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India's Experiment With Socialism
India's Experiment With Socialism
India's Experiment With Socialism
What is Socialism?
Socialism is a social and economic doctrine that calls for public rather than private ownership
or control of property and natural resources. According to the socialist view, individuals do
not live or work in isolation but live in cooperation with one another. Furthermore, everything
that people produce is in some sense a social product, and everyone who contributes to the
production of a good is entitled to a share in it. Society, therefore, should own or at least
control property for the benefit of all its members. In contrast to capitalism, whereby business
owners control the means of production and pay wages to workers to use those means,
socialism envisions shared ownership and control among the laboring class. In a purely
socialist system, all production and distribution decisions are made by the collective, directed
by a central planner or government body. Worker cooperatives, however, are also a form of
socialized production.
Socialism's intellectual roots date back to Plato's Republic, in which he described a collective
society1. Centuries later, Thomas More's Utopia echoed Platonic ideals in its depiction of an
imaginary island where people live and work communally. Socialism was a direct response to
the Industrial Revolution, which brought enormous economic and social change to Great
Britain and the rest of the world. As industrialists grew wealthy on the labor of workers who
increasingly lived in poverty, socialism emerged as an alternative to capitalism, one that
could improve life for the working class. Modern socialism developed in opposition to the
excesses and abuses of liberal individualism and capitalism. Under early capitalist economies
during the late 18th and 19th centuries, western European countries experienced industrial
production and compound economic growth at a rapid pace. The most famous early socialist
thinkers were Robert Owen and Henri de Saint-Simon, and later Karl Marx and then
Vladimir Lenin.
For Marx, capitalism is both a progressive force in history and an exploitative system that
alienates capitalists and workers alike from their true humanity. It is progressive because it
has made possible the industrial transformation of the world, thereby unleashing the
1
A.E.Taylor, Plato: The Man and His Work. Dover 1st Edition
productive power to free everyone from necessity. Yet it is exploitative in that capitalism
condemns the proletarians, who own nothing but their labor power, to lives of grinding labor
while enabling the capitalists to reap the profits. This is a volatile situation, according to
Marx, and its inevitable result will be a war that will end all class divisions. Under the
pressure of depressions, recessions, and competition for jobs, the workers will become
conscious that they form a class, the proletariat, that is oppressed and exploited by their class
enemy, the bourgeoisie. Armed with this awareness, they will overthrow the bourgeoisie in a
series of spontaneous uprisings, until they have gained control of the government and
converted it into a revolutionary dictatorship of the proletariat where the means of production
would be divided equally among all. It was primarily Lenin who expounded on the ideas of
earlier socialists and helped bring socialist planning to the international level after the 1917
Bolshevik Revolution in Russia.2
The spread of socialism continued throughout the 20th century, with various countries
adopting socialist policies to varying degrees. Socialism found fertile ground in nations like
China, India, Cuba, and Vietnam, leading to the establishment of socialist governments. In
Western Europe, many countries embraced democratic socialism, combining elements of
capitalism with a strong welfare state.
Socialist economics starts from the premise that "individuals do not live or work in isolation
but live in cooperation with one another. Furthermore, everything that people produce is in
some sense a social product, and everyone who contributes to the production of a good is
entitled to a share in it. Society as whole, therefore, should own or at least control property
for the benefit of all its members”3. The original conception of socialism was an economic
system whereby production was organized in a way to directly produce goods and services
for their utility, with the direct allocation of resources in terms of physical units as opposed to
financial calculation and the economic laws of capitalism , often entailing the end of
capitalistic economic categories such as rent, interest, profit and money. In a fully developed
socialist economy, production and balancing factor inputs with outputs becomes a technical
process to be undertaken by engineers.
In the late 20th and early 21st centuries, socialism underwent transformations and
adaptations. Contemporary socialism has embraced a more nuanced understanding of the role
of the state and the market. While classical socialism often called for complete state
ownership of the means of production, many modern socialist movements advocate for a
mixed economy, where certain key industries and services are publicly owned or heavily
regulated, while others remain in private hands. This approach seeks to balance the need for
economic efficiency and innovation with the goal of reducing inequality and ensuring social
welfare. Furthermore, there has been a move away from the concept of a centralized, one-
party state in modern socialist thought. Many contemporary socialists advocate for
participatory democracy, decentralization, and grassroots organizing, emphasizing the
importance of individual rights and freedoms within a socialist framework. They seek to
avoid the pitfalls of authoritarianism that have been associated with some historical socialist
2
Erich Fromm, Marx's Concept Of Socialism, Frederick Ungar Publishing (New York, 1961)
3
Richard Dagger, Socialism, Britanica Encyclopaedia ,Aug 17, 2023,
https://www.britannica.com/money/topic/socialism (Oct 6, 2023)
experiments. In terms of global perspectives, modern socialism has embraced international
cooperation and solidarity, recognizing that global challenges such as climate change and
economic inequality require global solutions.
The Indian Renaissance of the second half of the 19th century gave rise to certain national
ideals, including democracy, a broad form of socialism, non-violence, anti-imperialism, anti-
racialism and cooperative internationalism. These ideals were influenced to a certain extent
by western political and economic. The Socialist movement began to develop in India with
the Russian Revolution. The Communist Party of India (CPI) was founded in Tashkent on
October 17, 1920, soon after the Second Congress of the Communist International. Other
smaller Communist groups also came up in different parts of India .In the year 1927, Pandit
Jawaharlal Nehru visited the then-Soviet Union .He was greatly impressed with the Soviet
model. After his return from the Soviet Union, he advocated that Congress should also
include planning and economic programmes along with its main objective of gaining political
independence in its agenda. He believed with Marx that capitalism would soon collapse in the
industrially advanced West, and asserted that "it is obvious that if capitalism collapses in
Europe and America it cannot survive in Asia." Naturally, he wanted India to learn the lesson
of history in time, and to plan for future industrial progress on socialistic
At the same time, Acharya Narendra Deva and Sampurnanand prepared a Socialist agrarian
programme under the aegis of the UP-Congress Committee (UPCC) and sent it for the
perusal of the All India Congress Committee (AICC) meeting to be held in Bombay. Nehru
got elected in Lahore as the President of the Indian National Congress and from the
presidential chair he declared "I must frankly confess that I am a socialist . . . Our economic
programme must therefore be based on a human outlook, and must not sacrifice man to
money. If an industry cannot be run without starving its workers then the industry must be
closed down. If the workers on the land have not enough to eat then though intermediaries,
who deprive them of their full share, must go”4. Nehru wanted to build a Socialist society one
in which the means of production wanted should be socially owned and controlled for the
benefit of society as whole. Nehru was firm believer in Socialism, but he had his love for
democracy also socialism demanded the centralization of all the means of production and
distribution as vesting the ownership only in the hands of the state to wage the marathon was
against poverty and the people have to sacrifice all non-economic values for waging the war
successfully. Nehru did not want the wars like Soviet Union and China so he chose the
socialistic pattern which will have the economic ideals of socialism and democratic values of
capitalism. In 1931, at the Karachi session of the Indian National Congress, the socialist
pattern of development was set as the goal for India and a resolution on fundamental rights
and the economic programme was passed by AICC.
At that very time, Jayaprakash Narayan returned from America, impressed by Marxist
thought, and joined AICC. On his initiative in July 1931, the Bihar Socialist Party was
formed. Similar to the Bihar Provincial Socialist Party, the leftist-minded Congressmen of
4
Rajiv Ahir, A Brief History of Modern India,( New Delhi :Spectrum Books Ltd. 2018)
other provinces also started organising themselves and soon Socialist parties were formed in
UP, Punjab, Delhi and Bombay. In Orissa, Utkal Congress Socialist Karmi Sangh was formed
in February 1933 with Nabakrushna Choudhury as secretary. In May 1934, the UP Socialist
party was formed under the leadership of Sampurnanand. The Congress Socialist Party was
founded in 1934 by prominent socialist leaders such as Jayaprakash Narayan, Acharya
Narendra Dev, and Basawon Singh among others. These leaders were dissatisfied with the
conservative approach of the Indian National Congress and wanted to promote socialist and
leftist ideals as part of the struggle for independence. They believed in the need for social and
economic justice, land reforms, and the abolition of feudalism and landlordism. They also
supported workers' rights and trade unions. The CSP also supported the struggles of Indian
peasants against landlords and oppressive agricultural practices. They advocated for land
reforms and the redistribution of land to landless and marginalized farmers. They also
championed civil liberties, democratic rights, and fought against the authoritarian tendencies
within the Congress party. In essence, the Congress Socialist Party sought to combine the
struggle for India's independence with a vision of a socialist, egalitarian, and democratic post-
independence society. The CSP's ideology was democratic socialism. They believed in a
democratic system with freedoms and elections. But they also wanted socialist policies for
welfare, equal rights and redistribution of wealth. They rejected both communism which aims
for public ownership of all resources, and capitalism, with little government intervention 5.
According to Gandhi, equality is the essence of socialism. Gandhi was of the opinion that the
virtue of socialism was that it regards all members as equal, none low, none high. He was
quite emphatic o that since socialism is pure as crystal, it requires crystal like means to
achieve it. He wrote, 'Impure means result in an impure end.' Gandhi's conception of
socialism was ethical, based on the possibility of reform in human nature. Gandhi accepted
socialism as a part of his programme to do away with social and economic
inequalities. Speaking in London on September 22, 1931, Gandhi said, “possession seems to
me to be a crime. I can only possess certain things when I know that others, who also want to
possess similar things, are able to do so”. Gandhi also proclaimed his profound belief in the
rightness of economic equality. He made a sharp distinction between contribution and
retention, and said, “economic equality of my conception does not mean that everyone would
literally have the same amount. It simply means that everybody should have enough for his or
her needs”6. The real meaning of economic equality is “to each according to his need”. For
Gandhi socialism was not limited by class constraints. He believed in a classless society but
did not think that this involved the destruction of the individuals who constituted the
propertied classes. In Gandhi's work titled Swaraj and India of My Dreams in which, he
describes Indian society, with no one rich or poor, no class conflict, where there is an equal
distribution of the resources, and self-sufficient economy without any exploitation and
violence. The key aspects of the economic policies of Gandhian socialism are based on
ethics. According to Gandhi: "Economics that hurts the moral well-being of a human or a
nation is immoral and, therefore sinful"7. Hence, Gandhian socialism roots for economic
5
Qurban Ali, Founders of the Socialist Movement in India, (Mumbai: Anamika Publishers & Distributors Ltd.
2022)
6
Taylor C. Sherman, A New Type of Revolution: Socialist Thought in India, LSE Research Online May 2018
https://eprints.lse.ac.uk/88138/1/Sherman_Socialist%20Thought%20in%20India_Accepted.pdf , (Oct 6, 2023)
7
Sadaf Bano, Gandhi: The Socialist with a Difference, MKGandhi.org , February 2020
https://www.mkgandhi.org/articles/Gandhi-the-socialist-with-a-difference.html (7 Oct 2023)
social justice by promoting equality for all. Evolving from this ideology, the economic
components of Gandhian socialism are centred around Swaraj, resulting from complete
economic freedom. This is achieved through self-sufficiency and self-reliance, where,
everyone gets an appropriate share of his labour. Therefore, Gandhian socialism advocates a
society without economic classes, which Gandhi termed it as Sarvodaya.
8
D.S. Nakara v. Union of India, 1983 AIR 130
9
State of Karnataka v Shri. Ranganatha Reddy, 1978 AIR 215
10
Samantha vs State of A.P. and Ors., AIR 1997 SC 3297
material resources of the community subserve the common good. Article 14 of the
Constitution guarantees equality before the law and equal protection of the laws. This is
intended to prevent discrimination and promote social and economic equality. The
Constitution, in Article 17, explicitly abolishes the practice of untouchability, which was a
manifestation of social inequality.
11
C.N. Chitta Ranjan, Nehru and Socialism, Mainstream Weekly Volume XLIV, No.47 2007
A successful land reform policy was introduced, which abolished giant landholdings, but
efforts to redistribute land by placing limits on landownership did not succeed to a large
extent. Again, under Nehru’s leadership, government attempted to introduce large-scale
cooperative farming, but its efforts were frustrated by landowning rural elites, who had
considerable political support in opposing the efforts of Nehru. Agricultural production
expanded until the early 1960s, as additional land was brought under cultivation and some
irrigation projects began to have an effect. The establishment of agricultural universities also
contributed to agriculture development. During Nehru’s leadership, Green Revolution was a
huge success story. The Revolution was seen as an effort to diversify and increase crop
production. It transformed Northern India as a large producer of High Yielding Variety of
Wheat.12
Nehru advocated education for India’s children and youth, believing it essential for India’s
future progress. His tenure oversaw the establishment of many institutions of higher learning,
including the All-India Institute of Medical Sciences (AIIMS), the Indian Institutes of
Technology (IITs), the Indian Institutes of Management (IIMs), the National Institutes of
Technology (NITs) and the Indian Institute of Public Administration (IIPA). Nehru also
outlined a commitment in the Five-Year Plans to guarantee free and compulsory primary
education to all children in India. For this purpose, Nehru oversaw the creation of mass
village enrolment programmes and the construction of thousands of schools. Nehru also
launched initiatives such as the provision of free milk and meals to children to fight
malnutrition, adult education centres, vocational and technical schools organised for adults,
especially in the rural areas.
12
S. Das, Nehru's Vision of a New India, The Hindu , 26th July, 2011 (7 Oct 2023)
policies and initiatives, including greater control over the economy. In the realm of economic
policies, Indira Gandhi's era can be characterized as a time when the Indian state played a
prominent role in economic planning and control. It was also marked by a strong emphasis on
public sector enterprises in industries such as steel, mining, heavy machinery, and
infrastructure.
However, in the late 1980s and early 1990s, India faced economic challenges, including a
balance of payments crisis. Prime Minister P.V. Narasimha Rao, in collaboration with his
Finance Minister Manmohan Singh, initiated significant economic reforms in 1991. These
reforms marked a shift away from some of the more socialist economic principles that had
dominated Indian policy for decades. Known as economic liberalization and globalization,
these policies introduced market-oriented reforms, reduced trade barriers, and opened up the
Indian economy to foreign investment. The era of economic liberalization marked a departure
from the more statist and socialist policies of the past. It led to increased privatization of
state-owned enterprises, deregulation, and a greater role for market forces in shaping the
economy. While it represented a significant shift, it didn't entirely discard the principles of
socialism. The government continued to pursue social welfare programs aimed at reducing
poverty, improving healthcare, and enhancing education. Programs like the Mahatma Gandhi
National Rural Employment Guarantee Act and the National Food Security Act remained
integral to addressing social and economic inequalities. Furthermore, Indian politics
continued to be influenced by socialist ideals, with various political parties and leaders
advocating for social justice, equitable development, and the protection of workers' rights.
The balance between socialist values and market-oriented reforms remained a central theme
in India's political and economic discourse, reflecting the complex and evolving nature of its
policy landscape. In essence, Indian socialism after the 1991 reforms witnessed a shift toward
a mixed economy, where market-oriented policies coexisted with continued efforts to address
social and economic inequalities. This blend of socialism and market reforms has defined
India's economic and social policies in the post-reform era, contributing to its unique
economic and political trajectory13.
Conclusion-
In conclusion, India's Experiment with Socialism represents a significant chapter in the
nation's history and its evolution as a democratic and diverse country. This research paper has
explored the multifaceted journey of India's socialist policies, from its early post-
independence years to the more recent developments. The Indian state's attempt to balance
socialism with liberal economic reforms reflects the complexity of governing a country as
vast and diverse as India. India’s experiment with socialism was characterized by ambitious
goals of economic redistribution, social welfare, and reducing income inequality. While this
approach had some successes, such as the expansion of healthcare, education, and rural
development initiatives.
As India moves forward, it is clear that its socialist past has left a lasting impact on its
political, economic, and social landscape. The commitment to social justice, inclusivity, and
equitable development remains deeply ingrained in the nation. In the years to come, India's
experiment with socialism will continue to shape its approach to governance and
development. The nation's leaders will face the ongoing task of striking a delicate balance
between socialism and capitalism, seeking to harness the strengths of both approaches to
create a more just and prosperous society.
Bibliography
A.E.Taylor, Plato: The Man and His Work. Dover 1st Edition
C.N. Chitta Ranjan, Nehru and Socialism, Mainstream Weekly
D.S. Nakara v. Union of India, 1983 AIR 130
Erich Fromm, Marx's Concept Of Socialism, Frederick Ungar Publishing
(New York, 1961)
Nishant Saxena, The 1991 Economic Reforms: Highlights, NDTV
Qurban Ali, Founders of the Socialist Movement in India Anamika Publishers
& Distributors Ltd.
Rajiv Ahir, A Brief History of Modern India Spectrum Books Ltd
Richard Dagger, Socialism, Britanica Encyclopaedia
S. Das, Nehru's Vision of a New India, The Hindu
Sadaf Bano, Gandhi: The Socialist with a Difference, MKGandhi.org
Samantha vs State of A.P. and Ors., AIR 1997 SC 3297
State of Karnataka v Shri. Ranganatha Reddy, 1978 AIR 215
Taylor C. Sherman, A New Type of Revolution: Socialist Thought in India,
LSE Research Online