(Oct.-Feb.): First general election. Nehru Prime Minister, Congress ministry. First 5 year plan starts (plan period )
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1 Chronology of Key Events in post-independence Economy of India (S. Charusheela, May 2000) 1947 Jawaharlal Nehru forms government at center headed by Congress (Mountbatten remains Governor General) Partition, Independence and start of post-colonial period, consolidation of national boundaries and integration of princely states into the Republic ( ). Police action against Nizam of Hyderabad (followed by suppression of the Telangana movement) takes place in September October 47 marks accession of Kashmir to India, formal Union of Kashmir with India takes place in C. Rajagopalachari takes over as Industrial Policy Resolution of 1948 marks key break from policy under Britain and Governor General 1950 Dr. Rajendra Prasad becomes first President of India (Oct.-Feb.): First general election. Nehru Prime Minister, Congress ministry. First 5 year plan starts (plan period ) lays out vision and rationale of state-led development January : Constitution promulgated. Articles of constitution set out Directive Principles of State Policy. March 1950: Indian Planning Commission set up Key industrial-finance support institutions (IDBI, ICICI, IFCI) delineated in first 5- year plan are established over the next few years Panchayati Raj (pilot scheme) commenced 1954 Indo-Chinese Pancha Shila Treaty 1955 Hindu Marriage Act passed Bandung Conference 1956 First 5 year plan ends. Second starts (plan period 56-61) Imperial Bank is re-organized as State Bank of India under State Bank of India Act. States Reorganization Act passed Hindu Succession Act passed Steel plants sponsored by Great Britain, USSR and West Germany ( part of 2nd plan) nd General Election. Nehru Prime Minister, Congress Ministry 1958 Nationwide Panchayati Raj adopted 1959 Dalai Lama flight to India, border dispute with China intensifies 1960 Union of Kashmir with India 1961 Second 5 year plan ends. Third 5 year plan starts Radhakrishnan becomes 2nd President of India. 3rd General election, Nehru Prime Minister, Congress Ministry Occupation of Portugese Goa, and takeover of Daman-Diu Indo-Chinese border dispute Formal ratification of treaty handing over French territories to Indian Government (Pondicheri)
2 Chronology of Key Events in the post-independence Economy of India; S. Charusheela (May 2000) page Death of Nehru (May 27). Lal Bahadur Shastri Prime Minister st Indo-Pakistan War (April & Aug.-Sept.) DROUGHT (1st year of 2 consecutive years of drought) Green Revolution concept/plan approved by Shastri, planning for green revolution commences Jan. 11, Shastri dies. Jan. 20, Indira Gandhi becomes Prime Minister 1967 Dr. Zakir Husain becomes President of India. 4th National Election, Indira Gandhi Prime Minister with Congress Ministry 1969 Death of Zakir Husain, V. V. Giri becomes President of India th National election. Indira Gandhi Prime Minister with Congress [R] Ministry 3rd Plan ends. Plan holiday after end of 3rd 5 year plan, 4th plan postponed. Plan Holiday (66-68) 4th 5 year plan launched (plan period ) 1973 Quadrupling of oil prices by OPEC 1974 Fakhruddin Ali Ahmed becomes President of India. 4th 5 year plan ended. 5th 5 year plan launched (plan period ; however the plan was not completed) 1975 Emergency declared Emergency declared (June 1975) th National Elections. Morarji Desai becomes Prime Minister with Janata Party Ministry. 5th plan suspended by new Janata Party government. Tashkent conference (Jan. 4-10). DROUGHT (2nd year in a row). US PL-480 grain shipments -- which have been vital throughout late-50s/early 60s -- remain important. DEVALUATION of Rupee following balance of payments crisis -- June 1966 Nationalization of Banks (14 banks nationalized in 1st tranche, 2nd tranche of 11 banks nationalized later) Split in Congress party (Congress [O] and Congress [R] formed) March: Revolt in East Pakistan and arrest of Sheikh Mujib-ur-Rahman August: Indo-Soviet Treaty Dec: War with Pakistan and establishment of the state of Bangladesh (Simla agreement signed between India and Pakistan in 1972) Green revolution launched nationwide as key aspect of 4th plan
3 Chronology of Key Events in the post-independence Economy of India; S. Charusheela (May 2000) page fall of JP govt., Charan Singh interim PM 1979 Janata Party government falls due to breakdown of coalition among leaders, Charan Singh becomes interim Prime Minister th national elections held in January. Indira Gandhi Prime Minister with Congress Ministry 1984 Indira Gandhi assassinated, Rajiv Gandhi becomes interim Prime Minister, 8th National elections held, Rajiv Gandhi prime minister with Congress ministry 6th 5 year plan launched under Janata Party (plan period ) -- NOT COMPLETED due to change in political power 6th plan of Janata government suspended, NEW 6th 5 year plan launched by Congress government (plan period ) 1985 New 6th plan ends, start of 7th 5 year plan (plan period ) Concept of floating plan put forward (never adopted) Indira Gandhi campaigns on platform of Garibi Hatao (end poverty), to be attained via 20 point programme Police enter Golden Temple, Indira Gandhi assassinated October 31st, Rajiv Gandhi wins election on a campaign of pro-market reform and clean government. Move toward liberalized industrial policies launched by Rajiv Gandhi government (Pranab Mukherji is Finance Minister). Beginning of industrial liberalization process, marks 1st phase of shift in policy toward freer markets as key to poverty eradication and growth. 1985: Controversy surrounding Shah Bano judgment (and Rajiv Gandhi government s response to it culminating in the enactment of Muslim Women s [Protection of Rights on Divorce] Act of 1986) raises profile of Hindufundamentalist parties protesting special treatment for Muslims and minorities period is also marked by scandals about corruption (especially over the Bofors deal) among top Congress party officials, hurting Rajiv Gandhi s image.
4 Chronology of Key Events in the post-independence Economy of India; S. Charusheela (May 2000) page th national elections, Congress loses elections. V. P. Singh becomes Prime Minister leading United Front-Left Front ministry (minority government with external support) th plan ends. 8th plan postponed due to increased economic turmoil and political 1991 V. P. Singh government falls, elections declared, Chandrashekhar becomes interim Prime Minister. Rajiv Gandhi assassinated during 1991 electoral campaign. 10th national elections won by Congress, P. V. Narasimha Rao Prime Minister with Congress Ministry. crises 8th plan postponed due to political and economic turmoil th 5 year plan starts (April 1992), following presentation of budget to parliament (in March) By Finance Minister Manmohan Singh (plan period ) Congress loses election, no party is able to muster a clear majority. United Front-Left front form a coalition government stressing secularism and clean government. Mandal Commission releases report critiquing policies of preferential treatment of minority communities. V. P. Singh government faces controversy over question of reservation policies for minorities in hiring and education. Coalition government breaks apart following the Mandal commission controversy. Elections declared (Chandrashekhar forms caretaker government), Rajiv Gandhi assassinated, Congress wins clear majority in elections. DEVALUATION 1991: Under caretaker government of Chandrashekhar, Balance of Payments hits a crisis, forcing government to devalue rupee in August to avoid payments default. Narasimham Committee Report on the Financial System released in December Following stabilization phase of policy (to stabilize the economy after the BOP crisis and devaluation), government proposes to pursue a policy of structural adjustment (liberalization and privatization). New Economic Policy (NEP) which goes further than the initial liberalization of the Rajiv Gandhi Government in proposing free market reforms is announced by Manmohan Singh (Finance Minister) in his presentation of the Budget to parliament in March. Tax Reform Committee Report (Chelliah Committee Report) released in August 1992/January December 6th 1992: Babri Masjid demolished
5 Chronology of Key Events in the post-independence Economy of India; S. Charusheela (May 2000) page th national elections held, no party attains clear majority (Bharatiya Janata Party [BJP] emerges as party with largest number of seats. Atal Bihari Vajpayee becomes Prime Minister of a minority BJP government for 13 days (government unable to pass a vote of confidence motion on floor of parliament). The United Front-Left front [Janata Dal] candidate H. Deve Gowda becomes Prime Minister and forms government with external support from Congress Congress withdraws support from H. Deve Gowda government, I. K. Gujral becomes new Prime Minister of coalition government Congress withdraws support from Gujral government, Elections called. BJP emerges as party with largest number of seats in the 12th national elections. Atal Bihari Vajpayee becomes Prime Minister of a BJP ministry government, with support from a variety of regional parties Jayalalitha withdraws support of AIADMK from the BJP. Vajpayee loses vote of 8th 5 year plan ends. Ninth 5 year plan starts (plan period ). 11th national elections, political instability emerges as key defining feature of national parliament as no political party attains a clear majority in elections. All parties pledge to maintain some form of pro-market economic policy -- even the Hindu nationalist BJP s Swadeshi (indigenous) economic control platform remains strongly pro-market (new Finance Minister for United Front-Left Front: Chidambaram). Finance Minister for BJP government: Yashwant Sinha Continuing Turmoil on social-political fronts (Human Rights Watch releases report critiquing the Maharshtra State Government for its treatment of Indians protesting the Enron power plant in Maharashtra; Srikrishna Commission report on participation of BJP/VHP alliance party Shiv Sena in the Bombay riots released; People s movements protests continue in different parts of country). Government of India conducts nuclear tests (followed by tests conducted by Government of Pakistan) Summer: India and Pakistan engage in military battle at Kargil, tension over Kashmir escalates
6 Chronology of Key Events in the post-independence Economy of India; S. Charusheela (May 2000) page 6 confidence on floor of parliament by 1 vote. Elections called (13th national elections held in Septembe/October). BJP and allies win, BJP government with Vajpayee as PM, October 12: Military coup in Pakistan, Nawaz Sharif deposed, Gen. Parvez Musharraf takes over April: Clinton visits South Asia, tensions between India and Pakistan remain strong. Sri Lanka requests India for help as LTTE looks likely to retake Jaffna Economy: GDP growth is reasonable due to economic recovery in industry. Population reaches 1 billion in April, controversy about the relationship between population, poverty alleviation, and growth revived. NSS data show that record on poverty reduction is worse(as compared to the pre-reform record) under the new economic reforms.
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