> ## Content Index > Fetch the complete content index at: https://www.upscprep.com/llms.txt > Use this file to discover other available public pages before exploring further. # Previse 2025: Economy Planning Models - URL: https://www.upscprep.com/planning-in-india-bombay-plan-peoples-plan-mahalanobis-plan-wage-good-model-gandhian-plan-upsc/ - Published: 2024-05-11T10:09:53.000Z - Updated: 2025-05-01T06:00:11.000Z - Description: GS3 | Economic Development - Author: UPSCprep.com - Tags: Previse 2025, UPSC Prelims, UPSC Mains, #show-toc The UPSC Civil Services Examination demands a keen understanding of economic concepts and their role in shaping a nation's development trajectory. This section explores some key economic plans, enabling you to navigate complex policy discussions and formulate well-informed strategies. ![Planning in India | Economic Models | India | Economic History | UPSC](https://storage.ghost.io/c/92/07/9207d054-5e99-4b26-b8c8-424994497a07/content/images/2024/05/image-49.png) ### **Bombay Plan** - A group of influential business leaders drew up a plan for the economic development of India in Bombay. - **J. R. D. Tata** and **G. D. Birla** initiated it, and other industrialists like **P. Thakurdas**, **Kasturbhai Lalbhai**, **Ardeshir Dalal**, **A. D. Shroff** and **Dr. John Matthai** were also part of it. - In 1944, FICCI endorsed the Bombay Plan, which had a balanced economy and a raised standard of living as principal objectives. - Minimum living standards were on the basis of well-balanced food, clothing and housing along with elementary education, sanitation, water supply, village dispensaries and hospitals. - Share of agriculture, industry and services in total GDP is to be changed from 53, 17 and 22 percent, respectively, to 40, 35 and 20 percent. ![Bombay Plan for India’s economic development | industrialists and technocrats | India | UPSC](https://storage.ghost.io/c/92/07/9207d054-5e99-4b26-b8c8-424994497a07/content/images/2024/05/image-45.png) ![Bombay Plan for India’s economic development | industrialists and technocrats | India | UPSC](https://storage.ghost.io/c/92/07/9207d054-5e99-4b26-b8c8-424994497a07/content/images/2024/05/image-46.png) --- ### **People's Plan** - This plan was put forth by **M N Roy** and drafted by the Post- War Reconstruction Committee of the Indian Federation of Labour. - Its aim was to satisfy immediate basic needs of Indians within a period of ten years by expanding production and equitable distribution of the goods. - Though the focus was on every sphere of economic activity, the main emphasis was on agricultural development as it would have improved the purchasing power of the people. - Plan formulated nationalization of land, scaling down of rural indebtedness, extension of the area under cultivation and intensification of cultivation. - It also prioritized manufacture of consumer goods and improvement of railways, roads and shipping in a planned economy. ![Peoples Plan For Economic Development Of India | M N Roy | India | UPSC](https://storage.ghost.io/c/92/07/9207d054-5e99-4b26-b8c8-424994497a07/content/images/2024/05/image-47.png) ![Peoples Plan For Economic Development Of India | M N Roy | India | UPSC](https://storage.ghost.io/c/92/07/9207d054-5e99-4b26-b8c8-424994497a07/content/images/2024/05/image-48.png) --- ![](https://storage.ghost.io/c/92/07/9207d054-5e99-4b26-b8c8-424994497a07/content/images/2024/05/1.-UPSCprep-Banner-12.png) [Join Now](https://courses.upscprep.com/products?ref=upscprep.com) --- ### **Sarvodaya Plan** - This plan was inspired by the Gandhian Plan, presented by **Vinoba Bhave** and drafted by **Jaiprakash Narayan**. - It emphasized the importance of agriculture and village industries, especially small-scale textile and cottage industries. - The plan recommended the Luddite approach and was gloomy towards foreign technology. - It also stressed upon land reforms and decentralized participatory people planning. ![Vinoba Bhave | UPSC | Sarvodaya Plan](https://vajiramandravi.s3.us-east-1.amazonaws.com/media/2022/9/12/11/43/41/vinobaaaa.jpg) ![Jayaprakash Narayan: Total revolutionary | UPSC | Sarvodaya Plan](https://akm-img-a-in.tosshub.com/indiatoday/images/story/202108/Freedom-Politics-New-Aug30-9.jpg?size=690:388) ****Vinoba Bhave** and ****Jaiprakash Narayan** --- ### **Feldman Mahalanobis Model** - The Feldman Mahalanobis model is a Neo Marxist economic development model by Soviet economist **G. A. Feldman** and Indian statistician **Prasanta Chandra Mahalanobis** in 1953\. - It focuses on building up a domestic consumption goods sector by shifting from industrial investment based development. - For increasing consumption, investment in production of capital goods is a priority. - The first five-year plan was based on the premise that production required capital and capital can be accumulated through investment. - Mahalanobis criticized it for undermining the inability to address real constraints of the economy like choice problems of planning over time. - Thus Mahalanobis introduced a two-sector model, which was later expanded into a four-sector version. ![June 29, is Celebrated as 'Statistics Day' in India | Indian statistician Prasanta Chandra Mahalanobis | UPSC | Feldman Mahalanobis Model ](https://pbs.twimg.com/media/FzwlBUZWIAIOEe1.jpg) ![Feldman Mahalanobis model is a Neo Marxist economic development model by Soviet economist G. A. Feldman and Indian statistician Prasanta Chandra Mahalanobis | UPSC ](https://www.isid.ac.in/~pcm125/Resources/Images/Mahalanobis/Cropped/1954-10-13.jpg) ![Mahalanobis Growth Model | UPSC](https://th-i.thgim.com/public/incoming/i5nwg5/article67020413.ece/alternates/FREE_1200/FL12__Patnaik.jpg) --- ### **The Wage Good Model** - Prominent economists **C N Vakil** and **P R Brahmananda** advocated the Wage Good model and differed from the Mahalanobis strategy. - They opined that productivity of the workers depends on how much they consumed and if people were undernourished, they would become less efficient. - To address this, they must be fed to increase their productivity. This is not true for all consumer goods, so they differentiated between Wage Good (whose consumption increased worker productivity) and Non-Wage Good (whose consumption did not). - For development, mechanization of agriculture and increase in food production is a must. ![Prof P.R..Brahmananda | The Wage Good Model](https://photos1.blogger.com/blogger/1692/3969/1600/prbmanmo.jpg) ![In 1956, C. N. Vakil and P. R. Brahmananda provide an alternative to Mahalanobis's development approach. | The 1991 Project | The Wage Good Model | UPSC](https://the1991project.com/sites/default/files/2023-08/brahmananda.jpg) ![Planning For An Expanding Economy by C.N Vakil: Good (1956) | UPSC](https://pictures.abebooks.com/inventory/31221928104.jpg) --- ### **Five Year Plans** - The five-year plan was a method of planned economic growth, first in the Soviet Union and later in India after 1951\. - The **12th five-year plan ended in 2017** after which the five-year plans were terminated and replaced by the NITI Aayog’s 3-year action agenda, 7-year strategy paper and 15-year vision document. ![Five Year Plans | Indian Economy | UPSC ](https://images.livemint.com/r/LiveMint/Period1/2013/03/15/Photos/g_planning_web.jpg) ## Sign up for UPSCprep.com Simplify your UPSC journey Subscribe Email sent! Check your inbox to complete your signup. No spam. Unsubscribe anytime.