2.1. Nature and Objectives of Planning

After Independence, India adopted a democratic ideology—representative form of government based on universal adult suffrage with rights and liberties for the masses. Democracy became central to the Indian model of development. There was unanimity among the leaders on the unique approach of India to planning within a democratic and civil-libertarian framework. It was believed that planning would create a democratic economy in the country by bringing the economy under public control. At the same time, in India's development strategy market and economic planning were regarded as complementary to each other. Development plans were to be formulated and carried out within the framework of a mixed economy that included the merits of both socialism and capitalism. A mixed economy was marked by the coexistence of private and public sectors, the latter remaining confined to infrastructure and basic and heavy industries.

The basic objectives of planning were derived from the Directive Principles of State Policy enshrined in the Constitution. These basic objectives provided the guiding principles of planning in India. These spelt out as: (i) economic growth— accelerating the growth to achieve higher level of national and per capita income; (ii) modernization—implementing structural and institutional changes to make the economy progressive and independent; (iii) self-reliance— eliminating dependence on foreign aid and India's vulnerability to external pressures and disturbances; and (iv) social justice—improving the living standards of the masses, especially the underprivileged through deduction in income inequalities, removal of unemployment,

elimination of poverty, land reforms and social programmes on health and education. Overall, growth and social justice formed the economic and social framework of planning. With this perspective, the Planning Commission was set up in 1950 by a government resolution to formulate a plan for economic and social development and to act as an advisory body to the Union government in its behalf. The National Development Council was formed later as an adjunct to the Planning Commission to associate the states in the formulation of plans.