At the time of Independence, India had before it two models of modern development: the liberal-capitalist model as in Europe and the US, and the socialist model as in the USSR. There were many in India who were deeply impressed by the Soviet model, including leaders of the Communist Party, the Socialist Party, and leaders like Nehru within the Congress. There were very few supporters of the American style capitalist development.

Despite various differences, a broad consensus developed during the national movement. The nationalist leaders agreed that the economic concerns of free India would be different from the colonial government. Poverty alleviation and social and economic redistribution were seen as the primary responsibility of the government.

However, debates existed among leaders. For some, industrialisation was the preferred path for development. For others, the development of agriculture and rural poverty alleviation was the priority.

Despite these differences, there was consensus on one point: that development could not be left to private actors, and that the government needed to develop a design or plan for development.

The debate has not been resolved. The contestation around development has continued ever since. Development has different meanings for different sections of people. For example, development means different things to an industrialist, an urban consumer, and an Adivasi living in the region. Thus, any discussion on development generates contradictions, conflicts and debates.