Planning for Economic Development and Progress in Science and Technology
Modern History › The Nehru Era, 1947-64 · Topic 31.4
Nehru chose state-guided planning through democratic means, with the Planning Commission set up in March 1950 and the National Development Council in August 1952. The First Plan (1951-56) stressed agriculture and irrigation, the Second (Mahalanobis) heavy industry, and India adopted a mixed economy. Science advanced through national laboratories, IITs, the Atomic Energy Commission under Homi Bhabha and the Scientific Policy Resolution of March 1958.
6 min read · UPSC Prelims · History · The Nehru Era, 1947-64
At a Glance
- Planning Commission March 1950; extra-constitutional; Prime Minister as chairman
- National Development Council 6 August 1952
- First Plan 1951-56; Harrod-Domar model; agriculture and irrigation
- Second Plan P.C. Mahalanobis; heavy industry
- Exam link UPSC Prelims, Modern History: The Nehru Era, 1947-64
Where Does It Fit?
This is the fourth topic of the category on the Nehru era. The previous topic covered the growth of other political parties. This topic covers planning for economic development and progress in science and technology. The next topic covers social developments and education under Nehru. Previous topic: Growth of Other Political Parties.
Why Did Nehru Choose Planning?
Nehru believed in effective planning through the democratic process, for extensive land reforms, industrialisation and the development of power plants, transport projects and irrigation dams. On economic development he did not follow Gandhi, and he envisaged the state intervening in the economy, guiding its growth and acting directly for the welfare of the people. He and several national leaders were fascinated by the success of Soviet planning in the 1930s and 1940s. The genesis of the Planning Commission lies in the National Planning Committee set up by the Congress in 1938 and the Bombay Plan of 1944. The economic critique that preceded it is in Economic Drain and the Nationalist Critique and the condition of the economy at independence in Three Stages of Colonialism in India.
The Planning Commission, an extra-constitutional body, was set up in March 1950 by a simple resolution of the Government of India to prepare Five-Year Plans, with the Prime Minister as its ex-officio chairman. The National Development Council, which gives final approval to plans, was set up on 6 August 1952.
What Did the First Three Plans Do?
| Plan | Features |
|---|---|
| First Plan, 1951-56 | Based on the Harrod-Domar model; aimed to take the economy out of the cycle of poverty; addressed mainly agriculture, including dams and irrigation; large allocations for projects such as Bhakra-Nangal; attention to land reforms |
| Second Plan | Drafted under P.C. Mahalanobis; stressed heavy industries; reflected a socialistic pattern of society; heavy tariffs on imports to protect domestic industry |
| Third Plan | Not significantly different from the Second; critics see an urban bias and wrong priority to industry over agriculture |
Nehru believed in democratic socialism, and India chose a mixed economy that combined elements of capitalist and socialist models. Much of agriculture, trade and industry stayed in private hands, while the state controlled key heavy industries, provided industrial infrastructure, regulated trade and intervened in agriculture. Such a model was open to criticism from both sides. Critics held that the plans did not give the private sector space and stimulus, and that licences and permits discouraged private investment and bred corruption and red tape. Sympathisers of the socialist model said that the state spent too little on public education and health, and that state intervention created a new middle class with high salaries and little accountability. The effect of the 1962 war on the Third Plan is in Panchsheel agreement 1954 Asylum Dalai Lama…">India and China, 1947-62.
Even so, a solid industrial base and infrastructure were created. The Bhakra-Nangal, Damodar Valley and Hirakud dams were built for irrigation and power, and public sector steel plants, oil refineries, manufacturing and defence production started. Hindustan Machine Tools, Sindri Fertiliser, Chittaranjan Rail Factory, the Integral Coach Factory and Hindustan Antibiotics were among the units. As an analytical point, the strategy produced a base of heavy industry in a short time but paid for it with a slow growth of consumer goods and with a licensing system whose costs became clear in later decades.
How Did Science and Technology Advance?
Nehru believed that science and technology were crucial to solving India’s problems. He took the chairmanship of the Council of Scientific and Industrial Research himself, and the Lok Sabha passed the Scientific Policy Resolution in March 1958, which recognised the role of science and technology in the economic, social and cultural advancement of the country. Many institutes had been set up before it.
| Year | Step |
|---|---|
| January 1947 | National Physical Laboratory, India’s first national laboratory, set up; followed by a network of seventeen national laboratories |
| August 1948 | Atomic Energy Commission set up, headed by Homi J. Bhabha |
| 1952 | The first of five institutes of technology, patterned on MIT, set up at Kharagpur (some accounts give 1952) |
| 1954 | Separate Department of Atomic Energy created with Bhabha as secretary |
| August 1956 | India’s first nuclear reactor at Trombay, the first in Asia, became critical |
| 1955-1962 | Change in phases to decimal coinage and the metric system of weights and measures |
| 1962 | Indian National Committee for Space Research (INCOSPAR) and the Thumba Equatorial Rocket Launching Station set up |
Steps were also taken to raise the production of defence equipment. On the date of the Kharagpur institute, other accounts say the institute was founded in 1951 and formally inaugurated in 1951-52, and the earlier year is retained here with the difference flagged. The educational base for scientific work is in Social Developments and Education Under Nehru.
Why Is This Topic Important?
- Plan features Models, leaders and dates are standard Prelims facts
- Mixed economy A GS Paper 3 theme and a common evaluation question
- Science institutions Dates and founders are asked frequently
What Came Next?
The next topic covers social developments and education under Nehru. Next topic: Social Developments and Education Under Nehru.
Key People and Terms
- Planning Commission Body that drew up Five-Year Plans from March 1950
- National Development Council Body that approves the plans
- Mahalanobis Architect of the Second Plan
- Mixed economy Blend of private and public sectors
- Scientific Policy Resolution Passed March 1958
- INCOSPAR The 1962 space research committee
Exam Corner
Points to Remember
- Planning Commission: March 1950; NDC: 6 August 1952.
- First Plan: 1951-56; Harrod-Domar.
- Second Plan: Mahalanobis, heavy industry.
- Scientific Policy Resolution: March 1958.
- First reactor at Trombay, August 1956.
Do Not Confuse With
- Planning Commission and NDC Drafts the plan versus approves it
- First Plan and Second Plan Agriculture versus heavy industry
- AEC and DAE 1948 commission versus the 1954 department
Memory Hook
Plan, approve, build dams, then build reactors.
Mains Angle
Questions ask about the planning strategy and its results. These points add depth.
- Strategy Mixed economy and heavy industry
- Results Industrial base and infrastructure
- Critique Licensing and urban bias
A Question You May Face
An original practice question, not a past paper question.
“Evaluate the planning strategy of the Nehru era and the progress in science and technology.”
How to Answer
- Rationale State-guided growth.
- Plans Three plans.
- Science Institutions.
- Conclude Gains and costs.
GS Relevance
Frequently Asked Questions
When was the Planning Commission set up?
It was set up in March 1950 by a simple resolution of the Government of India as an extra-constitutional body for five-year plans, with the Prime Minister as ex-officio chairman, and the National Development Council followed on 6 August 1952 to approve the plans.
What were the main features of the First Five-Year Plan?
The First Plan of 1951 to 1956 followed the Harrod-Domar model, aimed to lift the economy out of poverty, concentrated on agriculture, dams and irrigation, made large allocations such as Bhakra-Nangal, and also stressed land reforms.
What was the emphasis of the Second Plan?
The Second Plan, drafted under P.C. Mahalanobis, stressed heavy industry and a socialistic pattern of society, with substantial import tariffs to protect domestic industries, and the Third Plan followed it with criticism of an urban bias.
What is a mixed economy?
It combines elements of capitalism and socialism, as India did under Nehru by leaving much agriculture, trade and industry in private hands while the state controlled key heavy industries, supplied infrastructure, regulated trade and intervened in agriculture.
What was the Scientific Policy Resolution of 1958?
Passed by the Lok Sabha in March 1958, it acknowledged the role of science and technology in the economic, social and cultural advancement of the country, after Nehru had taken the chairmanship of the CSIR and many institutes had already been set up.
PYQ Practice — Statement Analysis
1 The Planning Commission was set up in March 1950.
It was extra-constitutional.
2 The Second Five-Year Plan was based on the Harrod-Domar model.
The First Plan used that model; the Second stressed heavy industry under Mahalanobis.
3 The National Development Council was set up on 6 August 1952.
It approves the plans.
4 Homi J. Bhabha headed the Atomic Energy Commission set up in 1948.
He later became secretary of the Department of Atomic Energy.
5 India's first nuclear reactor at Trombay became critical in 1956.
It was the first in Asia.
Related Topics
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