How India Transformed Its Economy Since Gaining Independence

The beginning of India's independence was marked by golden hopes, yet the financial situation of the population remained difficult. Today, India has transformed into the world's second-largest economy and is actively moving towards the goal of $5 trillion. Since gaining independence, the country has undergone a journey of significant economic growth.

In 1947, for the average Indian, the concept of the economy was not about large GDP figures but about ensuring food supply and covering monthly expenses. The main problem for an ordinary family back then was securing two meals a day and paying for children's education.

However, over the last eight decades, the economic landscape of the country has changed radically. Today, as all Indians dream of India becoming a $5 trillion economy, this change is felt everywhere. The construction of capital homes, the development of road networks, access to electricity and gas cylinders, and improvements in healthcare and education systems testify to economic progress in every village.

Immediately after gaining independence, the country faced numerous difficulties. It was necessary to give the devastated economy the right direction. British rule had left India in a state of famine, poverty, and resource scarcity, with almost all needs depending on imports from other countries.

Economic Condition of India During Independence

The two-hundred-year period of British rule completely undermined India's traditional industry, crafts, and agricultural system. If in 1700 India's share of the global GDP was about 27%, by the time of independence it had shrunk to only about 3%. More than 80% of the population lived in extreme poverty, and the literacy rate was only 12%.

In 1947, agriculture was the backbone of the Indian economy, accounting for over 50% of the country's GDP, and more than 70% of the population depended on farming. Nevertheless, at that time, the country faced a food crisis. Technology and irrigation systems were extremely limited, forcing India to import grain from the USA to feed its population.

Besides a few sectors such as the cotton industry and jute, there was an acute shortage of heavy industry and modern infrastructure in the country.

How Has India Changed?

In the 1960s, the Green Revolution allowed India to transition from being a grain importer to achieving food self-sufficiency. Over the past eight decades, thanks to the rapid growth of the industrial and service sectors, the share of agriculture in the GDP has decreased to approximately 15-18%. However, today, about 45% of the population still finds employment in agriculture. With the production of over 330 million tons of grain, agriculture remains the main pillar of India's food security and economic stability.

After gaining independence, India chose a mixed economy, and the foundations for institutions like the Bhakra-Nangal dam, IIT, IIM, AIIMS, and steel plants in Bhilai and Bokaro were laid. Then, in the 1960s, the Green Revolution made India completely self-sufficient in terms of grain.

Economic Reforms through LPG

Until 1990, the pace of economic development averaged around 3.5% due to strict regulation and the licensing system. After this, India adopted LPG reforms. This happened because in 1991, the country faced a currency crisis. As a historical economic transformation, India decided to implement LPG—Liberalization, Privatization, and Globalization—which is still considered a turning point in the Indian economy.

As a result, the licensing system was abolished, foreign companies began arriving in India, and the private sector received an impetus for development. It was during this period that India's IT and service sectors gained worldwide recognition, what we now call the IT revolution.

Since 2014, the digital revolution has given new strength to the economy. Major investments have been made in digital public infrastructure. Thanks to the integration of UPI, Jan Dhan schemes, and Aadhaar, India has shown the world an example of financial inclusion and digital payments.

The 'Make in India' initiative has directed a new vector for the development of infrastructure and manufacturing sectors. The 'Make in India' and PLI programs have helped India become a global hub for the production of electronics, automobiles, and semiconductors, and investments are now actively being made in solar and wind energy.

These Data Are Proof

Some statistical data serve as proof that India itself has changed its economic landscape. If in 1947 India was economically weak, today it is not just a developing country but a decisive force on the global economic stage.

From an economic perspective, the size of the Indian economy (GDP) in 1947 was about 2.7 lakh crore rupees, while now it has reached approximately $4 trillion. If foreign exchange reserves were zero during the period of independence, they now exceed $600 billion. Back then, India was among the poorest countries in the world, but today it is the fifth-largest economy in the world. India has also achieved success in education: if the literacy rate was only 12% in 1947, it now exceeds 77%. Thus, every Indian is a participant in this economic progress and should be proud of their national identity.

The country is marking its 80th Independence Day (80th Independence Day 2026). Since gaining freedom from British rule in 1947, August 15th has been celebrated as Independence Day every year. Today, India is one of the fastest-growing economies in the world, and major business figures contribute significantly to this growth. There are numerous large corporations whose operations began before independence and continue to strengthen the nation's economic power, earning recognition not only in India but globally.

Among the outstanding business figures contributing to the Indian economy are individuals such as Jamsetji Tata, S.K. Ardeshir, Pirojsha Godrej, Madhav Prasad Birla, and K.K. Hamid. The companies founded by them before independence continue to operate on a large scale and provide employment to millions. The presence of Indian companies is felt worldwide, whether in the healthcare, automotive, aviation, or IT sectors.

Among the enterprises launched before independence, the Tata Group holds a special place, with its history beginning in 1868. This conglomerate evolved from salt production to manufacturing luxury cars, organizing air travel, and entering the semiconductor market. The group includes TCS, the largest IT company, Tata Steel in metallurgy, as well as Indian Hotel Company and Tata Motors. Through Air India, the group occupies a significant position in the aviation sector, and Tata's portfolio in vehicles also includes the brands Jaguar and Land Rover. Jamsetji Tata founded the Indian Hotels Company in 1903, and the Taj Hotel Mumbai remains a symbol of the country.

Britannia, operating in the food sector, was established before independence in 1892. It remains a leader in the production of biscuits and other food products. The company was started by the Wadias family in a small shop in Kolkata. Its business expanded significantly during World War II and is now present worldwide.

Godrej also has a long history, having started its operations before independence. Today, it is a recognizable name in the metallurgy, electronics, and real estate sectors. It was founded in 1897 by Ardeshir Godrej and his brother Pirojsha Godrej. The British monarchy fully trusted Godrej vaults; according to reports, King George V and Queen Mary chose Godrej vaults to store their valuables during their visit to Delhi in 1911.

Birla Group began its activities before independence and maintains its influence to this day. Its predecessor, Shiva Narayan Birla, started in the cotton business, engaging in lending. Subsequently, in 1890, the first enterprise was created in the form of a jute manufacturing company. Birla Corporation Limited was established in the late 1910s by Ghanshyam Das Birla and managed by Madhav Prasad Birla. Today, the company operates in 36 countries worldwide and provides employment to about 140,000 people.

TVS Motors is one of the largest motorcycle manufacturers in India. Initially, the company was conceived during the era of horse-drawn carriages. Headquartered in Chennai, TVS Motors was founded in 1911 by T.V. Sundaram Iyengar. After the abolition of the land ownership system in the country and an increase in economic prosperity, vehicle sales began to rise. Today, TVS Motors maintains its status, with the company's turnover amounting to billions.

Dabur, which sells Ayurvedic medicines, as well as oils and other products, was launched in 1884. Its founder was S.K. Barman, who had a medical background. Despite numerous difficulties, the company's business began to grow rapidly after 1990. Another major player in the healthcare sector, Cipla, was founded by Dr. K.K. Hamid in 1935. Cipla has become a significant player in the pharmaceutical industry, and its operations span 100 countries.

Among the companies opened before independence, Raymond Limited stands out in the textile sector. It was founded in 1925 in Thane, Maharashtra, as a wool factory. In 1958, the first flagship retail store of Raymond was opened in Mumbai. Furthermore, the Kirloस्कर company, which manufactures pumps and valves with multi-billion turnover, was founded in 1888. Laxmanrao Kirloaskar started this company as a trading firm.

Every flag has its flagpole; the flag remains in a neutral state. The flag flies, proudly waving with the wind, dancing, signaling life and air movement. However, the flagpole does not control this flag; it merely holds it so that the system is maintained, and the flag continues to fly and sway, remaining high and majestic, regardless of whether the wind blows from the east or the west, from the north or from the south. This is the ideal state for power and society, as well as a way of harmonization between the system and the people in a democracy. There are limits for both the flagpole and the flag.

Nevertheless, there is also a completely opposite image. The ideal state of democracy is that the government waves its flag but always remembers that the people are like the flagpole: they hold it, and they can support it or overthrow it. However, the nature of the status quo of power can be compared to the flagpole—it is massive. Faces change, but issues such as helplessness, inequality, and corruption remain the same. Even on days of freedom, people sought clean drinking water, just as they do now. People desired medicine, doctors, and proper consultation on the day of gaining freedom, and this is relevant today.

Most of the population still lives relying more on hope than on truth, and more on expectation than on neglect. A line from a film, which states, 'What the white Englishmen left, the black Englishmen came,' is not just a phrase, but a reflection of the experience and feelings of half of India.

India celebrates its 80th Independence Day, completing a 79-year journey. Much has changed in the world during this time. But despite all external circumstances and internal crises, India stands before the world as a powerful democracy. This is not a minor achievement; it is our strength and beauty, our might and our uniqueness. The country has seen and understood independence differently over these 79 years, creating new paradigms, new concepts, and new experiments. These experiences sometimes led the course of politics to one shore, and sometimes to another. When shores were not found, the boat continued to sail in the middle currents. The flags of power in parliament testified to different eras, and the caravan of Indian democracy continued to move forward.

However, this is about the meaning of independence. Over these 79 years, the meaning of independence has retained its roots while exploring new horizons. Imagine, we were a starving country in 1947. The greatest hunger was for freedom—an anxiety about escaping slavery. Alongside this was the hunger in the stomach: there was neither enough grain nor sufficient means. In science, technology, and research, India constantly lagged behind the world. What the British gave was fabric prepared for their own convenience. Illiteracy was widespread. The healthcare system largely depended on traditional methods. Means for food, cooking, and living were scarce. Hunger, epidemics, communication, transport, roads, and electricity were rare commodities. Factories were few, and human labor predominated. This country needed independence not only from the English but also from scarcity, neglect, its own taboos and vices, feudal structures, and the arbitrariness of landowners and maharajas. It awaited liberation from backwardness in the modern world, from being dormant while watching industrial revolutions, from divided identities and disgraced labels, from countless truths of poverty, exploitation, discrimination, and backwardness awaiting the freedom of castes, women, and the poor.

And independence was achieved. The Union Jack was lowered, the tricolor was established, carrying the message of diversity. This flag, respecting diversity in a diverse nation, served as a testament to what our hard-won freedom should be. This freedom taught us to embrace colors together, flying together in various hues. The flagpole of the system was intended only to hold this. To allow it to rise and fly. The Constitution was created for this purpose, and the country's politics were defined for this purpose.

But this country, after 79 years, is still hungry. The generation that fought for freedom has passed. People who understood the pain of gaining freedom have gone. Younger generations have not seen freedom, but they have grown up against the backdrop of the struggle for independence. Then a new century arrived, a new generation. This is the new India—a hungry India. A freedom-hungry India that needs more pride than struggle. One that embraces traditions while yearning to spread throughout the world. Its ideas of freedom are different. It needs freedom from bureaucracy, from inequality, and from illogical division. It does not want restrictions on information. It dislikes one system and one message. It wants to change the country, society, the system—everything. It wants us to look among the most advanced in the world. It does not want to compare itself with its neighbors. It wants to be regarded as a second-class citizen, not a first-class citizen, in the most developed world, with respect and potential. The market and globalization have opened up such opportunities for it. And this has further amplified its curiosity, aspirations, and desires.

Whenever this new generation feels that it is lagging behind, it begins to worry, experiencing a sense of inadequacy.