After independence the Indian Government, had to deal with poverty, and had to build a modern technical and industrial base. They needed to build a base that would ensure economic growth and development in the country. So a planning commission was set up in 1950.
It used the mixed economy model that involved both the state and the private sector. The roles and responsibilities of the state and the private sector were defined by the Planning Commission.
This commission was responsible for formulating five-year plans that would focus on the effective use of resources available in the country. The first five-year plan of 1951 focussed on reducing poverty in the country and boosting agriculture. The second five-year plan of 1956 focussed on the development of industries like steel, and the building of large dams.
For many decades, the economic policy focussed on heavy industry and state regulation of the economy. However, it failed to focus on agriculture, primary education and environmental implications. Modern India is an independent democratic nation with a free press and an independent judiciary. India still faces challenges related to discrimination, religious intolerance, and a huge disparity between the rich and the poor.