Question

What were the main differences on the question of development at the time of independence? How were they resolved?

Hint:

Examining historical debates on development can reveal the roots of current economic policies and challenges.

Answer 1

At the time of independence, India faced competing visions of development:
1. State vs. Market Debate: Some leaders, like Jawaharlal Nehru, advocated for a socialist state-driven model, while others supported a free-market approach.
2. Agriculture vs. Industry: There was debate on whether to prioritize agricultural self-sufficiency or industrial expansion.
3. Foreign Investment Dilemma: Some policymakers wanted to attract foreign capital, while others feared dependence on Western economies.
4. Public vs. Private Sector: The role of the government in managing industries was contested.
Resolution:
1. A Mixed Economy Model was adopted, integrating state control with private enterprise.
2. Five-Year Plans were introduced, balancing agricultural and industrial growth.
3. The government took charge of critical industries while allowing private sector participation.
These decisions shaped India's long-term economic trajectory, blending socialist and capitalist principles.