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UPSC Mains 2026Question 13General Studies 1Economy250 words

The model of planned economy was adopted in India to address the regional imbalances left behind by colonial rule. Comment. (Answer in 250 words)

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- The model of planned economy was adopted in India to address the regional imbalances left behind by colonial rule. Comment. (Answer in 250 words)
Introduction
At Independence, India inherited a highly uneven economic geography, with colonial investment concentrated in port cities, plantations, mining belts and selected commercial centres. Planned development sought to reduce these regional disparities.
Body
How Planning Addressed Regional Imbalances:
1. Balanced Industrial Location:
Five-Year Plans promoted heavy industries and public-sector enterprises in relatively backward regions, such as Bhilai, Rourkela and Durgapur steel plants, creating new growth centres.
2. Infrastructure Development:
Large investments in dams, irrigation, power, roads and transport aimed to integrate underdeveloped regions with national markets. Projects like Bhakra-Nangal and Damodar Valley Corporation served this purpose.
3. Agricultural Development:
Community Development Programmes, land reforms and later the Green Revolution sought to increase rural productivity, although their benefits remained regionally uneven.
4. Fiscal Transfers:
Finance Commission transfers, Planning Commission assistance and special category status attempted to support fiscally weaker and geographically disadvantaged states.
5. Targeted Area Programmes:
Schemes such as Drought Prone Areas Programme, Hill Area Development Programme and Tribal Sub-Plan addressed region-specific disadvantages.
Limitations:
- Industrial licensing sometimes reinforced existing industrial centres.
- Green Revolution benefits were concentrated in Punjab, Haryana and western Uttar Pradesh.
- Weak governance and inadequate infrastructure limited outcomes in eastern and central India.
- Consequently, inter-state disparities persisted despite planning.
Conclusion
Thus, the planned economy was consciously used to correct colonial regional inequalities through public investment and redistribution. However, uneven implementation and differing state capacities meant that regional imbalance was moderated, not eliminated.
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