Question

How was the economic development of India visualised in the early decades after Independence? -

Answer 1

• 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.