It was agreed that India’s economic development would include both social and financial justice. Therefore, the government should play a significant role in achieving these goals. However, there are many different ideas about what the government should do.

Ideas for Development

• Ideas for development vary for different segments of society
• India had two models of modern growth on the eve of Independence: one socialist as in the USSR and one liberal-capitalist as in most of the US and Europe
• The majority of the leaders and groups preferred a socialist model. It was based on a broad consensus that had been developed during the national movement. The government was primarily responsible for poverty alleviation and redistribution of the economy and social culture
• The introduction of a planned economy resulted from the adoption of the socialist economic model

Fundamental Characteristics of India as a Developing Economy

Few basic characteristics of India as a developing economy are the following:

Low Per Capita Income: 

• Based on India’s Monetary Fund report 2017, India’s Per Capita Income was 1983. And it was ranked 140 out of 188 countries. And it was ranked 138 out of 184 Countries.

Occupational Primary- Pattern Producing:

• India is majorly a primary producing country and it is one of the fundamental characteristics of India as a developing economy. This means that a majority of the population in India are engaged in agriculture

Overpopulation:

The total population of India in 2021 is estimated to be 1.39 Billion.Moreover, the improvement in medical facilities in India has increased Indian citizen’s average life and it leads to a decline in death rates.

Inequality in Asset/ Wealth Distribution:

• The primary cause of inequality is because of unequal asset distribution in rural areas. This inequality also highlights that the resource base of half of the households in India is weak

Low-levels of Technology:

Unfortunately , according to modern scientific standards the majority of products in India are made up of inferior technologies. Hence, India is called as a country of eclectic mixes. 

Left and Right Versus the Development

• In most countries’ politics, you will find references to parties and groups that are either Left- or Right-leaning
• These terms refer to the positions taken by the parties concerned regarding social change or the role of the state in economic redistribution
• Left-Wing: This refers to people who support the poor and marginalized sections of society and those who support government policies that will benefit these sections
• Right Wing: These believe that market competition and free competition alone will ensure progress, and that the government should not intervene unnecessarily in the economy

Planning:

Despite the diverse disagreements among the various opinions, there was agreement that development should not be left to private companies, and the government had to create a concept or plan for development.

Bombay Plan

• A section of the prominent industrialists came together in 1944 to draft a plan for setting up a planned economic system in the country. It was known as the Bombay Plan
• It wanted major state initiatives in industrial and economic investments

To accomplish these goals, a plan of action for the economy had to be developed.

Planning Commission

• In March 1950, the Planning Commission was created with the Prime Minister as its chairman
• It was created by a simple resolution of the Government of India. However, it played an advisory role, and its recommendations became effective only after the Union Cabinet approved them
• It was the primary mechanism that decided which strategy and path India would take for its development

The Planning Commission was created to guide India’s economic development for many decades.

The Scheme of National Planning Committee

• Like the USSR, India’s National Planning Committee chose five-year plans (FYP)
• All the expenditures and outlines that may happen in the next five years were outlined in a document by The Government of India
• Accordingly, the budget for the Central and all State governments was split into two sections: the non-plan budget spent on everyday items every year and the planned budget spent on five years based on the priorities established by the plan

Plan Holiday:

In reference to 1966-1969, the government issued three annual plans instead of publishing Five Year Plans.

Conclusion

In this article, we have learnt about India’s economic development and ideas of development. We all know that India is a developing country belonging to the lower and middle income group of people. It was agreed that India’s economic development would include both social and financial justice. Therefore, the government should play a significant role in achieving these goals.