Subhash Chandra Bose established the National Planning Committee in 1938 under the chairmanship of Jawaharlal Nehru with the goal of setting up an economic plan with the core goal of ensuring a sufficient standard of living for the masses. In this article, we will study about the National Planning Committee which is important for the UPSC examination.

What is the National Planning Committee (1938)?

• The National Planning Committee was established in India in 1938 by Congress President and Indian National Army supreme leader Netaji Subhash Chandra Bose, and later on by Jawaharlal Nehru.
• The formation of a fifteen-member National Planning Committee followed, with the Committee emphasising in a memorandum that national independence is an indispensable main condition for taking all steps that may be found necessary for carrying out the plan in all of its various elements.
• The Indian National Congress established a National Planning Committee near the end of 1938, nine years before independence, to emphasise the importance of social and economic goals as well as the necessity to learn from other countries' experience with planned development through national plans.
• At pre-war prices, the Committee considered the irreducible minimum income to be between Rs. 15 and Rs. 25 per capita per month.
• Several subcommittees were formed by the National Planning Committee to explore various elements of the national economy. It was the first attempt by the Indian people to evaluate the country's underlying economic problems and devise a coordinated plan for the people's upliftment.
• The National Planning Committee (1938) submitted the reports on the following topics
  • Economic policy
  • Central planning
  • Economic development
  • Industrialization
  • Automobiles Industry
  • Labor laws and legislation
  • Rural development
  • Cottage industries
  • Public Finance

Conclusion

The mission of the National Planning Committee is to create an economic plan with the primary goal of ensuring a sufficient standard of living for the public. The Committee estimated the irreducible minimum income at pre-war prices to be between Rs. 15 and Rs. 25 per capita per month.

FAQs

MCQs

1. Who was the chairman of the National Planning Committee formed in 1938?

A. Subhas Chandra Bose
B. Jawaharlal Nehru
C. B.R. Ambedkar
D. Vallabhbhai Patel

2. Which political leader was responsible for setting up the National Planning Committee?

A. Mahatma Gandhi
B. Subhas Chandra Bose
C. Jawaharlal Nehru
D. Rajendra Prasad

3. Which of the following sectors was NOT a focus of the National Planning Committee?

A. Agriculture
B. Defense
C. Industry
D. Education

4. What was one of the major outcomes of the work of the National Planning Committee?

A. Formation of the Indian Constitution
B. Creation of the Planning Commission in 1950
C. Launch of the Green Revolution
D. Establishment of the Indian National Congress

5. Why was the work of the National Planning Committee disrupted?

A. Internal disagreements among members
B. Lack of public support
C. Outbreak of the Second World War
D. Nehru’s resignation from the committee

GS Mains Questions and Model Answers

Q1: Analyze the significance of the National Planning Committee in shaping India's post-independence economic policies.

Answer: The National Planning Committee (NPC) played a significant role in shaping India’s economic policies after independence. Set up in 1938, the NPC laid the foundation for structured economic planning by addressing critical sectors like agriculture, industry, and education. The committee's recommendations for industrialization and self-reliance were adopted in post-independence India. The creation of the Planning Commission in 1950, which implemented Five-Year Plans, was directly influenced by the NPC’s work. The NPC was the first formal attempt to plan for India’s economic development, and it set the stage for India's pursuit of economic self-sufficiency and modernization.

Q2: Discuss the role of Subhas Chandra Bose and Jawaharlal Nehru in the establishment and functioning of the National Planning Committee.

Answer: Subhas Chandra Bose, as the President of the Indian National Congress, initiated the formation of the National Planning Committee (NPC) in 1938. Bose believed that planning was essential for India’s economic development and self-sufficiency. Jawaharlal Nehru, who chaired the NPC, was deeply influenced by socialist economic ideas and the Soviet model of planned economy. Nehru focused on industrialization as the key to India’s economic growth and played a crucial role in formulating strategies for sectors like agriculture, industry, and infrastructure. Both leaders' vision contributed to the NPC's focus on long-term economic planning, which shaped the post-independence Five-Year Plans.

Q3: Evaluate the challenges faced by the National Planning Committee and how they affected its functioning.

Answer: The National Planning Committee faced several challenges, the most significant of which was the outbreak of the Second World War in 1939. The war diverted resources and attention away from economic planning, limiting the NPC’s ability to implement its recommendations. Additionally, the British colonial administration did not fully support the NPC’s work, as their interests were aligned more with war efforts than with India’s economic development. Despite these challenges, the NPC managed to lay a strong foundation for future planning, and its work influenced India’s economic policies after independence.

Previous Year Questions on National Planning Committee

1. UPSC CSE Prelims 2019

Question: Which of the following was a key outcome of the National Planning Committee established in 1938?
A. Introduction of the Green Revolution
B. Establishment of the Planning Commission
C. Formation of the Indian National Congress
D. Launch of the First Five-Year Plan

Answer: B

Explanation: The National Planning Committee (NPC), formed in 1938, laid the groundwork for the establishment of the Planning Commission in 1950. The Planning Commission was crucial for designing and implementing India’s Five-Year Plans, which were aimed at systematic economic development post-independence.

2. UPSC CSE Mains 2020 (GS Paper 1)

Question: Explain how the National Planning Committee of 1938 contributed to India’s economic development strategies post-independence.

Answer: The National Planning Committee (NPC) of 1938 was instrumental in shaping India’s economic policies after independence. Despite its limitations under colonial rule, the NPC emphasized the need for industrialization, agricultural productivity, and self-reliance. These ideas influenced post-independence leaders like Jawaharlal Nehru, who adopted the NPC’s recommendations in formulating India’s Five-Year Plans through the Planning Commission. The NPC’s efforts laid the foundation for a structured approach to economic planning, focusing on poverty reduction, education, and industrial growth, which became central to India's economic strategy.