Economic Reforms of Financial Sector In India |
The managers of the Indian economy found that the worldhas been sharply divided into two bocks: the one led by the capitalist economiesand other led by the communist economies, primarily the then USSR. There wascold war between these two blocs. Less developed economies had no option thanto join either of the two and invite the ire of the opposite bloc. Especiallythose economies that were under the British Empire and won freedom during1940's faced a difficult choice. India chose to keep a safe distance from boththe blocks by inventing the idea of a mixed economy. In doing so, India invitedas much favor as suspicion from both the blocks. Some economists hold theopinion that the Indian economy was pro-capitalism in its core that wore thefaçade of a socialistic economy..