Class 12 : Poltical Science (English) – Lesson 10.Politics of Planned Development
EXPLANATION & SUMMARY
🏗️ Detailed Explanation (≈1700 words)
🔹 1. Introduction
After independence, India faced enormous challenges — poverty, illiteracy, unemployment, poor infrastructure, and inequality.
🧭 To overcome these, leaders adopted a planned development model under the guidance of the State, combining democracy with economic planning.
The idea: ensure economic growth, social justice, and self-reliance through Five Year Plans.
💡 India followed a mixed economy model — combining public sector control in key industries with private sector participation under state regulation.
🔹 2. Background: Economic Situation at Independence
⚙️ In 1947:
🇮🇳 Indian economy was agrarian, low productivity.
Infrastructure poor, industries weak.
High unemployment and inequality.
Needed coordinated planning for progress.
Jawaharlal Nehru believed political freedom must be backed by economic independence.
🔹 3. Vision of Development
🌏 Development meant more than growth:
Reducing poverty,
Ensuring equality,
Expanding education and health,
Industrialisation and modernisation.
🎯 The goal: build a self-reliant and just society through democratic planning.
🔹 4. Role of the State
🏛️ The State took the leading role in planning, investment, and regulation:
Established Planning Commission (1950).
Prepared Five Year Plans.
Controlled key sectors — power, steel, transport, finance.
Promoted welfare programmes.
💡 Rationale: private sector lacked capital; state could direct resources to national priorities.
🔹 5. Planning Commission
📊 Set up in 1950, chaired by the Prime Minister.
Its functions:
Assess resources.
Formulate plans.
Recommend policies for balanced development.
🧭 It symbolised centralised economic planning within a democratic framework.
🔹 6. The Five Year Plans
India launched the first Five Year Plan in 1951.
📈 Plans provided medium-term strategy focusing on specific objectives.
🌿 First Five Year Plan (1951–56):
Focus: Agriculture, irrigation, energy.
Objective: rebuild economy, raise food production.
Inspired by Harrod-Domar growth model.
Successful — achieved 3.6% growth.
🏭 Second Five Year Plan (1956–61):
Focus: Industrialisation, especially heavy industries.
Model: Mahalanobis model (emphasis on capital goods).
Promoted public sector expansion.
Built large steel plants (Bhilai, Rourkela, Durgapur).
💰 Third Plan (1961–66):
Target: Self-sufficiency in food, increased production.
Faced setbacks — wars (1962, 1965), drought.
Result: plan failure, shift to annual plans.
🔹 7. The Mixed Economy Model
🧩 Combined:
Public sector: heavy industries, infrastructure, defence.
Private sector: consumer goods, small-scale industry.
State regulation through licenses and permits — “Licence Raj”.
✔️ Aim: Balance growth with equity and self-reliance.
🔹 8. Role of Public Sector
🏗️ Established institutions like:
Steel Authority of India (SAIL)
BHEL, ONGC, NTPC
Dams like Bhakra-Nangal, Hirakud called “Temples of Modern India”.
⚖️ Objectives:
Generate employment,
Build infrastructure,
Remove regional imbalances,
Promote social justice.
🔹 9. Agriculture and Land Reforms
🌾 Reforms aimed at equality and productivity:
Abolition of Zamindari.
Ceilings on landholdings.
Cooperatives and irrigation projects. But implementation uneven; many landlords retained control.
🔹 10. Industrial Policy
🏭 Industrial Policy Resolution 1956:
Classified industries:
Exclusive state sector (defence, railways),
Joint sector (state + private),
Private with state control.
🔧 Encouraged balanced growth and avoided monopolies.
🔹 11. Trade and Foreign Policy
🌐 India adopted import substitution policy:
Reduced imports of finished goods.
Encouraged domestic production.
Protected industries with tariffs.
Goal: self-reliance, not dependence on foreign markets.
🔹 12. Challenges to Planning
⚠️ Despite achievements:
Slow growth (“Hindu rate of growth”),
Persistent poverty and unemployment,
Bureaucratic inefficiency,
Regional imbalance,
Corruption and red-tapism.
🔹 13. Green Revolution (1960s–70s)
🌾 To combat food shortages:
Introduced HYV seeds, fertilisers, irrigation.
Boosted production in Punjab, Haryana, UP.
✔️ Achieved self-sufficiency in food, ⚠️ But increased regional disparity and inequality.
🔹 14. Debate: State vs Market
🧠 Liberals criticised excessive state control (“Licence Raj”) for inefficiency. Others defended planning for equity and nation-building.
📊 1980s: calls for liberalisation grew, leading to 1991 reforms.
🔹 15. Political Impact of Planning
⚖️ Planning became part of India’s democratic politics:
Allocation of resources became political issue.
States competed for central assistance.
Emergence of regional demands and populist policies.
🔹 16. NITI Aayog
📅 In 2015, NITI Aayog replaced Planning Commission:
Promotes cooperative federalism,
Encourages states to design their own development models,
Focus on policy think-tank rather than central control.
🔹 17. Achievements of Planned Development
📈 Increase in national income and per capita income.
🏭 Creation of industrial base.
🌾 Food self-sufficiency.
📚 Expansion of education, health, and infrastructure.
⚖️ Growth of democracy and welfare state.
🔹 18. Limitations
⚠️ Persistent inequality, rural poverty.
⚠️ Over-centralisation, bureaucratic hurdles.
⚠️ Unequal regional development.
⚠️ Low productivity in agriculture and public sector inefficiency.
🔹 19. Legacy
Planned development laid foundation for modern India: 🏗️ Industrial base,
🌾 Agricultural growth,
🏛️ Institutional framework,
⚖️ Commitment to equity and justice.
Even after liberalisation, planning principles continue under new forms.
🧾 Summary (≈200 words)
After independence, India adopted planned development to achieve economic growth with social justice. Under Nehru’s leadership, the Planning Commission (1950) formulated Five Year Plans focusing on agriculture, industry, and self-reliance.
The First Plan emphasised agriculture; the Second, heavy industries; the Third, self-sufficiency.
India followed a mixed economy combining state control with private participation.
Public sector industries, land reforms, and community development aimed at reducing poverty and inequality.
Despite achievements like food security and industrial growth, planning faced issues — slow growth, bureaucracy, and regional disparities.
Debates emerged over state versus market.
In 2015, NITI Aayog replaced the Planning Commission, promoting cooperative federalism and policy innovation.
Planned development remains a crucial chapter in India’s journey toward modernisation and equity.
📝 Quick Recap (≈100 words)
🔹 Goal: Growth + Justice via democratic planning.
🔹 Body: Planning Commission (1950).
🔹 Model: Mixed economy.
🔹 Plans:
1️⃣ Agriculture (1951–56)
2️⃣ Industry (1956–61)
3️⃣ Self-sufficiency (1961–66)
🔹 Policies: Land reforms, import substitution, public sector.
🔹 Success: Industrial base, food security.
🔹 Limits: Poverty, inequality, inefficiency.
🔹 Reform: NITI Aayog (2015).
🔹 Essence: Planning built foundation for India’s modern economy.
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QUESTIONS FROM TEXTBOOK
🔵 Question 1:
Which of these statements about the Bombay Plan is incorrect?
1️⃣ It was a blueprint for India’s economic future.
2️⃣ It supported state-ownership of industry.
3️⃣ It was made by some leading industrialists.
4️⃣ It supported strongly the idea of planning.
🟢 Answer: 2️⃣ It supported state-ownership of industry.
✔️ The Bombay Plan was prepared by industrialists and advocated state involvement, but not complete ownership.
🔵 Question 2:
Which of the following ideas did not form part of the early phase of India’s development policy?
1️⃣ Planning
2️⃣ Liberalisation
3️⃣ Cooperative Farming
4️⃣ Self-sufficiency
🟢 Answer: 2️⃣ Liberalisation
✔️ In the early phase, India adopted planning, self-sufficiency, and cooperative development; liberalisation came later in 1991.
🔵 Question 3:
The idea of planning in India was drawn from
1️⃣ the Bombay plan
2️⃣ experiences of the Soviet bloc countries
3️⃣ Gandhian vision of society
4️⃣ Demand by peasant organisations
🟢 Answer: 4️⃣ All the above (a, b, c, d)
✔️ Indian planning was influenced by multiple sources: Soviet model, Bombay Plan, Gandhian thought, and popular movements.
🔵 Question 4:
Match the following:
Column A Column B
(a) Charan Singh (iii) Farmers
(b) P C Mahalanobis (i) Industrialisation
(c) Bihar Famine (ii) Zoning
(d) Verghese Kurien (iv) Milk Cooperatives
🟢 Answer:
✔️ (a) → (iii), (b) → (i), (c) → (ii), (d) → (iv)
🔵 Question 5:
What were the major differences in the approach towards development at the time of Independence? Has the debate been resolved?
🟢 Answer:
✔️ At independence, two views existed:
🌿 Nehruvian Socialist Approach: Focus on heavy industries, public sector, planning, and state intervention.
💡 Gandhian/Rural Approach: Emphasis on agriculture, self-sufficient villages, small industries, and decentralisation.
🎯 The debate continues, but post-1991 liberalisation mixed both — encouraging markets with state regulation.
🔵 Question 6:
What was the major thrust of the First Five Year Plan? In which ways did the Second Plan differ from the first one?
🟢 Answer:
✔️ First Plan (1951–56):
Focused on agriculture, irrigation, and rural development.
Aimed to overcome food shortage and strengthen infrastructure.
✔️ Second Plan (1956–61):
Based on Mahalanobis Model.
Emphasis shifted to industrialisation, heavy industries, and public sector.
➡️ Thus, while the first dealt with agriculture, the second promoted industrial growth.
🔵 Question 7:
Read the following passage and answer the questions:
“In the early years of Independence, two contradictory tendencies were already well advanced inside the Congress party. On the one hand, the national party executive endorsed socialist principles of state ownership, regulation and control over key sectors of the economy in order to improve productivity and at the same time curb economic concentration. On the other hand, the national Congress government pursued liberal economic policies and incentives to private investment that was justified in terms of the sole criterion of achieving maximum increase in production.” — Francine Frankel
🟣 (a) What is the contradiction that the author is talking about? What would be the political implications of a contradiction like this?
🟢 Answer:
✔️ The contradiction is between socialist goals (state control) and liberal policies (private investment).
✔️ Politically, it created internal debates within the Congress and opened space for opposition parties demanding clearer ideological positions.
🟣 (b) If the author is correct, why is it that the Congress was pursuing this policy? Was it related to the nature of the opposition parties?
🟢 Answer:
✔️ Congress adopted a mixed policy to achieve rapid economic growth while maintaining democratic support.
✔️ Opposition parties like the Left wanted socialism; Right-wing groups wanted liberalisation. Congress tried to balance both.
🟣 (c) Was there also a contradiction between the central leadership of the Congress party and its State level leaders?
🟢 Answer:
✔️ Yes, central leaders emphasised planning and national industries, while some state leaders preferred populist and local programmes, leading to friction.
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OTHER IMPORTANT QUESTIONS FOR EXAMS
🌟 Section A — Very Short / MCQ (1 mark each)
🔵 Question 1:
Which of these statements about the Bombay Plan is incorrect?
🟡 1️⃣ It was a blueprint for India’s economic future
🟢 2️⃣ It supported state-ownership of industry
🔴 3️⃣ It was made by some leading industrialists
🟣 4️⃣ It supported strongly the idea of planning
🧠 Answer: 2️⃣ It supported state-ownership of industry
🔵 Question 2:
Which of the following ideas did not form part of the early phase of India’s development policy?
🟡 1️⃣ Planning
🟢 2️⃣ Liberalisation
🔴 3️⃣ Cooperative Farming
🟣 4️⃣ Self-sufficiency
🧠 Answer: 2️⃣ Liberalisation
🔵 Question 3:
The idea of planning in India was drawn from —
🟡 1️⃣ The Bombay Plan
🟢 2️⃣ Experiences of the Soviet bloc countries
🔴 3️⃣ Gandhian vision of society
🟣 4️⃣ Demand by peasant organisations
🧠 Answer: All of the above
🔵 Question 4:
Who among the following is known as the architect of India’s Second Five Year Plan?
🟡 1️⃣ P.C. Mahalanobis
🟢 2️⃣ Jawaharlal Nehru
🔴 3️⃣ V.K.R.V. Rao
🟣 4️⃣ B.R. Ambedkar
🧠 Answer: 1️⃣ P.C. Mahalanobis
🔵 Question 5:
Which sector was given top priority in the First Five Year Plan?
🟡 1️⃣ Heavy industries
🟢 2️⃣ Agriculture
🔴 3️⃣ Energy
🟣 4️⃣ Transport
🧠 Answer: 2️⃣ Agriculture
🔵 Question 6:
Which model was followed for economic planning in India?
🟡 1️⃣ Capitalist model
🟢 2️⃣ Socialist model
🔴 3️⃣ Mixed economy model
🟣 4️⃣ Communist model
🧠 Answer: 3️⃣ Mixed economy model
🔵 Question 7:
Who was associated with the ‘Operation Flood’ programme in India?
🟡 1️⃣ Verghese Kurien
🟢 2️⃣ Charan Singh
🔴 3️⃣ Indira Gandhi
🟣 4️⃣ Morarji Desai
🧠 Answer: 1️⃣ Verghese Kurien
🔵 Question 8:
Which plan focused mainly on industrialisation?
🟡 1️⃣ First Plan
🟢 2️⃣ Second Plan
🔴 3️⃣ Third Plan
🟣 4️⃣ Fourth Plan
🧠 Answer: 2️⃣ Second Plan
🔵 Question 9:
Who among the following was associated with the advocacy of farmers’ interests?
🟡 1️⃣ P.C. Mahalanobis
🟢 2️⃣ Charan Singh
🔴 3️⃣ Verghese Kurien
🟣 4️⃣ Indira Gandhi
🧠 Answer: 2️⃣ Charan Singh
🔵 Question 10:
Which one of the following is not true about planning in India?
🟡 1️⃣ It was initiated in 1951
🟢 2️⃣ It was aimed at equitable distribution
🔴 3️⃣ It followed a capitalist approach
🟣 4️⃣ It had mixed economy orientation
🧠 Answer: 3️⃣ It followed a capitalist approach
🔵 Question 11:
What was the major focus of the Second Five Year Plan?
🟡 1️⃣ Agriculture
🟢 2️⃣ Industrialisation
🔴 3️⃣ Defence
🟣 4️⃣ Social reforms
🧠 Answer: 2️⃣ Industrialisation
🔵 Question 12:
Which one of the following was NOT an objective of economic planning?
🟡 1️⃣ Economic growth
🟢 2️⃣ Self-reliance
🔴 3️⃣ Regional inequality
🟣 4️⃣ Modernisation
🧠 Answer: 3️⃣ Regional inequality
🌟 Section B — Short Answer (2 marks each, 50–60 words)
🔵 Question 13:
What was the Bombay Plan?
🟢 Answer:
The Bombay Plan (1944) was drafted by leading Indian industrialists such as J.R.D. Tata and G.D. Birla. It proposed a planned economy with state intervention to promote industrialisation, infrastructure, and welfare measures, ensuring balanced growth before independence.
🔵 Question 14:
State the main features of the First Five Year Plan.
🟢 Answer:
✔️ Period: 1951–56
✔️ Focus: Agriculture, irrigation, and rural development
✔️ Objective: Food security, controlling inflation, and employment
✔️ Approach: Harrod-Domar growth model
✔️ Achieved satisfactory growth of 3.6% against a target of 2.1%
🔵 Question 15:
Mention any two differences between the First and Second Five Year Plans.
🟢 Answer:
1️⃣ First Plan emphasised agriculture, irrigation, and rural development.
2️⃣ Second Plan emphasised industrialisation, heavy industries, and public sector.
🔵 Question 16:
What is meant by a mixed economy?
🟢 Answer:
A mixed economy combines features of both capitalism and socialism. It allows private enterprise to coexist with public sector industries under state regulation, ensuring growth with equity.
🔵 Question 17:
Why was industrialisation considered essential for India’s development?
🟢 Answer:
✔️ To reduce dependence on agriculture
✔️ To build infrastructure and employment
✔️ To promote self-reliance
✔️ To achieve rapid economic growth
🔵 Question 18:
What role did P.C. Mahalanobis play in India’s planning process?
🟢 Answer:
P.C. Mahalanobis, an economist, formulated the Second Five Year Plan based on heavy industrialisation. His model stressed on capital goods and public sector expansion, aiming for long-term self-sustained growth.
🌟 Section C — Long Answer Type I (4 Marks, 100–120 Words Each)
🔵 Question 19:
What were the major differences in the approach towards development at the time of Independence? Has the debate been resolved?
🟢 Answer:
After Independence, two main approaches emerged:
✔️ Nehruvian Approach: Favoured a strong centralised planning system, industrialisation, public sector growth, and socialistic pattern of society.
✔️ Gandhian Approach: Focused on village industries, self-sufficiency, decentralisation, and moral economy.
🧭 The debate remains partially unresolved. India adopted a mixed economy, combining both views — industrialisation through planning along with rural development programmes. Yet, conflicts between centralisation and decentralisation still persist in policy discussions.
🔵 Question 20:
What was the major thrust of the First Five Year Plan? In which ways did the Second Plan differ from the first one?
🟢 Answer:
✔️ First Plan (1951–56):
– Focused on agriculture, irrigation, and community development
– Aimed to rebuild economy post-partition
– Growth target: 2.1% (achieved 3.6%)
✔️ Second Plan (1956–61):
– Based on Mahalanobis Model
– Focused on industrialisation, heavy industries, and public sector
– Introduced import substitution and self-reliance
Thus, while the first plan was consumption-oriented, the second was investment-oriented, shifting towards industrial growth.
🔵 Question 21:
Explain the contributions of the Bombay Plan to India’s development strategy.
🟢 Answer:
✔️ Drafted in 1944 by industrialists like J.R.D. Tata, G.D. Birla, and others
✔️ Advocated state intervention in economic development
✔️ Emphasised public sector growth, infrastructure, and social welfare
✔️ Sought balanced growth combining private and public efforts
Although not officially adopted, it influenced India’s planning philosophy by endorsing mixed economy and government-led industrialisation.
🔵 Question 22:
Discuss the major objectives of planning in India.
🟢 Answer:
1️⃣ Economic Growth: To increase national income and production.
2️⃣ Self-Reliance: Reduce dependence on foreign aid and imports.
3️⃣ Employment Generation: Create jobs through industrial and agricultural development.
4️⃣ Social Justice: Reduce poverty and income inequality.
5️⃣ Modernisation: Promote science, technology, and industrial base.
These objectives aimed at transforming India into a self-sufficient and equitable economy.
🔵 Question 23:
Explain the role of the Planning Commission in India.
🟢 Answer:
✔️ Established in 1950 by a cabinet resolution
✔️ Functioned as an advisory body for Five Year Plans
✔️ Assessed resources, set targets, and allocated funds
✔️ Coordinated with states and ministries
✔️ Promoted balanced regional development
Though later replaced by NITI Aayog (2015), it laid the foundation of centralised economic planning in India.
🌟 Section D — Long Answer Type II (6 Marks, 170–180 Words Each)
🔵 Question 24:
What is meant by a mixed economy? How was this model implemented in India?
🟢 Answer:
A mixed economy combines features of capitalism and socialism, where both private and public sectors play significant roles under state regulation.
✔️ India adopted this model after Independence to ensure rapid growth with equity.
✔️ Implementation:
– Public sector handled heavy industries, infrastructure, and defence.
– Private sector engaged in consumer goods, agriculture, and small industries.
– The Industrial Policy Resolution (1956) categorised industries into public and private domains.
– Planning Commission regulated resource allocation and set targets.
🧭 This approach helped achieve economic diversification, though issues like bureaucratic control and inefficiency emerged later.
🔵 Question 25:
Critically examine the contradiction within the Congress Party regarding economic policies after Independence.
🟢 Answer:
The Congress adopted socialist principles of state control but also encouraged private enterprise.
✔️ Contradiction:
– On one side, state ownership and planning were promoted to reduce inequality.
– On the other, liberal incentives were given to private investors.
✔️ Reasons:
– To attract capital and ensure production growth
– To balance socialist ideals with practical needs
✔️ Implications:
– Created tension between leaders favouring socialism (Nehru) and those supporting liberalism.
– Policy implementation often faced compromises.
🧭 This duality shaped India’s mixed economy but slowed reform pace and caused policy inconsistencies.
🔵 Question 26:
Evaluate the successes and limitations of India’s planning model.
🟢 Answer:
✔️ Successes:
– Achieved self-sufficiency in food grains
– Built strong industrial base and infrastructure
– Reduced poverty gradually
– Promoted education and health
✔️ Limitations:
– Slow growth and unemployment persisted
– Regional and income inequalities increased
– Bureaucratic delays and inefficiencies
– Over-dependence on public sector
🧭 Overall, planning helped India transform into a diverse economy, but reforms were needed post-1991 to improve efficiency and liberalisation.
🔵 Question 27:
Discuss the significance of Five Year Plans in India’s development.
🟢 Answer:
Five Year Plans provided a systematic framework for economic growth.
✔️ Key Roles:
– Set clear objectives and sectoral priorities
– Mobilised resources for agriculture and industry
– Reduced poverty through targeted programmes
– Fostered self-reliance and modernisation
✔️ Impact:
– Laid foundation for mixed economy
– Ensured regional development
– Guided policy formulation
🧭 Despite challenges, they were instrumental in nation-building and shaping India’s socio-economic path.
🔵 Question 28:
What were the major debates about development strategies in India?
🟢 Answer:
Two main debates existed:
1️⃣ Industrialisation vs Agriculture:
– Nehru emphasised industry; Gandhian approach prioritised rural economy.
2️⃣ Public vs Private Sector:
– Socialists favoured state control; liberals wanted market freedom.
3️⃣ Centralisation vs Decentralisation:
– Debate on extent of central planning vs local autonomy.
🧭 India adopted a balanced mixed model, yet tensions between efficiency and equity remain relevant.
🔵 Question 29:
Explain the achievements of the Green Revolution in India.
🟢 Answer:
✔️ Introduced high-yielding varieties (HYV), fertilisers, irrigation, and mechanisation.
✔️ Increased food grain production, especially wheat and rice.
✔️ Achieved self-sufficiency and reduced famine threats.
✔️ Boosted rural income and supported industrial growth.
⚠️ However, it led to regional disparities and ecological issues.
🧭 Overall, it was a turning point in India’s agricultural transformation.
🔵 Question 30:
Discuss the role of economic planning in achieving social justice.
🟢 Answer:
✔️ Aimed to reduce poverty and inequality through land reforms and welfare schemes.
✔️ Introduced employment programmes, education, and health initiatives.
✔️ Promoted upliftment of weaker sections (SC/ST, rural poor).
✔️ Ensured fair distribution of resources and subsidies.
🧭 Although complete equality is not achieved, planning has significantly improved living standards and opportunities.
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