economics easy MCQ

The 'Bombay Plan', drafted in 1944 by leading Indian industrialists, primarily advocated for:

  1. Complete laissez-faire capitalism with zero state intervention
  2. A rapid transition to a fully agrarian, decentralized village economy
  3. Significant state intervention and public sector investment in heavy industries and infrastructure
  4. Immediate integration with the global free trade market

Answer: Significant state intervention and public sector investment in heavy industries and infrastructure

Authored by industrialists like J.R.D. Tata and G.D. Birla, the Bombay Plan surprisingly argued that the private sector lacked the massive capital required for post-independence reconstruction. It advocated for a strong, interventionist state to drive investments in heavy industries, infrastructure, and social services, heavily influencing India's subsequent mixed-economy and Five-Year Plan models.

Topic Indian Economy - History
Exam Relevance UPSC Prelims, SSC CGL
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