D.R. Gadgil: Cooperatives and Planning

How D.R. Gadgil led the Gokhale Institute, championed cooperatives, served as Deputy Chairman of the Planning Commission and created the Gadgil formula for sharing funds with states.

Dhananjay Ramchandra Gadgil (1901-1971) was a leading development economist.

Gokhale Institute

He led the Gokhale Institute of Politics and Economics in Pune, founded in 1930, a major research centre.

Cooperatives

Gadgil championed cooperatives as a path for rural development.
He helped build sugar cooperatives in Maharashtra.

Planning Commission

He served as Deputy Chairman of the Planning Commission from 1967 to 1971.

The Gadgil formula

In 1969, the Gadgil formula set how central plan assistance was shared among states, using population, income per person, tax effort and special problems.
It was a landmark in fiscal federalism.

Writings

The Industrial Evolution of India in Recent Times (1924) was an influential economic history.

The formula

Under the Gadgil formula, a poorer, populous state received more central plan funds than a richer, smaller one.

Thinking fund-sharing between states is arbitrary

Formulas like Gadgil's set objective criteria.

Key takeaways

Gadgil led the Gokhale Institute in Pune.
He championed cooperatives.
He was Planning Commission Deputy Chairman in 1967-71.
The 1969 Gadgil formula shared plan funds among states.