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Updated: Oct 9, 2022

Ideas Of Development

  • Development ( modernization ) was associated with the ideas of growth, material growth and scientific rationality.

  • However, India adopted mixed economy in which some characteristics of liberal- capitalist model and some are of socialist as in USSR.



  • The planning commission was an institution in the Government of India which formulated India's five year plan.

  • Formed -  15 March,1950

  • Dissolved -15 August 2014 by PM Narendra Modi

  • Planning commission first chairperson was Jawaharlal Nehru 1950 -1964.

  • Planning commission has been replaced by new institution NITI Aayog


  • In the Era of globalization, specially in the 21st century planning commission became ineffective and irrelevant.

  • Hence, during independence day speech on 15 August, 2014 PM Modi did abolition of the planning commission.

  • NITI Aayog is a successor of Planning Commission constituted on 1st January 2015.


  1. To Provide The Necessary And Technical Advice to The Union Government Regarding Policy Making At The Centre And State Levels.

  2. The PM Of India Is The Ex Officio Chairman Of NITI Aayog And The Vice Chairperson Of NITI Aayog Appointed By Him.

  • First Vice Chairperson- Arvind Panagariya

  • Current Vice Chairperson- Shri Suman Bery

  • NITI AAYOG acts as think tank of the union government. It works to harmonies the interest of national security and economic policy and to work to prepare strategic and long-term framework of policy and program. 

  • NITI Aayog adopted "bottom-up approach" to ensure equal participation of all states in the country

The first five year plan (1951 to 1956) 

  • K.N. Raj economist involved in drafting the plan.

  • He argued that India should hasten  slowly for the first two decades as fast rate of development might endanger democracy.


  1. To reform the country's economy

  2. To solve the food problem

  3. To raise the standard of living.

  4. To provide Social and economic justice.


  1. Increase in national income 

  2. agricultural development 

  3. industrial production 

  4. irrigation and railway development

The second five year plan (1956 to 1961)

  • From April 1 ,1956 to May 31 ,1961.

  • Purpose of the plan was to establish ' socialist pattern of society".

  • It was drafted by a team of economist and winners under the leadership of PC Mahalanobis.


  1. Large of expansion of employment opportunities.

  2. Sustainable increase in the national income to raise the level of living.

  3. Rapid industrialization with special emphasis on the development on basic and heavy industries.

  4. Reduction of inequalities in income and wealth and a more even distribution of economic power.


  1. Foreign exchange

  2. Agricultural development 

  3. Power Programmes 

  4. Industrial development

  5. General development

The Third Five Year Plan (1961 To 1966)

  • There was a financial crisis ,a foreign exchange crisis, and food crises during third five year plan from 1961-66.

  • This plan designed to provide India a self send rating and self Reliance economy. (continuation of previous plan)


 Objectives : 

  1. To secure and income National of over 5% annum, the pattern of investment being designed so as to sustain this rate of growth during the subsequent plans.

  2. To achieve self sufficiency in food grains and increase agricultural production to meet the requirement industry and exports.

  3. To establish progressively greater equality of opportunity and to bring about reduction in the disparities in income.



  1. National income

  2. Agricultural and power development

  3. Industrial development

  4. Village and small scale industries.

  5. Railway development.

Decentralized Planning

Kerala plan is known as decentralized planning. The development was focus on education, health ,landform, effective food production and poverty alleviation. Despite low per capita incomes and relatively weak industrial base achieved nearly total literacy rate etc.

Key Controversies

1. Agriculture versus industry

  • Gandhian economist like J C Kuma Rappa proposed an alternative blueprint that put greater emphasis on rural industrialization.

  • Chaudhary Charan Singh also emphasized on keeping agriculture.


2.Public Vs Private Sector

  • India adopted mixed economy. Much of the agriculture ,trade and industry were left in private hands.

  • State controlled key heavy industries, provided industrial infrastructure , related trade and made some crucial intervention in agriculture. 

  • State intervened only in those areas where the private sector was not prepared to go.

Major Outcomes

1. Foundations

  • In this period the foundations of India's future economic growth were laid.

  • These included mega dams.

(A) Bhangra Nangal dam

(B) Hirakund for irrigation and power generation.

  • Some of the heavy industries and public sector-

    1. Steel plants.

    2. Oil refineries

    3. Defense production.

  • Infrastructure for transport and communication was improved substantially.

2.Land reforms

  • Abolition of the colonial system of zamindari

  • This brought small pieces of land together in one place so that the farm of size could become viable for agriculture.

  • Laws were made to put an upper limit or' ceiling' to how much agriculture land one person could own.

  • Tenants  who worked on someone else's land were given legal security against eviction.

The Green Revolution 1960

  • Country faced food crisis during 1940 to 1970. 

  • The government adopted a new strategy for agriculture in order to ensure food sufficiency. 

  • Provided facilities to small farmers to put more resources and increase production. 

  • However  not all farmers Got  benefit of this revolution except Punjab, Haryana ,UP ,etc. farmers more than any state farmers. 


  • Contrast between poor peasantry  and landlords produced. 

  • Green revolution resulted  in the rise of middle peasants  sections

Operation Flood 

Operation flood ,launched in 1970 ,was a project of India's National dairy development programme it transform India form milk deficient  nation into the largest milk producer of  word. The process ha s been called the white revolution Amul Cooperative Dairy was the engine behind the success of the program. Dr.Verghese Kurein known as "father of white revolution".

Later development

  1. Period from 1967 onwards witnessed many new restrictions on private industry.

  2. Fourteen private banks were nationalized . 

  3. Between 1950 and 1980 ,the Indian economy grow at sluggish per annum rate of 3 to 3.5%

National Development Council (NDC)

  • National Development Council (NDC) or the Rastriya Vikas Parishad is the apex body for decision making and deliberations on development matters in India presided over by the Prime Minister.

  • National Development Council was set up on August 6, 1952,

  • To strengthen and mobilize the effort and resources of the nation in support of the Plan, to promote common economic policies in all vital spheres,

  • and to ensure the balanced and rapid development of all parts of the country.

Appointment and Composition of NDC

The National Development Council comprises the following members –

  • Indian Prime Minister

  • All the Union Cabinet Ministers

  • Chief Ministers of all States or their substitutes

  • Representatives of the union territories and

  • The members of the NITI Aayog (erstwhile planning commission).

  • The secretary of the Planning Commission is also the secretary of the NDC. The administrative assistance is also provided by the Planning Commission. The Prime Minister is the Chairman of the Council.

  • The Council ordinarily meets twice a year. It is interesting to note that the Council ordinarily passes no resolution formally.

  • The practice is to have a complete record of discussion and gather out of it general trends pinpointing particular conclusions. Decisions are usually unanimous.

Objectives of the National Development Council

NDC is an advisory body to the Planning Commission. The major objectives of NDC can be listed below:

  1. To strengthen and mobilize the effort and resources of the nation in support of the Plan.

  2. To promote common economic policies in all vital spheres.

  3. To ensure the balanced and rapid development of all parts of the country.

In addition to this, NDC provides a platform for all the states to discuss their problems and issues related to development. Thus, it secures the cooperation of the states in the execution of developmental plans.


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