THE ECONOMIC PLANNING IN INDIA

ECONOMIC PLANNING IN INDIA

THE ECONOMIC PLANNING IN INDIA
THE ECONOMIC PLANNING IN INDIA
 

Economic Planning is the process in which limited natural resources are used skillfully,so,as to achieve the desired goals. The concept of economic planning are derived from Russia.
First attempt to initiate economic planning in India was made by Sir M Vishveshvaraya in 1934,through his book titled ‘‘planned Commission was set up under “Bombay Plan”.Thereafter ,in 1938,National Planning Commission was set up under the Chairmanship of JL Nehru by the Indian National Congress.
In 1944,efforts were made by 8 industrialists under “Bombay Plan” .Thereafter,in the same year “Gandhian Plan”was presented by SN Agarwal, in 1945.”people’s Plan,was given by MN Roy and in 1950.”Sarvodaya Plan“was given by JP Narayan.
After Independence in 1947, the committee on economic planning was constituted under the Chairmanship of JL Nehru.On the recommendation of this committee,Planning Commission was constituted in March 1950 and the first Five Year Plan was prepared in 1951.

THE PLANNING COMMISSION:

The Planning Commission was setup on March 15, 1950 under the Chairmanship of the JL Nehru.
It is an extra-constitutional or non-constitutional and not non-statutory body.
It consists of the Prime Minister as the Ex-officio Chairman and Deputy Chairman is appointed by the Prime Minister and some full time members is not fixed.The Deputy Chairman enjoys the rank of a Cabinet Minister.

FUNCTIONS:

Assessment of material,capital and human resources of the country.
Formulation of plans for the most effective and balanced utilization of the country’s resources.
To determine the various stages of planning and to propose the allocation of resources on a priority basis.
To evaluate from time to time the progress achieved in every stage of the plan and also suggest remedial measures
The formation of each Five Year Plans starts from the Planing Commission only.It prepares a draft memorandum of the plan,in which all the policies are laid down.Thereafter,this draft is sent to the National Development Council.

NATIONAL DEVELOPMENT COUNCIL (NDC):

The NDC was established in August 1952, it is alike neither a constitutional body nor a statutory body.The Prime Minister is the Ex-officio Chairman of the NDC, and other members are Union Cabinet Ministers, Chief Minister and Finance Minsters of all states, it governors of Union Territories and Governors of centrally-ruled states.
Its main aim to make co-operative environment for economic planning between states and Planning Commission.

FUNCTIONS:

To evaluate the mangement of plans from time to time.
For analyse the policies affecting development.
To give suggestions to achieve the aim fixed in the plans.
To give final shape to the plan.Final clearance to planning is given by NDC.
In India 10,Five Year Plans have been implemented so far.
In addition to this,6 yearly plans were also made.These yearly plans were made for the years 1966-67 to 1968-69,1978-1980 and from 1990-91 to 1991-92.

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