Chapter 10 ECONOMIC PLANNING IN INDIA
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Project on Economics
Economic planning in India refers to the systematic process
through which the government sets objectives, formulates policies, and
allocates resources to achieve targeted economic growth and development. It
involves the creation of detailed plans covering various sectors of the economy
over specific time periods, typically five years, known as Five-Year Plans.
The concept of economic planning in India emerged after
independence in 1947, with the aim of achieving rapid industrialization, social
justice, and economic self-reliance. The Planning Commission, later replaced by
the NITI Aayog, was responsible for formulating these plans in consultation
with state governments, industry experts, and economists.
Key
features of economic planning in India include:
1. Sectoral Development: Plans are designed to promote
balanced development across sectors such as agriculture, industry,
infrastructure, and social services like education and healthcare.
2. Resource Allocation: The government allocates
financial and human resources to different sectors based on their importance
and development priorities outlined in the plans.
3. Targets and Goals: Each plan sets specific
targets and goals to be achieved within its timeframe, such as GDP growth
rates, poverty reduction, employment generation, and infrastructure
development.
4. Public Sector Dominance: Historically, economic
planning in India emphasized the role of the public sector in driving economic
development, with the government owning and controlling key industries and
utilities.
5. Flexibility and Adaptation: Plans are subject to periodic
review and adjustment based on changing economic conditions, technological
advancements, and emerging priorities.
While economic planning played a significant role in India's development during the early decades after independence, the approach has evolved over time. In recent years, there has been a shift towards market-oriented reforms and greater emphasis on private sector participation, while still retaining elements of planning to address social and developmental challenges.