History of economic planning in India upsc

Planning exists in all economies. A planned system aims for the systematic utilization of the limited resources available in the state for long-term development.

Also, the state or a nation aims to increase the national dividend, output, employment and also to enhance the social welfare of the people of different communities, especially the oppressed and the downtrodden.

Under such a system, all the production units in the national allocate their resources based on the direction of the government. Here the Union Government is the central agency for the development.

The central government lays down the targets for public and private enterprises. The state regulates and controls the functions of both private and public enterprises for the purpose of the national economy and for the welfare of the people.

Modern nations work for the welfare of the people and the democratic government provides the opportunities to realize the goal for the welfare state.

In India, the Planning commission was set with the goal of having a systematic process of planning in the nation so that the right strategy is used for the utilization of resources of the country for the present and future.

Planning before Independence

The need for economic planning was realized even before Independence. In 1939, M. Visvesvarayya published a book titled ‘Planned Economy for India’ where he proposed a ten-year plan for India.

M.Visvesvarayya was considered a pioneer of economic planning in India. In 1938, the National Planning Committee was initiated within the All India Congress Committee by Netaji Subhash Chandra Bose.

The committee could not complete the task due to World War II and the imprisonment of some national leaders. In 1944, the Bombay plan was prepared for economic development by Indian Industrialists.

M.N.Roy proposed a plan which was called the People’s plan that gave more importance to agriculture and small-scale industries. Later Gandhian Plan was put forward by Shriman Narayan Agarwal in 1944.

In 1950 Jayaprakash Narayan Drafted the Sarvodaya Plan.

Planning after Independence

The DPSP (Directive Principles of State Policy) was enshrined in Part IV of the Indian Constitution to ensure socio-economic justice for the people.

The makes of the constitution understood the importance of economic development with social justice. Thus planning was essential for long-term development.

India adopted planning as a means of fostering economic development. The Planning commission was set up with the objective of increasing production, increasing levels of national and per capita income.

Also, the planning commission aimed at guaranteeing employment and narrowing the gap between the rich and poor.

It also aimed at establishing an egalitarian society by giving a broader role to the state, so to achieve the goal of socio-economic justice and economic development could be realized.


Sarvodaya Plan Upsc

Sarvodaya Means “Universal Uplift” or “Progress of All“. This term was coined by Gandhi Ji, as the title of his 1908 translation of John Ruskin’s tract on political economy. Sarvodaya Plan was drafted by Jaiprakash Narayan in 1950 inspired by Gandhi’s followers notably Vinoba Bhave.

This plan along with agriculture it emphasized the development of small industries.

Bombay plan Upsc

It was an economic plan for India and it was proposed by a group of industrialists in 1944. This group drafted a plan for economic development with state intervention and planning.

This group included leading industrialists such as JRD Tata, GD Birla, John Matthai, etc. The plan included the doubling of per capita income within a period of 15 years.

Gandhian plan 1944

Shriman Narayan Aggarwal in 1944 authored ‘Gandhian Plan’. It emphasized the expansion of small unit production and agriculture. Also drafted the decentralization of economic structure with cottage industries and self-dependent villages.

Economic trends in Tamilnadu

* * All the Notes in this blog, are referred from Tamil Nadu State Board Books and Samacheer Kalvi Books. Kindly check with the original Tamil Nadu state board books and Ncert Books.