Indian Economic and Political
History
Term I Pre- Mid-Term
2021-22
Session 1
Rajesh Bhattacharya
Email:
Virtual Lounge: TBA
21-23.06.2021
IIM Calcutta
Introduction to the Course
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Period covered in the course: From colonization of India
around the mid-18th century to early years of the 21st century.
Understand the emergence of modern business in India, their
journey through colonial and post-colonial periods and the
challenges they face currently.
Particular emphasis on the nature of industrialization in India,
its successes and failures.
Continuing impact of institutional changes, implemented during
colonial rule, on economic performance of India today
Historical understanding of contemporary challenges and
opportunities that India faces.
“History doesn't repeat itself but it often rhymes.”
(attributed to Mark Twain)
21-23.06.2021
IIM Calcutta
IEPH Session Plan
Session 1: Introduction to the Course: Why is history important? (RB)
History, institutions and economic development; Alternative Explanations for
Great Divergence—culture, geography, institutions; Institutions and their
durability. Reading: Acemoglu
Session2: The Colonial Indian Economy (RB)
Phases of colonization in India; The changing forms of the “Tribute”; Colonial
Trade pattern; Deindustrialization. Reading: Habib
Session 3: The Rise of Modern Industry in Colonial India (RB)
Indian business communities and initial accumulation of capital; Emergence of
Modern industries in Bombay, Calcutta and Ahmedabad; social and economic
background of pioneer industrialists in India in comparison with the Western
Experience. Reading: Oonk
21-23.06.2021
IIM Calcutta
IEPH Session Plan (Contd.)
Session 4: Indian Economy at the time of independence: Critique of the
Colonial State (RB)
Land revenue Settlements under the British; Commercialization of
agriculture and its consequences; Pattern of economic growth in late colonial
India; Laissez faire and its critique in Indian nationalist thought.
Readings: Bhalla, Chattopadhyay
Session 5: Indian business, Nationalist Politics and Demand for Planning
(RB)
Maturation of Indian industries; Genesis of the idea of Planning; the Bombay
Plan of 1944. Reading: Chattopadhyay
Session 6: Planning in Independent India (1951-1961) (RB)
The Nehruvian vision; The Mahalanobis Four-Sector Plan Model; The Plan
framework and industrial policies; Planning—Successes and failures
Readings: Chakravarty, Bhalla
21-23.06.2021
IIM Calcutta
IEPH Session Plan (Contd.)
Session 7: The Impact of Planning on Economic Growth (BPA)
Planning: Success and Failures in Implementation; Green Revolution and its
Impact
Reading: Chakravarty, Bhalla
Session 8: Command & Control (1969-80) (BPA)
Politics and Policies in the tumultuous 1970s; The License-Permit Raj;
Business Response and Critique of Planning
Reading: Chakravarty
Session 9: Liberalization in the Eighties (BPA)
Initiation of liberalization ,1980-84; Liberalization under Rajiv Gandhi, 1985-89;
political and economic consequences of liberalization 1984-89;Support and opposition
to liberalization.
Reading: Kochanek
Session 10: The Economic Crisis of 1991 and post-1991 Indian economy (BPA)
Economic strategy during liberalization; The reasons for higher economic growth in the
80s; Negative aspects of economic policies; The impact of the Gulf War; The balance of
payments crisis of 1991; liberalization and Pro-Business and growth strategy
Reading: Kohli
21-23.06.2021
IIM Calcutta
Course Evaluation
1. Class Assignments: 3 quizzes—30% of
final grade
2. Class Participation—20% of final grade
3. End-Term, closed book Exam—50% of
final grade
21-23.06.2021
IIM Calcutta
TTA
Name
Email
Sections
Sohini Pal
sohinip_tta@iimcal.a
c.in
A&B
Vaijayanti
Burman
vaijayantib_tta@iimc
al.ac.in
C&D
Sh. Sibam
Sain
samantakc_tta@iimca
l.ac.in
E&F
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IIM Calcutta
Prosperity and Poverty:
The Colonial Roots
of the Great Divergence
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IIM Calcutta
Source: Angus Maddison
21-23.06.2021
IIM Calcutta
A History of World Income by Region
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IIM Calcutta
A History of World GDP
Source: The Economist, 16.08.2010
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IIM Calcutta
The Great Divergence
Source: Galor, Oded, and Andrew Mountford. Trade, Demographic Transition and
the Great Divergence: Why are a Third of People Indian or Chinese?. Brown
University Working Paper, January, 2003.
21-23.06.2021
IIM Calcutta
The Great Divergence: Continued
Source: Galor, Oded, and Andrew Mountford. Trade, Demographic Transition
and the Great Divergence: Why are a Third of People Indian or Chinese?.
Brown University Working Paper, January, 2003
21-23.06.2021
IIM Calcutta
Per Capita Industrialization
Levels
1800
1860
1913
1953
1980
UK
16
64
115
210
325
Europe
8
17
45
90
267
India
6
3
2
5
16
China
6
4
3
5
24
Source: Galor, Oded, and Andrew Mountford. Trade, Demographic Transition
and the Great Divergence: Why are a Third of People Indian or Chinese?. Brown
University Working Paper, January, 2003. Notes: India is measured using its
boundaries in 1913. (The Index is normalized at 100 = UK at 1900)
21-23.06.2021
IIM Calcutta