Planning in India | Economy for UPSC 2024 (Pre & Mains) PDF Download

 Page 1


 
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Preface To Planning in India 
 
Various Sectors of Indian Economy at the time of Independence: 
Agriculture Sector 
- Indian Agricuture was stagnated and deteriorated under imperial rule.  
- Not only per capita agricultural production declined, per capita consumption 
was also much below.   
Causes: 
- Land tenure system : Zamindari – Mahalwari – Ryotwari.  
- Zamindars failed to invest in land and relied on rent seeking only 
- No technological upgradation.   
- Commercialisation of Agriculture – Rise of Cash crops 
- Indian Agriculture was a major supplier of raw material to England. 
- Partition took away prosperous tracts of arable land. 
Industrial Sector: 
- During imperial rule, country’s famous handicraft industry declined 
- No modern base was allowed to proliferate due to one sided free trade 
policies. 
- Growth rate of Industrial sector and its contribution towards GDP very low.   
- Hardly any capital goods industry to promote industrialisation. 
Structure of Industrial Sector is essential for any industrial development. 
It helps in achieving competitiveness and reduce product costs.   
In India, under colonial rule, basic infrastructure such as railway, ports, water 
transport, telegraph etc. did develop. But the real interest was to serve colonial 
interests and not public interest. 
Thus, while inching towards independence, it was envisaged that the country needs 
to up its economic front in order to sustain itself and not fall prey to a civil war.  
Page 2


 
www.YouTube.com/SleepyClasses 
 
www.SleepyClasses.com 
Preface To Planning in India 
 
Various Sectors of Indian Economy at the time of Independence: 
Agriculture Sector 
- Indian Agricuture was stagnated and deteriorated under imperial rule.  
- Not only per capita agricultural production declined, per capita consumption 
was also much below.   
Causes: 
- Land tenure system : Zamindari – Mahalwari – Ryotwari.  
- Zamindars failed to invest in land and relied on rent seeking only 
- No technological upgradation.   
- Commercialisation of Agriculture – Rise of Cash crops 
- Indian Agriculture was a major supplier of raw material to England. 
- Partition took away prosperous tracts of arable land. 
Industrial Sector: 
- During imperial rule, country’s famous handicraft industry declined 
- No modern base was allowed to proliferate due to one sided free trade 
policies. 
- Growth rate of Industrial sector and its contribution towards GDP very low.   
- Hardly any capital goods industry to promote industrialisation. 
Structure of Industrial Sector is essential for any industrial development. 
It helps in achieving competitiveness and reduce product costs.   
In India, under colonial rule, basic infrastructure such as railway, ports, water 
transport, telegraph etc. did develop. But the real interest was to serve colonial 
interests and not public interest. 
Thus, while inching towards independence, it was envisaged that the country needs 
to up its economic front in order to sustain itself and not fall prey to a civil war.  
 
www.YouTube.com/SleepyClasses 
 
www.SleepyClasses.com 
History of Economic Planning in India  
 
1. The Congress Plan (1938, 49)  
S.C. Bose took initiative and made National Planning Committee (NPC) in Oct (1938) 
to work out concrete program.  
For development, encompassing all major areas of economy. 
It was interrupted by outbreak of WW II.  
It favoured rapid industrialisation.   
 
2. Bombay Plan (1944 – 45) 
Known as a plan of Economic development of India. 
It was prepared by India’s leading industrialists like Purshotam Thakurdas, JRD Tata, 
Birla, Lala Sri Ram etc. 
It agreed over issues of: 
- Agrarian restructuring 
- Abolition of intermediaries 
- Guarantee of minimum wages etc. 
- Planning to reduce gross inequalities through measures like progressive 
taxation 
- Prevention of concentration of wealth etc. 
 
3. Gandhian Plan (1944) 
By Sriman Narayan Agarwal. 
It laid more emphasis on agriculture – cottage and village industry.  
Visualised decentralised economic structure for India based on idea of gram swaraj.  
Page 3


 
www.YouTube.com/SleepyClasses 
 
www.SleepyClasses.com 
Preface To Planning in India 
 
Various Sectors of Indian Economy at the time of Independence: 
Agriculture Sector 
- Indian Agricuture was stagnated and deteriorated under imperial rule.  
- Not only per capita agricultural production declined, per capita consumption 
was also much below.   
Causes: 
- Land tenure system : Zamindari – Mahalwari – Ryotwari.  
- Zamindars failed to invest in land and relied on rent seeking only 
- No technological upgradation.   
- Commercialisation of Agriculture – Rise of Cash crops 
- Indian Agriculture was a major supplier of raw material to England. 
- Partition took away prosperous tracts of arable land. 
Industrial Sector: 
- During imperial rule, country’s famous handicraft industry declined 
- No modern base was allowed to proliferate due to one sided free trade 
policies. 
- Growth rate of Industrial sector and its contribution towards GDP very low.   
- Hardly any capital goods industry to promote industrialisation. 
Structure of Industrial Sector is essential for any industrial development. 
It helps in achieving competitiveness and reduce product costs.   
In India, under colonial rule, basic infrastructure such as railway, ports, water 
transport, telegraph etc. did develop. But the real interest was to serve colonial 
interests and not public interest. 
Thus, while inching towards independence, it was envisaged that the country needs 
to up its economic front in order to sustain itself and not fall prey to a civil war.  
 
www.YouTube.com/SleepyClasses 
 
www.SleepyClasses.com 
History of Economic Planning in India  
 
1. The Congress Plan (1938, 49)  
S.C. Bose took initiative and made National Planning Committee (NPC) in Oct (1938) 
to work out concrete program.  
For development, encompassing all major areas of economy. 
It was interrupted by outbreak of WW II.  
It favoured rapid industrialisation.   
 
2. Bombay Plan (1944 – 45) 
Known as a plan of Economic development of India. 
It was prepared by India’s leading industrialists like Purshotam Thakurdas, JRD Tata, 
Birla, Lala Sri Ram etc. 
It agreed over issues of: 
- Agrarian restructuring 
- Abolition of intermediaries 
- Guarantee of minimum wages etc. 
- Planning to reduce gross inequalities through measures like progressive 
taxation 
- Prevention of concentration of wealth etc. 
 
3. Gandhian Plan (1944) 
By Sriman Narayan Agarwal. 
It laid more emphasis on agriculture – cottage and village industry.  
Visualised decentralised economic structure for India based on idea of gram swaraj.  
 
www.YouTube.com/SleepyClasses 
 
www.SleepyClasses.com 
4. The Peoples Plan (1945)  
Radical Plan by MN Roy. 
Plan based on Marxist socialism and advocated need for providing people with basic 
necessities.   
 
Advisory Planning Board (1946) 
GoI appointed board to review the planning that had already been done by British 
govt, the work of NPC other plans proposals of planning.   
Board recommended -> National Planning Commission 
 
Sarvodya Plan (1950) 
By Jai Prakash Narayan. 
Drew inspiration from Gandhian technique of constructive work by community and 
trustership and the concept of Sarvodya – given by Acharya Vinobha Bhave.   
 
Planning Commission (1949) (Scrapped) 
It came into existence in 1950, through a cabinet resolution with functions 
entrusted: 
- Making an assessment of material – capital and human resources and 
investigate possibility of augmenting those resources. 
- Formulate plan for most effective and balanced reutilisation of country’s 
resources. 
- Determine priorities, stages of plan implementation and allocate resources 
accordingly.   
  
 
Page 4


 
www.YouTube.com/SleepyClasses 
 
www.SleepyClasses.com 
Preface To Planning in India 
 
Various Sectors of Indian Economy at the time of Independence: 
Agriculture Sector 
- Indian Agricuture was stagnated and deteriorated under imperial rule.  
- Not only per capita agricultural production declined, per capita consumption 
was also much below.   
Causes: 
- Land tenure system : Zamindari – Mahalwari – Ryotwari.  
- Zamindars failed to invest in land and relied on rent seeking only 
- No technological upgradation.   
- Commercialisation of Agriculture – Rise of Cash crops 
- Indian Agriculture was a major supplier of raw material to England. 
- Partition took away prosperous tracts of arable land. 
Industrial Sector: 
- During imperial rule, country’s famous handicraft industry declined 
- No modern base was allowed to proliferate due to one sided free trade 
policies. 
- Growth rate of Industrial sector and its contribution towards GDP very low.   
- Hardly any capital goods industry to promote industrialisation. 
Structure of Industrial Sector is essential for any industrial development. 
It helps in achieving competitiveness and reduce product costs.   
In India, under colonial rule, basic infrastructure such as railway, ports, water 
transport, telegraph etc. did develop. But the real interest was to serve colonial 
interests and not public interest. 
Thus, while inching towards independence, it was envisaged that the country needs 
to up its economic front in order to sustain itself and not fall prey to a civil war.  
 
www.YouTube.com/SleepyClasses 
 
www.SleepyClasses.com 
History of Economic Planning in India  
 
1. The Congress Plan (1938, 49)  
S.C. Bose took initiative and made National Planning Committee (NPC) in Oct (1938) 
to work out concrete program.  
For development, encompassing all major areas of economy. 
It was interrupted by outbreak of WW II.  
It favoured rapid industrialisation.   
 
2. Bombay Plan (1944 – 45) 
Known as a plan of Economic development of India. 
It was prepared by India’s leading industrialists like Purshotam Thakurdas, JRD Tata, 
Birla, Lala Sri Ram etc. 
It agreed over issues of: 
- Agrarian restructuring 
- Abolition of intermediaries 
- Guarantee of minimum wages etc. 
- Planning to reduce gross inequalities through measures like progressive 
taxation 
- Prevention of concentration of wealth etc. 
 
3. Gandhian Plan (1944) 
By Sriman Narayan Agarwal. 
It laid more emphasis on agriculture – cottage and village industry.  
Visualised decentralised economic structure for India based on idea of gram swaraj.  
 
www.YouTube.com/SleepyClasses 
 
www.SleepyClasses.com 
4. The Peoples Plan (1945)  
Radical Plan by MN Roy. 
Plan based on Marxist socialism and advocated need for providing people with basic 
necessities.   
 
Advisory Planning Board (1946) 
GoI appointed board to review the planning that had already been done by British 
govt, the work of NPC other plans proposals of planning.   
Board recommended -> National Planning Commission 
 
Sarvodya Plan (1950) 
By Jai Prakash Narayan. 
Drew inspiration from Gandhian technique of constructive work by community and 
trustership and the concept of Sarvodya – given by Acharya Vinobha Bhave.   
 
Planning Commission (1949) (Scrapped) 
It came into existence in 1950, through a cabinet resolution with functions 
entrusted: 
- Making an assessment of material – capital and human resources and 
investigate possibility of augmenting those resources. 
- Formulate plan for most effective and balanced reutilisation of country’s 
resources. 
- Determine priorities, stages of plan implementation and allocate resources 
accordingly.   
  
 
 
www.YouTube.com/SleepyClasses 
 
www.SleepyClasses.com 
National Development Council 
Apex body for decision making and deliberations of development matters in India. 
(Scrapped) 
Prescribed guidelines for National Plan formulation. 
Considered National Plan made by N.P.C.  
  
Niti Ayog (2016)  
It replaced National Planning Commission. 
- Centre to state one way flow of policy, which was the hallmark of planning 
commission era, sought to be replaced by Niti Aayog, a greater sense of 
cooperative federalism.  
- Acts as a think – tank that will provide gov. at central and state level with 
relevant strategic and technical advice across the spectrum of key elements 
of policy. 
- Puts an end to slow and tardy implementation of policy, by foreseeing Inter – 
ministry and centre – state relations.