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Planning for Development

The major objective of the new nation was industrial development. Only Industrial development could lift India and Indians out of poverty. Development of any kind needs planning. In 1950, the government set up a Planning Commission to help design and execute suitable policies for economic development.

Mixed Economy

It was decided that the State and the private sector would play important and complementary roles in increasing production and generating jobs.

Role of the Planning commission

  • The Commission had to identify the industries which should be initiated by the state
  • It had to achieve a balance between the different regions and states
  • In 1956, the Second Five Year Plan was formulated.
  • This plan focused on the development of heavy industries such as steel, and on the building of large dams which came under the control of the State.



The Hirakud Dam across River Mahanadhi in Orissa was the first multi purpose dam to be built in independent India



The Second five year Plan focused on heavy industry, and the effort at state regulation of the economy was to guide economic policy for the next few decades.


  • There was support and criticism for the Second Five Year Plan.

  • Some felt that there was not enough importance given to the agriculture sector.

  • Others felt that primary education was neglected.

  • Some voiced the opinion that the plan had not taken account of the environmental implications of economic policies.


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