1. Economic Development Chapter 9 Section 3 By: Caroline Parrish, Michael Krause and Keith Colvin

2. Operation Flood Operation Flood Program to produce milk 1970- 1996 From importing milk powder to the third largest milk producer in the world Increasing food production is vital to India’s economy Called India’s "white revolution" Happened because an efficient supply chain allowed small producers to participate successfully in the marketplace through a cooperative structure

3. Economic Goals 1947 India’s economy was poor an undeveloped Had to import machinery and finished goods from industrial countries New leaders wanted to free country of economic dependence Jawaharlal Nehru India’s first prime minister after independence Said India needed to produce what it needs and stop importing goods Adopted many socialist principals 5 year plans Limited foreign investment Careful regulation of large businesses Followed a policy of nonalignment in military actions ∙ Allowed focus on Economics

4. Industrial Goals Needed factories to produce basic materials and finished materials Encouraged saving money to invest in industry Used income from cash crops and taxes to build industry Resources used to build steel factories and hydroelectric plants Early Years of Independence Industry made impressive gains Set up new industries -engineering -chemicals -textiles 1960’s -India ranked as the world’s seventh most industrialized nation

5. Economic Reforms Government moved toward privatization – Selling state-owned industries to private investors – Encouraged by setting up joint projects with foreign companies 1990’s – India’s economy one of the world’s fastest growing Foreign investment rose High technology industry boomed Many found jobs with higher pay Still poverty was widespread Millions of new jobs needed to be created every year to keep pace with population growth

6. Progress in Agriculture Farming economy At independence - Could not feed population ∙Poor soil ∙Outdated farming methods ∙Droughts/floods Irrigation -Provide water during dry seasons -Ease flooding caused by monsoons -Enable a second crop during dry season ∙ Dams ∙ Canals ∙ Wells -Still lack of sufficient water supply -Opposition ∙Environmentalists upset

7. Land Reform Majority of people had tiny plots or no land Minority owned large farms - Landless peasants worked as tenant farmers ∙ People who rent land from large land owners and pay the owner a portion of their crops To combat this government redistributed the land -Laws limited the size of farms - Kept land owners from collecting more than ¼ of tenants crop -Reforms had limited success ∙ Wealthy land owners with political power blocked efforts ∙Many had no money to buy land

8. Green Revolution 1960’s and 1970’s food output improved -New technology -Scientists developed rice and wheat ∙ “Miracle crops” ∙ GM Today India grows enough food to export crops Contributed to the country's GDP Allowed India to pay back debt