The Bombay Plan And Its Predecessor Attempts

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2.2 The Bombay Plan and its Predecessor Attempts The Bombay Plan had the most important share in the establishment of an independent economic policy in the Post-colonial Period. India earned its independence from Great Britain in 1947 and starting with this date, it mainly focused on restoration of the economy via centralization. For centralization process, an economic model that was inspired by Soviet Union called “Five Year Plan” was developed and was accepted by the Indian the Government in 1952. (Lokanathan, 1945). Another part of the Five Year Plan was to intensify irrigation infrastructure such as watering systems for agricultural activities, which preserved the remarkable majority of Indian economy. Furthermore, in the context of this plan; scientific investigations, including space and nuclear programmes were additional fields that India paid attention similar to the Soviet Union. Nonetheless; economy of India did not correspond all these attempts immediately because of previous excessive investments in defense industry that aimed to enhance resistance to Colonial Rule. The main problems were inadequacy in generation of asset and qualified people along with required improved facilities. Due to these scarcities of sources; for 28 years (1951-1979) Indian economy yielded 3% annual average increase and this growth rate reflected as fixed low charges during all this period. Given the returns of the Five Year Plan; industrial and agricultural activities yielded 4.5%

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