Nehru’s Model of Economic Growth and Globalisation of the Indian Economy

Abstract

After almost three decades of economic reforms, the tasks Nehru outlined on the eve of India’s independence should be invoked for examining how far these reforms constitute a departure from the Nehruvian model. Putting an end to poverty, ignorance, disease and inequality of opportunities were the key goals Nehru outlined on the eve of India’s independence. Nehru valued these objectives not merely for their instrumental value to economic growth, but for their own sake. However, at the height of India’s drive for liberalisation, the welfare state came to be perceived as a hindrance to the country’s global march. With higher economic growth becoming the ultimate end, the Nehruvian logic of looking at economic development as essential for human welfare was largely abandoned. Economic reforms therefore constituted a departure from the Nehruvian model of economic development. The role of the state for regulating economies is now widely recognised at the global level. This necessitates a re-look at Nehru’s model of economic development.