Policy Shift Towards Demand Management For Promoting Economic Development: Case Of India And West Bengal

Abstract

India, after independence, started following socialistic pattern of development. The process continued up to first half of 80s. During this phase models based on either market led growth or Keynesian approach of demand management were ignored. Instead, former USSR largely influenced the policy pattern of the country. Emphasis was accorded mainly to ease supply side bottlenecks. The state of West Bengal also followed the same path but with further left lineage. After 90s however, major shift in development policy is observed in the country. During this phase state intervention is gradually replaced by liberalisation, privatisation and globalisation. Interestingly, in the new millennium Keynesian type of demand management is starting to get importance. Such paradigm shift is increasingly reflected in some of the programmes that are being introduced recently. In this context the present paper is intended to make a review on policies that the country and the state of West Bengal is following after independence.