Central Economic Planning and India's Economic Performance : 1951-1965

The GDP growth rates recorded during the first 15 years of Indian planning are far higher than those recorded during the colonial era. The prevalent view amongst economists, therefore, is that the introduction of central economic planning caused a significant improvement in India's economic performance. This paper critiques this view. It argues that despite rather impressive GDP growth rates, the living standards of the masses stagnated during this period and thus the masses were not better off than they were under the colonial government. It also points out that, given the inherent economic irrationality of central planning, this period witnessed a massive misallocation of resources