1. Economic Planning In India
SARBJEET KAUR
Lecturer in Economics
GCCBA-42, Chandigarh

2. Meaning
Economic planning refers to interventionists economics activities by the Government aimed at directing the economy (such as taking measures to influence production).

3. History of Planning in India
First attempt to initiate economic planning in India was made by Sir M. Visvesvarayya, a noted engineer and politician, in 1934 through his book, ‘Planned Economy for India’.
In 1938, ‘National Planning Commission’ was set – up under the chairmanship of JL Nehru by the Indian National Congress. Its recommendations could not be implemented because of the beginning of the Second World War and changes in the Indian political situation.
In 1944, ‘Bombay Plan’ was presented by 8 leading industrialists of Bombay.
In 1944, ‘Gandhian Plan’ was given by S N Agarwal.
In 1945, ‘People’s Plan’ was given by M N Roy.
In 1950, ‘Sarvodaya Plan’ was given by J P Narayan. A few points of this plan were accepted by the Government.

4. The Planning Commission of India
The Planning Commission was set – up on March 15, 1950 under the chairmanship of JL Nehru, by a resolution of Union Cabinet.
It is an extra – constitutional, non – statutory body.
It consists of Prime Minister as the ex – officio Chairman, one Deputy – Chairman appointed by the PM and some full time members.
The tenure of its members and deputy chairman is not fixed. There is no definite definition of its members also. They are appointed by the Government on its own discretion. The number of members can also change according to the wishes of the Government.

5. Functions Economic System
Assessment of material, capital and human resources of the country.
Formulation of plans for the most effective and balanced utilization of country’s resources.
To determine the various stages of planning and to propose the allocation of resources on the priority basis.
To act as an advisory body to the Union Government.
To evaluate from time to time the progress achieved in every stage of the plan and also to suggest remedial measures.
To advise the Centre and the State Governments from time to time on special matters referred to the Commission.

6. National Development Council India
All the plans made by the Planning Commission have to be approved by National Development Council first. It was constituted to build co – operation between the States and the Planning Commission for economic planning.
It is an extra – constitutional and extra – legal body.
It was set – up on August 6, 1952, by a proposal of the Government. The PM is the ex – officio chairman of NDC. Other members are Union Cabinet Ministers, Chief Ministers and Finance Ministers of all States, Lt. Governors of Union Territories and Governors of Centrally – ruled States.

7. Plans period 1 First Five-Year Plan, 1951–1956
2 Second Five-Year Plan, 1956–1961
3 Third Five-Year Plan, 1961–1966
4 Fourth Five-Year Plan, 1969–1974
5 Fifth Five-Year Plan, 1974–1979
6 Sixth Five-Year Plan, 1980–1985
7 Seventh Five-Year Plan, 1985–1990
8 Period between 1989–1991
9 Eighth Five-Year Plan, 1992–1997
10 Ninth Five-Year Plan, 1997–2002
11 Tenth Five-Year Plan, 2002–2007
12 Eleventh Five-Year Plan, 2007–2012
13 Eleventh Five Year Plan,

8. Features of Planning Democratic Different sectors
Existence of central plan and state plan
Financial planning
Unchanging priorities
Prospective and persepective planning
Central planning authority

9. Set objectives
Government control
Complete development
Definite time period
Slogans

10. Objective of planning Increase in National income and PCY
Reduction In Inequalities
Reduction of regional Inequalities
Price stability
Economic development
Employment generation

11. Full utilization of resources
Self Sufficiency
Re construction
Social security
Increase in capital formation
Infrastructural development
Modernisation

12. progress Increase In National income Increase in PCY
Increase in capital formation
Institutional reforms in agriculture
Development of Industries
Development of infrastructure
Development of social services

13. Increase in employment
Modernization
Export promotion , diversification
development of Science and technology
Structural and institutional changes
Balanced growth

14. Failure No substantial Increase in the standard fof living Inflation
Unemployment
Less growth in agriculture
Inequalities of y and Growth
Inefficient administration

15. Shortfall in target realization
Slow capital formation
Unbalanced growth
Poor development of infrastructure
Loop sided industrial growth