Question

List two models of development and give reason for the model adopted by India.

Answer 1

On the eve of independence, India had before it two models of modern development:

1. The liberal capitalist model is used in much of Europe and the US, and the socialist model is used in the USSR. 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.
2. There were very few supporters of American-style capitalist development. This reflected a broad consensus that had developed during the national movement. The nationalist leaders were clear that the economic concerns of the government of free India would have to be different from the narrowly defined commercial functions of the colonial government. It was clear, moreover, that the task of poverty alleviation and social and economic redistribution was being seen primarily as the responsibility of the government. There were debates among them. For some, industrialization seemed to be the preferred path. For others, the development of agriculture and, in particular, the alleviation of rural poverty was the priority. India adopted neither the capitalistic model nor the socialist model. India adopted the 'Mixed Economy.