Post-colonial Economic Challenges in India
Directions: Each student is responsible to read from pages 209-213. Each student will focus on one section
(Economic Goals, Industrial Growth, or Progress in Agriculture) and answer the questions for that section. Each
student must explain the section that they read and how they answered the questions to their group members.
Economic Goals
1. How did Nehru want to change India’s economy after India gained independence?
Nehru wanted to produce what India needed so that they could be self-sufficient. He
did not want to buy goods from foreign countries or let any foreign country have
control over India's economy (like Britain did).
2. What did Nehru do in order to change India’s economy?
Nehru adopted many socialist principles , the government controlled production and
businesses. The government controlled iron, steel and other major industries.
He allowed some small businesses to produce and sell goods.
He limited foreign investment.
3. What type of economic system did Nehru set up?
Mixed economy is a mix between a market economy and a command economy.
4. Why did Nehru not allow foreign investment in the Indian economy?
Nehru wanted to prevent foreigners from controlling Indian businesses. They feared
that another country would take over again.
Industrial Growth
1. What four things did the Indian government do to build its industry in the early years after independence?
1. The Indian government encouraged people to save money and invest it into Indian
businesses.
2. Income from cash crops and taxes to develop industries.
3. Natural resources were used to produce steel.
4. Built hydroelectric plants to produce energy for industries.
2. How did the Indian government’s economic reforms about foreign investment change in the 1970s?
In the 1970s the Indian government had to import goods from foreign countries. The
Indian government allowed foreign investment in their industries and businesses.
3. What effect did those reforms have on the economy? Give an example.
These reforms helped India's economy grow. Engineering, textiles and chemical
industries grew. Today the biggest industry growing in India is technology industry.
Progress in Agriculture
1.Why was progress in agriculture so important after India gained independence?
India's progress in agriculture was important because they needed farming to support
the quickly growing population in India.
2. How did India change its environment to increase agricultural production?
The government built irrigation systems to bring water to fields so that crops would
grow.
3. Why did the Indian government start a program of land reform?
They started a program of land reform so that people who did not have land could
own land so that they could grow their own crops.
This land reform program was not a success.
4. What was the Green Revolution and how did it help India?
Scientists developed new types of crops (rice and wheat) so that they would grow
quicker and yield more food. This would help to feed more people.