This paper investigates the relationship between the policy regime and
growth during 1950-64 termed here ‘the Nehru era’. While there exist
valuable early appraisals of the period, access to new data and fresh
information allows for a longer and comparative view of the outcome.
We find overwhelming evidence not only of resurgent growth but also
of a lasting transformation of a stagnant colonial enclave into an economy
with firmer foundations capable of sustained growth. It is useful to
recognise the economic policy of this period as distinct, not only from
what preceded it but also from what came after, for that facilitates an
understanding of the political conditions needed for economic
interventions which are growth inducing. The paper also addresses some
lingering perceptions of the economic policy of the time, notably its
impact on agriculture and the governance of the public enterprises. The
shibboleth ‘Hindu rate of growth’, presumably a broad-brush description
of movement in this period, manages to obscure the extraordinary
economic dynamics of the Nehru era.
Key words: Economic Policy in India, Nehru era, Drivers of Growth,
Mahalanobis Strategy, Public Sector Performance
JEL Classification: O2, O3, O5, P
