2026 · GS Paper 1 · Q13 · 15 marks

The model of planned economy was adopted in India to address the regional imbalances left behind by colonial rule. Comment.

In short

Planning did aim to reduce colonial regional imbalances, but regional balance ranked below rapid industrialisation and self-reliance. Steel plants at Bhilai, Rourkela and Durgapur and the 1969 Gadgil formula helped, while freight equalisation and the Green Revolution widened gaps.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Colonial rule left industry clustered in the port enclaves of Bombay, Calcutta and Madras, with railways tying raw-material hinterlands to them. Planning, rooted in Naoroji's economic nationalism, sought to correct this, but regional balance was only one aim among several.
How Planning Targeted Colonial Regional Imbalances
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Stated objective

The Industrial Policy Resolution of 1956 called for progressively reducing regional disparities, and the Third Plan made balanced regional development an explicit goal.

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Hinterland steel

The Second Plan placed steel plants at Bhilai, Rourkela and Durgapur in the backward mineral belt rather than in the colonial port cities.

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Needs-based transfers

The 1969 Gadgil formula weighted central assistance for backwardness and created special category states.

Why Regional Balance Was Not the Driving Aim
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Growth came first

The Mahalanobis model prioritised heavy industry and self-reliance, so national capacity, not regional equity, decided most investment.

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Freight equalisation

The 1952 policy eroded the mineral advantage of Bihar, Odisha and West Bengal until 1993.

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Green Revolution skew

Punjab, Haryana and western Uttar Pradesh pulled ahead, private capital stayed in Maharashtra and Gujarat, and Ashish Bose's term BIMARU in the 1980s showed persisting backwardness.

Way Forward
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Outcome targeting

The Aspirational Districts Programme (2018) and need-based Finance Commission formulas can direct effort to the most backward pockets.

Conclusion
Planning did inherit the task of undoing colonial regional distortion and left steel towns and transfer formulas as proof, but it ranked balance below growth and self-reliance, so the imbalance was softened, not erased.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn map: Colonial ports and planned steel towns. Marked: Mumbai, Kolkata, Chennai, Bhilai, Rourkela, Durgapur, Ranchi.
Map: Colonial ports and planned steel towns
Hand-drawn diagram: Priorities of Nehruvian Planning. Priorities of Nehruvian Planning. Pyramid, top to bottom: Rapid industrialisation, Self-reliance, Growth with equity, Regional balance
Diagram: Priorities of Nehruvian Planning

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Administrative and Socio-Economic Reorganization4 questions

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Question from the official UPSC Civil Services (Main) Examination 2026 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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