Class-XII Political Science

2. GENERAL INSTRUCTIONS
• Keep a practice notebook and required
stationeries with you.
• No disturbance should be done to the co-
students.
• Unmute your microphone when required.
• Use chat box only for necessary writing.
• Use Golden Words during conversation.
• Join the session 5 minutes before.

3. CHAPTER 3
POLITICS OF
PLANNED DEVELOPMENT

4. MIND MAP

5. INTRODUCTION: POSCO PLANT IN ORISSA
Korean POSCO plant was to set up in Jagatsinghpur
district, Orissa. People faced displacement, trees were
cut down. POSCO made its office.
People from Gram Panchayats of Dhinkia, Naugaon &
Gadakujanga demonstrated, tried entering office.
Police prevented the entry. People were supported by
Rashtriya Yuva Sangathan & the Nabanirman Smiti.
Plant moved out of the area after too much of
distruction and displacement of people. Orissa govt.
Demanded 82 crore dues before the move.
MoU (Memorandum of Understanding) was cancelled.

6. POLITICAL CONTESTATION
Lesson we learned from POSCO failure- major decisions should
be taken in agreement with people in democracy. After
independence we made series of major decisions like this.
All these decisions were bound together by a shared vision or
model of economic development.
When majority of the people agree to the idea of development
then it can lead to economic development and social development.
There are disagreements seen, however, on the kind of role that
the govt. must play in ensuring growth with justice.
Businessmen, industrialists, farmers and everyone is going to be
effected by the policies adopted by the govt.
We will understand the process of development in this session.

7. ECONOMIC DEVELOPMENT IN
INDEPENDENT INDIA
AIMS –
ECONOMIC
GROWTH
SOCIAL AND
ECONOMIC JUSTICE
A KEY ROLE BY
GOVERNMENT IN
DEVELOPMENT
3. POLITICS OF PLANNED DEVELOPMENT

8. IDEAS OF DEVELOPMENT
Development means different for different people. Different for the
industrialist who is setting up a steel plant, different for urban
consumers, different to village people and different to adivasi. Thus it
can generate contradictions, conflicts and debates.
The first decade after independence India experienced such situations.
Development meant being modern or becoming more like ‘West’.
Modernisation was also associated with the ideas of growth, material
progress and scientific rationality. Countries were divided into
developed, developing or underdeveloped.
On the eve of independence we had 2 models of development-
1. Liberal-Capitalist model such as much of in Europe and US &
2. Socialist model as in USSR.
Many leaders in India were impressed by the idea of USSR, leaders of
Communist Party of India, Socialist Party of India & the leaders like
Nehru. Some thought of industrialisation while others preferred for
the development of agriculture.

9. IDEAS OF DEVELOPMENT
DEVELOPMENT MEANS
MODERNISATION AND
WESTERNISATION FOR MANY
INDIANS
GOVERNMENT OF INDIA
INCLUDED POVERTY
ALLEVIATION AND SOCIALAND
ECONOMIC RE -DISTRIBUTION
PROGRAMMES
INDIA ADOPTED MIXED ECONOMY
(CAPITALISM +SOCIALISM)

10. What is Left And Right in Politics?
Left- People with the ideas of Socialist & Communist
are considered to be the Left people. They promote
public sector over private. They believe the industries
and agriculture should be the matter of states and
not of individuals. Countries like USSR & China is
said to be the leftist.
Right- People with the ideas of Capitalist and open
market competition are considered to the Right
people. They promote privatisation and open market
competition. They believe that the competition can
promote economical development in a nation.
Country like USA is said to be the rightist.

11. PLANNING & PLANNING COMMISSION
Different opinion of development, but people were firm on one
opinion. Development can not be left on private sector. Govt. needs
to plan or design for development. But it also needs to have public
support.
It has been seen in 1940s & 1950s all over world. Let be Great
Depression in Europe, Japan & Germany and even in USSR.
Planning was no sudden invention.
Bombay Plan: 1944, industrialist gather from all over India to plan
for economic growth of the nation. People from Left & Right were
involved in this plan.
Planning Commission of India: Set up in Mar 1950 by simple
resolution of the Govt. of India. Planning Commission is always
under the Prime Minister of India. Now it is renamed as Niti Ayog.

12. PLANNING
ROLE OF THE
GOVERNMENT IS
IMPORTANT IN
PLANNING
BOMBAY PLAN BY
THE GREAT
INDUSTRIALISTS
ALSO DEMANDED
FOR A PLANNED
ECONOMY

13. PLANNING COMMISSION
SET UP IN MARCH, 1950
UNDER THE
CHAIRMANSHIP OF
PRIME MINISTER
NITI AAYOG
NATIONAL INSTITUTE FOR
TRANSFORMING INDIA
AAYOG WAS ESTABLISHED
IN 5/1/2015. IT REPLACED
PLANNING COMMISSION

14. THE EARLY INITIATIVES
As in USSR, the Panning Commission of India
opted for five year plans (FYP). The Govt. of
India was to prepare a document a plan for all its
income and expenditure for next five years.
Accordingly, the budget of the central and state
govts. to decide for plan and non-plan budgets.
The first document was released in Dec 1951,
generated excitement in the country.
First Five Year Plan (1st FYP) was adopted in
1951.

15. FIRST FIVE YEAR PLAN
K. N. Raj, a young economist drafted the plan. He
believed that fast rate of development might endanger
democracy. So, decided to go slow with agrarian plan.
Agriculture sector was hit hardest by partition and
needed urgent attention.
Huge allocation to large-scale projects like Bhakhra
Nangal Dam.
People were encouraged to spend less and preserve more.
Savings of the banks will raise the GDP of the nation.
Multi-purpose project helped in irrigation, fisheries,
generation of electricity and many more.

16. FIVE YEAR PLANS
CENTRALISED AND INTEGRATED
NATIONAL ECONOMIC
PROGRAMME
JAWAHARL NEHRU PRESENTED
THE CONCEPT TO THE INDIAN
PARLIAMENT
BORROWED THE CONCEPT FROM
USSR

17. “ HASTEN SLOWLY”
CONCENTRATED ON
AGRICULTURE
CHIEF ARCHITECT – K N RAJ
MAIN PROJECTS
CONSTRUCTION OF DAMS
AND IRRIGATION FACILITIES
ATTEMPTS TO DEVELOP THE
HABIT OF SAVINGS
FIRST FIVE YEAR PLAN (1951 – 56)

18. SECOND FIVE YEAR PLAN (1956 - 61)
“ QUICK TRANSFORMATION”
CONCENTRATED ON INDUSTRIES
CHIEF ARCHITECT – P C
MAHALANOBIS
MAJOR PROJECTS
SUBSTANTIAL TARIFFS ON
IMPORTS
STARTED MAJOR INDUSTRIES IN
PUBLIC SECTOR
DEVELOPED AND BORROWED
TECHNOLOGY

19. RAPID INDUSTRIALISATION
P. C. Mahalanobis, drafter of the second FYP was an economist. He
wanted quick structural transformation by making changes in all
possible directions. Before adopting the plan, Congress session was held
at Avadi near present Chennai.
Socialist pattern of society was adopted. Substantial tariffs on import to
protect domestic industries.
Industries like electricity, railways, steel, machineries and
communication developed in public sector. This industrialisation was a
turning point in India’s development.
Not so advanced in technology, so spent precious foreign exchange to
buy technology from global market. Industries attracted more
investment than agriculture. Difficulty in balancing industry and
agriculture.
This plan was termed as “Urban bias”.
There were people who wanted to focus on agriculture related industries
such as heavy ones.

20. DECENTRALISED PLANNING
KERALA MODEL
Not necessarily all the plans are centralised plans nor all the
plans are only of industries and projects.
Kerala Plan: more focus on education, health, land reform,
effective food distribution and poverty alleviation.
Despite low per capita incomes, and relatively week
industrial base, Kerala achieved nearly total literacy, long
life expectancy, low infant and female mortality, low birth
rates and high access to medical care.
The state has also taken initiative to involve people in the
making of plans at the Panchayat, Block and District level.

21. KEY CONTROVERSIES
AGRICULTURE VERSUS INDUSTRY
SUPPORTERS OF AGRICULTURE
LEADERS LIKE J C KUMARAPPA AND
CHARAN SINGH SUPPORTED RURAL
AND AGRICULTURAL DEVELOPMENT.
MAJORITY OF INDIANS DEPENDS
AGRICULTURE AS THEIR SOURCE OF
INCOME
NEGLIGENCE TOWARDS
AGRICULTURE MAY AFFECT THE
LIVES OF MANY
STABLE AGRICULTURAL SECTOR
ENSURES FOOD SECURITY
3. POLITICS OF PLANNED DEVELOPMENT

22. KEY CONTROVERSIES
AGRICULTURE VERSUS INDUSTRY: 1st FYP lacked
industrial development and similarly 2nd FYP lacked
agrarian strategy for development. Gandhian economists
like J.C. Kumarappa proposed an alternative blueprint that
put greater emphasis on rural industrialisation.
Choudhary Charan Singh, a leader from Congress, later
broke from the party and formed Bhartiya Lok Dal.
3rd FYP was the mixture of 1st FYP & 2nd FYP. Still there
wasn’t any escape from poverty. Reforms were initiated,
programmes were made for community development.
Even after more money spent on agriculture, it did not solve
massive problem of rural poverty.

23. SUPPORTERS OF INDUSTRY
INDUSTRIALISATION IS
ESSENTIAL
FOR RAPID ECONOMIC
DEVELOPMENT
TO REMOVE RURAL POVERTY
TO GENERATE MORE
EMPLOYMENT OPPORTUNITIES
TO EARN MORE FOREIGN
EXCHANGE
TO MODERNISE AGRICULTURAL
SECTOR
AGRICULTURE VERSUS INDUSTRY
3. POLITICS OF PLANNED DEVELOPMENT

24. PUBLIC VERSUS PRIVATE SECTOR
SUPPORTERS OF
PRIVATE SECTOR
NOT ENOUGH SPACE
AND SUPPORT TO
PRIVATE SECTOR IN
INDIA
MANY HURDLES BEFORE
PRIVATE SECTOR –
LICENCES, PERMITS etc
3. POLITICS OF PLANNED DEVELOPMENT

25. PUBLIC VERSUS PRIVATE SECTOR
India did not follow either of two paths- Socialist or Capitalist.
Adopted “Mixed Economy” method and both the sector private and
public was taken care of.
Mixed model gathered criticism from both left and right. Public
sector was believed to show good growth but it created hurdles
instead by installing licenses system.
Even the state’s policy to restrict imports of goods could not show
improvement in domestic market.
Public sector employed people. State intervened only those areas
where private sector was not prepared. So, instead of helping poor,
the state intervention created a new ‘Middle Class’ who enjoyed the
privileges of high salaries without much accountability.
Poverty did not decline; even the proportion of poor kept reducing
but numbers kept growing up.

26. SUPPORTERS OF PUBLIC SECTOR
RESTRICTIONS ON FOREIGN
IMPORT DENIED THE
OPPORTUNITIES FOR INDIAN FIRMS
TO COMPETE WITH MULTI NATIONAL
COMPANIES. SO NO INCENTIVES TO
IMPROVE FOR INDIAN COMPANIES
INEFFICIENCY AND CORRUPTION IN
PUBLIC SECTOR
STATE IS INACTIVE IN PUBLIC
EDUCATION AND HEALTH CARE
STATE INTERVENED ONLY IN LESS
PROFITABLE SECTORS
STATE INTERVENTION DIDN'T HELP
THE POOR.
IT CREATED A MIDDLE CLASS
PUBLIC VERSUS
PRIVATE SECTOR
3. POLITICS OF PLANNED DEVELOPMENT

27. MAJOR OUTCOMES
THIRD OBJECTIVE WAS
DIFFICULT TO REALISE.
LAND REFORMS WERE NOT
EFFECTIVE
POWER IN THE HANDS OF
LANDOWNING CLASS
BUSINESS CLASS WERE
THE MAJOR BENEFICIARIES
POVERTY DID NOT REDUCE
3. POLITICS OF PLANNED DEVELOPMENT

28. FOUNDATIONS OF ECONOMIC
GROWTH
CONSTRUCTION OF
MEGA DAMS
STARTED A NUMBER
OF HEAVY INDUSTRIES
IMPROVEMENT IN
TRANSPORT AND
COMMUNICATION
FACILITIES
3. POLITICS OF PLANNED DEVELOPMENT

29. Major Outcomes: Three Objectives of
Independent India. Land Reforms to promote
Economic Equality & reduce Poverty.
Foundations: Foundation was laid for India’s future
growth, largest development projects were under taken
(eg: Bhakhra Nangal & Hirakud dams). Public Sectors
like steel plant, oil refineries, defense promoted.
Infrastructure for transport & communication improved.
Land Reforms: Initiatives were taken to remove poverty
through various attempts like Land reforms. Zamindari
system was abolished. Upper limit or ceiling was made but
was not successful. Land reforms were not converted into
laws or was only meant on papers. Dominant people were
able to mould it.

30. LAND REFORMS
ABOLITION OF
ZAMINDARI SYSTEM
RELEASE LAND FROM
LANDLORDS AND RE
DISTRIBUTE AMONG
LANDLESS PEASANTS
3. POLITICS OF PLANNED DEVELOPMENT

31. Govt campaign reaches the village: advertisements were
written on walls to show govt initiatives. An advertisement had
became especially well known in Shivpalganj (U.P). Showed a
farmer with a turban wrapped around his head, earrings & a
quilted jacket, cutting a tall crop of wheat with a sickle. A
women standing behind him, very pleased with herself
(Department of Agriculture, slogan “Grow more Grains”).
Food Crisis: Agricultural situation went from bad to worse in
1960s. Between 1965-1967, severe droughts occurred in many
parts of the nation. Resulted in food shortage.
Bihar was severely effected. 9 districts produced less than 1/2 of
their normal output. 5 districts 1/3 of normal. Intake calorie of
India was 2450 per capita per day, but Bihar had 2200 per
capita per day & was dropped to 1200 per capita per day.
Death rate was 34% higher than the normal. Zoning of HYV
seeds had its adverse effect in India due to India’s agreement
with America.

32. REDUCED THE ROLE OF LANDLORDS IN
POLITICS
LIMITATIONS
UPPER LIMIT ON HOLDING
AGRICULTURAL LAND AND SECURITY
AGAINST EVICTION WERE NOT
PROPERLY IMPLEMENTED.
3. POLITICS OF PLANNED DEVELOPMENT

33. THE GREEN REVOLUTION
CONCENTRATED ON ALREADY
DEVELOPED AGRICULTURAL
AREAS IN NORTH INDIA
GOVERNMENT OFFERED
HIGH YIELDING VARIETIES OF
SEEDS
FERTILIZERS
PESTICIDES
BETTER IRRIGATION AT
SUBSIDISED PRICES
FLOOR PRICE FOR THE
AGRICULTURAL PRODUCTS
3. POLITICS OF PLANNED DEVELOPMENT

34. OTHER DEVELOPMENTS
GROWTH OF LEFT WING
ORGANISATIONS
RISE OF MIDDLE CLASS
CRITICISM
RICH PEASANTS WERE
THE BENEFICIARIES
CONCENTRATED IN
WHEAT PRODUCTION
FOCUSSED ON PUNJAB ,
HARYANA AND WESTERN
UTTAR PRADESH ONLY
THE GREEN REVOLUTION
3. POLITICS OF PLANNED DEVELOPMENT

35. The Green Revolution: US-India agreement. US supplied HYV seeds
but with a condition to export grains back to them and not even
internally in India. Moreover, it focused already prosperous areas
such as Punjab, Haryana and western parts of UP.
So, the backward areas remained backward and these areas showed
good progress.
The White Revolution : “Milkman of India”, Verghese Kurien started
cooperative dairy farming in India. He played crucial role in the story
of Gujarat cooperative milk & marketing federation limited that
launched AMUL (Anand Milk United Limited).
In 1970 the ruler development programme called operation flood was
started.
Operation flood organised cooperatives of milk producers into a
nationwide milk greed with a purpose of increasing milk production,
bringing the producer & consumer closer by eliminating middle men.
Many women were involved.

36. THE WHITE REVOLUTION
BY GUJARAT COOPERATIVE
MILK AND MARKETING
FEDERATION LIMITED
IMPORTANT ROLE BY VARGHESE
KURIEN, MILKMAN OF INDIA
AMUL, BASED IN ANAND,
GAVE A UNIQUE PATTERN
FOR RURAL DEVELOPMENT
AND POVERTYALLEVIATION.
AMUL PATTERN IS KNOWN AS
WHITE REVOLUTION
3. POLITICS OF PLANNED DEVELOPMENT

37. THE WHITE
REVOLUTION
OPERATION FLOOD IN 1970
TO INCREASE MILK PRODUCTION
TO ELIMINATE MIDDLEMEN
TO ASSURE THE PRODUCERS A
REGULAR INCOME
3. POLITICS OF PLANNED DEVELOPMENT

38. Later Developments
In 1960s, after Nehru’s death Congress system encountered
difficulties. Indira Gandhi emerged as a popular leader. She controlled
& directed the economy.
1967 onwards India witnessed many new restrictions on private
industries.
14 private banks were nationalised.
Government announced many pro-poor programmes. Gained
popularity.
Indian economy grew at sluggish per annum rate of 3% to 3.5% .
Inefficiency in public sector & corruption increased.
Due to corrupt bureaucrats Indian Economic Development was not
positive.
Bureaucrats lacked public faith.

39. LATER DEVELOPMENTS
RESTRICTIONS ON
PRIVATE SECTOR
AFTER 1960s
NATIONALISATION OF
PRIVATE BANKS
PRO POOR POLICES
WERE ANNOUNCED
STRESS ON SOCIALIST
PATTERN
INTRODUCTION OF
NEW ECONOMIC
POLICY IN 1991
3. POLITICS OF PLANNED DEVELOPMENT

40. MAIN PROBLEMS OF INDIAN ECONOMY
SLOW ECONOMIC
GROWTH
INEFFICIENCYAND
CORRUPTION IN
BUREAUCRACY
PEOPLE LOST
FAITH IN
BUREAUCRACY

41. LET’S WATCH A FILM: PATHER
PANCHALI
The film tells a story of a poor family in a Bengal Village & its
struggle to survive. Durga, the daughter of Harihar & Sarbajaya,
with her younger brother Apu, goes on enjoying life oblivious of
the struggles & the poverty. The film revolves around the simple
life & the efforts of the mother of Durga & Apu to maintain the
family.
Pather Panchali (song of the little road) narrates the desires & the
disappointments of the poor family through the tale of
youngsters.
Finally, during monsoon Durga falls ill & dies while her father is
away. Harihar returns with gifts including a saree for Durga. The
film won numerous awards nationally & internationally.
Year of release: 1955, director: Satyajit Ray, story:
Bibhutibhushan Bandyopadhyay, screen play: Satyajit Ray.

42. IMPORTANT DATES
1. Stamps issued depicting a vision of planned development: 1955-
1968
2. Planning Commission was set up: March 1950
3. Spectacular economic growth against all odds in Soviet Union:
1930’s and 1940’s
4. The 1st five year plan document released: 1951
5. 2nd and 3rd plans launched: 1956 & 1961
6. Due to economic crisis govt. decided to take PLAN HOLIDAY:
1966
7. Pather Panchali released, won numerous awards nationally and
internationally: 1955
8. Operation Flood started (Rural development programme): 1970
9. 14 private banks were nationalised: 1967
10.Food crisis in Bihar due to famine: 1967

43. SHORT ANSWER QUESTIONS
1. When the National Planning Commission was set up and
who was the chairman of this committee?
2. Who had prepared the ten year plan and why?
3.When did the Planning Commission issue a draft
outline?
4. Mention the criticism of the second five year plan.
5.What is meant by Planned Development?
6. What is meant by White Revolution?
7. Who was P C Mahalanobis?
8. What was ‘Bombay Plan’?
9.What was the role of central objective of planning in
India?
10.Who had prepared the ten year plan and why?

44. LONG ANSWER QUESTIONS
1.How was the Planning Commission of India set up?
Mention its scope of work.
2.Describe the objectives and achievements of 3rd five
year plan.
3.Differentiate between the 1st five year plan and 2nd
five year plan.
4.What was Green Revolution? Examine any two
positive and two negative consequences of Green
Revolution.
5.Examine the controversy regarding Agriculture vs
Industry in India after the 2nd five year plan.

45. THE END
PREPARED BY
NEETU UPADHYAY