Eco Project

Dr. Ram Manohar Lohia National Law University, Lucknow2015-2016

:Economics:Final ProjectEconomic Development in India

SUBMITTED TO :SUBITTED BY :Dr. Mitali Tiwari Ashay Verma Faculty of Economics Roll No. 31Dr. RAM MANOHAR LOHIA Section ANATIONAL LAW UNIVERSITY B.A. LLB.(Hons.) Semester I INTRODUCTION

India, a South Asian nation, is the seventh-largest country by area, the second-most populous country with over 1.25 billion people, and the most populous democracy in the world. India boasts of an immensely rich cultural heritage including numerous languages, traditions and people. The country holds its uniqueness in its diversity and hence has adapted itself to international changes with poise and comfort. While the economy has welcomed international companies to invest in it with open arms since liberalisation in 1990s, Indians have been prudent and pro-active in adopting global approach and skills. Indian villagers proudly take up farming, advanced agriculture and unique handicrafts as their profession on one hand while modern industries and professional services sectors are coming up in a big way on the other.

Research Questions Is India really developing? How far India is away from developed economy?

ObjectiveThe project is basically deals with the study of economic development in the different phases and different sectors which is taking place in Indian economy.

Research Methodology

The study of this project involve doctrinal methodology. Study of this project will be done through books, articles, journals and internet database.

Tentative Chapterisation

Introduction Agricultural development Industrial development Service sector Infrastructure Development in India Government Plans Conclusion Reference

Agriculture Development

There is a vital role of Agriculture sector in the process of economic development of less Developed countries like India. Besides providing food to nation, agriculture releases labour, provides saving, contributes to market of industrial goods and earns foreign exchange.Agricultural development is an integral part of overall economic development. In India, agriculture was the main source of national income and occupation at the time of Independence. Agriculture and allied activities contributed nearly 50 percent to Indias national income. Around 72 percent of total working population is engaged in agriculture. These confirm that Indian economy was a backward and agricultural based economy at the time of Independence. After 61 year of Independence, the share of agriculture in total national income declined from 50 percent in 1950 to 18 percent in 2007- 08. But even today more than 60 percent of workforce is engaged in agriculture. In spite of this, it is also an important feature of agriculture that is to be noted that growth of other sectors and overall economy depends on the performance of agriculture to a considerable extent. Because of these reasons agriculture continues to be the dominant sector in Indian Economy.

Since independence India has made much progress in agriculture. Indian agriculture, which grew at the rate of about 1 percent per annum during the fifty years before Independence, has grown at the rate of about 2.6 percent per annum in the post-Independence era. Expansion of area was the main source of growth in the period of fifties and sixties after that the contribution of increased land area under agricultural production has declined over time and increase in productivity became the main source of growth in agricultural production. Another important facet of progress in agriculture is its success in eradicating of its dependence on imported food grains. Indian agriculture has progressed not only in output and yield terms but the structural changes have also contributed. All these developments in Indian agriculture are contributed by a series of steps initiated by Indian Government. Land reforms, inauguration of Agricultural Price Commission with objective to ensure remunerative prices to producers, new agricultural strategy, investment in research and extension services and provision of credit facilities are some of these steps.

Prior to the mid-1960s India relied on imports and food aid to meet domestic requirements. However, two years of severe drought in 1965 and 1966 convinced India to reform its agricultural policy, and that India could not rely on foreign aid and foreign imports for food security. India adopted significant policy reforms focused on the goal of food grain self-sufficiency. This ushered in India'sGreen Revolution. It began with the decision to adopt superior yielding, disease resistant wheat varieties in combination with better farming knowledge to improve productivity. The programs included under the new strategy are: (1) the high yielding varieties program, (2) multiple cropping program, (3) integrated development of dry areas, (4) plant protection measures, (5) increased use of fertilizers, and (6) new irrigation concept.

Agricultural PolicyIn this section, we try to trace out the principle government policies for promoting agricultural development. For the overall development of Indian agriculture, many institutional and infrastructural changes have been introduced since Independence. Broadly, agricultural policy followed during this period can be distinguished in four phases: first phase considered from 1947 to mid sixties, second phase considered period from mid-sixties to 1980, third phase included period from 1980 to 1991, and forth phase includesperiod from 1991/92 onwards.

The first phase of agricultural policy witnessed tremendous agrarian reforms, institutional changes, development of major irrigation project and strengthens of cooperative credit institution. The most important contribution of land reforms was abolition of intermediaries and giving land titles to the actual cultivators. This released productive forces and the owner cultivators put in their best to augment production on their holdings. Land reforms were important in increasing agricultural production during this phase. The Community Development Programme, decentralised planning and the Intensive Area Development Programmes were also initiated for regenerating Indian agriculture that had stagnated during the British period. In order to encourage the farmers to adopt better technology, incentive price policy was adopted in 1964 and the Agricultural Price Commission was set up to advice the Government on the fixation of support prices of agricultural crops. Despite the institutional changes and development programmes introduced by the Government during this phase, India remained dependent upon foreign countries for food to feed the rising population.

The second phase in Indian agriculture started in mid 1960s with adoption of new agricultural strategy3. The new agricultural strategy relies on high-yielding varieties of crops, multiple cropping, the package approach, modern farm practices and spread of irrigation facilities. The biggest achievement of this strategy has been attainment of self sufficiency in foodgrains. Agrarian reforms during this period took back seat while research, extension, input supply, credit, marketing, price support and spread of technology were the prime concern of policy makers (Rao, 1996). The next phase in Indian agriculture began in early 1980s. This period started witnessing process of diversification which resulted into fast growth in non-foodgrains output like milk, fishery, poultry, vegetables, fruits etc which accelerated growth in agricultural GDP during the 1980s (Chand, 2003). There has been a considerable increase in subsidies and support to agriculture sector during this period while public sector spending in agriculturefor infrastructure development started showing decline in real term but investment by farmers kept on moving on a rising trend.

The fourth phase of agricultural policy started after initiation of economic reform process in 1991. Economic reforms process involved deregulation, reduced government participation in economic activities, and liberalization. Although there is no any direct reforms for agriculture but the sector was affected indirectly by devaluation of exchange rate, liberalization of external trade and disprotection to industry. During this period opening up of domestic market due to new international trade accord and WTO was another change that affected agriculture. This raised new challenges among policymakers. Because of this, a New Agricultural Policy was launched by Indian Government in July 2000. This aims toattain output growth rate of 4 percent per annum in agriculture sector based on efficient use of resources. It seeks to achieve this objective in a sustainable manner and with equity. This was first time when government released a national agriculture policy. The policy document discusses what ought to be done in agriculture but the subsequent step, how and when policy goals and objective would be achieved is not discussed (Chand, 2003). Therefore, it is highly desirable to prepare action plans at both centre and state level in quantity terms to implement the new policy agenda in a time bound framework.

Industrial Development The processing of natural resources into more useful items is called manufacturing. These manufactured goods are finished products derived from the raw materials. These raw materials used in manufacturing industry may be either in their natural form such as cotton, wool, iron ore etc. or may be in the semi processed form like cotton yarn, pig iron etc. which can further be used for making more useful goods.Thus the finished product of one industry may serve as the raw material for another industry. Economic development cannot be achieved by a country without developing its industries. There is a direct relationship between the level of industrial development and the economic prosperity of a country. Developed countries like the USA, Japan, Russia owe due to their prosperity to highly developed industries. Industrially less developed countries export their natural resources and import finished goods at higher prices and continue to remain economically backward. In India manufacturing industries contributed about 30 per cent of the gross domestic product. These industries provide employment to about 28 million people. Thus industries are a major source of national income and employment.

Industiral development in India can be divided into two phases. The Government successively increased its control over different economic sectors during the first phase (1947-1980). In the second phase (1980-97) it took measures to liberalise the economy between 1980 and 1992. These measures were somewhat adhoc. After 1992, the whole process of liberalization became more focused and radically different in nature.

After independence, systematic industrial planning under different five year plans helped in establishing a large number of heavy and medium industries. The main thrust of the industrial policy was to remove regional imbalances and to introduce diversification of industries. Indigenous capabilities were developed to achieve self sufficiency. It is due to these efforts that India has been able to develop in thefield of industry. Today, we export a large number of industrial goods to various countries.

Types of industriesIndustries can be classified into different categories on the basis, such as of sources of raw material, ownership, functions, size of industry and weight of raw material and finished products. Since India is still an agricultural country, it has developed various agro-based industries such as cotton textile, woolen textile, jute textile and sugar industry. The Government of India framed policies which have made India self reliant in various sectors of industries. Liberalization, globalization and privatization have helped in bringing foreign capital and modern technology into the country. Private enterprise is being allowed to enter into various core sectors. This, has resulted into the faster growth of industrial sector.

Industrial Self Reliance

Industrial self reliance means that the people of India establish and operate industries with their own technical knowledge finances and using machines manufactured in our own country without depending on others.The Govt of India formulated an industrial policy in 1956 with the objectives of increasing industrial output, generating employment, disperesal of industries, removing regional imbalances in the industrial development and the development of village and small scale industries. Through planned development of Industries, we now manufacture several types of industrial goods. A major breakthrough has been achieved in the production of capital goods. India is now self reliant in the production of heavy machines and equipment used in mining, irrigation, power projects, transport and communication. We use machines fabricated in India for cement, textile, iron and steel and sugar industries etc. Public sector has played an important role in achieving industrial self reliance. Iron and steel, railway equipment, petroleum, coal and fertilizer industries, have been developed in this sector. These industries were established in industrially backward regions. During the seventh five year plan an emphasis was laid on high technology, high value addition and knowledge based industries like electronics, advanced machine tools and telecommunications.

IMPACT OF ECONOMIC LIBERALIZATIONThe process of industrialization in India can be divided into two parts before and after 1992. During first forty years after independence the Indian economy had diversified and expanded very fast. But this growth was characterized by rigid controls and regulations.In August 1992, Government of India took a bold step by changing its economic policies from state control to market forces. A need was felt to give more responsibility to private capital and enterprise, both domestic as well as foreign. In reponse to this, the new industrial policy of liberalization, privatisation and globalization was adopted in August 1992. The immediate cause of this changes in economic policy was to tide over balance of payment crises but having wide social, economic, political and geographical implications.Liberalization means a reduced role for the Government and a greater role for the market or the liberal attitude of the Government for the establishment and running of industries. It was touted as a panacea for the ills of Indian economy. However, after 15 years of following the path of literalization, the results are not that sweet. The gap between the rich and the poor has increased. Production of goods of mass consumption has not improved. Employment opportunities have not increased at the desired rate. In privatisation there will be transfer of the ownership of public enterprises to private capital, opening of more industrial areas to private capital and enterprise. The main aim of privatisation is to make use of privately owned resources for collective welfare of the people.

Service SectorThe growing share of the services sector in the gross domestic product (GDP) of India indicates the importance of the sector to the economy. The services sector accounted for about 30 per cent of total GDP of India in 1950s; its share in GDP increased to 38 per cent in the 1980s, then to 43 per cent in the 1990s and finally to about 56.5 per cent in 201213 (GOI 2013). Thus, the services sector currently accounts for more than half of Indias GDP. This process of tertiarisation (dominance of the tertiary or services sector) of the economy has been accompanied by a decline in the share of the primary sector (agriculture) and a more or less constant share of the secondary (industry) sector over the years.

What constitute the services sector?The term services sector refers to, at the most aggregate level, a large group of activities that include trade, hospitality (hotels, restaurants), transportation, communication, entertainment, health, education, public services and so on. It can be argued that, even at the aggregate level, the services sector is more heterogeneous than the other two sectors, agriculture (primary sector) and industry (secondary sector). Thus if the primary sector involves producing goods directly from natural resources (agriculture, fishing, hunting, mining and so on) and secondary sector involves modifying material goods into other more useful products and commodities, then the tertiary sector or the services sector includes all activities that do not produce or modify material goods (Illeris 2007). In other words unlike the output of agriculture, mining or manufacturing which are material and tangible, the output of the services sector such as teaching, cleaning, selling, curing and entertaining have no physical form and therefore are immaterial or intangible.Indias trade in services have increased overtime and services accounts for the largest share in Indias foreign direct investment (FDI) inflows and outflows. The growth of Indias services sector, its contribution to GDP, and its increasing share in trade and investment has drawn global attention. Unlike other countries, where economic growth has led to a shift from agriculture to industries, in India, there has been a shift from agriculture to the services sector. In this respect, some economists (Ansari 1995) consider India as an outlier among South Asian countries and other emerging markets. Contending this view, Gordan and Gupta 2003, Banga 2005 and Jain and Ninan 2010 have pointed out that India is not an outlier as the share of services sector in GDP has increased with rise in per capita income. Kochhar et. al. 2006 argued that India was a negative outlier in 1981 compared to other emerging markets as the share of services in value added and employment was below that of other countries. After the economic reforms of the 1990s, services sector grew and in 2000 India became a positive outlier in terms of the share of services in value added but continued to be a negative outlier in terms of its share in employment. In India, growth in services sector has been linked to the liberalisation and reforms of the 1990s. In the first three decades (1950s to 1970s) after Indias independence in 1947, GDP grew at an average decadal growth rate of less than four per cent. India was largely an agrarian economy. The share of services sector was small and a large number of services were government monopolies. Services sector started to grow in the mid-1980s but growth accelerated in the 1990s when India initiated a series of economic reforms after the country faced a severe balance of payment crisis. Reforms in the services sector were a part of the overall reform process, which led to privatization, removal of FDI restrictions and streamlining of the approval procedures, among others. Existing studies show that liberalisation and reforms is one of the important factors contributing to the growth of services sector in India (Chanda 2002, Gordan and Gupta 2003, Banga and Goldar 2004 and Jain and Ninan 2010). With economic growth and rise in per capita income, there is a change in demand pattern from necessary to discretionary consumptions like education and personal and health care services (McKinsey & Company 2007). High income elasticity of demand for services has contributed to the high growth of this sector (Bhattacharya and Mitra 1990 and Gordan and Gupta 2003).Technological progress and availability of high skilled manpower has led to growth of services like information technology (IT) and IT enabled services (ITeS) (Chanda 2002). Developed countries outsource its services to developing countries like India leading to a rise in demand for services from the developing market (Bhagwati 1984, Gordan and Gupta 2003 and Hansda 2001). High government expenditure on certain services like community, social and personal services has also led to high growth of services (Ansari 1995).

Infrastructure Development in IndiaInfrastructure is the prerequisite for the development of any economy. Transport, telecommunications, energy, water, health, housing, and educational facilities have become part and parcel of human existence. It is difficult to imagine a modern world without these facilities. These are vital to the household life as well as to the economic activity. Infrastructure plays a crucial role in promoting economic growth and thereby contributes to the reduction of economic disparity, poverty and deprivations in a country. Greater access of the poor to education and health services, water and sanitation, road network and electricity is needed to bring equitable development and social emposwerment. It is an important pre-condition for sustainable economic and social development. Infrastructural investments in transport (roads, railways, ports and civil aviation), power, irrigation, watersheds, hydroelectric works, scientific research and training, markets and warehousing, communications and informatics, education, health and family welfare play a strategic but indirect role in the development process, but makes a significant contribution towards growth by increasing the factor productivity of land, labour and capital in the production process, especially safe drinking water and sanitation, basic educational facilities strongly influence to the quality of life of the people.

Roads India has one of the largest road networks in the world, aggregating to 3.34 million km. The countrys road network consists of Expressways, National Highways, State Highways, Major District Roads, Other District Roads and Village Roads. The road network, as on December 2007, comprises 66,590 km of National Highways, 128,000 km of State Highways, 470,000 km of Major District Roads and about 2.65 million km of other District and Rural Roads. National Highways comprise only about 2 percent of the total length of roads and carry about 40 percent of the total traffic across the length and breadth of the country.

The National Highways Development Project (NHDP), the largest highway project ever undertaken by the country, is being implemented by the National Highway Authority of India (NHAI). NHDP Phase I & II envisage 4/6 laning of about 14,279 km of National Highways, at a total estimated cost of Rs.650 million (at 2004 prices). These two phases comprise of Golden Quadrilateral (GQ), North-South and East-West Corridors, Port Connectivity and other projects.

Ports Indias coastline of 7,517 km. is added with 13 major ports and 187 non-major ports. Of the non-major ports, around 60 are handling traffic. The total traffic carried by both the major and minor ports during 2005-06 was estimated at around 570 million tonnes. The 12 major ports carry about 3/4th of the total traffic, The annual aggregate cargo handling capacity of major ports increased from 397.5 million tonnes per annum (MTPA) in 2004-05 to 456.20 MTPA in 2005-06, with the average turnaround time increasing marginally from 3.4 days to 3.5 days in 2005-06.

Airports 11 international airports 114 domestic airports 20%annual growth Passenger traffic crossed 100 million passengers p.a. Cargo traffic to grow at over 20% p.a. over the next five years - Inbound traffic also on rise due to trade and investment Maintenance, Repair and Overhaul (MRO) growing in a big way

RailwaysIndia has one of the largest railway networks in the world (63,000 route KMs network) Accounts for 30% of total freight traffic Traffic volumes set to double by 2012 The high-density network connecting the four metropolitan cities of Chennai, Delhi, Kolkata and Mumbai, including its diagonals, popularly called the Golden Quadrilateral has got saturated at most of the locations. Potential for rolling stock, locomotives, passenger coaches, track equipment, signaling equipment

Power Since independence, generating capacity has increased from 1362 to over 100,000 MW However there are widespread shortages of power in almost all parts of the country. Inadequate inter-regional transmission links; Inadequate and ageing sub-transmission & distribution network leading to power cuts and local failures/faults; Large scale theft and skewed tariff structure; Slow pace of rural electrification; Inefficient use of electricity by the end consumer.

Government PlansPlanning in India dates back to the 1930s. Even before independence, the colonial government had established a planning board that lasted from 1944 to 1946. Private industrialists and economists published three development plans in 1944. India's leaders adopted the principle of formal economic planning soon after independence as an effective way to intervene in the economy to foster growth and social justice.The Planning Commission was established in 1950. Responsible only to the prime minister, the commission is independent of the cabinet. The prime minister is chairperson of the commission, and the minister of state with independent charge for planning and program implementation serves as deputy chairperson.The First Five-Year Plan (FY 1951-55) attempted to stimulate balanced economic development while correcting imbalances caused by World War II and partition. Agriculture, including projects that combined irrigation and power generation, received priority. By contrast, the Second Five-Year Plan (FY 1956-60) emphasized industrialization, particularly basic, heavy industries in the public sector, and improvement of the economic infrastructure. The plan also stressed social goals, such as more equal distribution of income and extension of the benefits of economic development to the large number of disadvantaged people. The Third Five-Year Plan (FY 1961-65) aimed at a substantial rise in national and per capita income while expanding the industrial base and rectifying the neglect of agriculture in the previous plan. The third plan called for national income to grow at a rate of more than 5 percent a year.Economic difficulties disrupted the planning process in the mid-1960s. In 1962, when a brief war was fought with China on the Himalayan frontier. Midway through the third plan, it was clear that its goals could not be achieved. Food prices rose in 1963, causing rioting and looting of grain warehouses in 1964. War with Pakistan in 1965 sharply reduced the foreign aid available. Successive severe droughts in 1965 and 1966 further disrupted the economy and planning. Three annual plans guided development between FY 1966 and FY 1968 while plan policies and strategies were reevaluated. Immediate attention centered on increasing agricultural growth, stimulating exports, and searching for efficient uses of industrial assets. Agriculture was to be expanded, largely through the supply of inputs to take advantage of new high-yield seeds becoming available for food grains. The rupee was substantially devalued in 1966, and export incentives were adjusted to promote exports. Controls affecting industry were simplified, and greater reliance was placed on the price mechanism to achieve industrial efficiency.The Fourth Five-Year Plan (FY 1969-73) called for a 24 percent increase over the third plan in real terms of public development expenditures. The public sector accounted for 60 percent of plan expenditures, and foreign aid contributed 13 percent of plan financing. Agriculture, including irrigation, received 23 percent of public outlays; the rest was mostly spent on electric power, industry, and transportation. Although the plan projected national income growth at 5.7 percent a year, the realized rate was only 3.3 percent.The Fifth Five-Year Plan (FY 1974-78) was drafted in late 1973 when crude oil prices were rising rapidly; the rising prices quickly forced a series of revisions. The fifth plan was in effect only one year, although it provided some guidance to investments throughout the five-year period. The economy operated under annual plans in FY 1978 and FY 1979.The Sixth Five-Year Plan (FY 1980-84) was intended to be flexible and was based on the principle of annual "rolling" plans. It called for development expenditures of nearly Rs1.9 trillion (in FY 1979 prices), of which 90 percent would be financed from domestic sources, 57 percent of which would come from the public sector. Public-sector development spending would be concentrated in energy (29 percent); agriculture and irrigation (24 percent); industry including mining (16 percent); transportation (16 percent); and social services (14 percent). In practice, slightly more was spent on social services at the expense of transportation and energy. The plan called for GDP growth to increase by 5.1 percent a year, a target that was surpassed by 0.3 percent. A major objective of the plan was to increase employment, especially in rural areas, in order to reduce the level of poverty. Poor people were given cows, bullock carts, and handlooms; however, subsequent studies indicated that the income of only about 10 percent of the poor rose above the poverty level.The Seventh Five-Year Plan (FY 1985-89) envisioned a greater emphasis on the allocation of resources to energy and social spending at the expense of industry and agriculture. In practice, the main increase was in transportation and communications, which took up 17 percent of public-sector expenditure during this period. Total spending was targeted at nearly Rs3.9 trillion, of which 94 percent would be financed from domestic resources, including 48 percent from the public sector. The planners assumed that public savings would increase and help finance government spending. In practice that increase did not occur; instead, the government relied on foreign borrowing for a greater share of resources than expected.The eighth plan was launched in April 1992 and emphasized market-based policy reform rather than quantitative targets. The eighth plan included three general goals. First, it sought to cut back the public sector by selling off failing and inessential industries while encouraging private investment in such sectors as power, steel, and transport. Second, it proposed that agriculture and rural development have priority. Third, it sought to renew the assault on illiteracy and improve other aspects of social infrastructure, such as the provision of fresh drinking water. Government documents issued in 1992 indicated that GDP growth was expected to increase from around 5 percent a year during the seventh plan to 5.6 percent a year during the eighth plan. With targeted growth of 6.5%, the ninth plan was prepared under United Front Government focused on Growth With Social Justice & Equality Ninth Plan aimed to depend predominantly on the private sector Indian as well as foreign (FDI) & State was envisaged to increasingly play the role of facilitator & increasingly involve itself with social sector viz education, health etc and infrastructure where private sector participation was likely to be limited. It assigned priority to agriculture & rural development with a view to generate adequate productive employment and eradicate poverty.

Recognising that economic growth cant be the only objective of national plan, Tenth Plan had set monitorable targets for few key indicators (11) of development besides 8 % growth target. The targets included reduction in gender gaps in literacy and wage rate, reduction in Infant & maternal mortality rates, improvement in literacy, access to potable drinking water cleaning of major polluted rivers, etc. Governance was considered as factor of development & agriculture was declared as prime moving force of the economy.States role in planning was to be increased with greater involvement of Panchayati Raj Institutions. State wise break up of targets for growth and social development sought to achieve balanced development of all states.The eleventh Plan was aimed Towards Faster & More Inclusive Growth after UPA rode back to power on the plank of helping Aam Aadmi (common man). India had emerged as one of the fastest growing economy by the end of the Tenth Plan. The savings and investment rates had increased , industrial sector had responded well to face competitionin the global economy and foreign investors were keen to invest in India. But the growth was not perceived as sufficiently inclusive for many groups , specially SCs , STs & minorities as borne out by data on several dimensions like poverty, malnutrition, mortality, current daily employment etc. The broad vision for 11th Plan included several inter related components like rapid growth reducing poverty & creating employment opportunities , access to essential services in health & education, specially for the poor, extension if employment opportunities using National Rural Employment Guarantee Programme , environmental sustainability , reduction of gender inequality etc. Accordingly various targets were laid down like reduction in unemployment (to less than 5 % among educated youth) & headcount ratio of poverty (by 10 %), reduction in drop out rates, gender gap in literacy , infant mortality , total fertility , malnutrition in age group of 0-3 ( to half its present level), improvement in sex ratio, forest & tree cover, air quality in major cities, , ensuring electricityconnection to all villages & BPL households (by 2009) & reliable power by end of 11th Plan , all weather road connection to habitations with population 1000& above (500 in hilly areas) by 2009, connecting every village by telephone & providing broad band connectivity to allvillages by 2012.

The GDP contribution of various sectors of Indian economy have evolved between 1951 to 2013, as its economy has diversified and developed.According to graph, the primary sector (agriculture) we can see that the sectors contribution to GDP decreased drastically from more than 50 percent in 1950 to 14 percent in 2013, this is because the development in industrial and service sector required land and labor. Services sector is the fastest growing sector in India, contributing significantly to GDP, GDP growth, trade and FDI inflows creating towards job opportunities and better future for people. Contribution of industrial sector is not satisfactory it could have done more contribution to GDP. It was 17 percent in 1950 and 27 percent in 2013, only 10 percent growth in 6 decades. ConclusionIndia is developing and five and half decades of planning show that India's economy, a mix of public and private enterprise, is too large and diverse to be wholly predictable or responsive to directions of the planning authorities. Actual results usually differ in important respects from plan targets. Major shortcomings include insufficient improvement in income distribution and alleviation of poverty, delayed completions and cost overruns on many public-sector projects, and far too small a return on many public-sector investments. Even though the plans have turned out to be less effective than expected, they help guide investment priorities, policy recommendations, and financial mobilization. It will take time to become a developed economy.Reference Tripathi And Prasad[2009]. Agricultural Development In India Since Independence Journal Of Emerging Knowledge On Emerging Markets, Vol. 1, Art. 8 Economic Activities And Infrastructural Development In India. Module 8 Wadhva, Charan D. India Trying To Liberalise: Economic Reforms Since 1991 Pais, Jesim(2014). Growth And Structure Of The Services Sector In India, Institute For Studies In Industrial Development. Bhat,T.P.(2013). Growth and structural changes in Indian Industry, Institute For Studies In Industrial Development. Puri,V K, and S K Mishra, Indian Economy 31st edition Datt & Sundharam, Indian Economy (English) 70th Edition Sethi, D.K, and U. Andrews, Frank ISC Economics