Read the passage and answer the questions:
Despite the various differences, there was a consensus on one point: that development could not be left to private actors, that there was the need for the government to develop a design or plan for development. In fact the idea of planning as a process of rebuilding economy earned a good deal of public support in the 1940s and 1950s all over the world. The experience of Great Depression in Europe, the inter-war reconstruction of Japan and Germany, and most of all the spectacular economic growth against heavy odds in the Soviet Union in the 1930s and 1940s contributed to this consensus. Thus the Planning Commission was not a sudden invention. In fact, it has a very interesting history. We commonly assume that private investors, such as industrialists and big business entrepreneurs, are averse to ideas of planning: they seek an open economy without any state control in the flow of capital. That was not what happened here. Rather, a section of the big industrialists got together in 1944 and drafted a joint proposal for setting up a planned economy in the country. It was called the Bombay Plan. The Bombay Plan wanted the state to take major initiatives in industrial and other economic investments. Thus, from left to right, planning for development was the most obvious choice for the country after Independence. Soon after India became independent, the Planning Commission came into being. The Prime Minister was its Chairperson. It became the most influential and central machinery for deciding what path and strategy India would adopt for its development.
The Planning Commission is an outcome of:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → a joint proposal of setting up a planned economy drafted by a section of the big industrialists
Option (1) the joint proposal of the big industrialists to restrict the flow of capital — Incorrect. The industrialists’ proposal was for a planned economy, not for restricting the flow of capital.
Option (2) the joint declaration of the Congress party during independence — Incorrect. The proposal came from industrialists, not from a Congress declaration.
Option (3) joint declaration of the Congress party and the private industries ... — Incorrect. The proposal came from industrialists alone, not jointly with the Congress.
Option (4) a joint proposal of setting up a planned economy drafted by a section of the big industrialists — Correct. The Planning Commission was not a sudden invention: in 1944 a section of the big industrialists drafted a joint proposal for setting up a planned economy, the Bombay Plan.
NCERT (2025-26): “Planning Despite the various differences, there was a consensus on one point: that development could not be left to private actors, that there was the need for the government to develop a design or plan for development. … Thus the Planning Commission was not a sudden invention. In fact, it has a very interesting history. We commonly assume that private investors, such as industrialists and big business entrepreneurs, are averse to ideas of planning: they seek an open economy without any state control in the flow of capital. That was not what happened here. Rather, a section of the big industrialists got together in 1944 and drafted a joint proposal for setting up a planned economy in the country. It was called the Bombay Plan. The Bombay Plan wanted the state to take major initiatives in industrial and other economic investments. Thus, from left to right, planning for development was the most obvious choice for the country after Independence. Soon after India became independent, the Planning Commission came into being. The Prime Minister was its Chairperson. It became the most influential and central machinery for deciding what path and strategy India would adopt for its development.” |