Abstract
The Planning Commission was established in 1951. Its main intellectual support came from Professor P. C. Mahalanobis, who had accompanied Rabindranath Tagore on his journey through the Soviet Union. Thus, Indian state planning tried to emulate Soviet planning, but without nationalizing all means of production, distribution and consumption. India planned to provide essential heavy and chemical industries, a transport system and social protection for the poor, along with the overall dominance of the economy by the private sector. The plan worked initially, up to 1960; however, the Chinese invasion in 1962 and the Pakistani invasion in 1965 virtually brought this planned activity to a halt. In 1966, the IMF advised India to cease all planning. However, in 1969 Indian state planning began again, only to be brought to a standstill by the influx of 10 million refugees and also the war with Pakistan in 1971. In 1974, India experienced a serious economic crisis due to the fourfold increase in the price of crude oil. Thus, India had little opportunity to demonstrate the effectiveness of its planning due to a series of problem caused by external factors. In 1992, along with the abolition of the Soviet Union, which had supported Indian aims, India abandoned its efforts at planning and, instead, opted to engage in free market development. In this chapter, we analyze the complete story of India’s attempts at planning and the new economic policy that India has adopted. The new economic policy is dependent on the continuous flow of foreign capital, which can pose problem due to the increasing balance of payments deficit and non-performing bank loans.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Basu, D., and Miroshnik, V., 2014, Corporate Culture in Multinational Companies, Basingstoke: Palgrave Macmillan.
Bera, Anil K. and Ghosh, A. (2002). ‘Neyman’s Smooth Test and Its Applications in Econometrics’. Handbook of Applied Econometrics and Statistical Inference, pp. 177–230.
Bose, S. C., 1962, Selected Speeches of Subhas Chandra Bose, Delhi: Publication Division, Ministry of Information and Broadcasting.
Bose, S. C., 1964, The Indian Struggle, 1920–1942, Bombay: Asia Publishing House.
Bose, S. C., 1980, Collected Works, Vol. 1, Calcutta: Netaji Research Bureau.
Dollar, D., and Kray, A., 2001, Trade, Growth and Poverty, Policy Research Working Paper, 2615, World Bank, Washington, D.C.
Domar, E., 1957, A Soviet Model of Growth. In Domar, D. (ed.), Essays in the Theory of Economic Growth, Oxford: Oxford University Press.
Dutt, G., Kozel, V., and Ravallion, M., 2003, A Model Based Assessment of India’s Progress in Reducing Poverty in the 1990’s, Economic & Political Weekly, 25 January, 38, 355–361.
Dutta, B., 2005, Book Review: Ethics, Economics and Politics: Principles of Public Policy, Indian Economic Review, 40, 2, 248.
Economic Survey 2001–2011, Various Annual Issues, Government of India, Ministry of Finance, New Delhi.
Economist’s Intelligence Unit, Various reports from 2005 onwards.
Feldman, G. A., 1928, On the Theory of Growth Rates of National Income. In Spulber, N. (ed.), 1964, Foundations of Soviet Strategy for Economic Growth, Bloomington: Indiana University Press (Translated version).
Ghosh, S, 1967, Gandhi’s Emissary, London: Routledge.
Khilani, S., 1999, The Idea of India, New York: Farrar, Straus & Giroux.
Lary, H. B., 1946, The Domestic Effects of Foreign Investment, American Economic Review, 36, 2, 672, 685.
Little, I. M. D., 1962, Higgledy Piggledy Growth, Oxford Bulletin of Economics and Statistics, 24, 4, 387–412.
Little, I. M. D., 1982, Economic Development: Theory, Policy, and International Relations, Rome: U.N.F.A.O.
Mahalanobis, P. C., 1936, On the Generalised Distance in Statistics, Proceedings of the National Institute of Sciences of India, 2, 1, 49–55.
Mahalanobis, P. C., 1953, Some Observations on the Process of Growth of National Income, Sankhya, 12, 4, 307–312.
Mahalanobis, P.C., 1960, A Method of Fractile Graphical Analysis, 28, 2, 325–351
Miroshnik, V., 2013, Organizational Culture and Commitment, Basingstoke: Palgrave Macmillan.
National sample survey, 1983, New Delhi: Ministry of statistics and Programme Implementation.
Noland, M., and Pack, H., 2003, Industrial Policy in an Era of Globalization: Lessons from Asia, Washington, D.C.: Peterson Institute.
Nordhus, W., 2006, After Kyoto: Alternative Mechanisms to Control Global Warming, American Economic Review, 96, 2, 31–34,
Podder, N., 1995, On the Relationship Between Gini Coefficient and Income Elasticity, Sankhya: The Indian Journal of Statistics, Series B, 57, 2, 428–432.
Rakshit, M., 2008, Money and Finance in the Indian Economy, New Delhi: Oxford University Press.
Rudra, A., 1996, Prasanta Chandra Mahalanobis: A Biography, Oxford: Oxford University Press.
Sengupta Commission, 2008, National Commission for Enterprises in unorganised Sector, Ministry of Labour and Employment, Govt of India.
Spulber, N., 1964, Foundations of Soviet Strategy for Economic Growth, Bloomington: Indiana University Press.
Srinivasan, T. N., 1996, Professor Mahalanobis and Economics. In Rudra, A. (ed.), Prasanta Chandra Mahalanobis: A Biography, 224–252, Delhi: Oxford University Press.
Swamy, S., 1963, Notes on Fractile Graphical Analysis, 31, 3, 551–554.
Swamy, S., 2000, India’s Economic Performance and Reforms: A Perspective for the New Millennium, New Delhi: Konark.
Tagore, R., 1960, Letter from Russia, Santineketan: Vishwa Bharati.
World Bank, 1996, World Development Report. Washington.D.C: World Bank.
World Bank, 2000, World Development Report, Washington. D.C: World Bank.
World Bank, 2004, World Development Report, Washington D.C: World Bank.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Basu, D., Miroshnik, V. (2017). Turning Point: Planning and Reforms. In: India as an Organization: Volume Two. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-53369-8_2
Download citation
DOI: https://doi.org/10.1007/978-3-319-53369-8_2
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-53368-1
Online ISBN: 978-3-319-53369-8
eBook Packages: Economics and FinanceEconomics and Finance (R0)