Key Points
Key Points: Five Year Plans
- India adopted the Five Year Plan model from the USSR (Russia); the Planning Commission was established in 1950 under Jawaharlal Nehru.
- The main aims were agricultural & industrial development, employment generation, poverty reduction, and self-reliance.
- The four goals of planning were Growth, Modernisation, Self-reliance, and Equity.
- The First Plan focused on agriculture, while the Second Plan focused on heavy industries under the Mahalanobis Model.
- Wars, famines, the oil crisis, and political instability affected the success of several plans.
- The Planning Commission was replaced by NITI Aayog (2015), and the Twelfth Plan (2012–17) was the last Five Year Plan.
Key Points: Industry and Trade
- The industrial sector provides employment stability unlike agriculture.
- The public sector was given "commanding heights" — control over key economic industries.
- The Industrial Policy Resolution 1956 divided industries into three categories based on government vs. private sector ownership.
- A licensing system was used to regulate private sector industries.
- The Karve Committee (1955) underscored the importance of small-scale industries.
- SSIs are defined by their investment limit and are labour-intensive.
- Government support to SSIs included product reservation and concessions.
