Abstract

Right after the independence Indian political leaders adopted a Mixed economic policy and the first prime minister Mr. Pandit Nehru inclined towards the socialist and capital approach to the economy. India started its journey with a closed trade policy and product substitute strategy. With the five-year planned system, India concentrates on the nascent industries and agriculture sector for the development of India. The economic growth rate of India was slow and stagnant post-independence. Later on, in the 1960s, and 1980s due to external and internal shocks Indian economy was trapped in the balance payment crisis, and India tried to shift its economy towards liberalization in 1966 this attempt failed but in the 1980s we can see some progress in India�s liberalization and could be the foundation for radical change from closed economic policy to neo-liberal economic policy. The importance of the study lies in the transition from a mixed economy to a neo-liberal economy, and the necessity of the economic shift from one economic thought to another. This study intended to understand reforms that took place in the reform period and in the three different phases after the independence. This study will reveal the political economy of India at different times and the political-economic reluctance and willingness toward liberalization.

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