Final answer:
India transitioned from a self-sufficiency economic model post-independence to an international trade model in the 1990s, leading to increased productivity and growth, especially in the industrial, information services, and health care sectors.
Step-by-step explanation:
After gaining independence from the UK, India adopted a self-sufficiency model heavily influenced by its desire to achieve economic independence and address 'the drain' of financial capital to Great Britain. In the early days post-independence, the Indian government, led by leaders like Nehru, nationalized key industries such as railroads, electric utilities, and communication systems, aiming for a mixed-economy strategy that balanced public ownership with some elements of the free market. However, this approach was often criticized for inducing slow economic growth due to bureaucratic controls.
In the 1990s, India changed course and started transitioning towards an international trade model by pursuing economic liberalization policies. This included reducing government control on foreign investment and trade, and privatizing many publicly owned businesses such as airlines, shipbuilding, telecommunications, electric power, and heavy industry. This shift resulted in increased productivity and efficiency in the industrial sector, growth in information services and health care, and more vigorous globalization efforts, though it also introduced challenges such as higher prices and reduced access to some services for the public.