In the first part of the article attention was paid on the stagnation of the Indian economy as experienced during last centuries and leading to the submission to invaders and colonial dependence. Reformers, suggesting curative agents, were classified into two categories - modernists and critical traditionalists. Boths streams affected the political ideas of Jawaharlal Nehru - the close co worker and opponent of Mahatma Gandhi. In the second part of the publication the concept of economic development of this charismatic politician of the Congress Party and the first Prime Minister is outlined. The significant impact of experiences of Soviet and other socialists countries economic pathway upon creation of J. Nehru vision of development is indicated. Following their example, 5-year planning system played a crucial role in the formulation of economic policy. The leading branches of the national economy were reserved for the public sector and an attempts to collectivize agriculture took place. The attitudes towards private business were hostile. Enforcement of Nehru concepts resulted in over centralization of the country and slowing-down the speed of economic growth. The system designed by Nehru survived - in spite of some efforts to reform - until 1991 when the cabinet of Mr. N. Rao introduced a radical reform package.
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