‘On the midnight hour, when the world is asleep, India will awake to its freedom’ –Jawaharlal Nehru.
After a long lasting 100 years of being puppets of the British, India finally gained independence in 1947. That time the country was suffering from an umpteen number of problems, some were major, many were minor. As India was further divided into two countries, India and Pakistan, it created even more problems for instance poverty, unemployment, poor education standards and inequality among other. Inorder to tackle with the never-ending problems our nation was suffering from, the first Five-year plan was launched in 1951 which mainly focused on the development of the primary sector. Five years later, in 1956, the second Five-year plan was launched which is famously known as the ‘MahalanobisModel’.It emphasized on the government-led industrialization. Thus, our first Prime Minister, Jawaharlal Nehru had decided to formulate the economic policies which were socialist by nature. His desire was to make a new self-sufficient and independent India. Under this policy, the government control was so cogent that it not only decided which company would produce what, but also the amount of production as well as the price of commodities. However, the economy of our country wasn’t doing as expected by our leaders (Nehru/ N. Rao and M. Singh).
It led to some major problems like corruption, population explosion, wars India fought after independence and we were not self-sufficient and buying more products like oil from other nations oil. All these made our government poor and created a lot of problems that we had to approach the IMF. IMF extended help to us under certain rules and regulations, one of the major conditions was to make our country ‘LIBERAL’. This led to the foundation of LIBERALISATION. It was further implemented by P. V. Narsima Rao and Manmohan Singh.