Mr. M.R.Masani's speech in the course of the discussion on the Third Five Year Plan in the Lok Sabha on Aug.24,60.

Summary

In this 24 August 1960 Lok Sabha speech, M. R. Masani supports a substitute motion opposing the Third Five Year Plan and argues that its planning model over-centralises economic power. He rejects the depiction of opponents as advocates of unregulated laissez-faire, distinguishing the Swatantra Party’s position—regulated free enterprise, protection for weaker groups, and maximum individual freedom—from both Soviet-style collectivism and an entirely unregulated economy. He also argues for a balanced development strategy in which heavy industry is not prioritised at the expense of agriculture, light industry, cottage industry, and consumer goods. Masani uses the proposed fourth steel plant as an example of what he regards as premature and inefficient capital allocation.

Key points

• Masani presents the Swatantra Party as supporting regulated free enterprise rather than laissez-faire or unrestricted private power.
• He criticises the National Planning Commission as an extra-constitutional concentration of economic decision-making.
• He argues that planning should preserve a larger role for individual savings, agriculture, and light industries instead of directing most resources into the public sector.
• He opposes the proposed fourth steel plant as premature, capital-intensive, and unlikely to generate adequate employment or export demand.
• He challenges the Third Plan’s projected five per cent annual increase in national income and its assumptions about domestic savings and foreign aid.
• He treats inflation as a policy-created burden that reduces purchasing power and transfers resources from the public without transparent taxation.
• He concludes that the Plan asks the present generation to sacrifice excessively for uncertain future benefits and urges Parliament to reject it.