Industrialisation in Independent India

The independent Indian state did not start with a blank slate. The colonial period had shaped India’s industrial landscape in a particular way — one that favoured British interests and left Indian industry stunted. When India became independent, its leaders were determined to reverse that damage. For Indian nationalists, the economic exploitation under colonial rule had been a central grievance. The fabled riches of pre-colonial India stood in stark contrast to the poverty of British India. The Swadeshi movement had already strengthened loyalty to the national economy, and modern ideas had made people realise that poverty was not inevitable — it could be prevented.

Rapid industrialisation of the economy was seen as the path towards both economic growth and social equity. This was not just about building factories; it was about building a fairer society. The state took an active role in promoting industrialisation, responding directly to the impact colonialism had had on the growth of industry in India.

Three things were considered very important in this vision:

• Development of heavy and machine-making industries — these would allow India to produce its own capital goods, reducing dependence on foreign countries.
• Expansion of the public sector — the government would own and run key industries, ensuring that the benefits of industrialisation reached the whole nation, not just a few private players.
• Holding of a large cooperative sector — cooperatives, like the well-known Amul dairy network, were seen as a way to organise production and distribution in a more democratic and equitable manner. …