Politics Of Planned Development

The incorrect statement is A. It was blueprint for India’s economic future.

Explanation: Bombay Plan was a joint initiative of some big industrialists of setting up a planned economy for the country, because every investor or industrialist prefers an open economy where state control is minimum.

Objectives of Bombay plan:

1. The Bombay Plan wanted the state to take major initiatives in industrial and other economic investments.

2. proposed for setting up a planned economy in the country.

The correct answer is B. Liberalisation

India development policy was based on principle of mixed economy where both private and public played a major role.

Five year plan was set up for planning the economy for the rest five years.

The correct answer is (iv). All the above

Explanation:

The idea of planning was the outcome of several factors:

1. The experience of the great depression in Europe where the economic crisis troubled many nations along with Europe proved to be a lesson for the world.

2. The Bombay Plan where many big industrialists of India decided setting up a planned Economy.

3. Gandhi was critical of industrial civilization in west, where weaker section was exploited. Gandhian principles to economic policies were also applied in Planning of Economy.

4. After independence there was conflict in ideas between industrialists and peasants, where former wanted to set up industries in resourceful regions and later thought that these industries would exploit the region, resources and their employment.

(a)-(iii); (b)-(i); (c)-(ii); (d)-(iv)

(a) Charan Singh- He forcefully articulated the case for keeping agriculture at the centre of planning for India.

(b) P C Mahalanobis - The Second FYP(Five Year Plan) stressed on heavy industries. It was drafted by a team of economists and planners under the leadership of P. C. Mahalanobis

(c) Bihar Famine- When Bihar was hit by Famine the government had “zoning” policies that prohibited trade of food across states; this reduced the availability of food in Bihar dramatically.

(d) Verghese Kurien- nicknamed the ‘milkman of India’, played a crucial role in the story of

Gujarat Cooperative Milk and Marketing Federation Ltd that launched Amul.

After Independence there were plenty of works for the government to do priority being economy. During the time development was being industrialized like the west, but there was need of both economic development and social justice.

The idea of development varied broadly:

1. The common perception of Development was becoming modernized which involved breakdown of traditional social structure

2. After independence India had two models of development one was Europe’s and US’s liberal-Capital model and other USSR’s socialist model.

3. Many including Communist Party of India and leaders like Nehru were impressed by Soviet model and very few favored American model.

Yes the debate was resolved and India came up with five year plan (FYP) as in USSR. In this the government prepares a document for five year where all its income and expenditure for next five years is prepared.

The first FYP was commenced in 1951, and it’s main thrust were:

1. To invest in dams and irrigation to improve agriculture with urgent attention.

2. Huge allocation was made to Bhakra Nagal dam.

3. It focused more on land reforms to develop the rural areas.

4. The foremost aim was to increase the level of National Income.

First FYP was different from second FYP :

1. In second FYP heavy industrialization was stressed upon whereas in first FYP, agriculture and irrigation were focused upon.

2. the first plan had preached patience, the second wanted to bring about quick structural transformation by making changes simultaneously in all possible directions.

Green revolution was introduced to bring revolution in weak agriculture of India, especially in food grains like wheat and rice through High yielding varieties of seed.

1. the government offered high-yielding variety seeds, fertilizers, pesticides and better irrigation at highly subsidised prices.

2. The government also gave a guarantee to buy the produce of the farmers at a given price.

Positive consequences:

1. in many parts, the stark contrast between the poor peasantry and the landlords produced conditions favourable for left wing organization to organize poor peasants.

2. green revolution also resulted in the rise of what is called the middle peasant sections. These were farmers with medium size holdings, who benefited from the changes and soon emerged politically influential in many parts of the country.

Negative Consequences:

1. Some regions like Punjab, Haryana and western Uttar Pradesh became agriculturally prosperous, while others remained backward.

2. The revolution delivered only a moderate agricultural growth, brought distinction in region and classes. This brought a sharp contrast between farmers and landlords .

At the time of 2^nd FYP many controversies arose like:

1. 2^nd FYP was more concentrated on industries than agriculture or rural India

2. Private public conflicts. After Independence India formed its own development model called mixed economy, where both Private and Public sector played a major role. But there were heated arguments that private sector were given not enough space and the stimulus to grow.

3. Whereas there were some who criticized planners for not providing enough means to public like the public investment including education and health were provided in those regions where private sector was not prepared to go.

4. Besides there were arguments like if government invested more in rural India then the massive agricultural problems would have sorted.

No, the above state is not perfectly true because state intervention was mandatory to regulate country’s economy. India neither followed capitalist model nor socialist model. Instead India adopted Mixed economy where both private and public sector played key role in economy.

1. If the private sector were given free play in the economy then it would have led to monopoly in the market.

2. As the private focused primarily on industries, free play of private sector in the market would have kept agriculture and the farmers at bay.

3. With free play of private only the urban regions would have developed while the rural regions would have been struggling for basic ameneties.

4. The mixed economy model is the right intervention as it helps in keeping check to both public and private sectors.

(a) The author is talking about the contradiction between capitalist and socialist model, and regarding the adoption of model. Political implementation of this controversy led to confliction in parties and the members.

(b) Congress was pursuing this policy so as to achieve maximum increase in production. Yes, it was related to the nature of opposition parties as it focused on liberal economic policies and incentives to be provided to private investment.

(c) No, there was no contradiction between central and state level leaders of congress party.