L 12 economic planning in india

1. ECONOMIC PLANNING IN INDIA
CHAPTER-8

2. Economic planning refers to that process
wherein
a.A central planning authority
b.Keeping in view the resources of the country
c. Makes an attempt to regulate economic
factors
d.With a view to achieve pre-determined
objectives within a specified period of time.

3. Planning Commission and Five Year
Plans
After independence in 1950, planning commission
was setup under chairmanship of Pt. Jawaharlal
Nehru. It was to formulate plans for the
economic development of the country on the
basis of available physical, capital & human
resources.
First Five Year Plan
Year 1951-56
Total outlay in Public sector Rs 1,960
GDP 3.7%

4. Eleventh Five Year Plan
Year 2007-12
Total outlay in Public sector Rs 36,44,718
Growth Rate 9.0(Target)

5. Features of Planning
• Democratic
• Different sectors
• Existence of Central & State Plans
• Financial planning
• Unchanged priorities
• Prospective & Perspective learning
• Central Planning Authority
• Set objectives
• Govt Control
• Complete development
• Definite time period
• Slogans

6. Objectives of Planning
• Short term Objectives
• Long term objectives.
a. Increase in national income and per capita income
b. Reduction in Inequality of Income
c. Reduction in regional inequalities
d. Price stability
e. Economic Development
f. Increase in Employment
g. Full Utilization of Natural Resources
h. Self Sufficiency
i. Reconstruction
j. Social Security
k. Increase in Capital Formation Development of infrastructure
l. Removal of poverty

7. Progress under Plans or Achievements
under Planning
• Increase in National Income
• Inc in per capita income
• Inc in rate of capital formation
• Institutional reforms in Agriculture
• Development of industries
• Development of infrastructure
• Social services
• Inc in Employment
• Modernisation
• Export promotions, diversifications, import substitution
• Development of science & tech
• Less cyclical fluctuations

8. Failures of Planning
• No Substanital Inc In The Standard Of Living
• Rise In Prices
• Inc In Unemployment
• Less Growth In Agricultural Sector
• Inequality In Distribution Of Income & Wealth
• Inefficient Administration
• Shortfall In Target Realisation
• Slow Capital Formation
• Unbalanced Growth Of Different Regions
• Poor Development Of Infrastructure’=
• Lop-sided Industrial Growth