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Question

State the main arguments in the debate that ensued between industrialisation and agricultural development at the time of the second Five Year Plan.

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Solution

The model of economic development adopted by our political leadership raised some key issues and points, particularly with regard to industry versus agriculture and that which sector should attract more resources. The Second Five-year Plan, whose main thrust was industrialisation, raised some key points of contention”

a. Many economists felt that the Second Five-Year Plan lacked agrarian strategy as it laid emphasis on industries and that would affect the countryside, rural development and progress.

b. Gandhian economists like J. C. Kumarappa called for an alternative plan that would focus on rural industrialisation.

c. Charan Singh left the Congress and formed the Bharatiya Lok Dal. He wanted agriculture to be kept in control in the country’s planning. He argued in the interest of farmers and rural population whose interests were overlooked in the Second Five-Year Plan.

However, the planners justified their strategy of development and instead argued:

a. Until the country focuses on industrialisation, the economy will never be able to come out of the clutches of poverty and unemployment.

b. They argue that the agrarian sector has been duly looked into. A series of land reforms, distribution of resources, community development projects and investment in irrigation projects has been made. These programmes rather require political will and appropriate implementation.

c. They argued that India is endowed with rich natural human resources that need to be tapped by bringing about the industrial development.

d. Industrialisation will reduce pressure on land, create employment opportunities for people and shift surplus population to industries.

e. Rapid industrialisation is essential for agricultural development and advancement.

f. Industrialisation will ensure modernisation, encourage material growth, prosperity, and further innovation and contribute in country’s GDP.


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