Ass|gnment on

ANALSIS CI GDCI GDmp

Subm|tted to Mamta Ia|n
Irom [amshed (M8A MS)
?ears CuCl Cump 8aLlo CrowLh 8aLe
of Cump
CrowLh 8aLe
of CuCl
196162 31617 363110 70
196263 38723 373698 64 29 138
196364 63631 396034 62 60 84
196463 69412 423360 61 73 91
196366 77792 414263 33 27 121
196667 84686 414113 49 00 89
196768 79229 446348 36 78 64
196869 77233 461612 60 34 23
196970 87832 491798 36 63 137
197071 89870 S17148 S8 S2 23
32300
31617
38723
63631
69412
77792
84686
79229
77233
87832
330117
363110
373698
396034
423360
414263
414113
446348
461612
491798
67
70
64
62
61
33
49
36
60
36
0
1
0
0
0
0
0
2
0
0
0
0
0
3
0
0
0
0
0
4
0
0
0
0
0
3
0
0
0
0
0
6
0
0
0
0
0
kCDUC1ICN

L
A
k
S
C
n
A
k
1

k
L
S
L
N
1
A
1
I
C
N

C
I

G
D
C
I

G
D

m
p

k
A
1
I
C


C
u
C
l
C
u

m
p
8
A
1
l
C
37
29
60
7S
27
00
78
34
6S
17
138
84
91
121
89
64
2S
137
10
3
0
3
10
13
G
k
C
W
1
n


k
A
1
L
LAkS
GkCW1n kA1L CI GDCI GDmp
C8CW1P
8A1L Cl
Cump
C8CW1P
8A1L Cl
CuCl
ANALSIS
1he CovernmenL of lndla ran lnLo Lrade deflclLs LhaL lncreased
ln magnlLude ln Lhe 1960s and had a budgeL deflclL problem
Lherefore could noL borrow money from abroad or from Lhe
prlvaLe secLor whlch lLself had a negaLlve savlngs raLe
1he droughL of 1963/1966 severed as devaluaLlon of Lhe
grew 33 ln Lhe SlxLles reachlng a peak rupee CurrenL Cu
per caplLa
ln 1966 forelgn ald whlch was a key facLor ln prevenLlng
devaluaLlon of Lhe rupee was flnally cuL off and lndla was Lold
lL had Lo llberallse lLs resLrlcLlons on Lrade before forelgn ald
would agaln maLerlallse
ANALSIS
1he serlous economlc and pollLlcal crlsls whlch lndla faced ln
Lhe mld1960s Lrlggered Lhe blg converslon of agrlculLural
pollcy of Lhe governmenL le lL emphaslzed Lechnologlcal
lnnovaLlon and sLarLed Lo lnLroduce new agrlculLural
Lechnologles from abroad
lndlan economy as a whole had Lo experlence a blLLer losL
decade durlng Lhe mld1960s Lo Lhe mld1970s malnly due
Lo Lhe shorLage of forelgn exchange for Lhe lmporL
subsLlLuLlng lndusLrlal secLors
1he governmenL lssued bonds Lo Lhe 88l whlch lncreased Lhe
money supply leadlng Lo lnflaLlon
ANALSIS
lL ls found from Lhe flgure LhaL lndla suffered a relaLlvely
low economlc growLh raLes around 33 percenL per
annum unLll Lhe laLe 1970s wlLh a large flucLuaLlons due
Lo Lhe lnfluence of Lhe agrlculLural secLor growLh whlch
largely depended on Lhe monsoon slLuaLlon
SLrucLural deflclencles such as Lhe need for lnsLlLuLlonal
changes ln agrlculLure and Lhe lnefflclency of much of Lhe
cenLrally dlrecLed lndusLrlal secLor also conLrlbuLed Lo
economlc sLagnaLlon