While the Indian business leaders and the socialistic elites both wanted a

planned economy, they couldnt agree on a common agenda. Why was so and
what were the differences?
At the end of first world war, the demand for the protectionism increased
further championed by V.C.Kale, Venoy sarar, K.!."hah etc. #y $%&' e(ery
country was concerned with planning. )ormation of )ICCI presided by
*.+.#irla and ,.!haurdas, ga(e the planning mo(ement an impetus.
,rominence of capitalism.
In India indigenous capitalism had to de(elop under the aegis of colonialism
from scratch. Industriali-ation through planning would raise the standard of
li(ing and purchasing power, thus propelling industriali-ation further. .,C with
national congress and subhash bose in $%&/. !ill now there was no socialism.
0ater .ehru started stressing the fact that planning was in fact a step towards
the socialism in India.
.,C consisted of politicians, scientists, economists and leaders of Indian
business organi-ations. #ig #usinesses 1oined co- they felt they would
protect their interests better from inside than outside. 2n the other hand
socialists and *andhians were opposed to large3scale industriali-ation.
4ole of state in #ig #usiness. Key industries were debatable. It was decided
that future planning would be towards large scale industriali-ation, but would
lea(e much space for the capital to grow. 5a1ority said ey industries should
be state owned, but the business group differed.
+uring "econd World War, the economy was boosted pro(iding war3
necessities. Indian #usiness leaders collaborated with ,os3War
4econstruction Commissioning, co- they wanted to e6ert influence from
inside. 7uit India mo(ement was crushed so socialists and professional
e6perts did not 1oin in.
#ritish wanted to start the planning commission to ha(e sympathy among the
worers and peasants to wean them away from .ational mo(ement. !his
planning commission was secretly concei(ed, chaled out and financed by
!ata, birla, ,.!haurdas etc. 8#ombay ,lan9 was prepared.
,lanning commission did not (indicate capitalism, and it was agreed that the
state should 8lay down a general plan for the de(elopment of industries, and
its control should carry with it an obligation to assist industries where such
assistance was needed.9
In agriculture they suggested cooperati(e firming but failed to come up with
some concrete measures and planning.
.ot only the entire customer goods industry, but also some industries where
pri(ate enterprising would be profitable should be ept free from state
inter(ention. .ehru initially supported this (iew. Almost entire large scale
industries would be brought under central control.
After independence, .ehru formed planning commission, where no business
tycoons were in(ited. !heir #ritish association had ired many socialists.
Congress had mobili-ed the popular discontent against Indian capitalism to
bolster its election campaigning.
Suggested Reading: 228-250 (Thats HUGE!!!!!!!!!!!!!)