How was the economic development of India visualised in the early decades after Independence? -
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Solution
Soon after India attained independence, it was facing the problem of economic development and lifting a large population out of poverty.
Hence there was a need to plan for development.
The Planning Commission was established in 1950 by the Government of India.
The Planning Commission was assigned the task of designing and executing suitable policies for the development of the economy.
One of the major objectives was building a modern industrial and technical base for the nation.
To generate more jobs and to increase production, both the private sector and the Government would play complementary and important roles, hence there was a broad agreement for a mixed economy.
The Planning Commission had to define how to achieve a balance between different states and regions, which industries must be initiated by the market and which industries should be initiated by the states.
The second five year plan was formulated in 1956.
The second five year plan focused on development of dams and heavy industries like steel.
To guide economic policy for the next few decades, focus was on developing heavy industry and providing state regulation.