Economic Development

When India became independent in 1947, it was gripped by mass poverty, unemployment, illiteracy, static agriculture, poorly developed industries and inadequate infrastructure. There was an urgent need immediate efforts on national scale to achieve the path of progress in the socio-economic front. Jawaharlal Nehru, was greatly influenced by the achievements of Soviet Planning. But he also realized the importance of the democratic values. He encouraged planning for rapid industrial and agricultural growth. He encouraged Mixed Economy as a result both public sector (Government owned) and Private Sector companies come in to existence. His fundamental objective was to build an independent self-reliant economy.

Economic Planning

The National Planning Commission was established on 15 March 1950 with the Prime Minister Nehru as its chairperson. The main objectives of the Planning Commission were:

(i) To achieve higher level of national and per capita income.

(ii) To achieve full employment.

(iii) To reduce inequalities of income and wealth.

(iv) To setup a society based on equality and justice and absence of exploitation.

The First Five Year Plan (1951-1956) tried to complete the projects at hand including the rehabilitation of refugees. It was only during the Second Five Year Plan (1956-61) Prof. P.C. Mahalanobis, the noted economist played a leading role. This plan aimed at developing the industrial sector in the country. Rapid industrialization with particular emphasis in the development of basic and heavy industries continued during the Third Five Year Plan (1961-66). During this period many iron and steel, chemical, fertilizers, heavy engineering and machine building industries were set up in different parts of India.

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