General Awareness about Planning's in India
Initiation of Plaining in India:
The Planning Commission was set up by a Resolution of the Government of Indian in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities. Jawaharlal Nehru was the first Chairman of the Panning Commission.
History of Planning in India:
The first attempt at systematic planning in India was made by Sri. M. Visvesvarya when he published in 1934, his book "Planned Economy for India". Three years later, in 1937, the Indian National Congress set up the National Planning Committee (under the chairman of Pt. Jawaharlal Nehru) which submitted its report as late as 1948, since the Second World War and abnormal political developments in the country supervened. In the meantime, eight leading Bombay industrialists came out in 1943 with 'A plan for Economic Development in India'; Popularly known as "Bombay Plan". The Plan aimed at increasing per capital income by 100 percent (from Rs. 65 to Rs. 130) within a 15 year period. This was sought to be achieved by raising agricultural production by 130 percent and industrial output by 500 percent. It accorded top priority to basic industries. Almost simultaneously with the Bombay Plan was released, by Shri M.N. Roy a 10 year 'Peoples Plan', envisaging a total outplay of Rs. 15,000 crores. In contrast to the Bombay Plan, it gave the highest priority to agriculture and consumer goods industries and relegated basic industries to a secondary place.
Apart from these non-official attempts, the Government of India also realised the need for planning and accordingly a Department of Planning and Development was set up in 1944, which drew up both short-term and long-term plans, the former for the restoration of economic normalcy after the war and the latter for the country's economic reconstruction and development.
However, the real beginning of planning in India was made when in March 1950, the Indian Panning Commission was set up with Pt. Jawaharlal Nehru as its chairman. In July 1951, the Commission presented the draft outlines of the First-Five-Year Plan Covering the period from April 1, 1951 to March 1956.
Objectives of Planning in India:
The following can be said to be the main objectives of planning.
(1) To achieve sizeable increase in national income and per capital income
(2) To improve agricultural production for
(a) achieving self sufficiency in food grains production
(b) meeting the needs of industry and export.
(2) To improve agricultural production for
(a) achieving self sufficiency in food grains production
(b) meeting the needs of industry and export.
(3) To achieve industrialisation with special reference to basic and heavy industies.
(4) To provide more employment opportunities.
(5) To reduce inequalities in income and wealth distribution.
(6) To achieve self reliance.
(7) To eradicate poverty.
(8) to achieve economic growth and maintain price stability.
Features of Planning in India:
The main features if planning in India are:
( i ) Indicative Economic Planning : Indian plans do not carry an element of compulsion as found in the socialist countries. The Indian plans generally lay down targets even for those sectors of economy over which the government has no control, e.g., agricultural sector. This is due to the presence of the mixed economy.
(ii) Indian Plans are Comprehensive : As against the partial planning in west European countries, Indian planning is comprehensive as found in socialist countries.
(iii) Indian Planning is Social Planning : Indian Planning is social rather than economic planning. It is precisely on account of this factor that its economic character had become distorted.
(iv) Unreliable Date : The status of data in India is poor. Data below the State level are in deplorable state.
The first Five-year Plan was launched in 1951 and two subsequent five-year plans were formulated ill 1965, when there was a break because of the Indo-Pakistan Conflict. Two successive years of drought, devaluation of the currency, a general rise in prices and erosion of resources disrupted the planning process and after three Annual Plans between 1966 and 1969, the fourth Five-year plan was started in 1969.
The Eight Plan could not take off in 1990 due to the fast changing political situation at the Centre and the years 1990-91 and 1991-92 were treated as Annual Plans. The Eighth Plan was finally launched in 1992 after the initiation of structural adjustment policies.
For the first eight Plans, the emphasis was on a growing public sector with massive investments in basic and heavy industries, but since the launch of the Ninth Plan in 1997 to 2002. The Tenth Plan(2002-2007) the main objective of the Tenth Five-year Plan were, Attain 8% GDP growth per year, Reduction of poverty rate by 5% by 2007. The Eleventh Plan (2007-2012) the main objective the Eleventh Five-year Plan were, Reduction of gender inequality, to increase the growth rate in agriculture, industry and services to 4% , 10% and 9% respectively. The Twelfth Plan (2012-2017) The Twelfth Five-Year Plan of the Government of India has decided for the growth rate at 8.2% but the National Development Council (NDC) on 27 Dec 2012 approved 8% growth rate for 12th five-year plan. With the deteriorating global situation, the Deputy Chairman of the Planning Commission Mr Montek Singh Ahluwalia has said that achieving an average growth rate of 9 percent in the next five years is not possible. The Final growth target has been set at 8% by the endorsement of plan at the National Development Council meeting held in New Delhi. The emphasis on the public sector has become less pronounced and the current thinking on planning in the country, in general, is that it should increasingly be of an indicative nature.
Planning in India has been based on Five Year Periods in which entire period is further sun divided into Annual Plans. Each annual plan is a part of Five Year Plans and it commences from where the preceding plan ends. This type of plan is called a Fixed term Plan. The Five Years Plans are called rolling plans. The rolling plan method is more logical than the fixed term plan because it considers economic fluctuation while deciding the plan layout.
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