Indian Economy (1950-1990) Cheat Sheet

Key Definitions

• Planned Economy: An economy where the government makes all decisions regarding production and distribution. ✅

• Mixed Economy: An economic system combining private and public enterprise. ✅

• Green Revolution: A period of agricultural transformation in India through improved seeds, fertilizers, and irrigation. ✅

Important Concepts

Economic Planning

• Five-Year Plans: Centralized planning to achieve economic growth.

• First Plan (1951-1956): Focused on agriculture and irrigation. ✅

• Second Plan (1956-1961): Emphasized industrialization and heavy industries. ✅

Liberalization

• Economic Reforms (1991): Shift from a closed economy to a more open and market-driven economy. ✅

• Deregulation: Reducing government restrictions on economic activity. ✅

Poverty and Inequality

• Poverty Line: The minimum level of income deemed adequate in a particular country. ✅

• Income Inequality: Disparity in income distribution among individuals. ✅

Key Formulas

• C: Consumption

• I: Investment

• G: Government Spending

• X: Exports

• M: Imports

Common Mistakes to Avoid

Common Mistake: Confusing GDP with GNP; remember GDP focuses on location, GNP on ownership.

Memory Tricks

Tip: "FIVE" — Five-Year Plans, Industrialization, Valley of Death (poverty), Economic Reforms.

Key Diagrams

   GDP Growth
    |
    |         /\
    |        /  \
    |       /    \
    |______ /______\____ Time
           1950  1990

Tip: Review the timeline of Five-Year Plans for chronological understanding.