Chronology of Key Events in post-Independence Economy of India (S.
Charusheela, May 2000)
DATE Political Chronology Plan-Period Key Events
1947 Jawaharlal Nehru forms Partition, Independence and start of post-colonial period, consolidation of national
government at center headed by boundaries and integration of princely states into the Republic (1947-48). Police
Congress (Mountbatten remains action against Nizam of Hyderabad (followed by suppression of the Telangana
Governor General) movement) takes place in September 1948. October ’47 marks accession of Kashmir
to India, formal Union of Kashmir with India takes place in 1960.
1948 C. Rajagopalachari takes over as Industrial Policy Resolution of 1948 marks key break from policy under Britain and
Governor General lays out vision and rationale of state-led development
1950 Dr. Rajendra Prasad becomes January 26 1950: Constitution promulgated. Articles 36-51 of constitution set out
first President of India Directive Principles of State Policy.
March 1950: Indian Planning Commission set up
1951 1951-52 (Oct.-Feb.): First First 5 year plan starts Key industrial-finance support institutions (IDBI, ICICI, IFCI) delineated in first 5-
general election. Nehru Prime (plan period 1951-56) year plan are established over the next few years.
Minister, Congress ministry.
1952 Panchayati Raj (pilot scheme) commenced
1954 Indo-Chinese Pancha Shila Treaty
1955 Hindu Marriage Act passed
Bandung Conference
Imperial Bank is re-organized as State Bank of India under ‘State Bank of India Act.’
1956 First 5 year plan ends. States Reorganization Act passed
Second starts (plan Hindu Succession Act passed
period 56-61) Steel plants sponsored by Great Britain, USSR and West Germany ( part of 2nd plan)
1957 2nd 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 Occupation of Portugese Goa, and takeover of Daman-Diu
ends.
Third 5 year plan starts.
1962 Radhakrishnan becomes 2nd Indo-Chinese border dispute
President of India. Formal ratification of treaty handing over French territories to Indian Government
3rd General election, Nehru (Pondicheri)
Prime Minister, Congress
Ministry
Chronology of Key Events in the post-Independence Economy of India; S. Charusheela (May 2000) page 2
DATE Political Chronology Plan-Period Key Events
1964 Death of Nehru (May 27).
Lal Bahadur Shastri Prime
Minister
1965 1st 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.
1966 Jan. 11, Shastri dies. 3rd Plan ends. Tashkent conference (Jan. 4-10).
‘Plan holiday’ after end DROUGHT (2nd year in a row). US PL-480 grain shipments -- which have been
Jan. 20, Indira Gandhi becomes of 3rd 5 year plan, 4th vital throughout late-50s/early 60s -- remain important.
Prime Minister plan postponed. DEVALUATION of Rupee following balance of payments crisis -- June 1966
1967 Dr. Zakir Husain becomes Plan Holiday (66-68)
President of India.
4th National Election, Indira
Gandhi Prime Minister with
Congress Ministry
1969 Death of Zakir Husain, V. V. 4th 5 year plan Nationalization of Banks (14 banks nationalized in 1st tranche, 2nd tranche of 11
Giri becomes President of India launched (plan period banks nationalized later)
1969-74) Split in Congress party (Congress [O] and Congress [R] formed)
1971 5th National election. March: Revolt in East Pakistan and arrest of Sheikh Mujib-ur-Rahman
Indira Gandhi Prime Minister August: Indo-Soviet Treaty
with Congress [R] Ministry 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
1973 Quadrupling of oil prices by OPEC
1974 Fakhruddin Ali Ahmed becomes 4th 5 year plan ended.
President of India. 5th 5 year plan
launched (plan period --
1974-79; however the
plan was not
completed)
1975 Emergency declared Emergency declared (June 1975)
1977 6th National Elections. 5th plan suspended by
Morarji Desai becomes Prime new Janata Party
Minister with Janata Party government.
Ministry.
Chronology of Key Events in the post-Independence Economy of India; S. Charusheela (May 2000) page 3
DATE Political Chronology Plan-Period Key Events
1978 79-fall of JP govt., Charan Singh 6th 5 year plan Concept of floating plan put forward (never adopted)
interim PM launched under Janata
Party (plan period
1978-83) -- NOT
COMPLETED due to
change in political
power
1979 Janata Party government falls
due to breakdown of coalition
among leaders, Charan Singh
becomes interim Prime Minister
1980 7th national elections held in 6th plan of Janata Indira Gandhi campaigns on platform of ‘Garibi Hatao’ (end poverty), to be attained
January. government suspended, via ‘20 point programme’
Indira Gandhi Prime Minister NEW 6th 5 year plan
with Congress Ministry launched by Congress
government (plan
period 1980-85)
1984 Indira Gandhi assassinated, Police enter Golden Temple, Indira Gandhi assassinated October 31st, 1984.
Rajiv Gandhi becomes interim Rajiv Gandhi wins election on a campaign of pro-market reform and clean
Prime Minister, 8th National government.
elections held, Rajiv Gandhi
prime minister with Congress
ministry
1985 New 6th plan ends, start Move toward liberalized industrial policies launched by Rajiv Gandhi government
of 7th 5 year plan (plan (Pranab Mukherji is Finance Minister). Beginning of industrial liberalization process,
period 1985-1990) 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 Hindu-
fundamentalist parties protesting ‘special treatment’ for Muslims and minorities.
1985-89 period is also marked by scandals about corruption (especially over the
Bofors deal) among top Congress party officials, hurting Rajiv Gandhi’s image.
Chronology of Key Events in the post-Independence Economy of India; S. Charusheela (May 2000) page 4
DATE Political Chronology Plan-Period Key Events
1989 9th national elections, Congress Congress loses election, no party is able to muster a clear majority. United Front-Left
loses elections. V. P. Singh front form a coalition government stressing secularism and clean government.
becomes Prime Minister leading
United Front-Left Front ministry
(minority government with
external support)
1990 7th plan ends. 8th plan Mandal Commission releases report critiquing policies of preferential treatment of
postponed due to minority communities. V. P. Singh government faces controversy over question of
increased economic reservation policies for minorities in hiring and education.
turmoil and political
crises
1991 V. P. Singh government falls, 8th plan postponed due Coalition government breaks apart following the Mandal commission controversy.
elections declared, to political and Elections declared (Chandrashekhar forms caretaker government), Rajiv Gandhi
Chandrashekhar becomes economic turmoil assassinated, Congress wins clear majority in elections.
interim Prime Minister. Rajiv
Gandhi assassinated during 1991 DEVALUATION 1991: Under caretaker government of Chandrashekhar, Balance
electoral campaign. 10th of Payments hits a crisis, forcing government to devalue rupee in August to avoid
national elections won by payments default.
Congress, P. V. Narasimha Rao
Prime Minister with Congress Narasimham Committee Report on the Financial System released in December
Ministry. 1991.
1992 8th 5 year plan starts Following stabilization phase of policy (to stabilize the economy after the BOP crisis
(April 1992), following and devaluation), government proposes to pursue a policy of structural adjustment
presentation of budget (liberalization and privatization). New Economic Policy (NEP) which goes further
to parliament (in than the initial liberalization of the Rajiv Gandhi Government in proposing free
March) By Finance market reforms is announced by Manmohan Singh (Finance Minister) in his
Minister Manmohan presentation of the Budget to parliament in March.
Singh (plan period Tax Reform Committee Report (Chelliah Committee Report) released in August
1992-1997) 1992/January 1993.
December 6th 1992: Babri Masjid demolished
Chronology of Key Events in the post-Independence Economy of India; S. Charusheela (May 2000) page 5
DATE Political Chronology Plan-Period Key Events
1996 11th national elections held, no 11th national elections, political instability emerges as key defining feature of
party attains clear majority national parliament as no political party attains a clear majority in elections.
(Bharatiya Janata Party [BJP]
emerges as party with largest All parties pledge to maintain some form of pro-market economic policy -- even the
number of seats. Atal Bihari Hindu nationalist BJP’s ‘Swadeshi’ (indigenous) economic control platform remains
Vajpayee becomes Prime strongly pro-market (new Finance Minister for United Front-Left Front:
Minister of a minority BJP Chidambaram).
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.
1997 Congress withdraws support 8th 5 year plan ends.
from H. Deve Gowda Ninth 5 year plan starts
government, I. K. Gujral (plan period 1997-
becomes new Prime Minister of 2002).
coalition government.
1998 Congress withdraws support Finance Minister for BJP government: Yashwant Sinha
from Gujral government,
Elections called. BJP emerges Continuing Turmoil on social-political fronts (Human Rights Watch releases report
as party with largest number of critiquing the Maharshtra State Government for its treatment of Indians protesting the
seats in the 12th national Enron power plant in Maharashtra; Srikrishna Commission report on participation of
elections. Atal Bihari Vajpayee BJP/VHP alliance party Shiv Sena in the Bombay riots released; ‘People’s
becomes Prime Minister of a movements’ protests continue in different parts of country).
BJP ministry government, with
support from a variety of Government of India conducts nuclear tests (followed by tests conducted by
regional parties. Government of Pakistan)
1999 Jayalalitha withdraws support of Summer: India and Pakistan engage in military battle at Kargil, tension over Kashmir
AIADMK from the BJP. escalates
Vajpayee loses vote of
Chronology of Key Events in the post-Independence Economy of India; S. Charusheela (May 2000) page 6
DATE Political Chronology Plan-Period Key Events
confidence on floor of October 12: Military coup in Pakistan, Nawaz Sharif deposed, Gen. Parvez
parliament by 1 vote. Elections Musharraf takes over.
called (13th national elections
held in Septembe/October). BJP
and allies win, BJP government
with Vajpayee as PM,
2000 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.
