Simple way for IAS preparation

Friday, July 26, 2019

The Bombay Plan

The Bombay Plan
A key principle of the Bombay plan was that the economy couldn't grow while not government intervention and regulation.

A small group of powerful business leaders in Bombay drew up and revealed in January 1944, an inspiration for the economic development of india

Proposed state intervention in the economic development of the nation after independence.

The basic objectives were a doubling of the (then current) output of the agricultural sector and a five-fold growth in the industrial sector, both within the framework of a 100
billion Rupee (£72b, $18b) investment (of which 44.8% was slated for industry) over 15 years.

Under the belief that the fledgling Indian industries wouldn't be able to compete in a free-market economy, the Plan proposed that the future government protect indigenous industries against foreign
competition in local markets.
active role by government in deficit financing and planning equitable growth, a transition from an agrarian to an industrialized society, and—in the event that the private sector could not immediately
do so—the establishment of important industries as public sector enterprises while at the same time ensuring a marketplace for the output through planned purchases.

The Bombay set up reaped criticism from all quarters: the far left criticized the capitalistic background of the Plan’s authors or asserted that the plan didn't go far enough.
The far right foresaw it as a harbinger of a socialist society, and considered it a violation of the agreements of the United Nations “Bretton Woods Conference”.
The plan offers a comprehensive program of mass education, including primary, secondary and vocational and university schooling.
Provision is also created for adult education and scientific training and research.

No comments:

Post a Comment