India’s Transformation After
gaining independence from Britain in 1947, India adopted a
democratic system of government. The economic system that developed
in India after 1947 was a mixed economy characterized by a large
number of state-owned enterprises, centralized planning, and
subsidies. This system constrained the growth of the private
sector. Private companies could expand only with government
permission. It could take years to get permission to diversify into
a new product. Much of heavy industry, such as auto, chemical, and...