What was the main model adopted for Indian economic planning after Independence?
Show answer & explanation
Correct answer: B
Explanation
Solution: The correct answer is Mixed economy.
Explanation:
☛ After Independence, India adopted a mixed economy model that combined elements of both capitalism and socialism.
☛ Under the leadership of Prime Minister Jawaharlal Nehru, this model aimed to balance rapid economic growth with social justice.
☛ In this framework, the public sector was assigned to lead strategic and heavy industries (the "commanding heights" of the economy), while the private sector operated in agriculture, consumer goods, and trade.
☛ The Industrial Policy Resolution of 1948 officially laid the foundation of India's mixed economic framework.
Extra Exam-Relevant Facts:
☛ Industrial Policy Resolution of 1956: Often termed the "Economic Constitution of India", it categorized industries into three schedules and reinforced the dominant role of the state.
☛ Planning Commission: Set up on 15 March 1950 via an executive resolution to formulate India's Five-Year Plans, with the Prime Minister as ex-officio Chairman.
☛ First Five-Year Plan (1951–1956): Based on the Harrod-Domar model, prioritizing agriculture, irrigation, and power projects.
☛ Second Five-Year Plan (1956–1961): Based on the P.C. Mahalanobis model, emphasizing rapid industrialization and development of heavy capital goods industries.
Important One-Liners for Upcoming Exams:
☛ Who is widely regarded as the pioneer of Indian economic planning? → M. Visvesvaraya (author of 'Planned Economy for India', 1934)
☛ Which institution replaced the Planning Commission on 1 January 2015? → NITI Aayog
☛ In which year was the National Development Council (NDC) established? → August 1952
☛ Who drafted the 'People's Plan' in 1945? → M.N. Roy
☛ In which year was the famous 'Bombay Plan' formulated by eight leading industrialists? → 1944