Prologue continues .....

India’s anti-colonial struggle and Pandit Nehru’s stewardship of the Government for a long period gave a socialist orientation to the developmental strategy adopted for the country. The Avadi session of the

Indian National Congress in 1955 adopted a socialistic pattern of society for India as the goal. There was opposition to it from a certain section in the Congress which represented the industrial and big business lobby.

However, the stature and moral authority of Nehru could ensure that the

party adopted the resolution.

The Indian National Congress being an inclusive organization contained within it divergent views on economic development of the country. Pandit Nehru was in favour of planned development where the

commanding heights of the economy would be held by the public sector.

Even before Independence, the Congress Party on the urging of Nehru had started debating this issue seriously. As a matter of fact, a Planning Committee was set up by the Congress as early as in 1938 representing different views on the economic development of India. The Industrial Policy Resolution adopted by Parliament in 1956 was an important milestone in the industrial development of the country.

This resolution laid stress on

the leading role to be played by the public sector in the industrial development of India. All the infrastructure industries requiring heavy investment were set up in the public sector. In the philosophy of the public sector the concept of social obligation was also integrated. Thus, employment generation became a key requirement to be met by this sector. Great steel mills were set up; defence production units were set up; huge irrigation dams were built; and power-generation units were set up, all in the public sector. Thus, the public sector occupied the commanding heights of the economy.

To be continued...