Chapter 9.3 Economic Development Sommer Falgowski Matt Olsen Rick Stabler

Food Production Food production is key for economic success. Farming is the heart of India’s economy. ¾ of all citizens live in rural areas. Most citizens are subsistence farmers. Irrigation has created more products. – In India, there is a 6-8 month period of no rainfall. – Enables Indian’s to grow a second, dry-season crop. Dams, canals, and wells ensure all crops are watered and ease flooding during monsoon season.

Green Revolution Technology improve agriculture in the 1960’s and 1970’s. Helped some farmers, but hurt others because they could not produce the fertilizer and irrigation systems to produce the crops. New types of wheat and rice were produced, causing larger harvests. – Nick named “miracle crops”

Land Reform Many Indian’s own little to no land or are tenant farmers (people who rent land and pay the owner with portions of their product). The government bought land from large landowners and attempted to re-sell it to create more economic growth. Laws were created for tenant farmers so they gain more.

Economic Goals Over 60 years ago, India was poor and undeveloped. They imported more than they exported. Nehru wanted to make India self suffcient by stopping imports. Some of his achievements: – Adopted socialist principles – Issued multiple 5 year plans – Limited foreign investment – Created a mixed economy – Started some industries with steel, mining, transportation and energy

Industrial Growth By 1970, India was the 7 th most industrialized nation in the world. Started factories to produce basics such as plastics and steel. Government encouraged Indians to save money to invest in the growing industry Hydroelectric plants produce much of India’s energy, Indian’s see them as “India’s New Temples” Impressive gains were made in – Iron – Coal – Steel – Chemical industries – Textile manufacturing

Reforms Economic slow downs forced reforms The government moved towards privatization – Selling state-owned industries to private investors To encourage privatization, the government set up joint projects with foreign companies. These reforms worked, and India’s economy was growing rapidly by the 1990’s. Success came to India in different forms: – Foreign investment – Technology companies – Computer software