This study characterizes the trajectory of the Indian economy from independence to 2020, focusing on structural challenges accompanying growth. Employing a historical institutionalist methodology based on bibliographic review of peer reviewed sources, policy documents, and multilateral reports, the analysis traces India’s transition from the “Hindu growth rate” of 3.5 % annually (1950–1980) through the post reform surge to the deceleration of the 2010s. Trade openness increased from 6.65 % of GDP in 1970–71 to 42.40 % in 2011–12, fluctuating between 38 % and 54 % until 2020; foreign capital openness surged from 0.16 % to 136.28 % by 2011–12 (post 2012 comparable data unavailable). After 2010–11, growth slowed to 5–6 % in the final three years of the UPA government, sliding to 3.9 % in 2019–20. Agricultural growth decelerated from 3.4 % in the 1980s to 2.9 % in 2000–2007; renewable energy capacity quadrupled, but infrastructure deficits persisted and regional income divergences widened. The findings demonstrate that India’s strategic pragmatism – pursuing freer trade while preserving state coordination – enabled growth but exacerbated inequalities and employment mismatches. The study contributes a multidisciplinary framework linking liberalisation outcomes to unresolved sectoral challenges and offers lessons for emerging economies navigating the trade off between growth maximisation and inclusive development.
Keywords: Indian economy, economic liberalisation, structural challenges, services led growth, regional inequality, pre pandemic deceleration