An Economic Review of India 1957 DIBAKAR BHATTACHARJEE 3rd, year B.A. |
In the field of economics, the year 1957 has left a painful memory on India. Unbalanced international trade has lessened the sterling balance of India considerably and as a result of this the success of the plan has become doubtful. A severe food problem has broken out due to drought in many places and this has made the poor people poorer. Too much restrictions on imports, high prices of foodstuff, taxation on almost all necessary commodities have increased the fear of inflation.
SECOND PLAN.
For the big curtailment in India's foreign reserve, the government itself has fallen in a precarious condition about the development projects taken under the second plan. Imposed restrictions on imports and de- crement of the currency backing could not remedy the problem to a very great extent. Even our ex-finance minister's trip to Europe and America for foreign aid was almost a failure. The small amount which would be available from foreign countries is insufficient and would be finished to import foodstuff. Want of foreign reserve was same as before, because the export trade was not improved much. In this disappointing condi- tion the government as well as the public is in great difficulty. Because the private enterprises will suffer for want of foreign aid.
PRIVATE SECTOR
1957 was a sad year for the private sector. More than one revenue system, some new, some totally impracticable had been imposed on the private sector which undoubtedly hindered the development work of the private sector. The increment of the rate of super tax on the dividend of Capital Gains tax, Wealth tax, Expenditure tax and other various kinds of restrictions have been retarding the progress of private enterprises.
