Maharashtra Board Class 11 Economics Chapter 10 Economic Planning In India PDF Download

Chapter 10: Economic Planning In India

Introduction

In the year 1950, the Government of India established the Planning Commission. The Prime Minister has been designated as Ex-Officio Chairman of the Planning Commission. Planning Commission consisted of experts from various fields such as banking, finance, industry etc. It was responsible for the formulation of economic plans.

Collect information on:

1) Bombay Plan

2) People's Plan

3) Gandhian Plan

Meaning And Definitions Of Economic Planning

Economic planning is a time bound programme to achieve certain objectives with the help of available resources by the planning authority.

According to Dr. H. D. Dickinson:

"Economic planning is the making of major economic decisions such as what and how much to be produced how, when and where it is to be produced, to whom it is to be allocated by the conscious decision of the determinate authority, on the basis of a comprehensive survey of the economy as a whole".

According to Mrs. Barbara Wooten:

"Planning is a conscious and deliberate choice of economic priorities by some public authority."

Features Of Economic Planning

Economic planning has the following features:

1) Central Planning Authority: Central Planning Authority in a country undertakes economic planning. In India, it was known as Planning Commission. It has been replaced by National Institution for Transforming India i.e. NITI Aayog since 2015.

2) A Survey: A comprehensive survey of the economy is undertaken regarding the availability and utilisation of human and natural resources.

3) Objectives: Economic planning is based on certain pre-determined objectives which are realistic and flexible.

4) Priorities And Targets: Priorities are fixed according to the importance of each sector for accelerating economic development. Target is the concrete step towards the attainment of objectives.

5) Mobilisation Of Resources: The resources needed for planning are mobilised through various sources like taxation, domestic savings, deficit financing, public debt, external assistance etc.

6) Plan Period: Plan period varies as per needs. In countries like India, planning is generally for a period of five years.

7) Evaluation: Periodic assessment such as mid term appraisal is done to incorporate necessary changes in priorities and targets of the plan.

8) Continuous Process: Economic planning is a continuous process. It aims at economic development of the country.

9) Co-Ordination: States of the country also undertake economic planning along with the centre. Thus, co-ordination between the centre and states is ensured.

10) Flexibility: Central Planning Authority maintains flexibility in its approach. This makes it possible to incorporate necessary changes in the plan as per requirements during its implementation.

Teacher's Note

Economic planning helps India decide how to use money and resources to help all people. Just like your school plans for the whole year, India also plans for five years to help farmers, teachers, and builders.

Exam Trick

Remember: NITI Aayog replaced Planning Commission in 2015. Think "NITI = New, Planning Commission = Old". NITI is like a teacher who gives advice, not like a boss who gives orders.

Points To Remember

Economic planning is a plan made for a fixed time.
It helps the country grow and develop.
NITI Aayog is the new planning body in India since 2015.
Five year plans tell the country what to do every five years.
The Prime Minister leads the planning authority.

12th Five Year Plan (2012-2017)

Twelfth five year plan which covered the period 2012-2017, focussed on the objective of "Sustainable Growth". The plan aimed at encouraging the development of India's agriculture, education, health and social welfare through government spending. It also aimed at creating employment through developing India's manufacturing sector.

Following Were The Targets Of 12th Five Year Plan

1) Economic Growth:

Real GDP growth rate at 8% to be achieved.

Agriculture growth rate at 4.0% to be gained.

Manufacturing or Industrial growth rate at 10% to be achieved.

Every State must have a higher average growth rate in the 12th plan than what was achieved in the 11th plan.

2) Poverty And Employment:

To reduce head-count ratio of poverty by 10%.

To create 50 million new work opportunities in the non-farm sector.

3) Education:

Mean years of schooling to increase to seven years by the end of the twelfth plan.

Access to higher education with reference to skill development.

Eliminate gender and social gap in school enrolment by the end of this plan.

Teacher's Note

Five year plans help India reach goals in time. Like how a company plans its work year by year, India plans five years ahead to help farmers grow more crops and help children get good education.

Exam Trick

Remember: Each Five Year Plan has different goals. First plan = farming, 7th plan = help poor people. Make a small chart of all plans to remember easily for exam.

Points To Remember

Five year plans are made for five years only.
Each plan has its own main goal or target.
The 12th plan focused on sustainable and inclusive growth.
Real GDP growth means how much richer India becomes.
Agriculture, health, and education are important for all plans.

4) Health:

Reduce total fertility rate to 2.1%

Reduce undernutrition among children in the age group of 0 to 3 years to half of the NFHS-3 levels.

Find out:

Information of various levels of NFHS (National Family Health Survey).

5) Infrastructure:

Investment in infrastructure to be increased to 9% of GDP.

Connect all villages with all weather roads.

Increase in rural television and telephone density to 70%

6) Environment And Sustainability:

Increase green cover by 1 million hectare every year during the 12th plan period.

7) Service Delivery:

Provide access to banking services to 90% Indian households by the end of the plan.

Major subsidies and welfare related beneficiaries to be shifted to a direct cash transfer by using the Aadhar platform linked with bank accounts.

NITI Aayog (National Institution For Transforming India)

Introduction

Twelfth Five Year Plan ended on 31st March, 2017, which was extended by 6 months (4th Oct, 2017) for enabling ministries to complete their appraisals. NITI Aayog, introduced in 2015 aimed at expanding the role of the states, making the state's role more positive in collaboration with the Centre. Formation of NITI Aayog was an innovative and remarkable step to reinforce the principles of federalism and decentralisation of power. It also aims to accelerate economic growth and development. Resolution of NITI Aayog was sanctioned on 1st January 2015, but its actual execution started after the completion of 12th five year plan.

Think-Tank Functions

As a premier policy 'Think-tank' of the Government of India, NITI Aayog aims to evolve a shared vision of national development with the active involvement of states. It fosters co-operative federalism through structural support and policy guidance to the states on a continuous basis.

Do you know?

Think-tank: Think-tank is a group of experts who are gathered together by an organisation, especially by a Government in order to consider various problems, try and work out ways to solve them.

Following Are The Pillars Of NITI Aayog

1) Vision Document Of India

2) Appraisal Document Of 12th Five Year Plan

3) Transforming India: Lecture Series Organised By NITI Aayog

4) Doubling Of Farmers' Income

5) Outcome Budget And Output-Outcome Framework

6) Global Entrepreneurship Summit 2017

7) Launching Of Programme To Transform Identified Aspirational Districts

Structure Of NITI Aayog

The Resolution dated 1st January 2015 and its subsequent amendment dated 16th February 2015, provides for the structure of NITI Aayog as follows:

1) Governing Council: Comprising of the Chief Ministers of all States and Governors of Union Territories.

Teacher's Note

NITI Aayog helps India plan its future in a new way. It works like a team where states and the central government plan together, just like how your school and parents work together for your education.

Exam Trick

Remember: NITI Aayog = adviser (gives ideas but no power). Planning Commission = boss (made rules and had power). This is the key difference to remember for your exam.

Points To Remember

NITI Aayog was made in 2015 to replace Planning Commission.
It is a think tank that gives advice to the government.
States have more power in NITI Aayog than in Planning Commission.
The Prime Minister leads NITI Aayog.
It helps plan for sustainable growth and development of India.

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