The Bombay plan was a set of proposal of a small group of influential business leaders in Bombay for the development of the post-independence economy of India. This plan was published in two parts or volume- first in 1944 and second in 1945.
Objectives of the Bombay Plan
The prime objectives of the plan were to achieve a balanced economy and to raise the standard of living of the masses of the population rapidly by doubling the present per capita income within a period of 15 years from the time the plan goes into operation.
This plan envisages that the economy could not grow without government intervention and regulation. In other words, the future government protects indigenous industries against foreign competition in local markets.
People associated with the Bombay Plan
1. Mr. J. R. D. Tata
2. Mr. G. D. Birla
3. P. Thakurdas
4. Kasturbhai Lalbhai
5. Sir Shri Ram, Ardeshir Dalal
6. Mr. A. D. Shroff
7. Dr. John Matthai
The Bombay Plan offers a comprehensive vision of mass education, including primary, secondary and vocational and university schooling. It also made for adult education and scientific training and research. The plan emphasizes the importance of basic industries, but also calls for the development of consumption goods industries in the early years of the plan. Power heads the list of basic industries which are to be developed, followed by mining and metallurgy, engineering, chemicals, armaments, transport, cement and others.
But this plan was facing acute criticism because the plan had lacked by the capitalistic background. Most of the economists criticized the plan on technical grounds because the plan did not take into account the fact that creating capital had an inflationary effect, and with that, its authors had overestimated the capacity of the Indian economy to generate further capital.
Hence, we can say that the plan was in reality proposed for a dismantling of landlordism in the Indian economy. However, history shows that the Indian capitalist class did not offer any concrete assistance to what was then a strong movement for land reforms in the country.