Jawaharlal Nehru, often seen as the founder of the modern Indian state, crafted a national philosophy with seven key objectives: national unity, parliamentary democracy, industrialization, socialism, development of scientific temper, and non-alignment. This philosophy underpinned many of his policies, benefiting sectors like public sector workers, industrial houses, and middle and upper peasantry. However, these policies did not significantly aid the urban and rural poor, the unemployed, and Hindu fundamentalists.^[26]

After the death of Vallabhbhai Patel in 1950, Nehru became the preeminent national leader, allowing him to implement his vision for India more freely. His economic policies focused on import substitution industrialization and a mixed economy. This approach combined government-controlled public sectors with private sectors.^[27] Nehru prioritized developing basic and heavy industries like steel, iron, coal, and power, supporting these sectors with subsidies and protective policies.^[28]

Under Nehru's leadership, the Congress party won further elections in 1957 and 1962. During his tenure, significant legal reforms were enacted to improve the rights of women in Hindu society^[29] and to address caste discrimination and untouchability. Nehru also championed education, leading to the establishment of numerous schools, colleges, and institutions like the Indian Institutes of Technology.^[30]

Nehru's socialist vision for India's economy was formalized with the creation of the Planning Commission in 1950, which he chaired. This commission developed Five-Year Plans based on the Soviet model, focusing on centralized and integrated national economic programs.^[31] These plans included no taxation for farmers, minimum wages and benefits for blue-collar workers, and the nationalization of key industries. Additionally, there was a drive to seize village common lands for public works and industrialization, leading to the construction of major dams, irrigation canals, roads, and power stations.