Many economic problems occurred in India due to division of the countries. Large part of wheat and rice producing areas of India went to Pakistan. Large part of irrigated land also went to Pakistan. So there was a shortfall of grains in India. In the same way large part of jute and cotton producing areas went over to India. There was a short fall of raw material for jute and textile industries. So Indian government started to find solution of these problems to improve economic condition of the country. That’s why Planning Commission was established in 1950 to achieve this objective. In this way the process of economic development started in the country which is still going on. This shadow can be seen in agricultural and industrial sectors as well.

Agriculture: India is a agriculture based country. Foodgrains are produced on 75% agricultural land of the country. Rice, wheat, peanut, sugarcane, maize, sunflower, etc. are important foodgrain crops. India made dams on all the important rivers for the development of country. These dams give water to agricultural land and stop floods to a great extent. These dams are helpful in producing electricity. These are known as river valleys. Nangal Dam, Damodar Valley Dam, Harikud Dam, Tungabhadra Dam and , Nagaijuna Sagar Dam are some of the important dams of the country.

Special steps were taken by the government to increase agricultural production. Farmers were told new methods of farming. Government gives good seeds and fertilizers to farmers. Poor farmers are given loans from Banks to improve agriculture. In this way government is trying to improve condition of agriculture.

Industry: Industrial development started in India even during British rule. Many Textile, Iron, Sugar, Matchstick, Cement industries were established in that age. But these industries were unable to develop fully because British hardly took care in development of Indian industry. But after independence, India started to spread industrial sector in the country. Engineering tools, Electrical goods, computers and related goods, medicine and industries of agricultural tools were established in the country. Many Multinational companies established their industries in the country. These industries have given employment to lakhs of skilled and semi-skilled labourers.

Indian government took special interest in Scientific and Industrial inventions. Many universities were set up to invent new tools, seeds, fertilizers, etc.