Which of the following tools did India adopt for economic development after gaining independence?

Correct option is C

The correct option is: (c) Centralised planning

• After gaining independence in 1947, India adopted acentrally planned economic modelto guide development through structured Five-Year Plans.

• The state took charge of resource allocation, production targets, and investment decisions to ensurebalanced economic growth and social equity.

• This planning model was influenced by socialist ideals and aimed at overcoming colonial economic backwardness through state-led initiatives.

• Planning Commission: Established in 1950 to formulate and oversee national plans.

• Focus Areas: Agriculture, industry, infrastructure, education, and public welfare.

• Planning Type: Top-down approach with clear national priorities.

• Duration: Centralised planning dominated till the early 1990s.

• Key Impact: Helped build a self-reliant economy and public sector foundation.

• Guiding Principles: Equity, poverty reduction, and import substitution industrialization.

• Privatisation: Introduced in the 1990s during economic liberalisation, not post-independence.

• Decentralised planning: Promoted much later for grassroots governance (e.g., Panchayati Raj).

• Liberalisation: Came in1991as part of New Economic Policy to open the economy.