“Indian policy makers made a mistake by emphasising the role of state in the economy. India could have developed much better in private sector was allowed a free play right from the beginning”. Give arguments for or against this proposition
No, the above state is not perfectly true because state intervention was mandatory to regulate country’s economy. India neither followed capitalist model nor socialist model. Instead India adopted Mixed economy where both private and public sector played key role in economy.
1. If the private sector were given free play in the economy then it would have led to monopoly in the market.
2. As the private focused primarily on industries, free play of private sector in the market would have kept agriculture and the farmers at bay.
3. With free play of private only the urban regions would have developed while the rural regions would have been struggling for basic ameneties.
4. The mixed economy model is the right intervention as it helps in keeping check to both public and private sectors.
(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?