Economic Planning in India - An Overview

ECONOMIC PLANNING IN INDIA - AN OVERVIEW

Essential for All Upcoming Bank Exams

Introduction: 

Economic planning major economic decisions were made. What is and how it is produced and what is allocated - by the conscious decision of a neutral authority, as a whole, on the basis of a comprehensive survey of an economic system.

Decide on the use of financial planning resources. Economic planning is a term to describe the government's long-term plan for coordination and development with the economy. 

In the economy of India, economic problems cannot be solved based on poverty, unemployment, agricultural and industrial production and obesity in socio-economic distribution and discrimination in socio-economic development. 

Objectives: 

• Reduction of Economic Inequalities. 
• Reduction of Unemployment. 
• Balance Regional Development. 
• Economic Growth. 
• Modernization. 

History of Economic Planning in India: 

• In 1934, the economic planning in India was made by Sir M. Visvesvarayya (engineer and politician) through his book “Planned Economy for India”. 
• In 1938, ‘National Planning Commission’ was set up under the Chairmanship of J.L. Nehru by the Indian National Congress with Congress President Subhash Chandra Bose. Its recommendations could not be implemented because of the beginning of the 2nd World War and changes in the Indian Political Situation. 
• In 1944, ‘Bombay Plan’ was presented by 8 leading industrialists of Bombay (Mr. JRD Tata, GD Birla, Purshottamdas Thakurdas, Lala Shriram, Kasturbhai Lalbhai, AD Shroff, Ardeshir Dalal, & John Mathai). 
• In 1944, ‘Gandhain Plan’ was given by Shrimannarayan. 
• In 1945, ‘People’s Plan’ was drafted by M.N. Roy. 
• In August 1946, ‘Planning and Development Department’ was set up by British India Government under the charge of Ardeshir Dalal. 
• In 1950, ‘Sarvodaya Plan’ was drafted by J.P. Narayan. 
• In 1952, National Development Council (NDC) made by cabinet resolution. 
• In 2014, Planning Commission shut down. 
• In 2015, National Institution for Transforming India (NITI Aayog), was formed by Government of India. 

Features of Economic Planning in India: 

• Complete knowledge about the economic resources of the country; 
• Fixation of definite socio-economic targets; 
• Existence of a central planning authority; 
• Efficient utilization of limited resources to get maximum output and welfare; 
• Prudent efforts to achieve these targets within a given time period.