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    Question

    A set of three statements regarding “The Bombay Plan’ are given below. Read each statement and answer whether each statement is true or false?

    Statement 1 : The Bombay Plan is the name commonly

    given to a World War II-era set of proposals for the development of the post-independence economy of India. Statement 2: The plan, published in 1944/1945 by eight leading Indian industrialists, proposed state intervention in the economic development of the nation after independence from the United Kingdom Statement 3 : Under the assumption that the fledgling Indian industries would not be able to compete in a free-market economy, the Plan proposed that the future government protect indigenous industries against foreign competition in local markets.
    A True, False, True Correct Answer Incorrect Answer
    B False, False, True Correct Answer Incorrect Answer
    C False, True, False Correct Answer Incorrect Answer
    D All are True Correct Answer Incorrect Answer
    E All are False Correct Answer Incorrect Answer

    Solution

    Titled ‘A Brief Memorandum Outlining a Plan of Economic Development for India’, the signatories of the Plan were Jamshedji Ratanji Dadabhoy Tata, Ghanshyam Das Birla, Ardeshir Dalal, Sri Ram, Kasturbhai Lalbhai, Ardeshir Darabshaw Shroff, Sir Purshottamdas Thakurdas and John Mathai.  The Plan went through two editions: the first was published in January 1944. This first edition became "Part I" of the second edition, published in 2 volumes in 1945 under the editorship of Purushottamdas Thakurdas. A key principle of the Bombay Plan was that the economy could not grow without government intervention and regulation. Other salient points of the Bombay plan were: •an active role by government in deficit financing and planning equitable growth,  •a transition from an agrarian to an industrialized society, and •in the event that the private sector could not immediately do so—the establishment of critical industries as public-sector enterprises while simultaneously ensuring a market for the output through planned purchases.

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