The period from 1960’s to the end of 1980 is the most tumultuous time of newly independent India. This period has seen many changes in Indian politics, economy and forgein policy. India faced various external threats in forms of wars, its economy experienced bouts of recession and Indian democracy faced existential threat in the form of National emergency. However it was also a period where it won two major wars, the economy experienced growth, there was tremendous scientific development in telecommunications revolutions. This is also a period where Indian democracy came out of a testing phase of emergency with flying colours thus once and for all dispelling any doubts about the viability of Indian democracy.

Internal And External Shocks Between Mid 1960s To End Of 1980s

1.Shastri Years

2.Indira Gandhi Years

3.The Janata Years

Three years of the Janata government did not leave a substantial mark on India. However this period saw extreme political instability, and the spread of communalism and downward slide of the economy continued.

4.Rajiv Years

Economic Development During These Years

1. Shastri years: Shastri continued the socialist economic policies of Nehru. However three major economic developments that changed the face of independent India were taken during his reign.

1. To reduce chronic food shortages and to increase food production, the Shastri government initiated the Green revolution.
2. Another major decision was to start white revolution. He established the National dairy development board to increase milk production. This program was very successful with a massive increase in milk production.
3. He established the food corporation of India to deal with food shortages and to maintain buffer stocks. This organisation played a crucial role in India’s PDS system.

2. Indira years: The 14 years rule of Indira Gandhi saw many economic developments. . The Green revolution was taken up with full swing. Massive credit and HYV of seeds were to large farmers which ensured India within a decade became self-reliant in food production.

1. The major economic policy of this year was nationalisation of banks and other industries like coal. The bank nationalisation has particularly proved useful for it led to credit issuance required for the green revolution.
2. Indira Gandhi oversaw three five year plans, out of which two were successful in achieving their growth targets.
3. The 20 point program announced during the emergency period was successful in halting economic decline, exceeding targeted growth rate.
4. In Indira Gandhi’s second year populism was replaced by pragmatism. She started an operation with a cautious approach towards market reform and deregulation was taken up.

3. Rajiv Gandhi years: Rajiv years turned out to be the most remarkable in terms of economic development of India. . Rajiv Gandhi tried to liberalise the economy. He gave many incentives to private companies to increase Industrial production mainly in durable goods.

1. Rajiv particularly paid attention to development of modern communication and IT technologies. He started various technology missions. He created the environment for development of the IT industry in India. His efforts resulted in creation of MTNL and PCOs which helped in development of telephone networks in rural areas.
2. He took steps to reduce licence raj, and allowed businesses to purchase capital and reduced import restriction.

Apart from these headline achievements this period also saw many government schemes to reduce unemployment and improve the condition of the poor and middle class. The three year Janata rule though did not make significant contributions; it brought in food for work programs which served as a template for later such programs. The era saw India successfully battling food shortages, poverty, while trying to liberalise the economy and prepare for the technology era of the new millennium.