Previous Year Question

Mahatma Gandhi opposed the concept of Centralised Planned Development in India. He criticised excessive state control over economic development, dependence on large-scale industries, and the concentration of economic power. He believed that such a development model could weaken the rural economy and increase economic inequality and unemployment.

Gandhi's economic philosophy was based on Gram Swaraj and a Decentralised Economy. He supported village industries, cottage industries, Khadi, the utilisation of local resources, and rural self-reliance. His objective was to keep production and economic decision-making close to local communities. Therefore, his opposition was not directed against economic development or every form of planning, but primarily against centralised, large-industry-based development.

In 1944, Shriman Narayan Agarwal proposed the Gandhian Plan. It prioritised agriculture, rural industries, and a decentralised economic structure. In contrast, the National Planning Committee was established in 1938 under the chairmanship of Jawaharlal Nehru, advocating industrialisation and an active role for the state in economic development.

The Planning Commission was established in independent India on 15 March 1950, followed by the First Five-Year Plan (1951–1956). Jawaharlal Nehru was a major supporter of planned development. The Five-Year Planning system also continued during the prime ministerial tenures of Indira Gandhi and Rajiv Gandhi. Thus, Gandhi's economic philosophy differed from the centralised planning model adopted in India.