Politics of Planned Development
Class 12 Political Science · Politics in India Since Independence · Chapter 3
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Summary
This chapter studies the political choices behind India's economic development. After independence there was broad agreement that development meant both economic growth and social and economic justice, and that the government, not private actors alone, must lead it. The debate was over how big a role the state should play, whether to prioritise industry or agriculture, and how much weight to give justice. India had before it two models — the liberal-capitalist and the socialist — and many leaders, including Nehru, admired the Soviet model. A consensus on planning emerged, reinforced even by industrialists' 1944 Bombay Plan. The Planning Commission, set up in 1950 with the Prime Minister as chairperson, became the central body for development and adopted Five Year Plans. The First Five Year Plan (1951-56), drafted with K.N. Raj's involvement, focused on agriculture, dams like Bhakra Nangal, and land reforms. The Second Plan (1956), led by P.C. Mahalanobis and reflecting the 'socialist pattern of society', stressed rapid industrialisation and heavy industry in the public sector, protected by tariffs. Critics noted its urban bias and neglect of agriculture, while the Green Revolution and milk cooperatives shaped later debates. (The Planning Commission was replaced by NITI Aayog in 2015.)
Key terms
Planning Commission
The body set up in 1950, chaired by the Prime Minister, to design and guide India's development.
Five Year Plan
A document planning the government's income and expenditure over five years to direct development.
Bombay Plan
A 1944 proposal by leading industrialists for a planned economy with a major state role.
Socialist pattern of society
The Congress goal, declared at Avadi, of state-led growth combined with social justice.
Mixed economy
An economy combining a public sector run by the state with a private sector.
Land reforms
Changes in the pattern of land ownership identified as key to agricultural growth in the First Plan.
Extra questions & answers
Try one from this chapter
The Planning Commission of India was set up in: