Economic growth refers to an increase in the real output of goods and services in the country. Economic development implies changes in income, savings and investment along with progressive changes in socio-economic structure of country (institutional and technological changes).
Economic planning in India was started in 1951. There were certain objective of economic planning which include: achieving economic growth in terms of increase in real national and per capita income, increase in the level of employment, removal of inequality in the distribution of income removal of poverty, ensuring social and economic justice, etc.
By strategy we mean the use of correct approach or method or formula for achieving the target under planning. In the first plan period of 1951-56, no specific strategy was adopted during this time the government of India gave more emphasis to agriculture keeping in view the fact that majority of India’s population depend on agriculture and there was the immediate issue of adequate food grain supply to address food shortage.
India adopted a system of five yearly planning to address its various socio-economic problems. The problems of Indian economy at the time of its independence include mass poverty and inequality, low productivity in agriculture and storage of food grains, lack of industrial and infrastructural development, etc.
India is a vast country with multiple problems faced by its population. The British ruled the country for nearly two centuries and exploited its resources for their benefit leaving the country reeling under absolute poverty. When the British left India in 1947 there was nothing to be proud of or be happy except for the ‘freedom’.
Majority of India's working population depend on agricultural activities to pursue their livelihood. In 2011, about 58 percent of India's working population was engaged in agriculture. In spite of this, the contribution of agriculture to India’s gross domestic product is a little over 17 percent.
India is known in the world as a country with low per capita income. Per capita income is defined as the ratio of national income over population. It gives the idea about the average earning of an Indian citizen in a year, even though this may not reflect the actual earning of each individual.
Every economy in the world has its own characteristics or features by which it is known or identified. Economies are compared with each other on the basis of these features. India as a distinct nation came into existence on 15th August 1947, called the independence day of India which marked the end of British rule over India.