Question

Describe briefly a rationale behind choosing 'Self-reliance' as a planning objective for the Indian economy.

Hint:

Self-reliance strengthens domestic capabilities and safeguards the economy from global uncertainties.

Answer 1

The objective of self-reliance was adopted in India’s economic planning to reduce dependence on foreign countries and promote national development. The rationale behind it includes:
Reducing Foreign Dependence: After independence, India aimed to build its economy without over-reliance on imports or foreign aid.
Encouraging Indigenous Industries: Self-reliance promoted local production capabilities through small-scale industries and public sector enterprises.
Saving Foreign Exchange: By promoting domestic alternatives, India aimed to conserve valuable foreign exchange reserves.
Ensuring Economic Sovereignty: Reducing external dependency ensured greater control over policy-making and resource allocation.
Fostering National Pride and Employment: Encouraging Indian goods helped generate employment and boost confidence in local capacity. Thus, self-reliance was vital for achieving inclusive and independent economic growth.