planning-in-india
Meaning of Planning
Planning is defined as the process of thinking and organizing activities to achieve a desired goa. It is not a one-time event but a continuous process of doing something until specific objectives are met.
An economic plan specifically refers to a set of well-defined targets to be achieved in a given period of time with a stated strategy and the optimum utilization of available resources
Background of Economic Planning in India
The concept of economic planning was first advocated in India in 1878 by [[Dadabhai Naoroji]] in his article [[Poverty in India]]. After the 1930s, several formal proposals were developed, which eventually led to the adoption of a planned economy after independence.
- [[Visvesvaraya Plan]] (1934): The first blueprint of Indian planning, authored by M. Visvesvaraya, which aimed to double the national income within a decade through industrialization.
- [[Congress Plan]] (1938): Drafted by the National Planning Committee (NPC) under [[Jawaharlal Nehru]], this plan sought to create concrete development programs for all major economic sectors.
- Bombay Plan (1944-45): Prepared by eight leading industrialists, it emphasized that the economy could not grow without government intervention and regulation.
- Gandhian Plan (1944): Formulated by Sriman Narayan Agarwal, it focused on decentralized planning, agriculture, and self-contained villages.
- People’s Plan (1945): Developed by MN Roy based on Marxist socialism, it advocated for providing the people with their ‘basic necessities of life’.
- Sarvodaya Plan (1950): Published by Jayaprakash Narayan, it emphasized land reforms, self-reliance, and a participatory form of planning.
Major Objectives of Economic Planning
India’s planning objectives were designed to address the nation’s deep-rooted socio-economic challenges. These major objectives include:
- Economic Growth: Achieving a sustained increase in production levels to raise both real national and per capita income.
- Poverty Alleviation and Employment: Developing targeted programs to reduce the number of poor and generate employment, which is considered essential for poverty reduction.
- Self-Reliance: Striking against a subordinate position in the world economy and promoting a policy where India does not rely heavily on foreign capital and technology.
- Modernization: Replacing traditional economic methods with modern techniques, especially in the agriculture sector (e.g., modern farming and dairying methods).
- Ensuring Social Justice and Equality: Focusing on the equitable distribution of economic prosperity so that benefits reach the most vulnerable without discrimination.
- Reducing Regional Disparities: Prioritizing the rapid development of backward regions to remove the wide variations in socio-economic achievement across the country.
Following this historical background, India established the [[Planning Commission]] in 1950 to implement these goals through [[Five-Year Plans]].
[[NITI Aayog]] changed this planning structure in 2015