ABSTRACT
At the dawn of India’s independence, the country’s leaders were divided in terms of economic orientation that should guide and govern the new state in its policies. The Congress Party had been at the vanguard of the country’s struggle for independence and had been funded by the houses of Birla and Bajaj, Thackersey and Dalmia, to name only a few. Even before planning began formally, India announced its industrial policy on April 6, 1948, which was to remain in force until the major policy enunciation of October 30, 1956. The latter prevailed, in essence, until the economic liberalization of 1991. The First Five Year Plan was a “successful failure.” It achieved its target, but the target was very low, both in itself and in relation to the actual rate of growth of population, which was far higher than assumed growth. By the launching of the Third Five Year Plan, the Planning Commission was alarmed by the figures of population increase.
