CUET Preparation Today
What did the Bombay Plan propose for India's economy? |
Open economy without state control Increased government involvement in economic investments Very limited role of the government in industrial initiatives Complete reliance on private investors for economic growth |
Increased government involvement in economic investments |
The correct answer is Option 2 - Increased government involvement in economic investments The Bombay Plan : 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. |
