Module 8: An argument for modernization and development
  Lecture 23: Modernization and Development in Post-independence India: Nehruvian Model of Industrial Socialism

The plan suggested a number of strategies:

  • Unemployed manpower should be drawn upon to the maximum for the development programme;

  • Money incomes in the initial stages should be expanded as little as possible;

  • Capital formation should be speeded up and technical efficiency improved so as to increase productivity of labour;

  • The rate at which equipment in established indigenous industries, especially those which employ large numbers, is allowed to be competed out and discarded must be adjusted so as to safeguard against excessive unemployment in the process of technological change; and, lastly,

  • The distribution of capital in new lines should be planned keeping in view/ the need to increase employment opportunities in the short run as well as the larger pattern of development necessary for an expanding economy.