The Bombay Plan- In January 1944, just three years before Indian Independence, a document was published, that caused great consternation and concern amongst the British rulers of India. This pamphlet was priced at exactly One Rupee, and immediately attracted a lot of attention.

It had to be reprinted a couple of times in India during the same year. Within a few months, Penguin also published it in the United Kingdom. What was this document, and why did it create all these ripples ?

This was a comprehensive plan for the economic development of India, soon to be called the “Bombay Plan”, and it was authored by eight people. Because two of the authors were JRD Tata and G.D. Birla, it was also nicknamed in some circles as the Tata-Birla Plan

It was a bold plan that called for massive investments in the industrial development of the country. In fact, it was the first ever national economic plan for India.
Lord Wavell, then Viceroy of India, was disturbed enough by this plan & wrote to the Secretary of State in London.

In his 1st letter, sent immediately after the plan had been published, he said – “A considerable stir has been created by the Rs. 10,000 crores economic plan for India.”In May 1944, in a “Private&Secret” letter, he added – “I see the Bombay Plan has come out in the Penguin series

Sir Gregory, who takes criticism very much to heart,thought we should at once produce a rival pamphlet & broadcast it through the India office…”
Clearly,the British had been stung by the fact that Indians had moved far ahead of them, in thought leadership for the future of India

This thought leadership emanated from a stellar cast of eight Indian Industrialists and technocrats, who came together to build a plan for their beloved nation. Let’s take a quick look at who they were.
1. JRD Tata,who had taken charge as Chairman of the Tata Group,8 yrs earlier.

2. G.D. Birla, head of the Birla Group of industries, ten years older than JRD, and already a well-respected senior leader.
3. Lala Shri Ram, Chairman of the DCM Group of Delhi, also a progressive Indian businessman.

4. Kasturbhai Lalbhai, Ahmedabad based industrialist &educationist.
5. Purushottamdas Thakurdas, a Mumbai based businessman & also a Tata Director, credited with building business associations.  
6. Sir Ardershir Dalal
7. A.D. Shroff
8. Dr. John Mathai.
Last 3 were technocrats

JRD Tata has said – “I knew Independence (for our country) was bound to come…I knew the country’s economy would have to be tackled…that economic prosperity needed to reach not only the few but the many…businessmen and not only the Government should play a role.”

Other factors behind this initiative were- First, the constant British refrain that Indians would not be able to plan for themselves, or govern their own country. And second, the fact that the British Government did not have a long-term economic plan for India’s future.

Here are JRD’s words of praise for Birla (extract from JRD Tata’s biography, by RM Lala) :
“G.D. Birla was a man of high intelligence &knowledge. When we were floundering to find a structure in the first few meetings, it was he who suggested –

It is difficult to forecast what India should do after being free…so let’s do it this way –1st estimate to get the people the kind of standard of living they want.What is needed ? So many calories of food requiring so many tons of grain, so many metres of cloth,housing, schools”

This quantitative approach to planning is found throughout the pages of the Bombay Plan. For instance, the plan points out that a large proportion of Indians were not getting enough food to eat, despite India being an agricultural country.

It then builds a plan for food supplies which takes into account a well balanced nutritive diet of 2,600 calories per adult person per day – and actually goes on to detail the weight of cereals (16 ounces), pulses (3 ounces), vegetables (6 ounces), fruits (2 ounces),

Milk 8 ounces) that would hence be need for this purpose. And finally, it calculates that an annual expenditure of Rs. 2,100 crores would be required to deliver this nourishment to India’s then population of 389 million people.

Having set a total requirement of Rs. 10,000 crores for food, clothing, housing, education &industry, the Bombay Plan outlines the various sources of funds which could be used. Interestingly, the first source of fund it highlights is the hoarded wealth of the country,mainly gold

In addition, it calls for funding from sterling securities held by the Reserve Bank of India, favourable balance of trade, foreign borrowings, national savings, heavier taxation of unearned income, and, finally, new money to be printed by the Government.

The Bombay Plan put forward a framework for rapid development of basic industries like power,mining,engineering, armaments & transport ; as well as consumer industries such as textiles, glass, leather&oil. Here was the 1st systematic approach to economic development of free India

The bold & imaginative 15-ur time frame Plan not only made the British jittery but also created a stir among Indian Gandhians who thought the plan was against Gandhi’s ideology. Conservative Indian businessmen considered it too far-fetched. Leftists found it reactionary.

JRD Tata defended by saying “That there should be wide-spread poverty and misery, in a country so naturally endowed by providence with manpower, talent and natural resources, is an intolerable paradox, and a disgrace”

There is no evidence that Jawaharlal Nehru, the 1st PM of India, ever regarded the Bombay Plan seriously enough. In 1986, R. Venkataraman, then Vice President of India recalled the Bombay Plan as one of JRD Tata’s key contributions to India..