Independence Day: Seven decades of development policies that helped India grow

As we celebrate our 75th Independence Day with the theme ‘Nation First, Always First’ — it would be an understatement to say we have come a long way since independence. 

Our development journey has been powered by various policies and Constitutional Acts, which have been major stepping stones in our journey.

Last week, the government transferred about Rs 19,500 crore to over 9.75 crore farmer-beneficiaries under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme.

With this, it has so far transferred around Rs 1.57 lakh crore over nine instalments to farmer families under the scheme.

SocialStory takes a look at the key policies that are helping the common man since independence.

Minimum Wages Act, 1948 

The Minimum Wages Act pertains to the Indian labour law. It defines the minimum wages that must be paid to skilled and unskilled labourers.

In November 1948, the Central Advisory Council appointed a Tripartite Committee of Fair Wage that defined ‘fair wage’, keeping in mind the minimum amount required to meet a decent standard of living and an industry’s capacity to pay.

This act gives both the central and the state governments jurisdiction to fix and revise the prevailing minimum wages.

According to the Reserve Bank of India (RBI), in 2019-2020, Kerala ranked the highest with a daily labour wage of Rs 670, while Meghalaya had the lowest wage at Rs 217.

Industrial Policy Resolution, 1956

The Industrial Policy Resolution identified three distinct categories of industries. The first category has industries that are exclusively under the state’s responsibility. The second category has largely state-owned industries, but they collaborate with private entities to supplement the effort of the state. And lastly, privately-owned industries.

Through this, the government aimed at establishing a mixed economy framework, leaning towards socialism.

The privately-owned industries were kept under regulation through a system of licensing, where they had to acquire licenses for branching, expansion or setting up a new venture. 

Institutes of Technology Act, 1961

This Act — which came into effect in April 1962 — gave legal status to the Indian Institutes of Technology (IITs) and granted them certain privileges. It identified certain education centres as institutes of national importance.

Over the years, there have been several amendments to this Act. In 2016, six new institutes were established under this Act. 

Bonded Labour System (Abolition) Act, 1976 

Under Article 23 of the Indian Constitution, human trafficking and forced labour have been strictly prohibited. The practise of bonded labour was common in India in the 20th century and was often a result of indebtedness.

Due to illiteracy and poverty, several generations of debtors were exploited as bonded labours. The Bonded Labour System (Abolition) Act freed the country of this practice.

Once the Act was implemented, all bonded labourers were discharged from the obligation to forcefully work for someone against zero wages.

Consumer Protection Act, 1986

The Consumer Protection Act (COPRA) was enacted in 1986, which aims to protect and empower Indian consumers. It gave them rights, helped them understand those rights, and established consumer councils and courts for the settlement of grievances.

The Act aims to hold industries accountable for unfair trade practices, defective goods, and below-par services. A large network of consumer forums and consumer dispute redressal agencies were also set up under it.

Disinvestment Policy, 1991

Under the Disinvestment policy, the government can partially or fully sells its assets and ownership of public sector enterprises. This is done to reduce the fiscal burden and bridge the deficit.

In 1991, India had a huge deficit in the Balance of Payments and the government had to take a more open-market oriented approach to finance the same.

Economics reforms of 1991 focused on liberalisation, globalisation, and privatisation. And, the new Industrial Policy encouraged the government to use its resources to increase the efficiency of certain necessary PSUs and sell the loss-making entities. 

Mahatma Gandhi Nation Rural Employment Guarantee (MGNREGA) Act, 2005

MGNREGA is a social security measure under the Indian labour law, which aims to enforce the ‘Right to Work’ in rural areas by guaranteeing 100 days of minimum wage employment in each financial year.

It is extended to every household whose adult member is willing to do unskilled labour. MGNREGA was accepted and implemented by 625 districts.

The Act also states the kind of work allowed and ensures employment to be provided within 5kms of the applicant’s residence. It further aims to build and enhance durable assets like roads, canals, wells, etc., and therefore, solves a dual purpose.

National Food Security Act, 2013

This Act aims to provide subsidised food grains to India’s undernourished population. It includes the midday meal scheme, public distribution system (PDS), and integrated child development services system.

Under the public distribution system, the beneficiaries are entitled to 5kgs of cereal per person per month at subsidised rates. Further, lactating women, pregnant women, and retain categories of children can avail themselves of daily free cereal.

The midday meal scheme and integrated child development scheme are universal and aim to provide quality nutrition to children, whereas the public distribution system covers two-thirds of India’s population. 

Pradhan Mantri Jan Dhan Yojana, 2014

The Indian government started this as a financial inclusion programme to extend access to banking services to the underbanked Indians. The scheme aims to inculcate saving habits and allow direct benefit transfer.

Under this scheme, 15 million bank accounts were opened on August 15, 2014 — the day it was launched. It also helps in providing remittances, pensions, insurance, saving and deposit accounts to the poor and needy of the country. 

The Mental Healthcare Act, 2017

This Act provides medical care and services to those suffering from mental illnesses and promotes their right to a good quality of life.

The Act decriminalises attempted suicide, which was earlier punishable under section 309 of the Indian Penal Code. It also aims to enhance the standard of medical care, especially dealing with mental illnesses.

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