Every country has an aim to pursue a path of development and it keeps a track of the neighboring nations too. By seeing the performances of the neighboring nations, a country gets an idea of its strong and weak links. It can make the necessary changes in its development policy relying on growth in the neighboring nations which is of great importance in an increasingly globalized world.
India’ s development path first involved undertaking of closed trade which meant keeping a closed economy. This was done to give a boost to domestic industries and completely decrease reliance upon foreign trade. What India followed then was known as Imports Substitution Strategy. Trade and interaction with foreign countries was scarce. But in 1991, thing finally started to change as the country decided to open its borders to free trade and liberalization took place where the economy allowed foreign companies to trade in the country.
A boost was given to generate employment under the Five-Year Plans (now known as NITI Aayog). The objective of setting this up was to cope up for a population growing exponentially and lack of jobs to absorb the size of workforce.
Alleviating Poverty is an important part of India ‘s development path. After the independence in 1947, India was completely poverty-stricken economy, due to the British, their resource base was completely ruined. Hence poverty alleviation plans have been a major part of a politician’ s campaigns
The public sector was given a lot of importance, Private companies and industries were subject to strict rules and regulations. People believed that the government is the only protector, and it will take the country towards social welfare.