CLASS 12TH
SUBJECT: POLITICAL SCIENCE
Chapter 2
Planned Development Strategy
➢ What is meant by planned development?
• The strategy of development by planning is called strategy of planned
development.
➢ Status of India's Economy after Independence:
1. Excess of poverty in India.
2. Low industrial development.
3. Lack of basic infrastructure like communication, transport.
4. Lack of basic facilities for the people for example: Lack of employment, health
and education.
Therefore, keeping in view the above situation, India adopted the strategy of planned
economy.
➢ Why India adopted the model of mixed economy under
the policy of planned development?
• At the time of India's independence, two models of development, capitalism
and socialism were prevalent in the world. Both these models of development
had some drawbacks which are as follows:
1. Under capitalism, importance is given to private property and there is no
interference of the government in the market, as a result under capitalism only
emphasis is given on the development of private sectors, which was not
favourable to India's situation.
2. On the other hand, in the socialism model, all the assets are controlled by the
government and there is no place for the private sector.
• Therefore,Jawaharlal Nehru adopted a policy of mixed economy for
development adopting some features of both the models.
➢ Describe the characteristics of a mixed economy.
1. Under this, both government and private sector have a role.
2. Heavy industries like steel, coal are controlled by the state.
3. States make plans related to agriculture and trade.
4. Under a mixed economy, some industries are kept reserved for the private
sector.
1
, ➢ What was the Bombay Plan?
• In 1944, a meeting of the country's big industrialists was held in Bombay. In
this meeting, these industrialists passed a proposal for a strategy to develop
under a planned economy which came to be known as the Bombay Plan.
➢ Discuss the steps taken under mixed or planned economy.
1. Planning Commission set up in March 1950:
• Under this the five year plan was started. (The concept was taken from the
✓ Objectives of Planning Commission:
I. All the citizens should have adequate opportunities for livelihood.
II. Everyone should have rights over material resources.
III. Preventing the concentration of wealth and the means of production.
2. First Five Year Plan (1951 to 1956):
• Chief Economist: KN Raj.
✓ Which strategies were adopted under the first five year plan?
A. The emphasis was on agriculture.
B. Main policy: To develop the economy at a slow pace.
C. For the development of agriculture, dams (Bhankhra and Hirakund), irrigation
systems were built.
D. The emphasis was on land reform.
E. Emphasis was laid on increasing the savings of the people.
3. Second five year plan:
• Chief Economist: P.c Mahalanobis. The Second Five Year Plan is also known
as Mahalanobis Plan.
✓ Which strategy was adopted under the second five year plan?
A. Rapid development strategy.
B. Emphasis was laid on the development of industries.
C. The government imposed heavy duty on imports to protect domestic industries.
D. Emphasis was laid on public sector industries like electricity, railways and
steel.
➢ Criticism of planning or economy by leftists and rightists.
✓ Who are the Leftists?
• Leftists are those people who support government policies that benefit poor and
backward social groups.
2
SUBJECT: POLITICAL SCIENCE
Chapter 2
Planned Development Strategy
➢ What is meant by planned development?
• The strategy of development by planning is called strategy of planned
development.
➢ Status of India's Economy after Independence:
1. Excess of poverty in India.
2. Low industrial development.
3. Lack of basic infrastructure like communication, transport.
4. Lack of basic facilities for the people for example: Lack of employment, health
and education.
Therefore, keeping in view the above situation, India adopted the strategy of planned
economy.
➢ Why India adopted the model of mixed economy under
the policy of planned development?
• At the time of India's independence, two models of development, capitalism
and socialism were prevalent in the world. Both these models of development
had some drawbacks which are as follows:
1. Under capitalism, importance is given to private property and there is no
interference of the government in the market, as a result under capitalism only
emphasis is given on the development of private sectors, which was not
favourable to India's situation.
2. On the other hand, in the socialism model, all the assets are controlled by the
government and there is no place for the private sector.
• Therefore,Jawaharlal Nehru adopted a policy of mixed economy for
development adopting some features of both the models.
➢ Describe the characteristics of a mixed economy.
1. Under this, both government and private sector have a role.
2. Heavy industries like steel, coal are controlled by the state.
3. States make plans related to agriculture and trade.
4. Under a mixed economy, some industries are kept reserved for the private
sector.
1
, ➢ What was the Bombay Plan?
• In 1944, a meeting of the country's big industrialists was held in Bombay. In
this meeting, these industrialists passed a proposal for a strategy to develop
under a planned economy which came to be known as the Bombay Plan.
➢ Discuss the steps taken under mixed or planned economy.
1. Planning Commission set up in March 1950:
• Under this the five year plan was started. (The concept was taken from the
✓ Objectives of Planning Commission:
I. All the citizens should have adequate opportunities for livelihood.
II. Everyone should have rights over material resources.
III. Preventing the concentration of wealth and the means of production.
2. First Five Year Plan (1951 to 1956):
• Chief Economist: KN Raj.
✓ Which strategies were adopted under the first five year plan?
A. The emphasis was on agriculture.
B. Main policy: To develop the economy at a slow pace.
C. For the development of agriculture, dams (Bhankhra and Hirakund), irrigation
systems were built.
D. The emphasis was on land reform.
E. Emphasis was laid on increasing the savings of the people.
3. Second five year plan:
• Chief Economist: P.c Mahalanobis. The Second Five Year Plan is also known
as Mahalanobis Plan.
✓ Which strategy was adopted under the second five year plan?
A. Rapid development strategy.
B. Emphasis was laid on the development of industries.
C. The government imposed heavy duty on imports to protect domestic industries.
D. Emphasis was laid on public sector industries like electricity, railways and
steel.
➢ Criticism of planning or economy by leftists and rightists.
✓ Who are the Leftists?
• Leftists are those people who support government policies that benefit poor and
backward social groups.
2
