S T E C A F F O A’S I Y D IN NOM R E O H C E ND Y A CIET I O S VOL a be h g Ra Jh a r nd and c i om ry and n o Ec Histo nomy t n e l o Rec Socia ical Ec t Poli Facets of India's Economy and Her Society Volume I ‘Professor Raghbendra Jha is the right scholar and economist to take readers through the development of the Indian economy Readers will be in good hands.’ —Edmund Phelps, Columbia University, USA, winner of the 2006 Nobel Prize in Economics ‘This two-volume study on India’s economy and society by Professor Raghbendra Jha skilfully combines high quality analytical scholarship, and nuanced exposition of empirical evidence to bear on India’s development policies and challenges As linking of economy and society is increasingly recognised as essential for addressing policy challenges by the current phase of globalisation, this study should be valuable not just for those studying India, but also for those interested in global developments.’ —Mukul Asher, National University of Singapore, Singapore ‘Over the years, I have benefited from reading the works of Professor Raghbendra Jha, and from teaching from them I enthusiastically recommend these two volumes to you.’ —Raaj Kumar Sah, University of Chicago, USA ‘It is perhaps the best and most scholarly contribution to understanding the Indian economy and society Its rich historical perspective and a profound understanding of how India has evolved into a major economic power set standards of scholarship and analytical rigour that will be hard to surpass.’ —Raghav Gaiha, University of Manchester, UK ‘India is critical for the world Knowing India is vital This book is a tour-de-force review of the fundamental topics on the Indian political economy and society that are relevant for any committed social scientist to be aware of Raghbendra Jha is one of the leading contemporary India scholars globally, and he has conscientiously put together the materials in a careful and structured way that will find substantial and immediate user acceptance worldwide.’ —Sumit K. Majumdar, University of Texas at Dallas, USA Raghbendra Jha Facets of India's Economy and Her Society Volume I Recent Economic and Social History and Political Economy Raghbendra Jha Arndt-Corden Department of Economics Australian National University Acton, Australia ISBN 978-1-137-56553-2    ISBN 978-1-137-56554-9 (eBook) https://doi.org/10.1057/978-1-137-56554-9 Library of Congress Control Number: 2017963937 © The Editor(s) (if applicable) and The Author(s) 2018 The author(s) has/have asserted their right(s) to be identified as the author(s) of this work in accordance with the Copyright, Designs and Patents Act 1988 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover illustration: © AKIHIRO NAKAYAMA Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Macmillan Publishers Ltd The registered company address is: The Campus, Crinan Street, London, N1 9XW, United Kingdom To Mother India and Mataji with love Preface These two volumes cover aspects of Indian economy and society They take a long view of both and try to position them on a broader cultural and historical canvas These are the most important characteristics that distinguish this work from the vast literature that already exists about India India has a continuing cultural history spanning about 7000  years The country has some key beliefs and practices that have survived internal challenges and encounters with hostile external civilizations over several millennia In the process, a composite culture has also grown, testifying to India’s ability to absorb and assimilate external ideas and practices in a largely peaceful manner, even when these ideas and practices are imposed in an aggressive fashion Even since attaining independence from foreign rule on August 15, 1947 and declaring herself a democratic republic on January 26, 1950, India has faced a multitude of problems of a scale and intensity that would test the most mature of societies These have included intense mass poverty and hunger, very poor literacy and educational abilities of the population, the task of uniting a country with scores of languages and ethnicities ruled by different entities for decades and persistent threats of external aggression, to name just a few At a deeper level, India has had to regain her self-confidence and rediscover her ancient cultural moorings in order to define the kind of nation she wants to be in the future Unlike vii viii  Preface her large and powerful neighbor to the north, India chose to address her challenges within a pluralistic democratic framework The present work is an attempt to give an account of how India has been meeting these challenges and how things are expected to evolve in the future This is clearly a hopelessly difficult task to accomplish fully within the confines of two volumes Therefore, they concentrate on key aspects of India’s economy and society; hence their title These volumes constitute a narrative—my narrative—on India’s economic and social development and not profess to be exhaustive They are also meant to introduce the reader to the vast literature on the subject That said, they are written clearly and simply, so students (both graduates and undergraduates) of social sciences and general readers alike can use them to learn about India The selection of topics has been made keeping this in mind Volume I is entitled Facets of India’s Economy and Her Society: Recent Economic and Social History and Political Economy It begins with a section entitled “India’s economy in historical and spatial perspective.” This presents a long view of the performance of the Indian economy, and then discusses key aspects of the country’s population, land and labor, before moving on to human development The impact of Muslim rule is considered next, and then the state of the Indian economy under British rule is discussed Economy and society were deeply affected by India’s struggle for freedom, so one chapter is devoted to an account of this The second section, “Basic Structure of India’s Governance,” contains two chapters that deal with India’s political economy The first covers the Indian Constitution and basic structure of governance; the second provides a brief overview of major economic and political developments in independent India Volume II is entitled Facets of India’s Economy and Her Society: Current State and Future Prospects It is divided into three sections The first is entitled “Principal sectors of the Indian economy” and contains three chapters These discuss the performance and prospects for India’s agriculture, manufacturing and services sectors The second section is entitled “Emerging issues in India’s economy,” and this consists of four chapters The first discusses India’s links with the external world through international trade, investment, migration and  Preface     ix remittances Since the onset of major economic reforms in 1991 regional inequality across Indian states has increased Hence, the next chapter discusses the evolution of regional inequality in India and the role of indirect tax reform and vertical fiscal transfers A discussion of the newly instituted Goods and Services Tax is also included The next chapter discusses India’s performance in education and health services and suggests some policy initiatives in these areas The final chapter overviews the state of the environment The third and final section, entitled “Some aspects of India’s society and prospects for the future,” consists of three chapters The first discusses gender issues, the second intercommunity relations and the last future prospects When writing about the economy and society of a country as complex as India’s it is important to remember that the country represents a continuing ancient culture: Hindu civilization Indeed, this is the dominant reason for India’s cultural unity even at those times when the country did not constitute a single sovereign geographical entity and faced continuous assault from hostile invaders and settlers This cultural continuity has had deep influences on, among other things, social relations, laws, ­attitudes toward science, progress, policy, and people’s response to economic incentives Hence, these books will often allude to cultural issues and Hindu scriptures To accomplish this I have studied and attempted to absorb the major Hindu scriptures, and to dwell on them I have also studied Shri Guru Granth Sahib—the holy book of the Sikhs During this process, I was surprised to learn that many religious practices are actually gross aberrations It is my conviction that overlooking the true tenets of India’s civilization and concentrating on the aberrations, as some treatises on the country’s economics and politics have done, does not help our understanding of developments We can’t discuss a country with an ancient culture, which is even now at the core of the country’s civilization, by ignoring that culture When writing a work such as this, it helps if the author can have a broad perspective on and understanding of the history and traditions of the country This is what my former professor at Columbia University, Ronald Findlay, told me when he was visiting my department at the Australian National University in 2012 He had confidence that I had x  Preface these two characteristics and thus encouraged me to write such a book; but hr is clearly not responsible for its contents! I would argue that my early education in India, and later teaching experience in various leading economics educational institutions (Delhi School of Economics, Indian Institute of Management, Bangalore, and Indira Gandhi Institute of Development Research) in India and working on topics related to the Indian economy have kept me connected with my roots At the same time, my long experience in teaching in the USA (Columbia University and Williams College), Canada (Queen’s University), Australia (Australian National University) and the UK (University of Warwick) has hopefully provided me with the distance and the perspective needed to view Indian issues objectively Having completed these volumes I now realize that I could not have done so without a lifetime of reading, introspection and meaningful dialogue with people with wide experience and expertise As a result, I have run up a long list of debts First and foremost, I would like to thank my dear wife, Alka, who has long been an excellent sounding board for my ideas and has contributed much to the substance and the arguments made here Her contributions to this book and to our life together have been truly immeasurable and I cannot express them in words Suffice it to say that she and our dear son, Abhay, have made the task of writing this book an absolute delight I would also like to thank my many friends, current and former students and collaborators who have influenced my thinking on the issues discussed here and also helped in other ways I will mention only a few of them here They include Sures Jain, K.V. Bhanu Murthy, Anurag Sharma, Ashima Goyal, Gerald Epstein, L. Sridharan, Tulsi Tawari, Raghav Gaiha, Hari Nagarajan, Duc Nguyen Truong, Nguyen Hieu, Hai Anh La, Tu Dang, (the late) D.P. Chaudhuri and (the late) Ashok Seth None of these fine people is responsible for the content of this work The comments of anonymous referees have also been helpful The stimulating and supportive working conditions at Arndt-Corden Department of Economics, Australian National University, have been invaluable in helping me to design and complete this work I should like to take this statistically improbable opportunity to thank and honor Edmund S. Phelps, my PhD supervisor at Columbia University Professor Phelps, a Nobel Laureate and arguably one of the most imagi-  Preface     xi native economists of our time, taught me to appreciate that at a deep level economics is about human beings Hence, our analysis must embody not just scientific precision but also a strong concern for the people to whom this analysis is addressed This is the fourth time I have published with Palgrave Macmillan and, as in the past, it has been a pleasure to work with them Laura Pacey, economics editor, has been very helpful with her time and advice since this work’s initial inception Clara Heathcock and other professional staff at Palgrave have been most generous in addressing any problems and responding to all queries I have tried to cover considerable ground in this work, from history to politics to culture, arts, societal affairs and, most prominently, economics Perhaps enough justice has not been done to all of these areas, but I would argue that this is probably impossible to deliver in a single book Nevertheless, I have tried to build up a cogent argument that links them all, but shortcomings will remain To quote the legendary nineteenth-­ century Urdu poet Ghalib Mirza Asadullah Khan: Hazaaron khwahishen aisi ke har khwahish pe dam nikle Bohat niklay mere armaan, lekin phir bhi kam nikle Thousands of desires, each worth dying for… many of them I have realized … yet I yearn for more… I hope readers find these volumes stimulating reading Acton, Australia November 2017 Raghbendra Jha 320  Index G Gaiha, R., 103n4 Galbraith, John Kenneth, 194 Gallipoli, 174 Gama, Vasco de, 125 Gandhi, Feroz, 251 Gandhi, Frontier, 197 Gandhi, Indira, 215, 251, 261, 262, 268, 276 Gandhi, Mohandas Karamchand, 168, 172, 174, 175, 180–183, 186, 188, 189, 191, 196, 197, 199, 204n21, 206n49, 247, 305n1, 309n32 Gandhi, Mrs., 263 Gandhi/Nehru dynasty, 283 Gandhi, Priyanka, 307n21 Gandhi, Rahul, 307n21 Gandhi, Rajiv, 182, 185, 189, 191, 269, 271, 272, 274–277, 279, 293, 307n21, 309n35 Gandhi, Sanjay, 268, 269, 271 Gandhi, Sonia, 251, 283, 288, 289, 307n21 Gandhian, 267 Gandhi-Irwin pact, 183 Gangetic Bihar, 135 Ganjam, 146 Garam dal, 172 Gas and Water Supply, 15 GDP, see Gross Domestic Product Gender bias in India’s population structure, 41 Gender development index (GDI), 77 Gender imbalance, 45 General Agreement on Tariff and Trade (GATT), 281 General Mountbatten, 198 General strike on the Indian railways, 267 Germany, 7, 186, 190 GFC, see Global Financial Crisis Ghazni, Mahmud of, 109 Ghori, Mohammed, 109 Gift tax, 228 Gini coefficient, 82, 88 Giri, V.V., 263 Glenn, P., 244n9 Global Financial Crisis (GFC), 26, 289, 290 GNI per capita, 74 Goa, 125, 222 Gobind Singh, Guru, 122n9 Gokhale, Gopal Krishna, 168, 170, 172, 174, 175 Goldar, B., 25, 61, 68 Golden age of the Vijaynagar Empire, 115 Gonds, 162 Goods and services tax (GST), 225, 228 Gopalan, C., 149 Gosplan, 254, 255 Government of India Act in 1935, 130, 177, 183 Government of Nanjing, 190 Governor-general, 198, 215 Gram panchayat, 215, 221 Gram sabhas, 215 Great Bengal Famine, 137, 145 Green Revolution, 262, 269 Gross capital formation, 282 Gross domestic capital formation, 12, 256, 286 Gross Domestic Product (GDP), 4, 15, 282 at factor cost, 256  Index     Gross domestic savings, 23 Gross national income (GNI), 73 Gross Value Added (GVA), 15 Gujarat, 67, 91, 109, 110, 146, 218 Gujral, I.K., 285 Guler, 129 Guntupalli, A., 149 Gupta period, 222 Guru Nanak, 150 Gwalior, 109, 110, 112, 164 H Hagel, F., Haji Pir Pass, 262 Haldighati, 113 Hale, G., 18 Harihar, 115 Harihar II, 115 Harmonized System of Nomenclature, 233 Harrod-Domar model, 253 Haryana, 37, 91, 218, 269 Hassan, 116 Hastings, 128 Hay, S., 203n13 Head count ratio (HCR), 81 of poverty, 78 Health services, 253 Heavy dependence on agriculture, 46 Hedgewar, Keshav, 179 Hemu, 113 Heredia, R., 204n21 Heston, A., 13, 145 High Court, 274 Himachal Pradesh, 91, 92, 99, 218, 259 Himalayan, 262 321 Hindi, 171, 218 Hind Swaraj, 174 Hindu Adoptions and Maintenance Act, 223 Hindu Code Bill, 223 Hinduism, 35 Hindu Marriage Act, 223 Hindu Minority and Guardianship Act, 223 Hindus, 35 Hindu Succession Act, 223 Hiroshima, 191 Hissar, 146 Holkar, Ahilyabai, 161 Home Rule League, 174 Hotel receipts tax, 228 Hotels, 15 Howitzer field guns, 273 Human Development Index (HDI), 73 Humayun, 112 Hyderabad, 146, 147 Hyder Ali, 116 Hydroelectric power projects, 254 I Ibrahim, 116 Ichogil, 262 Ilbert Bill, 169 Iltutmish, 110 Impending effects of climate change on the monsoons, 54 Imperial Assemblage, 169 Imperial Gazetteer of India, 146 Imperialism, 248 Import substitution (IS), 248, 249 Income tax, 225 322  Index Income Tax Act, 225, 229 Increasing landlessness, 54 Incremental capital output ratio, 253 Independence, and in 1921, 178 Independent State of Croatia, 190 Index of Industrial Production (IIP), 15 India, 7, 176, 196, 198 Code of Criminal Procedures, 224 deindustrialization, 131–137 first non-Congress government, 268 legal structures, 226 India Gate, 177 Indian, 248 Indian Administrative Service (IAS), 219 Indian Airlines, 269 Indian Citizenship Act, 289, 309n40 Indian Civil Service (ICS), 185, 219 Indian Companies Act, 225 Indian Constitution, 211, 218 Indian Contract of September, 224 Indian criminal laws, 223 Indian Emergency Food Aid Act, 258 Indian Evidence Act, 223 Indian famine, 146, 147 Indian financial year, 228 Indian Foreign Service, 259 Indian Independence Act, 198 Indian Institutes of Technology (IITs), 121n1, 253 Indian Kashmir, 195 Indian labor laws, 224 Indian National Army (INA), 190 Indian National Congress, 155n13, 169, 170, 189, 251 Indian nationality law, 226 Indian Penal Code, 223, 224 Indian personal law, 222 Indian Police Service (IPS), 226 Indian Revenue Service (IRS), 226 Indian Trusts Act, 225 Indigo farmers, 175 Indigo workers in Bengal, 169 Industrial controls, 281 Industrialization, 248 Industrial revolution, 133 Industries Development and Regulation Act, 306n9 Industry, 15, 253 Indus valley civilization, 121n1 Inflation, 256 Informality of employment, 60 Informalization of the labor market, 62 Instrument of Ascension to India, 195 Insurance, 15 Intelligence Bureau, 194 Interest tax, 228 International Atomic Energy Agency, 289 International Monetary Fund (IMF), 269 Ireland, 176, 185 Irrigation and energy, 253 Islamic invasion of India, 150 Islamic occupation, Italy, 190 J Jacoby, H., 66 Jagannath Puri temple, 111, 122n4 Jahangir (Salim), 113, 126 Jainism, 35 Jaipal, 109 Jaitpur, 129, 162 Jajnagar, 111 Jallianwala Bagh, 178, 180  Index     Jalor, 110 Jalun, 129 Jammu and Kashmir, 18, 91, 92, 99, 195, 196, 198, 224, 225, 242, 243, 250 Jamshed, 116 Jamshedpur, 172 Jana Dhan program, 295 Jana Sangh, 260 Janata Dal, 273, 276 Janata Dal Secular, 276 Janata Dal (United Front), 285 Janata Party, 268, 276 Japan, 6, 7, 186, 187, 190, 203n15 Suzuki Corporation, 268 Japanese-controlled Philippines, 190 Jaswan, 129 Jatis, 202n8 Jats, 118 Jaziya tax, 114 Jha, P., 45 Jha, R., 45, 69n2, 70n4, 70n5, 87, 88, 99, 103n4, 205n37, 245n16, 271, 293, 298, 309n41 Jha, S., 308n26 Jhansi, 164 Jharkhand, 18, 37, 162, 171, 218 Jinnah, Mohammad Ali, 174, 184, 196 Jury trials, 224 Jwalamukhi, 111, 122n5 K Kabir, 150 Kabirdas, 166 Kabul, 109 Kafur, Malik, 110 Kakori Train Robbery, 181 323 Kalat, 196 Kalekar, Kaka, 275 Kalinjar, 113 Kamraj, K., 261 Kamraj Plan, 261 Kanauj, 109 Kangra, 109, 129 Kannada, 218 Kannauj, 109, 110, 112 Kanpur, 164 Karachi, 109 Kargil region of Kashmir, 286 Karikal, 125 Karnataka, 91 Kashmir, 109, 146 Kathiawar, 147 Kautilya’s Arthashastra, 142 Keay, J., 127 Kelkar, R., 224 Kerala, 37, 91, 251 Keralite Church, 252 Khadi, 247 Khan Abdul Ghaffar Khan, 197 Khan, Kamal, 116 Khan, Khizr, 112 Khan, Khusru, 110 Khan, Shah Nawaz (Captain), 192, 194 Kharan, 196 Khera, R., 103n4 Khilafat movement, 177 Khilji, Alauddin, 110 Khilji, Jalaluddin, 110 Khilji, Muhammad, 110 Khonds, 162 Khosla Commission, 194 Khudai Khidmatgar, 197 Khusro, Amir, 166–167 Khyber Pass, 108 Kohli, A., 212 324  Index Kolkata, 264 Korean War, 259 Kozel, V., 86 Krishnadeva Raya, 115 Krishnamachari, T.T., 261 Kulpahar, 129 Kumar, D., 126, 141, 146 Kurosaki, T., 103n3 Kwashiorkor, 145 L Labor, 31 and land productivity, 13 market participation rates, 58 productivity, 49 Labour Party, 191 Lahore, 262 Lajpat Rai, Lala, 168, 172, 179, 180 Lal, 117 Lal, D., 12, 148, 155n17 Lal-Bal-Pal, 172 Lancashire began in, 133 Land, 31 reforms, 250 rehabilitation, 253 revenue, 228 tenurial crisis, 247 Lasbela, 196 Laxmibai, Queen of Jhansi, 162, 164 League of Nations, 176 Left of centre policies, 264 Legislative council, 165 Lenin, Vladimir, 176, 248 Lhasa, 259 Liberation Tigers of Tamil Eelam (LTTE), 279 License quota raj, 256, 281, 282 Life expectancy at birth, 74 Lincoln, Abraham (President), 147 Lindstrom, Sten (Special Prosecutor), 273 Line of control, 195 Link language, 218 Lodi, Behlol, 112 Lodi, Ibrahim, 112 Lodi, Sikandar, 112 Lodi dynasty, 112 Lok Sabha elections in 1989, 273 Lok Sabha (LS), 213, 217, 244n2, 251, 267, 268 Loot, 138 Lord Linlithgow (Viceroy of India), 186, 198 Lorenz Curve, 80 Lucknow, 164 Lytton (Lord), 169 M Madagascar, 187 Maddison, A., 5, 136, 139 Madhya Pradesh, 18, 67, 91, 92, 99, 218 Madras, 143, 146, 261 Madras Carnatic, 129 Mahabharata war, 121n1 Mahal, Mumtaz, 114 Mahalanobis, P.C., 255, 306n7 Mahalwari system, 143 Maharashtra, 91, 143, 218 Mahatma Gandhi National Rural Employment Guarantee Scheme, 288 Mahbub-ul-Haq, 74 Mahe, 125 Mahmud, Nasiruddin, 110 Mahmud, Shihab-ud-din, 116 Maintenance of Internal Security Act (MISA), 267  Index     Majumdar, S., 132–134 Makrai, 129 Makran, 196 Malabar, 129 Male unemployment, 65 Malthusian type equation, 12 Malviya, Madan Mohan, 204n22 Malwa, 110, 161 Manchukuo, 190 Mandal, B.P., 275 Mandal Commission Report, 275, 276 Mandela, Nelson, 203n9 Mandu, 110 Manipur, 190 Manufacturing, 15 Manusmriti, 222 Marathas, 114, 118 Marginal holdings, 49 Marshall, P., 127 Maruti car, 268, 307n20 Marwar, 146 Marxism, 248, 305n1 Mathura, 109 Maulana Abul Kalam Azad, 185, 191, 196 Maurya, Chandragupta, 108 Mauryan, 222 Mazumdar, R.C., 108, 161 Mean of years of schooling, 74 Meerut Cantonment, 164 Megasthenes, Meghalaya, 18 Mehta, Ferozshah, 170, 174 Menon, K (Foreign Minister), 155n9, 195 Menon, V.P., 131 Mercado, R., 295 Mercantile Law of India, 224 Mesopotamia/Iraq, 174 325 Mewar, 112 Middle East, 58 Minimum alternate tax (MAT), 230 Mining and Quarrying, 15 Minister for Information and Broadcasting, 263 Ministry of Agriculture, 263 Ministry of Finance, 229 Minto, Lord, 173 Minto-Morley reforms, 173, 183 Mirabai, 166 Mir Jafar, 127 Mir Zafars, 199 Mishra, P., 117, 165, 203n15 Miyazaki Torazo, 176 Moderately poor, 39 Modi, Narendra (Prime Minister), 69, 86, 292, 293 Mohammad Bahadur Shah, 128 Mo’in ad-Din Abu’l Mozaffar Mohammad, 127 Moirang, 190 Mongolia, 58 Mongol ruler Timur, 111 Mongols, 110 Monopolies and Restrictive Trade Practices Act, 264 Monthly Per Capita Expenditure(MPCE), 42 Moosvi, S., 136 Morten, M., 86 Mountbatten, 196, 197 Mubarak, Qutub-ud-din, 110 Mughal dynasty, 164 Mughal emperor, 164 Mughal Empire, 127, 132, 133 Mughal rule, 6, Mujibur Rehman, 264 Mukherjee (Justice), 194 Mukherjee, M., 149, 156n22, 161 326  Index Mukherjee, Pranab, 271 Mumbai, 258 Municipalities, 215 Munro, Sir Thomas, 128, 143 Murphy, K., 306n2 Muslim appeasement, 178 Muslim electorate, 173 Muslim invasions of India, 109 Muslim League, 184 Muslim personal law, 223, 274 Muslim problem in Bengal, 173 Muslims, 35 Mysore, 146 N Nadir Shah of Persia, 115 Nagar Haveli, 125 Nagarkot, 111 Nagasaki, 191 Nagor, 110 Nagpur, 129 Naipaul, V.S., 151 Nalanda, 117 Namboodripad, E.M.S., 251, 252 Namdeva, 166 Nanak, Guru, 166 Naoroji, Dadabhai, 140, 169, 170 Naram dal, 172 Narasimha Rao, P.V., 277, 280, 283, 309n32 Narayan, Jayprakash, 267, 268, 276 Narendranath Datta, see Swami Vivekananda Nash equilibrium, 306n2 Nasiruddin, Mahmud, 111 National Advisory Council (NAC), 283, 289 National Bank for Agriculture and Rural Development, 269 National Democratic Alliance (NDA), 285 National Democratic Front, 266 National Development Council, 259 National emergency, 267 National Family Health Survey, 88 National Health Service, 156n19 National income, 253 Nationalization of 14 major private banks and the Land Ceiling Act, 264 National product, 253 National Rural Employment Guarantee Act, 289, 290 National Rural Employment Guarantee Program (NREGP), 67 National Sample Survey (NSS), 42, 69n2 Nazi Germany, 187 Nehru/Gandhi family, 280, 283 Nehru, Jawaharlal, 168, 179, 182, 183, 189, 196–199, 203n14, 223, 248, 249, 251, 252, 259, 260, 264, 309n32 Nehru, Motilal, 179, 181 Nehruvian socialism, 269 Nelson, R., 12, 13 Nepal, 48, 49, 164 Neuve Chapelle, 204n20 Newly independent countries, 248 Niti Ayog, 292, 295 Nizam Shahi dynasty, 115, 116 Non-poor high, 40 Non-poor low, 39  Index     Non-resident Indians (NRIs), 281, 285 North Africa, 58 North Bihar, 146 North East Frontier Agency (NEFA), 260 Northern and Central Bengal, 145 Northern and eastern Rajputana, 146 Northern Circars, 129 North Madras, 142 North-West Frontier Province (NWFP), 197 NSS, see National Sample Survey Nuclear deal with the USA, 289 Nuclear device, 267 Nuclear power, 255 Nurpur, 129 O Odisha, 18, 111, 171, 271 OECD Secretariat, 18 Ó Grada, C., 145, 155n18 Operation Blue Star, 308n22 Operational holdings, 49 Orissa, 37, 91, 142, 146 Orissa famine, 146 Oriya, 171 O’Rourke, K., 154n2 Orrisa, 146 Other backward castes (OBC), 275 Other social services, 253 Ottoman Turkey, 176 Oudh, 143 Output–capital ratio, 266 Overseas citizen of India (OCI), 226 Overvaluation of the rupee, 255 Overvalued exchange rates, 249 327 P Pakistan, 48, 185, 189, 196, 198, 262 Pakistani terrorists, 262 Pakistan Occupied Kashmir, 195 Pal, Bipin Chandra, 168, 172 Panchayati raj elections, 262 Panchayati raj institutions, 285 Panchayats, 140, 213, 295 Panchayat samitis, 215 Pandey, Mangal, 163 Panigrahi, S., 204n31 Park, C., 295 Parliament of India, 195 Partition, 193, 250 Partition of Bengal, 171 Party whip, 272 Patel, I.G., 280 Patel, Vallabhbhai, 168, 182, 183, 189, 193, 199 Patna, 164 Pattabhi Sitaramayya, 186 Pattanayak, S., 156n20 Peasants, 163 Penal Code and Criminal Procedure, 224 People’s Liberation Army (PLA), 259 Per capita GNP, 266 at factors cost, 256 Permanent zamindari system, 142 Peshawar, 186 Peshwas, 128 Pharmaceuticals, 286 Pitt, William, 128 Plan holidays, 263 Planning Commission, 62, 99, 252, 263, 292, 295 Plowden, Sir William Chichele, 202n8 Pogge, T., 103n2 328  Index Policy paralysis, 293 Political instability, 285 Pondicherry, 172 Population, 31 Population growth, 33 Population growth figures, 12 Portugal, 125 Poverty elimination, 286 Poverty line, 40 Poverty nutrition trap (PNT), 88 Pradhan, 221 Prasad, Rajendra, 198, 213 Pratap, Maharana, 113 Preamble to the Constitution of India, 212 Pre-Islamic Foreign Invasions of India, 107–108 President, 214 President of India, 213, 271, 289 Prevention of Corruption Act, 224 Prime minister of India, 289 of United Pakistan, 264 Princely states, 129, 162 Privy Council deliberations, 170 Provisional government in Burma, 190 Public and private components of gross fixed capital formation, 25 Public Distribution Scheme (PDS), 258 Public Law 480, 262 Public Safety Bill, 180 PUDR PUCL, 308n23 Puducherry, 125 Punjab, 91, 109, 129, 143, 218, 269 Punjabi festival of Baisakhi, 178 Puranas, 121n1 Puri, 111 Purnanas, 108 Puttaiah, E., 156n20 Pythagoras, 108 Q Qasim, Mohammed bin, 109 Quattrocchi, Ottavio, 273 Queen Victoria, 155n18, 169 Quit India Movement, 188, 189, 193 Quit India Resolution, 188 Quli Shah, Sultan, 116 Qulli, Muhammad, 116 Qutab Shahi, 116 R Rae Bareilly, 251 Rahim, 150 Raidas, 150 The Railway Protection Force, 226 Railways, 151 Rajagopalachari, 198 Rajasthan, 18, 61, 67, 91, 164, 196 Rajguru, Shivaram, 168, 180 Rajputana, 146, 147 Rajputana famine, 146 Rajputs, 118 Rajya Sabha (RS), 213, 251 The Ramayana, 121n1 Ram Janmabhoomi dispute, 274 Ram Janmabhoomi in Ayodhya, 276 Ram Janmabhoomi movement, 276 Ram (Lord), 274 Ram Mohan Roy (Raja), 202n4  Index     Ramthambhor, 110 Rangarajan, L., 222 Ranthambhor, 113 Ranthambor, 110 The Rapid Deployment Force, 226 Rashtriya Swayamsevak Sangh (RSS), 179 Rath yatra, 276 Rationalization of the cooking gas subsidy, 296 Ravidas, 167 Raychaudhuri, T., 132, 133, 146 Real Estate and Business Services, 15 Real net state domestic product per capita, 18 Real per capita consumption, 39 Real per capita GNP, 286 Recruiting agent for the British Army, 176 Reddy, Neelam Sanjiv, 263 Reddy, S, 103n2 Red Fort, 162 Regional and personal inequalities, 288 The religions, 37 Removal of privy purses to ex-princes, 264 Reserve Bank of India (RBI), 281, 282, 309n34 Reserve Police Force, 226 Resurgent India Bonds, 285 Reunification of Bengal, 171 Revolts Against the British Before 1857, 161–163 Right to Education Act, 289 Right to Information Act, 289 Ripon (Lord), 169 329 Rolling plans for the period 1978–1980, 268 Rosenstein-Rodan, P., 305n2 Round table conferences, 179 Rourkela, 254 Rowlatt Act, 177 Roy, T., 126, 135 Royal Indian Navy, 192, 193 Rural Gini, 82 Rural inequality, 91 Rural poverty, 82 Russia, 254 Ryotwari system, 143, 144 S Sabuktagin, 109 Sadhukhan, A., 61, 68 Saheb, Nana, 162, 164 Sahgal, P.K (Captain), 192 Sai Baba, 150 Saini, K., 144 Saiyyid dynasty, 112 Sales of Goods Act, 224 Sales tax, 228 Salonika, 174 Saluva, Narasimha, 115 Sambalpur, 129, 162 Sambhaji, 118 Sangama dynasty, 115 Sanga, Rana, 112 Sannyasis, 162 Santhals of Bihar, 162 Sardar Patel, Vallabhbhai, 130, 185, 191, 259 Sardar Singh, Bhagat, 168 Sarma, N., 253 Satyagraha, 178 330  Index Satyagrah Ashram, 175 Saunders, John P., 180, 181 Saving rate, 282 Scheduled Castes (SC), 49 Scheduled Tribes (ST), 49 Scindia, 164 Scott, James, 180 Secessionist movement was prompted in East Pakistan, 264 Second battle of Panipat, 113 Second Five-Year Plan (SFYP), 253, 255, 256, 259 Second Industrial Policy Resolution, 256 Second Lok Sabha, 251 Second report on backward castes, 275 Second round table conference, 183 Second term of the UPA government, 290 Second World War, 130, 132, 137, 186–188, 192 Security transaction tax, 230 Self-governing village, 248 Self-rule, 171, 176 Sen, Amartya, 74 Sepoys, 163 Service, 15 Service tax, 228, 231 Seventh Five-Year Plan (SFYP), 277 Shah Bano, 273, 274 Shah, Bahman, 116 Shah, Islam, 113 Shah, Jahan, 113, 162 Shah, Sher, 112 Shahjahanabad, 114 Shamasastry, 222 Share of cultivators in the total rural population, 52 Share of informal sector employment, 63 Share of international trade in GDP, 23 Sharia law, 223 Sharma, A., 87 Shastri, Lal Bahadur (Prime Minister), 261–263, 280, 283 Shaw, A., 65 Sheikh Abdullah, 242 Sher Shah, 142 Shias, 184 Shourie, A., 177, 223 Shukla, V., 244n7 Siba, 129 Sikhism, 35, 167 Sikhs, 118 Sikkim, 218 Simmons, C., 131 Simon, Sir John, 179 Simon Commission, 179 Sind, 109, 110 Singh, Babu Kunwar, 164 Singh, Bhagat, 180, 181 Singh, Hari (King), 195, 250 Singh, Manmohan, 277, 280, 281, 289, 292, 294, 309n32 Singh, Sardar Bhagat, 180 Singh, T., 261 Singh, V.P., 273, 275, 276 Siraj-ud-daulah, 127 Sivasubramonian, 9, 15, 56 Sixth Five Year Plan (SFYP), 268, 269 Slave dynasty, 110 Small scale industry (SSI), 60  Index     Small size of farms, 54 Social and Personal service, 15 Socialism, 248 Socialist model of development, 183 Social safety nets, 288 Social services, 253 Somnath temple, 109, 276 Son preference, 45 Soordas, 166 South Africa, 174 Southeast Asia, 187 Southern Indian Famine, 146 Southern Maratha, 146 Soviet model of economic development, 254 Soviet “success”, 252 Soviet Union, 262 Special action plans, 288 Special Bureau for India, 187 Srinivasan, T., 81, 103n2, 253 Sriperumbudur, 279 Stagnant productivity of agricultural land, 54 Stamp and registration fees, 228 Stanford Encyclopedia, 108 State excise duty, 228 State government, 220 State of emergency, 215 State road transport corporations, 262 The Statesman, 193 Straw, Jack, 195 Structural change, 283 Subedar, 163 Subedar, M., 129 Subramaniam, Chitra, 273 Subramanian, S., 103n6 Subscriber trunk dialing (STD), 275 331 Subsidiary alliances, 129 Sukhdev Thapar, 168, 180 Sultan of Bijapur, 114 Sultan, Tipu, 116 Sumul Sinha, 259 Sunnis, 184 Supreme Court of India, 223, 226, 243, 267, 274, 289 Surat, 126 Suri, Shershah, 118 Sutherland, J., 131, 155n11 Swadeshi, 172, 247 Swami Dayananda Saraswati, 203n11 Swami Ramakrishna Pramahansa, 167 Swami Vivekananda, 167, 168, 186, 199 Swaminathan, M., 87 Swaraj, 175 Swatantra Party, 260, 263 Swatch Bharat Abhiyan, 298 Swedish company Bofors, 273 Syed Ahmad Khan (Sir), 170, 171 Syndicate, 263 T Tagore, Rabindranath, 168 Taj Mahal, 114 Take-off, 249 Tamil group from Sri Lanka, 279 Tamil Nadu, 37, 91, 261, 279 Taneja, S., 255 Tarain, 110 Tariff cuts and export promotion, 281 Tashkent, 262 332  Index Tata Institute of Fundamental Research, 255 Tata Iron and Steel Company (TISCO), 172 Tata, Jamshedji, 137, 172 Tatra truck scam, 293 Tax and duty on electricity, 228–229 Taxes on goods and passengers, 228 Taxes on vehicles, 228 Taxila, 108 Telangana, 218 Temporary zamindari system, 142 Tendulkar, Suresh, 82 Tenth Five-Year Plan (TFYP), 288 TFR, see Total fertility rate Thailand, 190 Thakurdas, P., 248 Thaneshwar, 109 Theory of demographic transition, 52 Theory of economic drain, 169 Third and final round table conference, 183 Third Commission of Inquiry, 194 Third Five Year Plan (TFYP), 259, 260, 262 Three-language formula, 218 Tibet, 259, 260 Tibetan resistance, 259 Tilak, Bal Gangadhar, 168, 171–173, 203n18 The Times, 176 Tope, Tatya, 164 Total Factor Productivity (TFP), 25–26 Total female unemployment, 63 Total fertility rate (TFR), 37, 46, 269 Trade, 15 Trade deficit, 255 Traditional poverty line, 92 Transfer of Power agreement, 195 Transfer of Power papers, 192 Transfer of Property Act, 225 Trans-Jamuna districts of the North-Western Provinces, 146 Transparency International, 295 Transport and communication, 15, 253 Treaty of friendship and cooperation with the Soviet Union, 267 Truman, Harry, 258 Truong, N., 293 Tughlak, Feroz, 111 Tughlaq dynasty, 112 Tughlaq, Feroz, 111 Tughlaq, Ghazi, 111 Tughlaq, Muhammad-bin, 111, 116 Tukaram, 166 Tulsidas, 166 Tulsipur, 129 Tungabhadra, 115 Turkeman Gate, 268 Turkey, 177 Twelfth Five-Year Plan (TFYP), 290 U Udaipur, 129, 162 Ujaain, 110 UK, 5, Ulster, 185 UN, 262 Underweight children, 88  Index     Uniform civil code, 222, 223 Union excise duties, 228 Union territories, 215 Unique Identification Number (UID), 292 United Nations Development Program (UNDP), 73 United Progressive Alliance (UPA), 288 Universal adult franchise, 214 University Grant Commission (UGC), 253 University of Aligarh, 170 Unpaid family work, 58 Upanishads, 173 Upper Doab of Agra, 146 Uprising of 1857, 163–166 Upstream industries, 254 Urban Gini, 82 Urban inequality, 91 Urban poverty, 82 USA, 7, 18, 260, 261 US Seventh Fleet, 267 USSR, 6, 7, 190 Usual principal and subsidiary (UPSS), 62 Usual principal status (UPS), 62 Uttarakhand, 218 Uttar Pradesh, 18, 91, 92, 99, 218, 269, 274, 276 Uzbekistan, 262 V Vajpayee, A.B., 271, 276, 285 Vajpayee government, 288 Value added per worker, 48 Value Added Tax (VAT), 225, 228 333 Varna, 202n8 Veer Savarkar, 172, 179 Venkatesh, P., 66, 67 Venkatraman, R., 308n30 Verelst, Harry, 138 Very poor, 39 Vice-president, 213 Vidhan Parishad (VP), 215 Vidhan Sabha (VS), 215 Vijaynagar Empire, 115, 118 Vishwa Hindu Parishad (VHP), 274 W Wakf Board land scam, 292 Ways and means advances, 282 Wealth tax, 228 Wealth Tax Act, 230 Wellesley, 128 West Bengal, 18, 91, 92, 99, 171, 271 Western, 269 Western Agra, 146 Western Europe, Western Oudh, 146 West Germany, 254 White backlash, 169–170 White, M., 147, 156n19 Wholesale Price Index (WPI), 15 Williamson, J., 131, 132, 134, 135 Wilson, Woodrow (US President), 176 World Bank, 103, 224, 282 World Bank’s Ease of Doing Business Index, 295 World Development Indicators (WDI), 48 World Economic Forum, 58 334  Index World Health Organization (WHO), 149 World Parliament of Religions, 168 World Trade Organization (WTO), 233 Y Yadav, Laloo Prasad, 276 Yavana, 108 Yield per acre, 48 Youth unemployment, 58 Z Zafar, Bahadur Shah, 115, 164, 165 Zamindari system, 142, 143 Zamindars, 163 Zastoupil, L., 154n5 Zila parishads, 215 ... about India The selection of topics has been made keeping this in mind Volume I is entitled Facets of India’s Economy and Her Society: Recent Economic and Social History and Political Economy It... developments in independent India Volume II is entitled Facets of India’s Economy and Her Society: Current State and Future Prospects It is divided into three sections The first is entitled “Principal sectors... and the Triumph of Left-­ Oriented Policies: Shastri as Prime Minister and the First Term of Indira Gandhi 261 8.4 India’s First Non-Congress Government, Ensuing Political Instability and Mrs Gandhi’s