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 sar ar, K.!."hah etc. #y $%&' e(ery country was concerned with planning. )ormation of )ICCI presided by *.+.#irla and ,.!ha urdas, 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 wor ers and peasants to wean them away from .ational mo(ement. !his planning commission was secretly concei(ed, chal ed out and financed by !ata, birla, ,.!ha urdas 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 ir ed many socialists.

Congress had mobili-ed the popular discontent against Indian capitalism to bolster its election campaigning. Suggested Reading: 228-250 (Thats HUGE!!!!!!!!!!!!!)