Q.Read the passage given below carefully and answer the questions that follow : It is not necessary that all planning always has to be centralised; nor is it that planning is only about big industries and large projects. The ‘Kerala Model’ is the name given to the path of planning and development charted by the State of Kerala. There has been a focus in this model on ............... . Despite low per capita incomes, and a relatively weak industrial base, Kerala achieved nearly total literacy, long life expectancy, low infant and female mortality, low birth rates and high access to medical care.
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Start your 14-day free trial to unlock the full solution →The Kerala Model and Decentralised Planning
Centralised planning concentrates decision-making at the national or state level, while decentralisation shifts power to local bodies; Kerala's development model prioritised human development—education, health and social welfare—over heavy industrialisation, achieving remarkable social indicators despite modest economic growth.
Understanding centralised planning
Centralised planning refers to a system in which all major economic decisions—what to produce, how much to invest, where to locate industries, how to allocate resources—are made by a single authority at the national or state level. In India's early decades after independence, the Planning Commission in New Delhi designed Five Year Plans that determined priorities for the entire country. State governments and local bodies had little autonomy; they implemented directives handed down from above. This approach allowed for coordinated action on large projects like dams, steel plants and national highways, but it also meant that local needs and conditions were often overlooked.
Why decentralisation works better
Decentralisation transfers planning authority and resources to local governments—panchayats in villages, municipalities in towns. Two clear advantages stand out.
First, local bodies understand ground realities. A village council knows whether the community needs a new well, a school building or a health clinic far better than a planner sitting in a distant capital. Decisions become more relevant and responsive to actual needs, reducing waste and mismatch.
Second, decentralisation deepens democracy. When people participate directly in planning—attending gram sabhas, voicing priorities, monitoring spending—they hold officials accountable and develop a stake in outcomes. Power is no longer remote; it becomes something citizens can see, touch and influence in their daily lives.
The 73rd and 74th Constitutional Amendments in the early 1990s gave constitutional status to panchayats and municipalities, marking India's formal shift toward decentralised governance.
The Kerala Model: a different path
Kerala chose a distinctive route. Instead of pouring resources into heavy industry and large infrastructure projects—the hallmark of centralised planning elsewhere—the state focused on human development. Two areas received sustained attention and investment.
Education was the first pillar. Kerala expanded primary and secondary schooling, especially for girls, and invested in teacher training and literacy campaigns. The result was near-universal literacy, a rarity in India at the time and a foundation for everything that followed. …
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