Politics of Planning and Rural Reconstruction | History Optional for UPSC (Notes) PDF Download

Introduction

M. Vishveshvaraiya proposed a ten-year plan in his book Planned Economy for India in 1934, aiming to double India's national income. 

National Planning Committee

Indian National Planning Committee

• In 1938, the Congress established a National Planning Committee (NPC) to devise a policy for India's economic development post-independence. 
• Chaired by Jawaharlal Nehru, the committee included around thirty members from science, industry, and politics. 
• The NPC aimed for national self-sufficiency and doubling living standards within ten years. 
• It emphasized state intervention in industrialization, learning from Japan and Russia, and proposed public enterprises in areas where the private sector couldn't be trusted. 
• This was reflected in the Bombay Plan (1945), where private sector leaders acknowledged the need for state intervention in basic and heavy industries. 

All India Women’s Sub-Committee of National Planning Committee

• Formed in 1939, this sub-committee was tasked with examining and proposing policies for the role and position of women in a planned economy.
• Chaired by Queen Rajwade, the committee aimed to ensure that the contributions and needs of women were adequately addressed in the planning process. 

People’s Plan (1944)

• Ideology: Based on Communist principles. 
• Key Figure: M.N. Roy was a prominent figure associated with this plan. 
• Focus: Emphasized collective ownership and management of resources to ensure equitable distribution and social welfare. 

Gandhian Plan (Sarvodaya Plan)

• Year: 1944 
• Author: Sriman Narayan 
• Duration: 10-year plan 
• Basis: Gandhian Ideology, focusing on decentralized planning and rural development. 

Plan of Economic Development for India (Bombay Plan), 1945

• Initiators: A group of leading industrialists, including G.D. Birla and J.R.D. Tata, proposed this plan in 1944. 
• Focus: Emphasized the need for state intervention in basic and heavy industries to address income inequality and enhance production. 
• Key Points: The existing private enterprise model was deemed insufficient for equitable income distribution. The state was seen as essential for improving production in sectors like energy, infrastructure, and transport. 
• State Role: Advocated for significant state intervention and control in the early stages of industrialization for the community's benefit. 
• Misconception Addressed: The Bombay Plan contradicted the idea that Jawaharlal Nehru imposed centralized economic planning on reluctant capitalists. 

Advisory Planning Board

• Year: 1946 
• Chairman: Shri Niyogi 
• Recommendation: Proposed the establishment of an independent Planning Commission to oversee and coordinate economic planning. 

Economic Programme Committee of Congress

• Date: November 1947 
• Chairman: Jawaharlal Nehru 
• Recommendations: Focused on promoting basic industries and public sector units to drive economic growth and development. 

Sarvodaya Plan (1950)

• Formulator: J.P. Narayan 
• Concept: Inspired by Gandhian principles, emphasizing holistic and inclusive development. 

Planning Commission

• Year of Formation: 1950 
• Chairman: Jawaharlal Nehru 
• Deputy Chairman: G. L. Nanda 
• Purpose: To formulate and oversee Five-Year Plans for economic development. 

National Development Council

• Establishment: Founded in 1952 as an extra-constitutional and non-statutory body. 
• Function: To approve and monitor the implementation of Five-Year Plans. 

First Five-Year Plan

• Launch Date: April 1, 1951 
• Duration: Until March 31, 1956 
• Objective: To initiate planned economic development in key sectors. 

Development Strategy: Objectives and Goals 

Planning Commission was set up in 1950 to carry out the directive principles. 

Objectives of planning in India:

• Growth: Increase production in a country with low per capita income. 
• Modernization: Structural and institutional changes to transform the economy, diversify it, and upgrade technology. 
• Self-reliance: Reduce dependence on foreign aid and imports, and ensure a more equal relationship with the world economy. 
• Social justice: Improve living standards of weaker sections and reduce asset distribution inequalities. 

Nehru's Vision:

• Planning was not just about economics but also about politics and creating a sense of partnership among the people. 
• New projects were seen as a way to bridge divisions of caste, religion, community, and region. 
• Nehru emphasized the importance of viewing India as a whole to avoid disruptive tendencies. 

Features of Indian Planning 

India's Central Planning Approach

• India adopted central planning with a strong interventionist state, but its approach differs from socialist economies. 
• Socialist economies abolished private property, nationalizing all means of production and enforcing targets set by planning authorities. 
• In India, much of the means of production remains privately owned. 
• Despite a growing public sector, the private sector owns over half the capital and generates nearly three-fourths of annual output. 
• The market mechanism operates throughout most of the economy, albeit imperfectly and with distortions. 
• Private property rights in India are constitutionally protected against state takeover without compensation. 
• The state has avoided large-scale nationalization of private property, relying instead on a mix of direct and indirect controls to regulate private sector activity. 
• Social justice efforts have primarily been through fiscal policy, including public expenditures and pricing of goods and services provided by the public sector. 
• Public sector plans are developed and enforced within a federal system where constituent units have defined functions and powers. 

Planning Commission

• The Planning Commission was responsible for overall planning in India. 
• Established in 1950, its mandate included determining and allocating resources for development, reviewing and monitoring important programs and projects, and providing expert professional opinion on development policy. 
• Although advisory, the Commission was expected to be consulted on major development policy matters. 
• Successive five-year plans aimed to realize the vision of "growth with social justice" within a democratic polity and mixed economy. 
• The plans evolved over time, reflecting changing ideas, perceptions, and political and economic exigencies. 

Five Year Plans: Evolution of strategy and priorities in economic planning

First Five Year Plan (1951-56) 

Introduction

• In 1951, the Planning Commission of India released a draft for the First Five-Year Plan, focusing on key areas for national development. 
• The plan aimed to address the challenges posed by the Partition, with a primary emphasis on agriculture, which was severely impacted. 

Priority Areas and Budget Allocation

• The plan prioritized agriculture to increase food production. 
• Other important areas included transport, communications, and social services.
• The total planned budget of Rs. 2069 crore was allocated to seven broad areas: 
• Irrigation and energy (27.2%) 
• Agriculture and community development (17.4%) 
• Transport and communications (24%) 
• Industry (8.4%) 
• Social services (16.6%) 
• Rehabilitation of landless farmers (4.1%) 
• Other sectors and services (2.5%) 
• The target growth rate was 2.1% annual GDP growth, but the achieved growth rate was 3.6%.

Objectives and Emphasis

• The plan was based on the Harrod-Domar model and aimed at raising the standard of living through community development projects. 
• It emphasized mass mobilization of idle rural labor and land reform.
• However, it rejected radical solutions for wealth and income redistribution. 

Optimistic Projections

• The plan optimistically projected an increase in savings and investment from 5-6% of national income in the early 1950s to 20% by 1968-69.
• It anticipated that aggregate income would double in about twenty years and per capita income in twenty-seven years. 

Criticism and Outcomes

• Critics from both the left and right criticized the plan for lacking vision and ambition. 
• While food-grain production increased significantly, other sectors did not meet their targets. 
• Despite the criticism, the First Plan was successful, particularly in agriculture, irrigation, and community development.

Second Five Year Plan (1956-61) 

Priority Area: Basic & Heavy Industry

• Target vs. Actual Growth: The target growth rate was 4.5%, but the actual growth rate achieved was 4.27%. 
• Mahalanobis Model: The planning was based on the Mahalanobis Model, which advocated for large-scale industrialization in India. 
• Role of P.C. Mahalanobis: P.C. Mahalanobis, a Cambridge-trained physicist and statistician, was instrumental in drafting the plan. He is seen as the chief technician of Indian planning, while Jawaharlal Nehru was its chief advocate. 
• Nehru's Vision: Prime Minister Nehru emphasized the need for rapid industrialization in his introduction to the first plan. 
• Focus on Industrialization: The plan stressed the importance of industrialization for achieving and maintaining full employment and increasing productivity. 
• Investment and Indigenous Development: The plan aimed to increase investment and develop an indigenous heavy industry base, including metallurgical, chemical, and machine-building industries. 
• Public Sector Role: The 1956 Industrial Policy Resolution highlighted the need for public sector involvement in industries of basic and strategic importance. 
• Economic Growth Model: The dominant growth orientation was based on the Mahalanobis strategy, which focused on modern industrialization similar to historical processes in advanced countries. 
• Domestic Capacity: The strategy emphasized creating domestic capacity for producing capital goods, leading to self-reliant growth. 
• Public Sector's Dual Role: The public sector was expected to promote infrastructure and reduce economic power concentration through expanded public ownership. 

Power and Steel

• Nehru's Focus: Prime Minister Nehru identified the production of power and steel as crucial for India’s industrial planning. 
• Initial Steel Production: At the time of Independence, India had only two privately-owned steel plants producing just over a million tonnes annually, insufficient for the growing economy. 
• Sector Restrictions: The private sector was restricted from entering steel production, along with other critical industries like coal, shipbuilding, atomic energy, and aircraft production. 
• Competition Among States: States in the iron ore-rich forest belt of central India competed to host the first public-sector steel plant. 
• Global Competition: Industrialized countries, particularly in the West, competed to secure contracts for building India’s first steel plants. 
• Steel Production Targets: The second five-year plan set a target of 6 million tonnes of steel to support other planned industries and encourage forced savings. 
• Steel Plant Agreements: The Indian government signed agreements with foreign countries for the construction of steel plants in Rourkela (Germany), Bhilai (USSR), and Durgapur (Britain). 
• Bhilai Steel Plant: The first blast furnace in Bhilai began operation in February 1959, marking a significant milestone in India’s steel production. 
• Industrial Perception: The steel industry was seen as a catalyst for other industrial activities and a proof of India’s productive capabilities. 

Mahalanobis Model

• Background: The Mahalanobis Model, prepared by P.C. Mahalanobis, became the basis for the Second Five-Year Plan and emphasized rapid economic growth through public sector expansion and heavy industrialization. 
• Objectives: The model aimed to achieve rapid national economic growth, develop basic heavy industries for producer goods, increase agricultural productivity, and improve housing, health, and education facilities. 
• Features: The model advocated for a closed economy, import substitution, a dominant public sector role, and a focus on national income growth. 
• Industrialization Rationale: Emphasized the need for coal, electricity, steel, heavy machinery, and chemicals to increase capital formation and self-reliance in capital goods. 
• Labor Productivity: Highlighted that labor productivity and growth rates are higher in manufacturing than agriculture, justifying large-scale industrialization. 
• Capital Goods Production: Focused on producing capital goods to ensure economic independence and job creation, addressing chronic unemployment. 
• Resource Utilization: Advocated for diversifying resource use towards heavy industry for long-term growth, production, employment, and defense. 
• Economic Expansion: Heavy industrialization would expand the industrial base, enhance agricultural inputs, and increase market size, trade, and service sectors. 
• Export Potential: Rapid industrialization would boost exports of manufactured goods due to high-income elasticity of demand. 

Role of P. C. Mahalanobis

• Background: P. C. Mahalanobis, a noted physicist and statistician, established the Indian Statistical Institute (ISI) in 1931 and contributed significantly to modern statistics in India. 
• Contributions to Planning: Mahalanobis played a crucial role in planning by emphasizing the need for public sector-led industrialization and capital goods production to accelerate economic development. 
• Foreign Studies: He conducted studies abroad to gather knowledge on planning and economic development, influencing his perspectives on India’s planning needs. 
• Advocacy for Planning: Mahalanobis advocated for comprehensive planning involving technologists, scientists, and engineers to guide India’s development effectively. 
• Drafting the Second Plan: His draft for the second five-year plan, focusing on capital goods and public sector roles, received broad support from economists. 
• Self-Reliance Concept: The model promoted self-reliance, encouraging production using Indian resources and technology, reminiscent of the swadeshi movement. 
• Shift in Planning Focus: The emphasis shifted from agriculture to industry, with public sector heavy industries and room for private enterprise in consumer goods. 

Critical Estimates of Nehru-Mahalanobis Model

• Support and Consensus: The Nehru-Mahalanobis model was widely supported by economists and ideologues globally, reflecting the belief in state intervention for economic development. 
• International Context: The model drew inspiration from successful state-led interventions in the US, Britain, and the Soviet Union, highlighting the importance of state direction in industrialization. 
• Dissenting Voices: Critics like B. R. Shenoy and Milton Friedman questioned the model’s feasibility and emphasis on large industries at the expense of human capital and small enterprises. 
• Marxist Critique: Marxists argued for greater state control over existing private industries and worker involvement in planning, similar to Eastern European models. 
• Ecological Perspective: Gandhians like J. C. Kumarappa and Mira Behn criticized large dams and advocated for sustainable, small-scale ecological practices in agriculture and forestry. 

Critique from the Marxists:

• The Mahalanobis model was criticized for overemphasizing the market and not enough on state control. 

Critique from the Ecologists:

• The Gandhians criticized the Mahalanobis model for its focus on large-scale industrialization and neglect of ecological sustainability. 

Third Five Year Plan (1961-66): 

Priority Area: Self-reliance

• The Third Five-Year Plan aimed to expand industries, particularly in capital and producer goods. 
• Initially focused on increasing wheat production, the plan shifted towards strengthening the defense industry and the Indian Army due to the Sino-Indian War in 1962. 
• The conflict with Pakistan in 1965 and a severe drought that year led to inflation, prompting a shift in priorities towards price stabilization.
• Despite these challenges, the construction of dams continued, along with the establishment of several cement and fertilizer plants.
• The Punjab region began to produce a surplus of wheat, contributing to agricultural output. 
• The target growth rate for the period was 5.6%, but the actual growth rate achieved was only 2.4%. 
• During the second and third Five-Year Plans, there was a significant increase in public sector investment in infrastructure (such as roads, railways, and irrigation) and in essential industries like steel, coal, power, and heavy electrical machinery.
• However, efforts to promote cottage, village, and small-scale industries for employment generation were largely unsuccessful, as were initiatives aimed at reducing inequalities.
• Overall, this phase experienced a robust growth rate of 8 to 10 percent in industrial output, 3 to 3.5 percent in food grain production, and around 1.75 percent in per capita income, marking a significant improvement over pre-independence levels. 
• A more diverse industrial structure emerged, seen as a success of the planning efforts. 
• The initial phase, covering the first three Five-Year Plans, was characterized by steady growth in per capita incomes, increased public sector investment, and rising industrial output, all under a growth-oriented development strategy. 
• Economist Raj Krishna referred to this early planning phase as the “Hindu Growth Rate,” indicative of a growth pattern around 3%, with national income growing at about 4% from 1951 to 1964-65. 

Industrial Policy during 1948-64 

Industrial Policy Resolution of 1948: 

Industrial Policy of 1948:

• Laid the foundation for a mixed economy in India, where both the public and private sectors would coexist and operate in designated areas. 
• Classified industries into four categories based on their importance and the role of the government. 

Categories of Industries:

• Defence and Strategic Industries: Exclusive to the Central Government. This included the manufacture of arms, atomic energy production, and management of railways. 
• Basic and Key Industries: New units in sectors like coal, iron, steel, aircraft, and shipbuilding were to be set up by the state. Existing units could be run by private entrepreneurs for ten years, after which their nationalization would be reviewed. 
• Regulated Private Industries: Industries such as automobiles, sugar, cement, and textiles could remain privately owned but under government regulation. 
• Free Private Industries: Industries not classified in the above categories could operate freely in the private sector with general government oversight. 

Policy towards Foreign Capital:

• Welcomed foreign investment without conditions. 
• Allowed foreign capital in joint ventures with Indian partners, ensuring Indian control over management. 

Role of Cottage and Small Scale Industries:

• Emphasized their importance in economic development due to local resource utilization and job creation. 
• Encouraged their inclusion in industrial development programs. 

Government Responsibility and Public Sector Role:

• Government tasked with promoting, assisting, and regulating industrial development in the national interest. 
• Public sector expected to play an increasingly active role and could acquire industrial undertakings for public interest. 

Developments Since 1948:

• Improved understanding of development goals and direction. 
• Organized planning has progressed, necessitating further strengthening and acceleration. 
• The Second Five Year Plan prioritizes industrialization, particularly in basic and heavy industries, with the Central Government bearing primary responsibility. 
• State policy aims at rapid development aligned with overarching objectives, requiring rapid public sector growth and private sector conformity to planning requirements. 
• Recognition of the need for the private sector to operate effectively within its designated field. 

Review and New Policy:

• The 1948 Resolution was reviewed considering planning progress and accumulated experience. 
• A new Industrial Policy Resolution was proposed to Parliament by the Prime Minister on April 30, 1956. 

Industrial Policy Resolution of 1956: 

Objectives of the Industrial Policy:

• Development of machine-building industries. 
• Increase in the rate of industrial development. 
• Reduction of income and wealth inequalities. 

Classification of Industries

Schedule A:

• Industries under this schedule were the exclusive responsibility of the state. 
• Included sectors such as atomic energy, defense-related industries, aircraft, iron and steel, electricity generation and transmission, heavy electricals, telephones, and coal and other key minerals. 

Schedule B:

• Industries that were to be progressively state-owned, with private enterprise expected to supplement state efforts. 
• Included sectors such as lesser minerals, chemicals, pharmaceuticals, fertilizers, pulp and paper, and road transport. 

Schedule C:

• Included all remaining industries, which were generally left to the initiative and enterprise of the private sector. 
• The state could also start industries in this category if needed. 

Licensing Requirements:

• Even in Schedule C industries, a system of licenses kept the sector under state control. 
• Obtaining a license from the government was necessary to open new industries or expand production. 
• Opening new industries in economically backward areas was encouraged through easier licensing and subsidization of critical inputs like electricity and water. 

Cottage and Small Scale Industries:

• The government aimed to promote cottage and small scale industries that utilized local resources and generated employment. 

Concession to Public Sector:

• Facilities such as power, transport, and finance would be provided to public sector units. 
• The government would also support private sector units. 

Balanced Regional Development:

• Prioritized establishing industries in industrially backward regions. 
• Offered more incentives for industries set up in these regions. 

Training to Managers:

• Provided technical and managerial training to private and public sector managers. 
• Introduced management courses in universities for these individuals. 

Better Facilities for Labour:

• Improved facilities for labor, including fair remuneration, better working conditions, and opportunities for participation in management. 

Management in Public Units:

• Emphasized the importance of proper management in public units, which could be a good source of revenue if managed efficiently. 

Foreign Capital:

• Stressed the role of foreign capital in industrial development and offered various concessions to attract it. 

Role of Public and Private Sectors:

• Increased output of goods and services during the plan period expected from both public and private sectors. 
• Both sectors to function in unison and viewed as parts of a single mechanism. 

Cottage and Small Scale Industries:

• Government's approach to cottage and small scale industries indicated in Industrial Policy Resolution of 1948 and 1956. 
• These industries provide immediate large scale employment, ensure equitable distribution of national income, and mobilize resources of capital and skill effectively. 
• Need to promote, modernize, and reorganize these industries while avoiding unregulated application of modern techniques to prevent technological unemployment. 
• As national income increases, scope for small enterprises catering to new consumer demands or functioning complementarily to large scale industry increases. 

Agricultural Development 

Early Initiatives and Planning (1948-1966):

• In 1948, Jawaharlal Nehru emphasized the urgent need for agricultural development. 
• The Congress Agrarian Reform Committee, led by J. C. Kumarappa, recommended land ceiling and cooperative farming in 1949. 
• Land reforms and ceiling programmes were introduced in 1948 and 1953, respectively. 
• The Soil & Water Conservation Research Institute was established in Dehradun in 1954. 
• The Central Arid Zone Research Institute was founded in 1959. 
• The Intensive Agricultural District Programme was launched in 1961. 
• The foundation of the India Grasslands & Fodder Research Institute in 1962. 

Agricultural Growth and Reforms (1951-1965):

• The first three Five-Year Plans achieved over 3% growth in agriculture. 
• The First Constitution Amendment in 1951 protected land reform laws. 
• The High Yielding Variety Programme in 1966, particularly in wheat and rice. 
• Dr. M. S. Swaminathan played a key role in this programme. 
• The term "Green Revolution" was coined by William Gadd in the US to describe this period of increased food production. 
• In 1966, India imported about 10 million tonnes of wheat under the PL 480 Programme. 

Bhoodan Movement and Milk Co-operatives:

• The Bhoodan Movement, initiated by Vinoba Bhave in 1951, aimed to persuade landowners to donate land to the landless. 
• The movement targeted 50 million acres of land and gained popularity in Bihar and Uttar Pradesh. 
• The movement evolved into the Gramdan Movement in 1955, particularly successful in Orissa. 
• Milk co-operatives, starting in Anand, Gujarat in 1946, played a significant role in the dairy sector, with Dr. Verghese Kurien being a key figure from 1950 to 1973. 

Industrial Development 

Industrial Policy Resolution 1948, Industrial Policy Resolution 1956:

• Defined areas forpublic sectorandprivate sector

Mahalanobis Model:

• Focused on basic and heavy industries
• Introduced in the Second Five-Year Plan

Industrywas made a priority area in the Second Five-Year Plan

Establishment of Iron and Steel Plants:

• Bhilai: Collaborated with the USSR (1956) 
• Durgapur: Collaborated with the UK
• Rourkela: Collaborated with West Germany
• Bokaro: Collaborated with the USSR

Other aspects of development 

Community Development Programme 1952:

• In 1952, India introduced the Community Development Programme and Panchayati Raj, aiming to uplift rural areas and lay the foundation for a welfare state in villages. 
• Initially focused on agricultural development, these programs aimed to transform rural India and improve the quality of life for its residents. 
• The Community Development Programme, designed by US engineer Dr. Albert Meyer, emphasized rural development with active community participation. 

Panchayati Raj:

• Initiation: Panchayati Raj was first implemented in Nagaur, Rajasthan, in 1959 by Prime Minister Jawaharlal Nehru. 
• Recommendation: The program was launched based on the recommendations of the Balwant Mehta Committee. 

Development of Rationing System by Rafi Ahmad Kidwai:

• Capital Control (Issues) Act, 1947: This act aimed to regulate capital issues in the country. 
• Factories Act, 1948: This act provided for the regulation of factories to ensure the welfare of workers. 
• Minimum Wages Act, 1947: This act aimed to provide for the fixing of minimum wages in certain employments. 
• Import Trade Control Act, 1947: This act aimed to regulate imports into the country. 
• Export Trade (Control) Order, 1955: This order aimed to regulate exports from the country. 

“When I lay the foundation stone here of this Nagarjuna Sagar, to me it is a sacred ceremony. This is the foundation of the temple of humanity in India, a symbol of new temples that we are building all over India.” In the light of the given statement, explain Nehru’s ‘temple of Modern India’ and the steps taken to build ‘temple of Modern India’? Also comment on the change in Nehru’s thinking about big dams as a ‘Temple of India’ later.

Jawaharlal Nehru laid the foundation stone for the Nagarjuna Sagar dam in 1955 and described public sector enterprises (PSEs) as the "temples of modern India." He emphasized that India's economic policy should be humane and not sacrifice people for profit. 

PSEs were seen as crucial for India's socio-economic transformation through projects like dams, steel, and power plants, which would provide electricity, irrigation, and water for households and industries.

The aim of these projects was to integrate agricultural development with industrialisation and urbanisation, promoting nation-building and self-reliance.

Key steps included: 

• Initiating major hydroelectric projects like the Bhakra Nangal dam, Hirakud dam, and Nagarjuna Sagar dam in India’s first Five Year Plan. 
• Establishing iron and steel plants in Bhilai, Durgapur, Rourkela, and Bokaro, with industry prioritized in the second five-year plan. 
• Defining sectors for public and private investment in the Industry Policy Resolution of 1956.

The objectives of building these modern temples included creating infrastructure, absorbing technology, encouraging innovation, generating employment, and addressing socio-economic issues.

To achieve these goals, the concept of "modern temples" extended beyond dams and plants to include the establishment of scientific and technical institutions necessary for developing a skilled workforce and achieving self-reliance.

Important steps in this direction involved: 

• Nehru chairing the Centre for Science and Industrial Research and establishing a network of national laboratories, starting with the National Physics Laboratory in 1947. 
• Creating the Department of Scientific Research and passing the Scientific Policy Resolution in 1958. 
• Establishing the first Indian Institute of Technology (IIT) at Kharagpur in 1952, followed by others in Delhi, Kanpur, Madras, and Bombay. 
• Setting up the Atomic Energy Commission in 1948 for peaceful nuclear energy, with Bhabha as chairman, and laying the groundwork for space research.
• Founding institutions like AIIMS, IIMs, DRDO, ISRO, CSIR, IARC, and IISc to address societal challenges and build expertise in modern technologies. 

Change in Nehru’s views on big dams as a ‘Temple of Modern India’: 

Jawaharlal Nehru's Evolving Views on Dams

• In November 1958, Nehru expressed to the Central Board of Irrigation and Power that focusing on big projects for the sake of being impressive was not the right approach. 
• He emphasized that small irrigation projects, small industries, and small power plants would have a greater impact on the country than a few large projects. 
• Nehru, who once hailed big dams as the "temples" of modern India, began to consider more democratic and scientific alternatives to such projects. 

Reasons for Nehru's Change of Heart

• Despite his change in perspective, there were no significant anti-dam movements or protests at the time. 
• Nehru's shift in thinking was likely influenced by his growing respect for Mahatma Gandhi and the latter's emphasis on the rights of the vulnerable. 
• He was also motivated by the suffering and sacrifices observed during the construction of big dams, which often did not yield proportional benefits. 
• Additionally, the corruption associated with these massive schemes became increasingly evident. 
• As a democrat, Nehru became more aware of the rights of the vulnerable, and as a scientist, he showed a willingness to revise his views based on new evidence. 

This shift marked a significant change in Nehru's approach to development and large-scale projects. 

Providing building blocks for making of new India: 

Consolidation of Indian Independence with Non-alignment

• Maintenance, Strengthening, and Consolidation of India’s Independence: The foremost priority for building India was the maintenance and strengthening of its independence.
• Nehru’s Stance in a Divided World: In a world split between the United States and the Soviet Union, both vying for dominance, Nehru resisted pressure and refused to be a pawn of either superpower.
• Pragmatic Approach: Nehru was pragmatic enough not to side with the USSR, despite his admiration for its economic model. He believed that newly independent India should avoid getting entangled in the Cold War. Instead, India needed to focus on consolidating its independence and addressing its own challenges by seeking assistance from both blocs.

Planning for Economic Development

• Nehru’s Vision for Economic Development: Nehru emphasized the importance of increasing national income to establish a Welfare State in India. He argued that socialism or communism could only divide existing wealth, whereas India needed to create wealth from its prevailing poverty.
• Pragmatic Belief in Socialism: Nehru’s perspective on socialism was pragmatic. He believed in the necessity of production, regardless of whether the society was socialist or capitalist.
• Three Pillars of Development Strategy: Nehru’s development strategy was built on three pillars: planning for rapid industrial and agricultural growth, a public sector to develop strategic industries, and a mixed economy.
• Popularizing the Concept of Planning: Nehru played a crucial role in popularizing the concept of planning, making it an integral part of Indian consciousness.
• Building an Independent Self-Reliant Economy: Nehru aimed to build an independent and self-reliant economy, recognizing that economic strength was essential for independence and resisting economic and political domination.
• Key Elements of Economic Development: Nehru emphasized rapid industrialization, agricultural self-sufficiency, planning, a strong public sector, heavy and capital goods industry, minimal reliance on foreign capital and aid, and advancements in science and technology. He also stressed the importance of training a large technical and scientific workforce and developing atomic energy for independent economic development.
• Transition from Colonial to Independent Economy: Under Nehru’s leadership, India successfully transitioned from a colonial economy to an independent, albeit capitalist, economy.

Forging National Unity

• Nehru played a crucial role in maintaining and strengthening the national unity that was forged during the freedom struggle. Despite the fragility of this unity due to the manner of the transfer of power in 1947, he succeeded in checking disruptive forces and promoting the psychological integration of the Indian people.
• He faced challenges such as casteism, provincialism, tribalism, linguistic chauvinism, and the presence of princely states, all of which were emerging as divisive forces. Additionally, the ever-present danger of communalism posed a significant challenge to national unity.

Nurturing Democracy and Parliamentary Government

• Nehru viewed democracy as central to social and political development. He believed that democracy would empower people to mobilize and exert pressure for social justice, equality, and economic equity, ultimately leading to socialism.
• Rooting of Electoral Process: The establishment of the electoral process with universal adult franchise has been a cornerstone of India’s unity. Nehru’s contributions to the establishment of democratic institutions and the development of administrative machinery were pivotal in nurturing democracy.

Communalism

• Nehru was committed to building a secular nation, believing that communalism would hinder progress. He viewed secularism as equally important as socialism for national development.
• Nehru was among the first to understand the socio-economic roots of communalism, recognizing it as a reactionary weapon, despite its base in the middle classes.

Development of Science and Technology

• Importance of Science and Technology: Nehru believed that science and technology were essential for addressing India’s challenges. The Scientific Policy Resolution of 1958 acknowledged their role in the country’s economic, social, and cultural advancement.
• Establishment of National Laboratories: India’s first national laboratory, the National Physical Laboratory, was established on January 4, 1947. This was followed by the creation of a network of seventeen national laboratories specializing in various research areas during Nehru’s tenure.
• Council of Scientific and Industrial Research: Nehru chaired the Council of Scientific and Industrial Research, which guided and financed national laboratories and scientific institutions to emphasize the importance of scientific research.
• Institutes of Technology: Inspired by the Massachusetts Institute of Technology, the first of five institutes of technology was set up at Kharagpur, with others in Madras, Bombay, Kanpur, and Delhi.
• Nuclear Energy: India was a pioneer in recognizing the significance of nuclear energy. The Atomic Energy Commission was established in 1948, with Homi J. Bhabha as Chairman, to develop nuclear energy for peaceful purposes. In 1954, a separate Department of Atomic Energy was created, and India’s first nuclear reactor in Trombay became critical in 1956.
• Space Research: India also ventured into space research by establishing the Indian National Committee for Space Research (INCOSPAR) in 1962 and a Rocket Launching Facility at Thumba (Thumba Equatorial Rocket Launching Station).

Community Development Programme

• The Community Development Programme and Panchayati Raj were introduced in 1952 and 1959, respectively, as major initiatives for rural uplift.
• These programmes aimed to lay the foundations of the welfare state in villages, focusing on agricultural development and improving the quality of life in rural India.
• While designed for agricultural development, the programmes had a significant welfare component, aiming to change the face of rural India and enhance the living standards of the people.

Pragmatic Socialism

• Nehru’s socialism was not rooted in Marx’s idea of violent state overthrow but was a blend of Gandhian principles and pragmatism aimed at nation-building.
• This mix was necessary given the prevailing socio-economic conditions of the time.
• As the first Prime Minister, Nehru successfully laid the groundwork for nation-building with his pragmatic approach to socialism, balancing various ideologies for the country’s development.