Economic Planning in India

The planning of subsequent economic actions by taking decisions on the development of certain policies is considered economic planning. The concept of economic planning is derived from Russia and the importance of having economic planning is to focus on the country’s scarcity, supply, demand, cost, benefit, and incentives. 

Overview of the Economic Planning in India

The concept of Economic planning was first introduced by P. V. Narasimha Rao who was a great politician and also considered as the father of the concept of Economic planning. The prime minister Jawaharlal Nehru introduced a five-year plan to the Indian parliament to make the Indian economy stronger and better. In the year 1951, the parliament focused on the development of the primary sector. P. V. Narasimha also stated that the Indian economy is largely based on the Agricultural sector and 17 percent of GDP is based on it. Other important factors are airways, railways, and manufacturing handicrafts which can also play an important role in the Indian economy.

The Concept of Economic Planning in India is Derived from

As stated before, the concept of Economic development is derived from Russia. Though the concept of the economic condition is based on the major financial choices of a country which could be different from each other. However, understanding the strongest sector of a country to increase the GDP percentage of a country is the main aim to achieve by implementing this planning.

Main Objectives of Economic Planning in India

The main objective of introducing and implementing this idea is to increase the standard of living. In India, a large population is living their lives below the poverty level. If the per capita income can be increased by adopting this strategy, it can be beneficial for the country. It can also increase the employment section and increase the rate of social service. Equal distribution of income can be beneficial for decreasing the population who belong below the poverty level. It can also provide a stable economic condition to the country, increase the self-sufficiency level, increase the rate of regional development, reduce economic inequality and increase social justice.

Types of Economic Planning

Economic planning consists of making different types of planning which can be beneficial for the growth of the country’s economy. Economic planning of India is undertaken by the planning commission however, the current planning was taken by NITI Aayog on January 1st, 2015. Different types of economic planning are “planning by direction and inducement”, “physical and financial planning”, “indicative and imperative planning”, “centralized and decentralized planning”, “fixed and rolling plans’. 

Importance of Economic Planning

The importance of economic planning can be derived from the objectives of the agenda. As stated before, it is important to find the strongest sector of India to increase the per capita income. It can be beneficial for the overall growth of the country. It can increase the employment rate and can decrease the poverty level. If the rate of employment is increased, it positively affects the sector of economic stability of the country. It can also help to make the people of India more self-sufficient and decrease economic inequality. It also helps in social welfare and regional development. It can be beneficial for the sustainable development of India as well. Overall, proper economic planning and implementation can increase the standard of living of the countrymen.

Features of Economic Planning 

Economic planning has been adopted by different countries of the world for different reasons. However, the strongest factors of different countries differ from each other, and making the plan accordingly is very important for the economic growth of that country. The most important features of economic planning are focusing and making the objectives that the country wants to achieve, focusing on the central planning authority, democratic nature, comprehensiveness, having only an advisory role of the planning commission, rational allocation of resources, consumption planning, feasible targets, and policies.

Conclusion

India is a country with a huge population and 60 percent of the total population or an estimation of 812 million people belong to below poverty level. Thus, NITI Aayog tries to focus on the employment sector and increase labor welfare as well as social welfare which can bring a stable economic condition in India. It can also bring a regional development scope for the country.