SHASTRI ERA
Lal Bahadur Shastri, the second Prime Minister of India, served from June 1964 until his sudden death in January 1966. Succeeding Jawaharlal Nehru, Shastri’s leadership period, although brief, was marked by profound challenges and critical developments that shaped India’s future. His tenure is remembered for his focus on agricultural reforms, national security, and economic stability amidst significant internal and external pressures.
1.Severe Shortages: During Shastri’s tenure, India faced food grain shortages that led to severe famine conditions in states like Bihar and Uttar Pradesh. The country’s total food grain production was around 82 million tonnes in 1964, insufficient for its population of over 450 million.
2.Dependence on Imports: India imported around 10 million tonnes of wheat annually under the PL-480 program from the United States. This heavy reliance on imports exposed India to international political pressures, particularly during geopolitical tensions.
1.Slow Growth and High Inflation: The Indian economy was growing at a modest rate of about 3.5% per annum during the early 1960s, often referred to as the Hindu rate of growth. Inflation rates were high, reaching double digits in some years, which eroded the purchasing power of the common people.
2.Budget Deficits: The fiscal deficit was a persistent issue, with the government struggling to balance the budget. In 1965-66, the budget deficit stood at around ₹680 crore, a significant sum for the time.