Economic Planning-Annual Plan

India is one of the huge countries with various problems that are faced by the respective population. The “British” governed the kingdom for two centuries and utilized its multiple resources for benefit by leaving the kingdom reeling under complete poverty. When the “British” left the country, “India” in “1947”, there was annihilation to be happy or proud of except the freedom, which the Indians got after the Britishers left the country. The difficulties were many prior to the “Indian Government”. Besides mass privation, there were difficulties of inflation and food shortage, lack of health maintenance, lack of architecture, and illiteracy. The Indians faced many other serious difficulties. As an extended plan of action, the planning for the “economic development” was the ultimate answer for solving these respective problems.

MEANING OF ECONOMIC PLANNING

“Economic planning” is a method that incorporates the following steps that are listed below:

1. Making an account of the difficulties that are facing the “economy”.
2. Repositioning the account on the strengths of priority. The topmost priority matter, which requires to have contended straight away, should be positioned at the first number and so forth.
3. The upcoming stride is to recognize the difficulties that need to be clarified straight away and other multiple difficulties that need to be supervised over the distant future.
4.  Fixing a single target to accomplish the applicable goal. The “target” could be one particular time span “within which” the difficulties must be resolved. If the difficulty is materially labeled eventually, then it should be made understandable how well the difficulty can be resolved in the beginning span and so forth. Furthermore, the “target” is possibly a definite amount to be accomplished. As an example, in the case of manufacturing, the administration can attach some target with regards to the quantity of the respective production.
5. Estimating the number of resources that are needed for accomplishing the target. The multiple resources incorporate physical resources, human resources, and financial resources.
6. Channelizing the multiple resources is considered one more important task. This denotes that the designer must know various sources of organizing the needful resources.

ECONOMIC PLANNING IN INDIA

India embraced a pattern of “five-yearly” planning to label its multiple difficulties regarding socioeconomic. The difficulties regarding the economy of India during the time of Independence are mentioned above. To remind, the difficulties include inequality and mass poverty, stooge of the food grains and agricultural low productivity, lack of “industrial” and infrastructural development, and many more. Since the difficulties needed to be resolved across the long term, the “Indian Government” embraced the respective five-year strategy, starting from the greenhorn plan development in 1951. The plan was to prepare an account of the important difficulties that are to be resolved, protecting the multiple given resources and the proportion for arranging the multiple resources. 

Then prepare an analysis after the quinquennial period of the things that have been completed and rectify the multiple mistakes correspondingly in the upcoming quinquennial period and so forth. Few of the famous architects of “Indian planning” incorporate, V Rao, V.R Gadgil, Jawaharlal Nehru, and many more. The important purpose of the “Planning Commission” of India was to develop multiple plans by observing the multiple resources of the Kingdom and proposing the best strategies to use them proportionally and effectively as well.

OBJECTIVES OF PLANNING IN INDIA

The multiple objectives regarding the “Economic Planning” in India are pinched by observing its various problems regarding socioeconomic. The multiple objectives of planning in “India” are as follows:

• Increase in the employment
• Economic growth
• Reduction in the imbalance of income
• Reduction in penury
• Modernization of “economy”
• Ensuring equality and social justice.

NEW ECONOMIC POLICY

As mentioned above, the weighty industry planning was executed under the management and ownership of the publicly-owned industry. The Indian Government made multiple budgetary allocations for the publicly-owned industry to create architecture and demonstrate the industries. The method continued for more than 3 decades. Notwithstanding the appraisal of the production of the publicly-owned industry by the Indian Government, itself established that discounting some, more than half of the publicly-owned industries have been functioning on multiple losses. There were labor difficulties and mismanagement that were failing the publicly owned units. It was one of the major shocks to the Indian Government to discover the shortcomings of the publicly owned sector. 

The non-fulfillment of the publicly owned units on multiple parts was observed as the ultimate reason for the absence of the entire up gradation of the country in the spot of industrialization, unemployment and removal of the poverty line, and many more. Therefore in “1991”, the “Central Government ” of India turned out with the latest economic policy intention. The chief characteristics of the respected policy are:

• Liberalization
• Globalization
• privatization

Conclusion

Economic planning is considered one of the important chapters of the Indian Economy. The Economic Planning of a respective country helps in allocating and mobilizing the multiple resources in an applicable manner. The objective of Economic Planning is to lessen economic growth, modernization, inequality, and stabilize regional growth. The Five-year economic plan establishes the multiple steps on the road to the accomplishment of the multiple objectives of the economic planning.