Question

Evaluate the significance of the 'Bombay Plan' and 'Peoples Plan' in the context of India's economic planning.

1. The 'Bombay Plan' was a proposal drafted by a group of industrialists in 1944 advocating for India's economic development.
2. The 'Peoples Plan' was formulated by the government to promote state-controlled industries.
3. Both the 'Bombay Plan' and the 'Peoples Plan' played a role in shaping India's economic planning strategies.
4. The 'Bombay Plan' focused solely on agricultural reforms.

• A. ii, iv
• B. iii only
• C. i, iii
• D. All

Answer 1

Answer:

C. i, iii

ECONOMIC PLANNING

• It is the preparation to achieve the economic objectives of the society, using the available resources within specific period of time.
  

• Economic planning plays a significant role in accelerating economic growth.

Milestones in Economic Planning

• In 1938, National Planning Committee was formed under the leadership of Jawaharlal Nehru.
  

• It was followed by ‘Bombay Plan’ (1944) prepared by a group of industrialists who assembled in Bombay for the economic development of India.
  

• The ‘Peoples Plan’ prepared by the renowned social activist, M.N Roy also helped in shaping India’s planning.

• The first industrial policy (1948) formulated in independent India strengthened economic development through planning.
  

• The ‘Father of Indian planning, M. Visvesvaraia, who authored the famous ‘Planned Economy for India’ in 1934 gave clear direction to economic planning.
  

• The Indian Cabinet which met in 15^th March 1950 passed a resolution to establish the Planning Commission of India.

Objectives of economic planning 

1. Growth
   Economic growth indicates the increase in output of goods and services produced in the country. It is an important objective of economic planning as it contributes to national progress.

2. Modernisation

• Modernisation is making use of the latest technology.

• It also includes making a change in the perception of the society which involves protection of women’s rights, social security, and openness to social changes.

3. Self reliance

• The aim of self reliance is to attain self – sufficiency in agriculutral, industrial and service sectors using the available resoruces and to avoid foreign dependence.

4. Equity

• Ensuring equity is essential for the people to benefit the fruits of growth, modernisation, and self reliance
  

• The objective of equity will be attained when all citizens receive basic necessities of life, health protection and righteous distribution of wealth