Idea of development planning and mixed economy

 Planning had to be such that it encompassed both economic as well as social dimensions.
 Even if our vision document, the Constitution envisaged removal of various social ills(like
untouchability), provided for upliftment of certain sections of population (depressed classes,
women), socialist, secular and democratic polity – but drastic change was not possible owing to
well entrenched cultural and structural constraints.
 Social change was sought to be brought in the society through planned efforts instead of market
based mechanism. Not only a planned economy but also a planned society. Necessary to
ensure systematic utilization of the limited and under-used resources and minimize negative
impact on society
 Mixed economy
o Socialistic principles were required
 to protect the interests of the working class while at the same time
 face the challenges of poverty, health and illiteracy
o Capitalism was necessary
 to boost economic growth and promote individual initiatives.
 Steps taken
o We have dedicated ministries
 Women and Child Development
 Labor Ministry
 Human Resource Development
 Ministry of Tribal Affairs
 Ministry of minority affairs
o Laws have been introduced from time to time to facilitate social change
 Manual Scavenging
 Protection of Civil Rights Act
 RTE
o Various state and centre sponsored programs to tackle social problems
 Poverty alleviation programs, Community development programs
 Scholarship schemes for children of SCs and STs
 Financing schemes for poor entrepreneurs and women
o Structural changes
 73rd and 74th Amendment; Decentralization to provide more autonomy
 Schedule V and Schedule VI areas
 Land reforms
 Reservation for women in parliament
 Participative planning was done through Community Development Programs
o 5 year plans
 How?
o Models (given below)
 o Approaches
 Sectoral Approach -> RTE, Poverty alleviation
 Sectional Approach -> Reservation, abolition of untouchability
 Area based approach -> Green revolution, IRDP

Development planning in India

 Pre-independence
o Was vague and had contradictory objectives. Was guided by colonial interests and
maintenance of law and order
 Modern education was introduced but with a view to create a clerical
workforce
 Modern means of transport like railways which by-passed the notions of ritual
distance between different castes was introduced but again with an idea to
penetrate Indian markets
 Evils like Sati and Child Marriage were declared illegal
 Modern politico-administrative structure was established which challenged the
hegemony of traditional panchayats.
 Establishment of industrial towns led to the proliferation of the middle as well
as the industrialist class

Models of development Planning

 Trickle down approach
o Based on assumption that boosting economic growth would automatically benefit the
poorer section of society
o Nehru-Mahalanobis model (2nd 5 year plan) was based on this approach
 Human development approach
o Based on improving the capacities and capabilities of people.
o 1970s slogan of ‘Garibi Hatao’.

Criticism of planning in India

 Acc. To Y.Singh, development planning has led to emergence of different categories of powerful
middle class in both rural and urban India
 Increased stresses and tensions in the society owing to challenge to existing institutions like
caste, institution of gender
 Social problems like poverty, neglect of aged, juvenile delinquency etc. has increased in urban
areas.
 Regional disparity in development.
Recent Trends
1. Participatory planning through constitution of Mohalla Sabhas, Resident Welfare Associations,
social audits etc.
2. Development priorities have strong social overtones
a. Beti Bachao Beti Padao Campaign envisages tackling both the issue of female foeticide
and boosting literacy among women
b. Clean Indian Campaign tackles the issue of sanitation, absence of toilets in home
c. Environment Impact Assessment, Social Impact Assessment ensure that development
induced displacements do not pulverize the affected populace.
3. Inclusive growth has taken the front seat as envisaged in the 12th 5 year plan
4. Environment and sustainable development enjoy a strong position in development planning
discourse.
5. More autonomy to states in terms of finances so that state-specific social issues can be tackled
more effectively.
a. Eg. Bihar would have to focus more on female literacy than Kerela, so funds can be
automatically adjusted by the state
6. Development planning also encompasses rights of industrial classes (seen in the form of
changes to labor laws), upliftment of agrarian section (in the form of various Krishi Vikas
Yojanas) as well as skill development for the unskilled workers (‘Skill India Mission).
7. The idea has also faced opposition and its relevance is being challenged on the following
grounds
a. It has failed to achieve its objectives
b. It has become irrelevant owing to globalization and liberalization, and the consequent
free movement of capital and increasing role of market forces.