Transforming India’s Economy: Policy Responses from Independence to the 21st Century

Abstract

This chapter provides a comprehensive analysis of the evolution of economic systems and the corresponding transformations in economic policy over time. Beginning with early agrarian and feudal economies, it traces the shift toward industrial capitalism driven by technological innovations and global trade expansion. The study highlights the emergence of capitalism, the rise and fall of mercantilism, and the ideological shifts from laissez-faire policies to Keynesian interventionism and neoliberal reforms. It pays particular attention to the distinct experiences of developing economies, emphasizing the legacy of colonialism, state-led development models, and later structural adjustment programs that sought macroeconomic stabilization and liberalization. Contemporary economic challenges such as globalization, digitalization, and climate change are discussed, illustrating the need for adaptive policy frameworks. The chapter also examines the rise of the digital economy, including gig work and platform capitalism, alongside sustainability initiatives like the Paris Agreement and circular economy principles. By synthesizing historical and current perspectives, the chapter underscores the complex interplay between economic structures and policy responses. This understanding is crucial for designing inclusive, resilient, and sustainable economic policies in an increasingly interconnected and rapidly changing global environment.