Post‑Independence Development Strategy and Planning Framework

1) Context after 1947 (why planning?)

India inherited:

• low industrial base, low per capita income, high poverty,
• heavy dependence on agriculture,
• weak infrastructure and low human development.

So the post‑independence strategy emphasized:

• rapid economic development,
• self-reliance,
• reduction of inequalities,
• employment generation.

2) Meaning of economic planning

Planning = conscious, systematic effort by the state to allocate resources and set priorities to achieve targets.

In India:

• Planning Commission (1950) guided plan formulation (replaced later by NITI Aayog).
• Five Year Plans became the main instrument.

3) Objectives of Five Year Plans (standard list)

Common objectives across plans:

1. Growth (increase output/income)
2. Modernisation (technology and institutional change)
3. Self-reliance (reduce dependence on imports/foreign aid)
4. Equity / social justice (reduce poverty and inequality)
5. Employment generation (explicitly emphasized more over time)
6. Balanced regional development

4) Role of the public sector (high-yield)

4.1 Why a large public sector was chosen

• private sector was considered too weak to undertake heavy industry/infrastructure,
• strategic sectors needed long-gestation investment,
• objective of equity and balanced development,
• control of “commanding heights” (Mahalanobis-style thinking).