Economic Planning

Since independence we all have witnessed improvements in our country in almost every sphere. This improvement in country is the result of continuous and systematic planning. Planning is considered as panacea to various social and economic ills of the under developed country.

Economic planning refers to the consciously directed efforts of organising and using resources for productive purposes by a central authority for achieving certain pre-determined and well-defined objectives or goals within a specified period of time.

The process of economic planning involves:

A central planning authority, that, intends to achieve pre-determined objectives, keeping in view the resources of the country, in a given period of time, and, makes an effort to control economic factors.

In India, Planning Commission was set up in 1950 to undertake such planning for the country.

The major thrust of economic planning in India is economic growth. Reducing unemployment and creation of employment opportunities have been an important objective of economic planning in our country. The various objectives of economic planning are as follows:

To achieve economic growth

For reducing unemployment

For reducing income inequality

To remove poverty, etc.

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  • Q1

    How is economic growth measured and why is it an objective of economic planning in India?

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    Answer:

    Economic growth is expressed as a consistent increase in GDP or real national income. It is also expressed as an increase in per capita income.
    Economic growth is essential to remove poverty by raising the standard of living of the people. Moreover, it is also necessary for self sustained growth.

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  • Q2

    What were the problems faced by the Indian economy at the time of independence.

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    Answer:

    At the time of independence, the Indian economy faced several problems such as

    • Underdevelopment
    • High level of poverty
    • Low standard of living
    • Low level of per capita income

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  • Q3

    When was the Planning Commission established? Who is the current chairman of it?

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    Answer:

    The Planning Commission was set up on 15 March 1950. Sitting Prime minister is the chairman of the Planning Commission currently. It has renamed as NITI aayog.

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  • Q4

    What do you mean by the objective of Self-Reliance of Economic Planning in India?

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    Answer:

    The objective of Self-Reliance refers to avoiding import of those goods which can be produced in India itself, and increase dependence on domestically produced goods.
    The objective of self-reliance has various dimensions:
    1. India should be in position to end its dependence on foreign loans and grants.
    2. Elimination of dependence on imports of certain goods such as food-grains, raw materials, etc
    3. Attainment of self sustaining and self generating growth.

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  • Q5

    When did economic planning begin in India?

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    Answer:

    In India, planning commission was set up in 1950 and the First Five Year Plan was launched on 1st April,1951 for the period 1951-1956.

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