CHAPTER 3

POLITICS OF
PLANNED DEVELOPMENT

PREPARED BY
MATHEW JOSEPH
HSST POLITICAL SCIENCE
KPR GS GHSS KALLIASSERY
KANNUR
 ECONOMIC DEVELOPMENT IN
INDEPENDENT INDIA
AIMS –
ECONOMIC
GROWTH
SOCIAL AND
ECONOMIC JUSTICE

A KEY ROLE BY
GOVERNMENT IN
DEVELOPMENT

3. POLITICS OF PLANNED DEVELOPMENT

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

ROLE OF THE
GOVERNMENT IS
IMPORTANT IN
PLANNING
BOMBAY PLAN BY
THE GREAT
INDUSTRIALISTS
ALSO DEMANDED
FOR A PLANNED
ECONOMY
3. POLITICS OF PLANNED DEVELOPMENT
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
 FIVE YEAR PLANS

CENTRALISED AND INTEGRATED

NATIONAL ECONOMIC
PROGRAMME

JAWAHARL NEHRU PRESENTED

THE CONCEPT TO THE INDIAN
PARLIAMENT

BORROWED THE CONCEPT FROM

USSR

3. POLITICS OF PLANNED DEVELOPMENT

 FIRST FIVE YEAR PLAN (1951 – 56)
“ 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

3. POLITICS OF PLANNED DEVELOPMENT

 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
3. POLITICS OF PLANNED DEVELOPMENT
 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
 AGRICULTURE VERSUS INDUSTRY

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
3. POLITICS OF PLANNED DEVELOPMENT
 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

 SUPPORTERS OF PUBLIC SECTOR PUBLIC VERSUS
PRIVATE 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

3. POLITICS OF PLANNED DEVELOPMENT

 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

 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

 LAND REFORMS

ABOLITION OF
ZAMINDARI SYSTEM
RELEASE LAND FROM
LANDLORDS AND RE
DISTRIBUTE AMONG
LANDLESS PEASANTS

3. POLITICS OF PLANNED DEVELOPMENT

 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

 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
 OTHER DEVELOPMENTS THE GREEN REVOLUTION

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
3. POLITICS OF PLANNED DEVELOPMENT
 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 POVERTY ALLEVIATION.
AMUL PATTERN IS KNOWN AS
WHITE REVOLUTION
3. POLITICS OF PLANNED DEVELOPMENT
 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

 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
MAIN PROBLEMS OF INDIAN ECONOMY

SLOW ECONOMIC
GROWTH
INEFFICIENCY AND
CORRUPTION IN
BUREAUCRACY
PEOPLE LOST PREPARED BY
FAITH IN MATHEW JOSEPH
HSST POLITICAL SCIENCE
BUREAUCRACY KPR GS GHSS KALLIASSERY
KANNUR