Discuss the role of the Indian state in promoting industrilisation after 1947
Answers
Post Independence, Jawaharlal Nehru was aiming towards a long term growth plan. His main aim was to build a self-reliant economy and that’s when Indian planners started to give priority to industrialization. This was the reason why “Nehru-Mahalanobis” model was adopted. The post colonial economic policy was aimed towards making a break from the immediate past and to bring public and economic growth in alignment.
During the second year plan (1956–1961), a higher priority was given to. The 2nd Industrialization five year plan functioned on the basis of Mahalanobis model. The planning committee of the congress which was chaired by Nehru at the request of Subhash Chandra Bose discussed the model. The Mahalanobis model was propounded by the famous Prasanta Chandra Mahalanobis in the year 1953.
Key Features of Mahalnobis model
The model aimed towards an economy with two sectors each producing capital and consumer goods
The focus was on heavy goods sector and by “heavy goods” I mean machine-building complexes
Mahalanobis strategy of development was resting on the idea of import substitution.
A lot of people think that Nehru didn’t do much for this country and his policies failed, but the Nehru era witnessed the recovery of India and the ignition of a growth process that has remained undimmed for over 5 decades, during which time the economy has been hastening slowly. It is worth noting that under the leadership of Jawaharlal Nehru the Indian economy was starting to become more self reliant. A surge in public investment as well as saving had been achieved in Nehru era.