ECONOMIC PLANNING IN INDIA IN DETAILED.

Economic Planning ?

• Economic Planning is a term used to describe the long term plans of government to co-ordinate and develop the economy with efficient use of resources.

• Economic planning is the making of major economic decision, what and how much is to be produced, and to whom it is to be allocated by the conscious decision of a determinate authority, on the basis of a comprehensive survey of the economic system as a whole.

• Planned economy’ is one in which each production unit (or firm) uses only the resources of men, materials and equipment allocated to it by quota and disposes of its product exclusively to persons or firms indicated to it by central order. 

• Planning sometimes means any setting of production targets by the government, whether for private or public enterprise. 

• Economic planning in India was stared in 1950 after independence, it was deemed necessary for economic development and growth of the nation. 

Features of economic planning in India

➢ Major features of economic planning are as follows:

 • (i) It is concerned with survey and diagnosis of the present economic scenario. • (ii) It defines policy and objectives to be achieved in future. 

• (iii) It presents a macroeconomic projection for the whole economy.

 • (iv) It formulates strategies through which objectives are to be achieved.

 • (v) It guides and directs the economy along with the path of growth and development

Milestones of economic planning in India

➢The Industrial Policy Statement published just after independence in 1948 recommended setting up of a Planning Commission and following a mixed economic model 

• Setting up of the Planning Commission: 15 March 1950 

• First Five Year Plan: 9 July 1951 

• Dissolution of the Planning Commission: 17 August 2014

 • Setting up of NITI (National Institution for Transforming India) Aayog: 1 January 2015 

Types of Economic Planning in India 

• 1. Comprehensive Planning

 • 2. Decentralized Planning:

 • 3. The Long Period Plan:

 • 4. The Short Period Plan:

Objectives of Economic Planning in India

• Economic Development: 

 • Increased Levels of Employment.

 • Self Sufficiency • Mixed Economy

 • Economic Stability

 • Growth of saving and investment 

• Social Welfare and Provision of Efficient Social Services. 

• Regional Development: 

 • Comprehensive and Sustainable Development:

 • Reduction in Economic Inequality:

 • Social Justice:

 • Improving quality of life