required to include all cultivated land into a wide range of development plans within 10 years, implement an agricultural intensive cultivation plan under the advice of American experts, and focus on the use of high-yield varieties, chemical fertilizers, agricultural machinery and other modern technologies, so as to achieve the purpose of substantial increase in production.
However, the plan was basically not implemented at that time.
After Nehru’s death in 1964, the successor shaistri abandoned Nehru’s above-mentioned strategy.
During this period, industry doubled, while agriculture increased by only 14%, with an average annual growth rate of 1.5%. Moreover, agricultural production is very unstable.
There is a reduction in production every two or three years, and sometimes there is even a significant retrogression.
For example, the agricultural production from 1965 to 1966 was lower than 16.
6% from 1958 to 1959.
Two consecutive years of famine from 1965 to 1967, coupled with the India Pakistan war in 1965 and the interruption of American aid, formed an economic crisis characterized by food panic, inflation, foreign exchange shortage and industrial production reduction.
The stagnation and retrogression of agricultural production have seriously affected the development of industry.
The third stage: from 1966 to 1984, that is, from the three annual plans, through the “fourth five year plan”, “Fifth Five Year Plan” and “sixth five year plan” to the death of Britain and the United States.
The basic feature of this period is to focus on the development of Agriculture.
In the mid-1960s, India’s food panic, all food stocks were exhausted, and the rationing system was basically maintained by importing wheat from the United States, which deepened India’s dependence on the United States and the world bank.
In order to change this situation, with the support of the United States and the world bank, Ying Gandhi began to implement the so-called “green revolution”, that is, the new strategy of agricultural development.
In terms of industry, we will provide new opportunities for private investment at home and abroad, relax the industrial license policy, nationalize 14 large banks (with total deposits accounting for 56% of the country), and approve the new construction and expansion of monopoly consortia.
During this period, the proportion of investment in agriculture and energy power increased.
The proportion of agricultural investment increased from 20% in the third five year plan (1964-1969) to 23% in the fourth five year plan (1969-1974).
Investment in industrial enterprises fell from 20% to 18%.
During the sixth five year plan (1980-1985), the investment in agriculture accounted for 25.
7% in the Fifth Five Year Plan), the expenditure on energy and power accounted for 28.
2% in the Fifth Five Year Plan), and the expenditure on industry and mining accounted for 15.
7% in the Fifth Five Year Plan).
During the sixth Five Year Plan period, the growth rate of national income is expected to be 5.
2%, the growth rate of per capita income was 3.28%. The fourth stage: from 1985 to now, after three five-year plans of the Seventh Five Year Plan, the eighth five year plan and the ninth five year plan, that is, after Rajiv Gandhi came to power, Indian governments began to adjust economic policies and economic reform.
In the 1980s, when British Gandhi was in power, India began to adjust its economic policy, but the adjustment range was too small.
After Rajiv Gandhi came to power in 1985, he accelerated the pace of reform.
Although the reform has made some achievements, there are many problems and difficulties.
After taking office in 1991, la w insisted on reform, accelerated the pace of reform and made remarkable achievements, but there are still problems and difficulties. II. Comparison of economic development between India and China (I) Comparative Study on the comparability of national conditions of the two countries is an extremely important method in social science research.
Only when there is comparison can there be identification.
There is a strong comparability between China and India, because the two countries have many similarities in national conditions and prominent similarities.
Of course, there are many differences between the two countries, which can be said to be the combination of “similarities and minor differences” and “major differences and minor similarities”.
The “Great Harmony” between the two countries can be summarized as follows: 1 Both are large countries with a large population and vast territory.
China and India are the most populous countries in the world.
2 billion, India 1 billion.
The total population of the two countries is 2.
2 billion, accounting for more than 13% of the world’s population.
Both China and India are large agricultural countries, and the peasant population accounts for most of them.
According to the China Statistical Yearbook, China’s rural population accounts for 63.
4% and India’s rural population accounts for 75%.
In terms of the land area of the two countries, China is 9.
6 million square kilometers and India is 2.
974 million square kilometers.
China’s land area ranks second in the world and India ranks seventh.
Although the land area of India is only 13 of that of China, its cultivated land area is more than that of China.
According to statistics, China has 96.
85 million hectares of cultivated land and India has 143 million hectares.
China’s per capita cultivated land is 0.
093 hectares and India’s is 0.
It has sufficient sunlight and rain, which is slightly better than that of India and subtropical China.
In terms of other natural resources, the two countries are quite similar and have their own strengths.
India’s iron, manganese, mica, chromium, iron, dolomite, water and other resources rank among the best in the world, while China’s coal, oil, non-ferrous metals, forests and other resources are better than India.2. Both countries are ancient civilizations with a long history.
As we all know, the Yellow River Basin of China and India is the birthplace of human civilization for more than 5000 years.
Both of them have contributed immeasurably to the development of human civilization in the world.
According to Ji Xianlin, a famous Chinese scholar, there are four major cultural systems in the world.
The first and second are the Chinese cultural system and the Indian cultural system (the other two are the halab cultural system and the European cultural system).
These two cultural systems are the oldest and most influential systems.
As early as more than 2000 B.C., the Dravida people, the original inhabitants of India, had a highly developed urban civilization.
According to tradition, China and India entered the stage of slave society and feudal society nearly a thousand years earlier than Europe.
China and India have created the world’s splendid ancient human culture, China’s four great inventions, and India’s religious culture and architectural art are world-famous, reflecting each other on both sides of the Himalayas.3. Both countries became colonial and semi colonial countries in modern times.
With the invasion of Western colonialism, China and India suffered almost the same movement at the same time.
One has become the world’s largest power – the largest colony of Britain (910 of all British colonies and 50 of all foreign power colonies in the world) since the war of praxi in 1757, and one has become the largest semi colony of several major powers in the world since the Opium War in 1840.4. Before independence, both countries were extremely poor and backward, and the starting point of economic development level was also extremely low.
Before independence, China and India were both colonial economies, agricultural stagnation and industrial deformity.
India’s agricultural production was bankrupt before independence.
From 1894 to 1946, the population increased by 0.
8%, while the per capita production of crops decreased by 20% and grain decreased by 30%.
The proportion of industrial output value in the national economy of both countries is less than 10%.
Industry is mainly light industry, and there is almost no heavy industry.
India’s steel output is among the best among colonial countries, but it is only more than 1 million tons.
In 1938, the per capita steel output was only 2.
7 kg, while China’s per capita steel output was less than 1 kg (in the same year, the per capita steel output of Britain was 222 kg).
In the colonial era, both China and India were known as “the country of hunger” and “the country of illiteracy”.5. The people of China and India have a glorious tradition of resisting feudal tyranny and foreign invaders.
The Chinese and Indian people have erupted countless peasant uprisings in history, which has promoted the social development of the two countries.
In modern times, the people of China and India have set off a vigorous national liberation movement.
Under the leadership of the Congress Party headed by Gandhi and Nehru, the Indian people carried out a long-term non violent and non cooperative struggle, and finally forced British colonialism to hand over power and translation to the Indian bourgeoisie in 1947, thus ending the British colonial rule for nearly 200 years and achieving independence.
The Chinese Chinese mainland led the imperialist powers to the Chinese mainland after 28 years of armed struggle under the leadership of the first Communist Party of China.
In 1949, People’s Republic of China was established, enabling the Chinese people to be completely liberated.6. After independence, both countries are faced with the task of developing national economy and safeguarding national independence.
Since the early 1950s, China and India began to implement the five-year plan for developing the national economy almost at the same time.
So far, they have implemented a total of nine Five-Year Plans.
After more than 50 years of development, both countries have made gratifying economic achievements, changed the economic outlook of the colonial era and attracted the attention of all countries in the world.
At present, the two countries are carrying out economic system reform and economic policy adjustment at the same time, and strive to gradually build their own country into a developed country.
In addition to the “common ground” in the above aspects, China and India still have thousands of “minor differences” and “China differences” and even “major differences”.
They run through the history, culture, nationality, politics, economy, geography, customs and other fields and aspects of the two countries, which is what we usually call the specific national conditions of the two countries.
What should be particularly mentioned is the difference between the political and economic systems of the two countries.
After independence, India established a bourgeois republic and a capitalist political and economic system, following the capitalist development path.
After China’s liberation, it was established withoutThe people’s democratic dictatorship of the bourgeoisie and the socialist political and economic system follow the socialist road.
India’s modernization is guided by Gandhi and Nehru’s thought, while China’s modernization is guided by Marxism and Mao Zedong thought.
(II) comparison of economic development between the two countries before and at the beginning of independence from a macro perspective, since India is a colony exclusively operated by Britain for nearly 200 years, its capitalist development and productivity level are one head higher than that of semi colonial China.
In the mid-19th century, Indian national capitalism began to emerge.
The first cotton mill in India was founded in 1851.
In 1879, there were 89 cotton mills with 43000 workers.
In 1892, there were 956 large factories in India, employing 316000 workers.
By the time World War I broke out in 1914, India had 3936 factories and 2.
5 million industrial workers in railways and mines.
In 1931, there were 4.
5 million industrial workers in India and 6 million when India became independent.
The situation in China is slightly different from that in India.
The imperialist powers invaded China nearly a century later than India.
It was not until 1840 that China gradually became an imperialist semi colony.
Accordingly, the development speed of China’s capitalist countries is naturally lower than that of India.
The starting point of China’s modern industry is about half a century later than that of India, and the level is also lower than that of India.
During World War I, there were only 650000 industrial workers in China, which was only 14% of the total number of industrial workers in India.
In 1930, there were 8.
8 million spindles in India and 3.
69 million spindles in China.
Before independence, India’s railway reached 53000 kilometers, while before China’s liberation, it was only 21000 kilometers, 40% of India’s.
In the early days of the independence of the two countries and the founding of the people’s Republic of China, China’s economy lagged behind India in almost all aspects.
Take 1950 as an example: in terms of per capita GNP, according to rough estimates (calculated in 1980 dollars), India’s per capita GNP in 1950 was $150, China’s was $70 and China’s was 12 times that of India.
India is equivalent to 17% of the world average, 104% of the Asian average, while China is only equivalent to 7% of the world average and 39% of the Asian average.
In terms of the proportion of industry and agriculture, India’s agriculture accounted for 48.
1% of the total national income, and the industrial service sector accounted for 51.
Agriculture accounts for 56.
2% of China’s national income, and industry and services account for 43.
The labor force in India’s agricultural sector accounts for 72.
1% of the total labor force in India, the industrial sector accounts for 10.
7% and the service sector accounts for 17.2%. The labor force in China’s agricultural sector accounts for 83.
5% of the total labor force, 7.
4% in the secondary industry and 9.
1% in the tertiary industry (1952).
India is slightly more industrialized than China.