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The New Economic Policy – 1921 of Lenin had influenced the policies adopted by India soon after independence. Evaluate. (UPSC GS1 2014)

The New Economic Policy of 1921 by Lenin represented a temporary retreat from its previous policy of extreme centralisation and doctrinaire socialism. The policy of War Communism in effect since 1918, had by 1921 brought the national economy to the point of total breakdown.

• The Kronstadt Rebellion of March, 1921 convinced the Communist Party and its leader Vladimir Lenin, of the need to retreat from socialist policies in order to maintain the party's hold on power. Accordingly, the 10th party Congress in March 1921 introduced the measures of the New Economic Policy.
• These measures included the return of agriculture, retail trade, and small-scale light industry to private ownership and management, while the state retained control of heavy industry, transport, banking, and foreign trade.
• Money was reintroduced into the economy in 1922 (it had been abolished under War Communism). The peasantry were allowed to own and cultivate their own land while paying taxes to the state.
• The New Economic Policy reintroduced a measure of stability to the economy and allowed the Soviet people to recover from years of civil war and governmental mismanagement.

Influence on India of New Economic policy:

• Nehru was heavily influenced by the policies of Lenin. He tried to establish a mixed economy which had an element of socialism and the capitalism. As an infant democracy after Independence, Indian economy needed control and private investment at the same time.
• Hence, India's five year planning was based on the ideals of strict control of heavy industries by Lenin under new economic policy. Nehru also tried to control state finances and public sector undertakings on the pattern of Lenin reforms.
• On the other hand, he put a greater emphasis on agriculture sector and small scale industries and opened these sectors to private investment on a similar pattern followed by Lenin.
• The land reform effort in India seem to have been influenced by the distribution of land in USSR but India being a democratic state could not overhaul and control things the way USSR did. The changes in India were gradual.
• It is no secret that Indian national movement had gained a socialistic hue in the 1930's. Naturally, India looked upon the Soviet Union which was leading it's way by actualizing the alternate vision. 
• India was not only captivated by the success of the rapid economic growth of the Soviet Union but embarked on a path to emulate it through Five Year Plans and envisioned the establishment of "socialistic pattern of society" with the "state commanding the heights of the economy" through Public Sector Undertakings.

Topics Covered - Russian Revolution 1917, World War 1, Socialism in Europe