Which of these statements about the Bombay Plan is incorrect?
(a) It was a blueprint for India’s economic future.
(b) It supported state-ownership of industry.
(c) It was made by some leading industrialists.
(d) It supported strongly the idea of planning.
The incorrect statement is A. It was blueprint for India’s economic future.
Explanation: Bombay Plan was a joint initiative of some big industrialists of setting up a planned economy for the country, because every investor or industrialist prefers an open economy where state control is minimum.
Objectives of Bombay plan:
1. The Bombay Plan wanted the state to take major initiatives in industrial and other economic investments.
2. proposed for setting up a planned economy in the country.
(a) Charan Singh
(b) P C Mahalanobis
(c) Bihar Famine
(d) Verghese Kurien
iv. Milk Cooperatives
Read the following passage and answer the questions below:
“In the early years of Independence, two contradictory tendencies were already well advanced inside the Congress party. On the one hand, the national party executive endorsed socialist principles of state ownership, regulation and control over key sectors of the economy in order to improve productivity and at the same time curb economic concentration. On the other hand, the national Congress government pursued liberal economic policies and incentives to private investment that was justified in terms of the sole criterion of achieving maximum increase in production. “ — Francine Frankel
(a) What is the contradiction that the author is talking about? What would be the political implications of a contradiction like this?
(b) If the author is correct, why is it that the Congress was pursuing this policy? Was it related to the nature of the opposition parties?
(c) Was there also a contradiction between the central leadership of the Congress party and its Sate level leaders?