How did economic policies evolve under Nehru's leadership?

Under Nehru's leadership, economic policies evolved towards a mixed economy model with a focus on industrialisation and state intervention.

Jawaharlal Nehru, India's first Prime Minister, played a pivotal role in shaping the country's economic policies post-independence. He was a strong advocate of socialism and believed in a mixed economy where both the private sector and the state had roles to play. This was a significant departure from the colonial economic policies that were primarily focused on the interests of the British Empire.

Nehru's economic vision was heavily influenced by the Soviet model of economic development, which emphasised on state-led industrialisation. He believed that rapid industrialisation was the key to India's economic growth and self-sufficiency. As a result, the government invested heavily in setting up public sector enterprises in key industries such as steel, mining, machinery, telecommunications and power. This was done through a series of five-year plans, a concept borrowed from the Soviet Union.

Another significant aspect of Nehru's economic policies was the emphasis on state intervention and regulation. He believed that the state had a crucial role to play in controlling and directing the economy. This led to the establishment of a complex system of licenses and permits, often referred to as the 'License Raj', which regulated private sector activity. The government also implemented land reforms aimed at reducing income inequality and promoting social justice.

However, Nehru's economic policies were not without their critics. While they did lead to the establishment of a strong industrial base and infrastructure, they were also blamed for stifling private enterprise and leading to inefficiencies in the economy. The heavy emphasis on state control and regulation also led to a large public sector, which was often criticised for being unproductive and corrupt.

In conclusion, under Nehru's leadership, India's economic policies evolved towards a mixed economy model with a strong emphasis on state-led industrialisation and regulation. While these policies had their successes and failures, they played a crucial role in shaping India's economic trajectory in the decades following independence.