ECONOMIC PLANNING IN INDIA – 03

HISTORICAL BACKGROUND OF PLANNING IN INDIA

In India, the significance of planning was recognized even before independence. Various ideological perspectives were brought to influence on the efforts made at plan formulation by a few individuals and institutions. Socio economic Planning has been one of the most noteworthy inventions of the twentieth century. Even before independence the nation was conscious about the significance of planned development. Prominent public men like Dadabhai Naoroji (1825 – 1917), M. C. Ranade, (1842-1901), R. G. Dutt (1848 – 1909) wrote extensively on the social and economic problems of the Indians. During the long period of India’s struggle for freedom, the concern for the problems of mass poverty, protection of the farmer and the artisan, the need for industrialization and, the reconstruction of the entire fabric of social and economic life. Almost all the national leaders looked upon political freedom primary as the means to solve these fundamental problems. To Mahatma Gandhi freedom was not merely a political goal but a pre requisite for relieving the masses from poverty and stagnation. The social and economic aims of the struggle for freedom came to be precisely defined during nineteen thirties.

 Towards The Establishment of the Planning Commission

Starting from the Soviet experiment in 1928, planning slowly swept over almost two third of the entire world. During 1930s the whole world was affected by great 3 depressions, only USSR was exempted from effects of this great depression. It was because of their planning after that whole world was attracted towards USSR because of its planning. Later on the resolutions of the Indian National Congress from 1929 onwards stressed the need for the revolutionary changes in the present economic structure of society and removal of great inequalities in order to remove poverty and improve the economic and social conditions of the masses.

First systematic work came into existence e in the year 1934 when the renowned engineer and statesman M. Visvesvaraya formulated a ten year plan for economic development of the country in his book “Planned Economy for India.” On the other hand the Government of India Act – 1935, introduced provincial autonomy which led to the formation of Congress Government in eight provinces. In August 1937 the Congress Working Committee passed a resolution suggesting the committee of inter provincial experts to consider urgent and vital problems, the solution of which is necessary to any scheme of national reconstruction and social planning.

NATIONAL PLANNING COMMITTEE (1938)

Planning, was first initiated in India in 1938 by Congress President and Indian National Army supreme leader Netaji Subhash Chandra Bose ,later on Jawaharlal Nehru was made head of the National Planning Committee. This was followed by the formulation of National Planning Committee consisting of fifteen members, in a memorandum, the Committee emphasized that the national independence is an indispensable primary condition for taking all the steps that might be found necessary for carrying out the plan in all its various aspects. The setting up by the Indian National Congress of a National Planning Committee towards the end of 1938 – nine years before independence – highlighted both the importance of social and economic objectives as also need to profit from the experience of planned development through national plans elsewhere.

The National Planning Committee appointed several sub committees to study different aspects of the national economy. It was the first attempt on the part of the people of India to examine the fundamental economic problems and draw up co – ordinate plan for upliftment of the people. In September, 1939, a serious political crisis took place resulting in resignation by all provincial Governments in eight States ‘en bloc.’ All the National leaders were kept in jails. All the plans and schemes were shelved for the time being and between 1940- 45, the committee had only a nominal existence. During this period, a separate department of Planning and Development was established with Sir Ardeshir Dalal as a member in charge. Panels were constituted for the development of basic and important consumer goods industries. Similarly, post Second World War committee was constituted under the chairmanship of Sir Ramaswami Mudaliar.

THE BOMBAY PLAN (1944)

In the early 1944, several eminent industrialists and economists of Bombay Sir Purshottamdas Thakurdas, Mr. J.R.D. Tata and six others made another attempt and published a development plan, which was called Bombay plan. Its main purpose was to stimulate the thinking of the people and to lay down the principles on the basis of which a national plan could be formulated and executed. The planners observed that the plan set out in it is neither in any sense a complete scheme nor as comprehensive as that of the National Planning committee. The central aim of the plan was to raise the national income to such a level that after meeting the minimum requirements of every individual we would be left with enough resources for the enjoyment of life and for cultural activities.” Thus its objective was at doubling the per capita income in the country over a period of 15 years. It proposed the increase of about 130 per cent and 500 percent, in agriculture and industry respectively. The total outlay of Rs. 10,000 crores was recommended. The planners believed that this could be achieved only by reducing the overwhelming predominance of agriculture and by establishing a balanced economy. This plan was the systematic scheme of economic planning which made the country plan-minded. Its major shortcoming was of maintenance of a capitalist order and giving step-motherly treatment to agriculture sector.

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