Following business news informs you that the business world is changing fast. India is also changing very fast along with its economy. The Indian economy is currently world's second fastest growing economy of the world after China.
After the Indian dependence in 1947, the Prime Minister Jawahar Lal Nehru started the policy of mixed economy. He stressed on the public ownership of economic production in the country. The private participation in the economic activities was limited. The government decided the type and amount to the production of consumer items in the country. Red-tapism ensured that private ventures were heavily discouraged. Nehru was influenced by socialism. He was highly impressed by the Russian model of economy. Initially Nehru's policies showed promise with the Indian economy growing at a good pace. But soon we saw slackening of the economic pace.
Nehru's successor Lal Bahadur Shastri continued with the old policy followed by Nehru. Indira Gandhi maintained the same policy and focused on giving more power to the government on the economic front. She even went ahead to nationalize several banks during her tenure.
Later when the young man Rajiv Gandhi tool the position of the prime ministership he realized the failure of the Indian economy. He was a liberal Indian with modern thinking and scientific temperament. He wanted to change the policy. However, he could not get enough time to make significant changes in the economic policy.
In the early 1990s due to decades of closed economy and wrong policies, the Indian economy was on the verge of collapse. It had a foreign reserve of just around $ 1 billion. At that time the International Monetary Fund (IMF) offered to help on the condition that India had to open its economy for the international business players.
Under the pressure of the IMF, the Indian government under the prime ministership of PV Narasimha Rao started the policy of economic liberalization. The finance minister at that time Manmohan Singh also played a very important role in opening of the Indian economy.
Soon we saw a great number of multi-national companies coming to India to do business. We saw a great number of job opportunities opening up in the country. Before the liberalization policy, the economy was lagging far behind compared to other economies of the world. Now we saw a great amount of activities happening in all sectors of the economy. Soon major players of many industries opened their offices in the country. They could see a great untapped market for their products.
Inflow of the foreign exchange in the Indian market resulted in the Indian economy growing at a pace never seen before. Even the stock market index began to see unprecedented rise. Anyone following business news would know that.
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