Indian Economy for competitive exams

PLANNINGS

Economic Planning:

• Economic Planning means “It is an outline or broad statement of schemes on programs designed to realize certain pre-determined economic objectives, in a particular order of priorities, according to a strategy within a specified period of time is called Economic Planning.” If the government fallows the plans for the development of economy is called plan policy.


• USSR (Russia) was the first country introduced planning in the world in 1920.


• After grate economic depression all countries tried to implement Russian planning model.


• Netaji Subhash Chandra Bose was first recognized economic planning
  for India.


• After the Second World War all the developed countries followed Russian economic planning model.


• Centralized Planning: The resources are allocated into different sectors and activities used to be done by the Central planning commission is called Centralized planning.


• Decentralized Planning: Plans prepare at various levels i.e. Central level by central planning commission, state level by state planning commission and district level by District planning commission and village level by Panchayati planning commission is called Decentralized Planning.


• Physical Planning: It means, if the resources are allocated in terms of men, materials and machinery is called physical planning.


• Financial Planning: If the resources allocated in terms of outlay it is called financial planning.


• Rolling Plan: A variant of short-term plans is what has come to be known as rolling plans. Two major aspects of rolling plans: first, in a rolling plan, the central outlay allotment for major sectors within the overall five-year plan targets will be fixed on a yearly basis. Secondly, the five year horizon (scope) will be extended each year by changing the select central targets for an additional year.


• Indicative Planning: It provides direction for the development of the economy by spelling (bring) out clear goals and providing help in reaching them. These types of plans started first time in France  during 1947-50.


• Structural Planning: If the plans involve changing the socio- economic institutions it is called the structural planning.


• Long-run Plans: if the plans prepare for 10, 15, 20 and even more its called long run plan. This also called Perspective plans.


• Medium term plan: it covers minimum period is 3 to 5 years and maximum is 7 to 10 years.


• Short run Plan: It relates to as short a period as one year.


• Fixed term plans: if the plans fixed for particular period of time is called fixed term plan.


• Imperative Planning (Comprehensive Planning): This type of plans fallows the socialistic countries. In this model plans will not prepare according consumers. All economic activities will determined by Government. This is also called Compressive Plans.

Before 1950 Economic Planning in India:

• In 1934 M. Visweswarayya wrote “Planned for economy for India” and he prepared plans for 10 years to India.


• In 1938 Indian National Congress established National Planning Commission under the chairmanship of Pandit Jawaharlal Nehru. This commission estimated natural resources, Human resources, plan outlay in India.


• In 1943-44, in Bombay 8 important Maharastrian industrialists prepared a plan popularly known as “Bombay plan”. They prepared plan for 15 years to increase industrial, agricultural product and service product. This plan draft prepared under the chairmanship of Adarsh Dalal.


• In 1943-44 M.N. Roy prepared “Peoples Plan”, in which more importance was given to Agriculture, Village production based on Ghandhian ideology. This plan was given more importance to increase double per capita income in 10 years.


• In 1944 S.N. Agarwal prepared Ghandhian Plan based on the Gandhi ideology. This plan was given more important to small scale industries, Labour intensive method and rural development.


• In 1944 government established Planning and Development department under the chairmanship of Adarsh Dalal.


• In 1946, interior government established advisory planning council under the chairmanship of K.C. Niyogi to study and discuss the problems of plans and development.


• In 1948, National Planning Commission recommended to Planning Commission as advisory body.


• In 1950 Jayaprakash Narayana prepared Sarvodaya Planning. This plan was given more important to agriculture, industries.