Post independent India adopted a mixed economic system. It was a combination of both socialist and capitalist system. It focused on the development of public sector. The government under Jawaharlal Nehru adopted many projects aimed at economic development. The projects gave importance to centralised planning.

Economic planning got impetus after independence. The Planning Commission of India was constituted in 1950 with Prime Minister Jawaharlal Nehru as Chairman. Planning Commission devised many projects for economic progress. Five Year Plans were the projects implemented by the Planning Commission aimed at the economic progress of the country. Five Year Plans launched in 1951 strengthened India’s agricultural and industrial sectors.

They also helped to eradicate poverty, improve education and generate new energy sources. The most significant achievement of the plans was the self sufficiency in food production and eradication of poverty. India received assistance from foreign countries to set up iron and steel industries. Major dams were constructed for irrigation and electricity.