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The Avadi Resolution was a landmark resolution adopted by the Indian National Congress (INC) at its 60th session held in Avadi, near Chennai (then Madras), in January 1955. The resolution declared that the objective of the Indian National Congress was the establishment of a "socialistic pattern of society" in India. This marked a significant ideological shift towards socialism in post-independence India's economic policy and laid the foundation for a mixed economy with a strong public sector emphasis.^[1][2]

The session was presided over by U. N. Dhebar, with S. Ambujammal as the chairperson of the reception committee, with the Prime Minister of India, Jawaharlal Nehru played a key role in presenting and advocating for the resolution. The Avadi session came shortly after Parliament had accepted the "socialist pattern of society" as a national objective in December 1954. The resolution was built on earlier Congress commitments, but explicitly committed the party to socialist principles. It emphasized planned economic development to achieve social justice, reduce inequalities, and raise living standards.

Though a satellite region of Chennai, Avadi was selected for being one of the busiest industrial areas of the region. With major factories being housed there.

The resolution stated that planning should aim on establishing a socialist pattern of society, where the principal means of production are under social ownership or control.^[3] It advocated for:

1. Rapid industrialization with a focus on heavy industries.
2. Expansion of the public sector in key areas.
3. Equitable distribution of wealth and opportunities.
4. A mixed economy where the private sector would operate within the framework of national planning.

Nehru, in his address, clarified that this was not absolute socialism but a "socialistic pattern" suited to India's conditions and uniqueness, distinguishing it from rigid communist models.^[4] The resolution influenced the Second Five-Year Plan (1956–1961), which adopted the Mahalanobis model emphasizing heavy industry and public sector growth.^[5]

The Avadi Resolution paved the way for the Industrial Policy Resolution of 1956, which categorized industries into public, private, and joint sectors, reserving key industries for the state. It solidified socialism as a core element of Indian National Congress and its ideology and influenced India's economic policies for decades, promoting public sector undertakings, land reforms, and welfare measures. The phrase "socialistic pattern of society" reflected India's commitment to a mixed economy rather than full nationalization. This approach was later echoed in the Constitution (though "socialist" was explicitly added to the Preamble in 1976 via the 42nd Amendment). The resolution also had international dimensions, with separate calls for nuclear disarmament and peace initiatives. Critics later argued that it contributed to excessive state control and inefficiencies, leading to the economic liberalization of 1991, seen by some as a departure from the Avadi vision.^[6]