India Today published a special issue titled Remaking India, a compilation of articles from 1975 to 2025. This special issue inspired me go back to the earlier period from 1947, the first year of Indian independence, until 1975.
A very challenging period for India immediately after getting independence.
Among the many challenges the new government faced, perhaps the most serious was the shortage of food grains! India under the British had already experienced a famine in Bengal in the year 1943. It was not the first!
The new government retained the wartime controls introduced by the British, a network of fair price shops, to manage severe food deficits.
I remember the rice offered at the ration shop was awful. Quality of wheat was a little better! Though wheat was no substitute for rice, for us the South Indians! One could buy a better quality rice in the black market. It was not an option for many! My father was against buying rice in the black market on principle!
I also had heard that the ration shops switched the good quality rice, supplied by the government, with low quality cheap rice and made money! The system of Ration shops still exist! It is fascinating to read about it! https://en.wikipedia.org/wiki/Public_Distribution_System_(India)
Pandit Nehru government also sought to solve the problem through land reforms. The government gave ownership to those farmers who actually worked on the field! Hopefully the move succeeded in increasing the production of grains!
Implementing the land reforms was a complex contentious process. It was contested in the courts by the Zamindars. It lead to an amendment of the constitution and then supreme court supported the governments action. Nehru was successful in pushing through socialism!
In addition dams were built to irrigate lands. These efforts took time and meanwhile we became heavily dependent on food aid, particularly the US PL-480 program. It was indeed a precarious existence.
The states had the freedom to adopt the land reform laws independently to suit local conditions. When it was implemented in the Mysore state, quite a few known to us were affected. My Brother-in-law, who had inherited a few acres of fertile land asked me if I wanted to try agriculture and take care of his land. I was not too keen! I had not even stayed in a village!
I guess most of us understand that implementation is never fully what is intended and claimed. However, Laws are put in place.
To be honest, many in our country are yet to come out of their feudal mentality. The resourceful landlords managed to control, possibly with the help of a few pliant bureaucrats and such! We, who believe in Karma, say their time has come and accept it!
https://time.com/archive/6886994/india-end-of-the-zammdars/
More importantly, our scientists stepped in and developed High-Yielding Variety seeds, especially for wheat and rice.
The Green revolution and the government subsidy. The intensive use of chemical fertilizers and pesticides, lead to food self-sufficiency by the early 1970s, eliminating the threat of famine. The states of Punjab, Haryana, and Western Uttar Pradesh did well. Remarkable recovery!
……….
However my focus as a mechanical engineer is on the Manufacturing Industry! While the broader picture is very impressive we need to study how well it was implemented!
Between 1947 and 1975, India’s manufacturing industry was defined by state-led import-substitution, industrialization and the mixed economy model. The government prioritized heavy, capital-intensive industries (like steel, machinery, and machine tools) through Public Sector Units (PSUs), while imposing strict regulatory controls on private enterprise and foreign investment.
The evolution of the sector was guided by several legislative and economic milestones.
- The Industrial Policy Resolutions (1948 & 1956)
- a socialistic pattern of society,... industries owned by the state,... progressively state-owned, and the private sector.
- The Industries (Development and Regulation) Act (1951): Created an elaborate "License Raj." Private companies required government permits to start production, expand capacity, or change what they manufacture!
The verdict on these policies and its correction was much later in the year 2002. Sadly too late for me.
It was a disaster for me personally. I still remember the day I met my boss after I returned from a trip to USA and UK.
I was sent to USA by my company in 1969
to learn about the manufacture of a textile machine. My job was to get the machine made in our Poona factory. (Now Pune).
It was a one-time project. The execution of an order received from Egypt by a sister company in Calcutta (Kolkotta now) was getting delayed due to labor problems. It was transferred to Poona. (Glad to say it went well)
In addition, I visited another factory in USA making Earth Moving equipment. The intention was to get into a JV with them to make new it in our Poona factory. The products manufactured presently were going slow and we needed new products.
Earth Moving equipment's addition was highly suitable for the machinery we had in our factory! I had very encouraging discussions!
The other was a visit to our collaborators in UK. We wanted to add products in addition to the ones we were licenced to make in India. They were open to the idea and proposed a few products. My job was to look at the process and choose the ones that would fit. We could discuss further details later.
I was feeling good as I went meet my Boss with the folders I had prepared to present it to him! I went in and he looked up at me! I said 'Here are the reports sir! Both companies are interested!' He replied very casually 'Just leave it here!' And added 'You haven't heard about MRTP?' I had not!
It meant an end to my dreams as our company, considered a monopoly, would not get permission to add new products.
I moved on looking for better challenges. It was the time for import-substitution and I was busy with this most of my career. It was okay as long as we were not importing parts.
I remember in a company I had joined, part of an MNC, we developed a cancer treatment machine. It worked well and much cheaper to the imported ones. However the patient handling table needed improvements. It moved up and down making noise and scared the patient who was ill. We needed a ball screw which was still not made in India at that time. Our application for imports, did not move.
I did try to meet an officer in DGTD to plead for a licence. The place was a like a fortress! I had the help of an executive employed only to deal with the 'government servants'! (Anything but that!).
The officer spoke well and heard me out and said he would take it up in their next committee meeting. (The executive who took me to DGTD, on our way back remarked, 'kuch nahi hoga' - nothing will happen!)
In the meanwhile the separate company created by MNC* to deal with sales and marketing, which sold the imported version, killed the project. It was easier to import and the salesperson earned a better commission. (*It was separated due to some financial reasons!)
Anyway, it was a no win situation for the factory! We did try to get licenses for more products for manufacture! Did not succeed as the government wanted 100 percent local production and the collaborators suggested gradual reduction of imported parts!
There would be many stories, some good and some bad. Perhaps it was my luck to join companies which needed to take corrective steps, but were not allowed at that time.
I need to end this with a 'what if"?
A few years ago I attended a function in a factory. Actually my first job was with this factory. I was touched to see a statue of the founder installed by workers of the factory! Very laudable. The factory was running, but had not grown.
In fact, it was taken over by the state years ago. The management had chosen to handover the factory as there was a problem of cash flow and they could not pay salary to the workers. Those were the days when banks were very conservative and did not extend credit required.
Anyway my thoughts were that the factory would have done much better if the government had let founder run the factory and supported him instead taking over. The founder was a brilliant engineer!
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