Read the following passage and answer the given questions.
The idea of planning as a process after independence of rebuilding economy led to the establishment of Planning Commission in 1950. But in era of globalisation in 21st Century, Planning Commission was becoming ineffective and irrelevant in coping up with challenges of development. Hence during Independence Day speech on 15 August 2014, Prime Minister Narendra Modi announced about abolition of Planning Commission. NITI Aayog was constituted in place of Planning Commission on 1 Jan 2015 with objective of providing necessary technical advice to Union Government.
After independence Planning Commission adopted model of development that was based on ______.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Socialist Model
Option (1) Liberal-Capitalist Model — Incorrect. This was the model of much of Europe and the US, one of the two models before India on the eve of Independence.
Option (2) Capitalist Model — Incorrect. In this model development is left to private actors and the market. There were very few supporters of the American style capitalist development in India then; the consensus was that development could not be left to private actors.
Option (3) Protectionist Model — Incorrect. Protectionism means shielding home industry from foreign competition by restricting imports. It is a trade policy.
Option (4) Socialist Model — Correct. Many leaders, Nehru among them, were deeply impressed by the socialist model of the USSR, and as in the USSR, the Planning Commission of India opted for five year plans.
NCERT (2026-27): “Ideas of development … On the eve of Independence, India had before it, two models of modern development: the liberal-capitalist model as in much of Europe and the US and the socialist model as in the USSR. You have already studied these two ideologies and read about the ‘cold war’ between the two super powers. There were many in India then who were deeply impressed by the Soviet model of development. These included not just the leaders of the Communist Party of India, but also those of the Socialist Party and leaders like Nehru within the Congress. There were very few supporters of the American style capitalist development.… The Early Initiatives … As in the USSR, the Planning Commission of India opted for five year plans (FYP).…” |