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Indian Economy Dilfraz Singh, Lovely Professional University

Notes Unit 3: Planning and Economic Development in the
Era of Globalisation

CONTENTS

Objectives
Introduction
3.1 Objectives of Economic Planning in India

3.1.1 Economic Planning and Removal of Poverty
3.1.2 Economic Planning and Social Justice
3.2 Development Strategy in India
3.2.1 Mahalanobis Model of Growth
3.2.2 Models of Economic Development: Nehru vs. Gandhi

3.2.3 Liberalisation, Privatisation and Globalisation (LPG) Model of
Development
3.2.4 PURA-A Neo-Gandhian Approach to Development

3.3 Summary
3.4 Keywords
3.5 Review Questions

3.6 Further Readings

Objectives

After studying this unit, you will be able to:

Discuss the objectives of economic planning in India
Describe the development strategy in India

Recognise the models of economic development
Introduction

The Indian National Congress, under the motivation of Jawaharlal Nehru, established the
National Planning Committee (NPC) towards the end of 1938. The Committee constructed a
series of studies on different subjects associated with economic development. The Committee
laid down that the State should own or manage all key industries and services, waterways,
mineral resources and railways, shipping and other public utilities and, in fact, all those large-
scale industries which were possible to become monopolistic in character.
In addition to the National Planning Committee (NPC), eight leading industrialists of India
conceived “A Plan of Economic Development” which was commonly known as the Bombay
Plan. There was also a Gandhian Plan which was organised by Shriman Narayan. The world-
popular revolutionary M. N. Roy developed the People’s Plan. All these plans were only of
historical significance because they were just paper plans which were never executed. But they
stimulated thinking about the several aspects of planning in India.

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