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Soon after the independence, India opted for planned economic development. It was believed that it is economic development that will usher social and political development culminating into human development.
In a planned economy, state is perceived as active agent to promote and shape societies in various activities with the help of public policy. This expanded the scope of public policy from mere regulation to development. This lead to involvement of more governmental agencies and institutions to formulate and implement policies.
In India, this role was primarily taken up by Planning Commission to formulate policies and develop perspectives that could define the direction which country would follow. For all policy directions, the Five Year Plans (FYP) became the major source.
The policy was of two types – for regulation and promotion. While it regulated the scope for entrepreneurs and industrialists, the policies also promoted social change through acts like Dowry Act and Divorce Act.
The first major goal of public policy in India has been in the area of socio-economic development. Major policy formulation was done in the area of industrial and agricultural development.
In addition to socio-economic challenges, India also faced internal and external security threats. Regionalism, for example, have risen to fissiparous tendencies. This lead to formulation of defense policies to maintain national integration and create greater national cohesiveness.
However, formulating an all-encompassing policy in India has been a difficult process. By very nature, policies have been contradictory. What may be rational for economic development may not be so for national integration. Thus, the need for strong centre to cope with external threats is important but it may go against the principle of decentralization which provides for greater national cohesion of a heterogeneous society.
The Five Year Plans (FYPs) focused on key elements for development in India. For instance, while 1st FYP focused primarily on agriculture, second one aimed for massive industrialization of the country. In subsequent plans, focus areas included – industrial growth, agricultural productivity, defense expenditure, exports, public development expenditures, poverty, rural development, infrastructure, market reforms and social infrastructure among other things.