Politics of planned development Ideas of development Idea of five year plan Goals of five year plan First five year plan SECOND FIVE YEAR PLAN THIRD FIVE YEAR PLAN Agriculture Vs. Industry Land reforms The green revolution The white revolution Farmers using new technology Public Vs. Private sector development of agricultural euility modernisation Self Reliance Growth Bombay Plan. Planning Commission

1. Politics of planned development
POLITICS IN INDIA SINCE INDEPENDENCE

2. Political argumentation
 Everyone wanted that development of India should mean both :- economic
growth and economic justice .
 Government of India should play an important role in the development.
LEFT VS. RIGHT
Left refers to those who are in favour of the poor, downtrodden sections and
support government policies for benefit of these sections
Right refers to those who believe that free competition and market economy can
ensure progress and the government should not unnecessarily interfere in the
economy.

3.  Development has different meanings for different groups.
 Many refer to the ‘West’ as the meaning of development.
 Development was more about being modern and industrialised.
 Modernisation is also about ideas of growth, material progress and scientific
rationality.
 The main task of the government was poverty alleviation anf and social and
economic redistribution.
There were two power blocs when India got independent- liberalist – capitalist model
of USA and socialist model of USSR. Many supported the model of liberalism and
capitalism and others wanted India to adopt the socialist model.
Ideas of development

4. Planning
 All agreed that the government need to develop a plan for development.
 The Planning Commission was set up in 1950 to make a design of development.
 A group of big industrial owners made a joint proposal for setting up a
planned economy in the country (1944)
 This was known as the Bombay Plan.
 The plan wanted to take initiatives in industrial and economic investments.

5. Idea of five year plan
 The idea of five year plan was borrowed form USSR.
 The government of India prepares a document that has a plan for its income and expenditure
for next five years.
 The main aim was to raise the level of National economy.
 The budget is divided into:- Non –plan budget ( spent on routine items on yearly basis) and
Plan budget ( spent on priorities on a five year basis)
 ADVANTAGE
The government can interfere in the economy for long.

6. Goals of five year plan

7. First five year plan
 K. N. Raj designed the First Five Year Plan (1951-56) .
 He argued that country should pace slowly for development as fast rate might
harm democracy.
 The Plan was aiming at development of agricultural sector and investment in
dams and irrigation.
 Investment was done in projects like Bhakhra Mangal Dam.
 It focused on land reforms or land distribution.

8. SECOND FIVE YEAR PLAN
 The Second Five Year Plan focused on heavy industries.
 It was designed by a team of economists and planners under the
leadership of P. C. Mahalanobis.
 It wanted quick transformation in the structure.
 The Congress declared at its session in Avadi that its main aim was
the socialist pattern of society.
 The Government imposed taxes on imports to protect local industries
this helped in growth of public and private sector.
 Many Industries such as electricity Railways communication were
developed in the private sector

9. P. C. Mahalanobis

10. THIRD FIVE YEAR PLAN
 The country was technologically backward and it had to spend on foreign exchange
to buy technology from global market.
 As industries developed, the country saw an increase in food shortage.
 The planners tried to balance the industry and agriculture.
 But the Third Plan was criticized because of urban – bias.
Plan holiday
The fourth plan was about to start but by this time these plans lacked novelty and
decided to take a plan holiday.

12. Agriculture Vs. Industry
 Second plan was more inclined towards the industry and the
agriculture and rural societies suffered due to this.
 J. C. Kumarappa proposed a plan for rural industrialization
(encouraging establishment of production units in rural areas).
 Chaudhary Charan Singh promoted that agriculture should be kept at
the centre of planning as farmers and rural population were
suffering.
 Others thought that increase in industrial production will help in
escaping from poverty.
 The government made land reforms but the implementation lacked
because of power of social and political power of landowning classes.

13. Public Vs. Private sector
 India adopted a mixed economy where we have taken from both capitalist and
socialist model.
 The state controlled agriculture, trade, heavy industries.
 The state policy restricted important of goods that were produced in local
market with little competition .
 The private sector improved their products and made them cheaper.
 The state controlled many areas which led to corruption.
 A new middle-class emerged because of state interference.

14. Achievemts
 Many projects were completed as:-
1. Bhakhra nangal dam
2. Hirakud dam
3. Heavy industries ( steel plants, oil refineries, manufacturing units,
defense production)

15. Land reforms
 The government abolished the the colonial system of zamindari.
 The government also made attempts at consolidation of land that increased
the area under agriculture
 The tenants were given security from sudden expulsion by the landlord.
 But many of these reforms were not implemented because of illiteracy among
the lower classes.

16. The green revolution
 It was decided to put more resources into areas which had irrigation
techniques and were rich.
 The government offered HYV (hiegh yield variety) seeds, fertilizer,
pesticides, and better irrigation at highly subsidised or low prices.
 The government also have guarantee to farmers to buy the produce at a given
price.
 Wheat production and food availability was increased in green revolution.
 It brought prosperity in areas like Punjab, Haryana, western Uttar Pradesh.

17. Farmers using new technology for production

18. The white revolution
 Verghese kurien , also known as the Milkman of India, played major role in launching Amul by
Gujarat Cooperative Milk and Marketing Federation Ltd.
 The Amul (Anand) is dairy cooperative movement joined by 2 . 5 million milk producers in Gujarat.
 It helped in poverty alleviation.
 This helped in providing employment to many women also.