Chapter : 10

What Are Planned Development ?

  • After the independence of India, the government decided to adopt a planned economy.
  • For this purpose, they established the Planning Commission in 1950. This Planning Commission was bestowed with the responsibility to formulate plans for ensuring the development of India.
  • The Planning Commission used to prepare the draft of five-year plans. These five-year plans were the vision of the government to carry out their social and economic development goals in the country.
  • All the sectors of the economy like primary, secondary and tertiary are kept in mind while preparing the five years plan.
  • This plan covers all the income and expenditure of the government in the next five years and their possible outcomes.
  • Five year plans provided the government with an opportunity to focus on the long term goals while realizing the short term goals as well.
  • The first plan was prepared by the economist K.N Raj. The main focus of the first five-year plan was on the agriculture sector. This included investments in the dams and irrigation facilities.
  • This plan also identified that the pattern of land distribution in the country is one of the biggest hurdles for the development of the nation. Due to these reasons, it also focuses on land reforms.
  • The second five-year plan shifted its focus to the industrial sector against the first five-year plan that focused  on the agriculture sector.
  • The second plan focused on the establishment of the heavy industries in India to give impetus to the drive of industrialisation of the country. This plan was drafted under the leadership of Professor P.C. Mahalanobis.
  • Some of the essential sectors identified for development in this plan was electricity, railways, steel, machinery and communication. Due to the rise in the income of the country sufficient resources were allocated in these sectors.
  • A model of development which became an example for the rest of the nation was in Kerala. The Kerala Model was the vision of development and planning of the government of the state of Kerala. The primary focus of this plan was in the areas of education, land reforms, health and effective distribution of food and alleviation of poverty.

Mixed Economy Model

  • At the time India got independence it has a plethora of options to decide which kind of economic model is suitable for the country.
  • The government of India has the option of choosing the capitalist model of development in which all parameters of development are left in the hands of the private sector.
  • On the other hand India has the option to adopt the socialist model of development in which private property was abolished and the government has the responsibility to carry out development.
  • However India adopted a mix of these two models which came to be known as the "Mixed Economy" model. In this model a large part of the agriculture, trade and industry was left in the hands of the private sector. The government took charge of the heavy industries and provided industrial infrastructure. Besides this, the
    government made some necessary interventions in agriculture.
  • Mixed model of the economy faced much criticism from both the left and right-wing.

Food Crisis & Green Revolution

  • India was facing an acute food crisis during the 1960s. It has to take help from the USA for import of food items. Seeing this situation the government of India decided to achieve self-sufficiency in food production.
  • The government of India adopted new policies for increasing the magnitude of food production in India.
  • Government gave more resources to the already developed areas which have suitable irrigation facilities and where farmers were well-off. The argument was given that those farmers who had existing capabilities can help in the increase in production.
  • Government provided high-yielding varieties to farmers, fertilizers, pesticides and better irrigation facilities  at subsidized rates.
  • Government also gave the guarantee to the farmers to buy their produce at a given price. This led to the increase in the production of crops and the beginning of the green revolution.
  • Green Revolution led to a significant increase in the production of wheat. However, the major beneficiaries of this process were the large landowners and rich farmers.
  • Operation Flood was started in 1970 as a rural development programme.
  • This operation led to the organisation of the milk producers into a nationwide milk grid. This was done to increase the production of milk.
  • This operation aimed to bring the producer and consumer closer by eliminating the middlemen. It ensures a regular income for the producers of milk.
  • This operation led to the increase in the generation of employment opportunities in the field of dairy. Its major aim was to support the financially weak sections of society.
  • The number of members in the cooperatives has seen an increasing trend and women are enthusiastic participants in this field.
  • The number of Women's Dairy Cooperative Societies have also seen an increase due to this program.