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Politics of Planned Development
Evaluate the major outcomes of the Indian model of mixed economy.
Major outcomes of the Indian model of mixed economy :
i) The state controlled key heavy industries provided infrastructure.
ii) It regulated trade in India.
iii) Although agriculture was in the private sector, the public sector made some intervention in agriculture.
iv) This model laid the foundation of India’s future economic growth.
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(a) the Bombay plan (c) experiences of the Soviet bloc countries
(b) Gandhian vision of society (d) Demand by peasant organisations
“In the early years of Independence, two contradictory tendencies were already well advanced inside the Congress party. On the one hand, the national party executive endorsed socialist principles of state ownership, regulat ion and control over key sectors of the economy in order to improve productivity and at the same time curb economic concentration. On the other hand, the national Congress government pursued liberal economic policies and incentives to private investment that was justified in terms of the sole criterion of achieving maximum increase in production. ” — Francine Frankel
(a) What is the contradiction that the author is talking about ? What would be the political implications of a contradiction like this ?
(b) If the author is correct, why is it that the Congress was pursuing this policy ? Was it related to the nature of the opposition parties ?
(c) Was there also a contradiction between the central leadership of the Congress party and its State level leaders ?
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