Question

Which two models of development were there before India at the time of independence?

Hint:

Remember: At independence, India had to choose between capitalist and socialist models, and finally adopted a mixed economy.

Answer 1

At the time of independence in 1947, India faced the challenge of selecting a model of development to rebuild its economy. Two major models of development were available:
1. Liberal-Capitalist Model:
- Inspired by the United States and Western countries.
- Focused on free markets, private ownership of industries, and minimal government intervention.
- Promoted competition, profit-making, and individual entrepreneurship.
2. Socialist Model:
- Inspired by the Soviet Union.
- Emphasized state ownership of resources, central planning, and redistribution of wealth.
- Aimed at reducing inequality and ensuring social welfare.
Conclusion:
India did not follow either model completely. Instead, it adopted a mixed economy, combining elements of both capitalism and socialism.