Planning in India presentation

PLANNING IN INDIA
 Presesnted By:
 MOHAMMAD AMIR
 15MBAK-76
 AMU-MC

Planning In India:
 On 26 January 1950, the Constitution came into force. As a logical
sequence, the Planning Commission was set up on 15 March 1950 and the
plan era started from 1 April 1951 with the launching of the First Five Year
Plan (1951-56).
 We have successfully completed twelve five year plans in the year 2017.
 Now the new government at centre has decided to abandon the planning
and have changed the structure of Planning Commission ,now it will be
known as NITI Aayog.

What is Plan?
Plan in Planning commission is defined as:
 Spells out how the resources of a nation should be put to use.
 Has some general goals as well as specific objectives, which are to be
achieved within a specified period of time.
 Unrealistic to expect all the goals of a plan to be given equal importance
in all the plans.

Why to Plan?
 After independence, India was in dire conditions and needed to start
acting soon.
 Some of the problems necessitated need for an immediate plan:
 Vicious circle of poverty
 Foreign Trade
 Need for Rapid industrialization
 Population pressure
 Development of Natural resources
 Backward Population
 Capital Deficiency
 Market imperfections

Objectives of Planning:
 Central objective - raise the standard of living of the people
 To increase per capita and NI
 Higher level of employment
 Growth with social justice
 Increasing industrial output
 To remove bottlenecks in agriculture, manufacturing industry
 Reduction of inequality in income
 Modernization
 Self- reliance

Characteristics of Planning:
 Major economic decisions are determined by a central authority, through
the planning commission.
 The government will have the powers of implementation.
 The planners fix the targets for the sectors and also decide how much
investment must be made in each sector to achieve the targets.

Planning Commission:
 After independence, the Planning Commission was set up by the
Government of India in March 1950. The Commission was instructed to:
1) To make an assessment of the material capital and human resources of
the country, and formulate a plan for the most effective and balanced
utilization of them;
2) To determine priorities, define the stages for carrying the plan and
propose the allocation of resources for the due completion of each
stage;
3) To act as an advisory body to the Union Government;
4) determine the conditions which (in view of the then current sociopolitical
conditions) should be established for the execution of the plan.
5) To advise the Centre and the state governments.

 National Development Council:
a) All the plans made by planning commission have to be approved by NDC
first. It was constituted to build cooperation between States and the
Planning Commission.
b) Like Planning Commission NDC is also an extra constitutional body, legal
body.
c) It was set-up on 6th August 1952
 State Planning Boards is the Apex Planning body at State Level with Chief
minister as Chairman, Finance and Planning Ministers of the state and
some technical members.
 District Planning Committee is also there comprising both official and
non-official members

TIMELINE OF PLANNING IN INDIA:

Planning in India presentation

Objectives of different plans and
Development Strategy:
 Phase-I Growth Oriented Development Strategy:
 First plan- It was a repair Plan made to take care of severe damage caused by
war, famine and partition.
 Second Plan – It was a import substitution led long term growth based on
industrialization.
 Third Plan- Public sector led growth, reducing concentration of economic
Power.

 Phase-II Equity Oriented Development strategy:
 Annual Plans: Adaptation of new agricultural strategy.
 IV Plan : Growth with stability
 V Plan: Alleviation of poverty
 VI Plan: Target group approach
 VII Plan: Direct attack on the problems of poverty.

 Phase-III Post liberalization Development Strategy:
 Inward looking development model was replaced by Export-led growth strategy.
 Liberalization, Globalization, Privatization (LPG) Strategy
 IX & X Plans: Growth with social justice
 XI Plan: Inclusive growth
 XII Plan: Faster sustainable and more inclusive growth

 Development strategy:
 Indicative Planning
 Growth with justice
 Resource allocation
 Advisor to States Skilling India
 Think tank
 Achieving growth targets
 Removal of corruption
 Good governance
 Democratic values to be strengthened.

GROWTH RATE OF INDIAN ECONOMY IN
COMPARISION TO CHINIES AND WORD ECONOMY:

GROWTH RATE IN FIVE YEARS PLAN:

DEVELOPMENT INEQUALITY IN
DIFFERENT SECTOR:

Evaluation of Growth in Several Plans:wth in
Several Plans

Replacement of Planning Commission:
 NITI Aayog or National Institution for Transforming India Aayog is a
policy think-tank of Government of India that replaces Planning
Commission and aims to involve the states in economic policy-making
in India.
 Union Govt of India had announced formation of NITI Aayog on 1 January
2015.
 Chairperson: Prime Minister Narendra Modi
 Vice Chairperson: Arvind Panagariya
 CEO: Sindhushree Khullar IAS

Objective of NITTI Aayog:
 To evolve a shared vision of national development priorities, sectors and strategies
with the active involvement of states in the light of national objectives.
 A pre-people, pro-active and participative development agenda is the guiding
principle behind NITTI Aayog.

FINANCE COMMISION AND NITI AAYOG:
 Finance Commission is a Constitutional body with the broad mandate to
define the center-state fiscal relations.
 Its most important task is to recommend the division of tax revenues collected
by the Center called the “divisible pool” between the Center and States and
the share to be allocated to each State .
 An important recommendation of FFC is the devolution of a signifcantly higher
share of 42% of the divisible pool to States compared with the 32% share
recommended by the Thirteenth Finance commission.
 The horizontal devolution formula recommended by the 14th Finance
Commission.
 Focus on local bodies.

Conclusion:
 Economic planning help in mobilizing and allocating the resources in
desired manner.
 Objective of economic planning is to reduce inequality, economic
growth, balanced regional growth, modernization.
 Each five year plan aims to achieving certain target. Five year plan
constitute the steps toward the fulfillment of objectives of economic
planning. But most of the Plans could not achieve the targets.
 The 12th Plan has taken off; it is yet to be formally approved with the
aim of the growth rate at 8%.

Planning in India presentation

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Planning in India presentation