Question

Who invited K. N. Raj to draft India's first Five Year Plan?

• A. Sardar Vallabhbhai Patel
• B. Indira Gandhi
• C. Jawaharlal Nehru
• D. V. K. Krishna Menon

Answer 1

Answer:

C. Jawaharlal Nehru

K. N. Raj and India's First Five Year Plan

• K. N. Raj was a distinguished Indian economist known for his significant contributions to economic policy and planning in post-independence India.

• He played a pivotal role in formulating the strategy and drafting the blueprint for India's First Five Year Plan (1951-1956).

• His expertise was crucial in shaping the foundational economic policies of the newly independent nation.

Jawaharlal Nehru's Vision for Planned Development

• Jawaharlal Nehru, India's first Prime Minister, was a staunch advocate for a planned economy, believing it was essential for rapid industrialization and social justice.

• Inspired by the Soviet model of planning, Nehru envisioned a mixed economy where the state played a dominant role in guiding economic development.

• As the first Chairman of the Planning Commission (established in 1950), Nehru personally invited leading economists like K. N. Raj to contribute to India's economic planning.

• His vision laid the groundwork for a series of Five Year Plans aimed at achieving self-reliance and growth.

Key Aspects of the First Five Year Plan (1951-1956)

• The First Five Year Plan was launched in 1951, focusing primarily on the agricultural sector, irrigation, and power generation.

• It was based on the Harrod-Domar growth model, which emphasizes the role of capital investment in economic growth.

• Key objectives included increasing agricultural output to address food shortages, controlling inflation, and rebuilding the war-ravaged economy.

• Significant projects such as the Bhakra Nangal Dam were initiated during this period to boost agricultural productivity and provide power.

• The plan successfully exceeded its growth target, achieving a growth rate of 3.6% against a target of 2.1%.

Other Contributions and Context

• K. N. Raj was also instrumental in establishing the Centre for Development Studies (CDS) in Thiruvananthapuram, Kerala, a renowned institution for research and training in development economics.

• He continued to advise the government on various economic matters, contributing to subsequent Five Year Plans and economic reforms.

• The Planning Commission, a non-constitutional body, was responsible for formulating India's Five Year Plans until it was replaced by NITI Aayog in 2015.