After making detailed study of different stages of take-off as given by Prof. Rostow now the question arises whether India has achieved the stage of take-off or not’.
This we can decide only after seeing the presence of the conditions of take-off. W.W. Rostow is of the view that the first stage of take off is that the rate of investment should be more than 10% of national income.
Now we would see whether the rate of investment in India, is more than 10%. At the beginning of the first plan i.e. during 1950-51 the rate of investment was 5.5% of national income.
But during 1960-61, the rate of investment went up to 12.5% whereas it further went up to 13.8% in 1965-66. Similarly during the period of fourth plan i.e., 1973-74 the investment rate was 14.55. It authenticates that India had entered the stage of take-off during 1960-61.
The second condition for take-off is the development of take-off stage. This needs to examine whether leading sector has developed in India or not. From the first to the Eighth, five year plan, all the leading sectors developed. Green revolution in 1966 is the proof before us. In the first plan the production of food grains was 6.5 crores of tonnes.
In the second plan it increased to 8.05 crores of tonnes, but in the third plan, it fell to 7.23 crores of tonnes, but during 1970-71, the production of food grains was 10.78 crores of tonnes. In the successive five year plans we too, exerted for self-reliance and self-generating economy. It testifies the development of agricultural sector. Industrial sector also developed satisfactorily. There was enormous development of cotton and textile industries, iron and steel industry, tea industry, Jute industry etc.
The means of transport and communication also spread. Export sector also showed upward trend. This proves that leading sectors had developed in India during plans. That is way, we can conclude that Indian economy has already entered the state of take-off.
The third important condition of take-off is social and cultural awakening which are present in the Indian economy. The planning in India gave birth to cultural structure. The social spirit has already developed and the people are all-out for economic development. There is big change in the attitudes and out-look of the people.
New technology has been adopted in all sectors. Social overhead capital has been widely spread over. The development of infra-structure has been given top priority. There is also political awakening among the people as seen in General Elections of 1989, 1991, 1997 and 1999. Foreign trade has expanded by big strides. Globalisation and liberalization has bought the country close to the world economy. All these factors prove the existence of take-off.
But the existence of all the three conditions of take-off should not make us conclude that the stage of take-off has been achieved. No one should jump to the conclusion that India has achieved the stage of take-off because it has fulfilled at the three conditions of take-off.
It appears that India had actually entered the premature take-off because it had achieved the required rates of growth-savings and investment. Three consecutive crop failures during 1960’s and some other actuate problems has spoiled the true sprit of the take-off. But in-spite of all these drawbacks, we can say that India had entered the stage of take-off.