Pre-LPG Era

It is LPG(Liberalization, Privatization and Globalization) era in India. It started in early 1980's with pro-business measures like removing restrictions on capacity expansion, price controls and reducing corporate taxes. Second phase of liberalization started in early 1990's which ended many public monopolies and allowed foreign direct investment in many sectors.

After independence from British colonial rule in 1947, India opted a socialist economy with government control over private sector participation, foreign trade and foreign direct investment. This economic policy aimed to substitute products which India imports with locally produced substitutes, industrialization, state intervention in labour and financial markets, a large public sector, business regulation and centralized planning. It expected the creation and growth of capital and technology intensive heavy industries as well as subsidizing manual, low skill collage industries simultaneously.

Jawaharlal Nehru, who formulated and oversaw this economic policy expected a favourable outcome from this strategy because it features both capitalist market economy and socialist command economy. But the outcome was unfavourable to the country and leads to liberalization and privatization in India.

Government made large investments in heavy industries and expects these industries will produce enough capital for investment in other sectors of the economy. But it didn't happened. In the other hand, government has to invest more money for the survival of these companies because of poor management and low productivity. For example, the public sector steel company losses were more than its initial investment while the private sector steel company was making profit.

India's average annual growth rate from 1950-1980 was 3.5%. At the same time other Asian countries like Hong Kong, Singapore, South Korea and Taiwan recorded an annual growth rate of 8%. Now 'Hindu rate of growth' is an expression to refer low annual growth rate.

The failure of pro-socialist economic policy to produce an annual growth rate comparable to its neighbours leads to the economic reforms going on now.

Comments

Effects of Colonization in India

Some people still have the illusion that the British Raj was not all that bad. But in reality is that the British Colonial rule as against the interests of the common people of the Indian sub-continent and it destroyed the education system, economy, ancient monuments and livelihood of the people. One can trace the education system in India to third century B.C. Ancient days, the sages and scholars imparted education orally. After the development of letters it took the form of writing. Palm leaves and bark of trees were used for education. Temples and community centers often took the role of schools. When Buddhism spread in India , education became available to everyone and this led to the establishment of some world famous educational institutions Nalanda, Vikramshila and Takshashila. These educational institutes in fact arose from the monasteries. History has taken special care to give Nalanda University , which flourished from the fifth to 13th century AD, full credit for its e...

Internet of Things

The Internet of Things (IoT) refers to a massive network of physical devices embedded with sensors, software, and connectivity that allows them to collect, send, and receive data through the internet or other communication networks. The key elements in IoT are: Devices : These are the "things" in the Internet of Things. They can range from simple devices like connected thermostats to complex machines like industrial robots. Sensors : These are the eyes and ears of the IoT devices. They collect data about the device's environment, such as temperature, pressure, movement, or even air quality. Software : The brain of the IoT device. It processes the data collected by the sensors and makes decisions based on it. It can also communicate with other devices and cloud platforms. Connectivity : The network that allows the IoT devices to communicate. It can be Wi-Fi, Bluetooth, cellular networks, or any other communication protocol. Data Platforms : The data collected by the...

The Pause Principle

The Pause Principle is the practice of intentionally stopping and reflecting before acting. Pausing is a deliberate and strategic act that enables clarity, awareness, and better choices. It is a simple concept with profound implications for leadership, learning, and life. In a world addicted to speed, the idea of slowing down can feel like a failure. We praise hustle. We reward reaction. We glorify multitasking and speed as if they were synonymous with effectiveness. But the best decisions, the most powerful conversations, and the most transformative moments don’t come from speeding up. The term was coined by Kevin Cashman, a leadership coach and author of The Pause Principle: Step Back to Lead Forward. The term captures the essence of a powerful paradox: slowing down can speed up your effectiveness. When we pause, we engage the prefrontal cortex, the part of the brain responsible for complex thinking, empathy, and decision-making. In contrast, reacting impulsively often activates t...

Rise of Indian Nationalism

In India , the decades after the First War for Independence (1857) were a period of growing political awareness, manifestation of public opinion, and emergence of leadership at national and provincial levels. Gloomy economic uncertainties created by British colonial rule and the limited opportunities that awaited for the increasing number of western-educated graduates began to dominate the rhetoric of leaders who had begun to think of themselves as a nation despite differences along the lines of region, religion, language, and caste. Dadabhai Naoroji formed East India Association in 1867, and Surendranath Banerjee founded Indian National Association in 1876. Indian National Congress is formed in 1885 in a meeting in Bombay attended by seventy-three Indian delegates. The delegates were mostly members of the upwardly mobile and successful Western-educated provincial elites, engaged in professions such as law, teaching, and journalism. They had acquired political experience from regio...

Self-awareness

Self-awareness is the ability to understand your own thoughts, feelings, behaviors, and motivations. It is like looking at yourself in a mirror, but instead of seeing your physical appearance, you are seeing your inner world. Some key aspects of self-awareness: Understanding your emotions : Recognizing and understanding your feelings, both positive and negative. Knowing your values : Understanding what is important to you and what drives your actions. Recognizing your strengths and weaknesses : Being aware of your abilities and areas where you can improve. Understanding your behavior : Understanding why you act the way you do and how your actions affect others. The Power of Now by Eckhart Tolle is a spiritual guide that encourages readers to live fully in the present moment. It emphasizes that suffering arises from dwelling on the past or worrying about the future, rather than being present. Tolle introduces the concept of the "inner observer", a stat...

Partition of India

Geographical region in ancient India is divided into multiple countries now. Sri Lanka ( Ceylon ) was part of the South Indian kingdoms and part of the Madras presidency of British India . In 1798 it become a separate crown colony and granted independence on February 4, 1948 . Myanmar (old Burma ) was annexed by the British in 1826 and governed as part of the British Indian administration until 1937. There after directly administrated by the British until it granted independence on January 4, 1948 . The countries Nepal and Bhutan had singed treaties with the British designating them as independent states and they were never a part of British India . End of British Raj led to the creation of Dominion of Pakistan (now Islamic Republic of Pakistan) on August 14, 1947 and Union of India (now Republic of India ) on August 15, 1947 . The actual division between the two new dominions was done according to what has come to be known as the Mountbatten Plan . The border between...

Power of Thought

The power of thought is a fascinating concept that explores how our thoughts can influence our lives, both positively and negatively. Our thoughts trigger the release of neurotransmitters and hormones, which in turn affect our emotions, behaviors, and even our physical health. For example, positive thoughts can reduce stress hormones like cortisol, while negative thoughts can increase them. James Allen's classic book, "As a Man Thinketh" emphasizes that we are masters of our own destiny. By taking control of our thoughts, we can shape our lives in the way we desire. Quotes from the book: Act is the blossom of thought, and joy and suffering are its fruits. Just as a gardener cultivates his plot, keeping it free from weeds, and growing the flowers and fruits which he requires, so may a man tend the garden of his mind, weeding out all the wrong, useless, and impure thoughts, and cultivating toward perfection the flowers and fruits of right, useful, and pure thoughts. ...

Three Poisons

Zen Buddhism identifies three poisons as the root causes of suffering. Greed : An intense desire for things, experiences, or people. Greed leads to a constant state of wanting rather than appreciating what one already has. This creates a sense of emptiness and dissatisfaction, as no amount of acquisition can truly fulfill the emptiness created by greed. It can blind us to the true value of things. We may become fixated on acquiring possessions or achieving external validation, neglecting the importance of inner qualities and genuine connections. This distorted perception can lead to poor decision-making and harmful actions. Greed often manifests in harmful ways, such as exploitation, manipulation, and even violence. As individuals and societies become consumed by greed, suffering increases for both the pursuer and the pursued. When consumed by greed, we prioritize our own desires over the needs of others. This can lead to a sense of isolation and loneliness. Hatred : Anger or disli...

MIND Diet

The MIND (Mediterranean–DASH Intervention for Neurodegenerative Delay) diet is a hybrid of the Mediterranean and the DASH (Dietary Approaches to Stop Hypertension) diet. The MIND diet is a brain-healthy eating plan designed to improve cognitive function and reduce the risk of Alzheimer's disease and other forms of dementia. Dementia is a growing concern. It is often preceded years in advance by memory and thinking problems, including cognitive decline and mild cognitive impairment. Interventions that prevent or delay these problems might help to reduce the risk of dementia. The MIND diet merges key features of the Mediterranean and the DASH diets. It aims to protect brain health. The diet features green leafy vegetables and other vegetables, prefers berries over other fruit, and endorses whole grains, beans, nuts, and at least one weekly serving of fish. It limits red meat, sweets, cheese, fast food, and fried foods. Key Principles of the MIND Diet: Focus on plant-based food...

Who am I?

A pure philosophical question. In a world where almost everyone interested to know about others opinion about you, did you ever look inward and see who are true-self? Are you the body? Are you the mind? Or something else? The question of who you are has occupied Western thought for centuries resulting in a diverse tapestry of perspectives. The Enlightenment era brought forth emphasis on the individual as a rational being capable of independent thought and judgment. This led to concepts like personal freedom, individual rights, and the pursuit of self-knowledge. Thinkers like Descartes with his famous "Cogito ergo sum" ("I think, therefore I am") and John Locke with his ideas on individualism and personal identity solidified this notion. Empiricist philosophers like John Locke and David Hume argued that our knowledge and understanding of the world are shaped by our experiences. Our senses and interactions with the environment form the foundation of who we are and...

What's in mind?

Search This Blog