The policy of the Congress Government led by Nehru was based upon the fact that there must be industrial development at all costs. Nehru wanted a country with Modern Large Scale Industries, a Large Army, a Strong Navy and Air Force and a socialist development in the country with "touch' of capitalism.
Gandhi, who was in favor of autonomous villages where Panchayats should perform the legislative, executive and Judicial functions, did not find any place in the government. The objection of Gandhi of developing large cities was rejected but Panchayati Raj with 'modifications' was accepted later.
A basic difference between Gandhi & Nehru's economic philosophies was that Gandhi wanted village as an independent unit, while Nehru wanted it a subordinate unit to a higher organization. Gandhi wanted a cottage based economy, Nehru dreamt of major Industries in India.