Nehruvian Economic Model
Log Entry: The Temples of Modern India
The Nehruvian Economic Model was an attempt to achieve in decades what the West achieved in centuries. It was a philosophy of "Mixed Economy"—marrying socialist planning with democratic freedom. As I break down the Five-Year Plans, I am struck by the necessity of long-term vision. In my own fitness journey, I cannot expect results overnight; I must plan my macro-cycles just as Nehru planned the industrial cycles. A 1500-word deep-dive on state-led growth reminds me that "the state" of my own progress depends on the infrastructure of my daily habits.
I. Post-Independence Architecture: The Mixed Economy
Industrial Policy Resolution (1948 AD)Directly following independence, the **Industrial Policy Resolution of 1948 AD** outlined the framework of India's mixed economy. It classified industries into four categories, reserving strategic sectors like atomic energy and railways exclusively for the Central Government. This was the first concrete step toward making the state the "prime mover" of economic development.
Setting up the Planning Commission (1950 AD)In **March 1950 AD**, the Planning Commission was established with the Prime Minister as its Chairman. This was a non-constitutional, non-statutory body designed to assess the country's resources and formulate **Five-Year Plans (FYPs)**. It represented Nehru's belief that a capital-scarce nation like India could not afford the "waste" of unplanned market competition.
II. The First Five-Year Plan: Agricultural Foundation
The Harrod-Domar Model (1951 AD)Launched in **1951 AD**, the First FYP focused primarily on the agrarian sector. Based on the Harrod-Domar model, it aimed to increase the savings rate and invest heavily in irrigation and power. This period saw the commencement of "Modern Temples" like the **Bhakra-Nangal Dam**.
Community Development Programme (1952 AD)To ensure development reached the grassroots, the **Community Development Programme** was launched in **1952 AD**. It was a massive social engineering project aimed at improving rural infrastructure and agriculture through community participation, though its success was later debated due to bureaucratic hurdles.
III. The Second Five-Year Plan: The Mahalanobis Strategy
Industrial Policy Resolution (1956 AD)Considered the "Economic Constitution of India," the **IPR 1956 AD** aimed for a "Socialistic Pattern of Society." It significantly expanded the public sector, giving the state a monopoly over seventeen key industries. This was the ideological peak of Nehruvian socialism.
Rapid Industrialization and Heavy Goods (1956 AD – 1961 AD)The Second FYP, designed by statistician **P.C. Mahalanobis**, shifted focus from agriculture to heavy and basic industries. The philosophy was simple: if India could produce steel and machines, it could eventually produce everything else. This led to the establishment of massive steel plants in **Bhilai, Durgapur, and Rourkela** with foreign collaboration.
IV. Crisis and Transformation: The Third Plan and Beyond
The Third Five-Year Plan (1961 AD – 1966 AD)The goal was to make India a "self-reliant and self-generating" economy. However, this period was plagued by external shocks: the **Sino-Indian War of 1962 AD**, the **Indo-Pak War of 1965 AD**, and severe droughts. These factors led to the failure of the plan targets and eventually to the "Plan Holiday" of 1966-69.
Legacy: Scientific Temper and Educational Infrastructure (1951 AD – 1964 AD)Beyond dams and steel, the Nehruvian model focused on human capital. The establishment of the **IITs (starting 1951 AD)**, the **Atomic Energy Commission (1948 AD)**, and various CSIR laboratories reflected Nehru's obsession with "Scientific Temper." This created a technical elite that would eventually drive India's IT revolution decades later.
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