Planning: A Historical Perspective

The early 1950s marked the inception of Planning in India, with the objective of translating the aspirations of a newly-independent nation into achievements. The foundation of post-Independence economic planning was laid in the pre-Independence era, predominantly by the National Planning Committee of the Indian National Congress, and also by other individuals and groups. The first attempt at formulating a plan for India's development was made by Sir M. Visveswaraya in 1934. He identified the lack of industrialization in India as the cause of India's under-development, and proposed doubling the national income in 10 years. The National Planning Committee constituted in 1938 under the chairmanship of Pandit Jawaharlal Nehru laid down the overarching objective of planning, which was “to ensure an adequate standard of living for the masses, in other words, to get rid of the appalling poverty of the people’. The Committee laid down the principles governing land and credit stating that “We, or some of us at any rate, hoped to evolve a specialized system of credit. If banks, insurances etcetera were not to be nationalized they should at least be under the control of the State, thus leading to a state regulation of capital and credit.”

The People's Plan of the Indian Federation of Labour (1944) identified “the central problem of the Indian economy as the problem of poverty”. It also stated that “In order that the plan may be successfully implemented and may attain its objectives, it will also be necessary for the state to exercise an effective control over banking and other financial institutions in the country.’