Economy national planning commision essay

Economic planning definition

The plan is implemented on annual basis. After each year of Plan the Planning Commission along with the Central Ministries and the State Governments reviews the progress of the Plan during the previous years, re-assesses the resources and formulates an annual plan for the next year. Finally-, the development strategy followed in the country initially forgotten the importance of foreign trade to derive exportable surplus and laid much emphasis on foreign trade which was again corrected since Third Plan onwards by adopting export promotion strategy. For example, Leon Trotsky believed that central planners, regardless of their intellectual capacity, operated without the input and participation of the millions of people who participate in the economy and so they would be unable to respond to local conditions quickly enough to effectively coordinate all economic activity. India has adopted the system of achieving socialism through democratic process which had great impact on the nature, scope and scale of administration. Galbraith stated that both the obsolete notion of entrepreneurial capitalism and democratic socialism defined as democratic management are impossible organizational forms for managing a modern industrial system. Visvesvaraya had been elected head of the Planning Committee. Essay 8. This links the plan with the budget. Two subsequent Five-Year Plans were formulated before , when there was a break because of the Indo-Pakistan conflict. Functions The functions of the Planning Commission include the following: 1. Therefore, the Government should select able bodied, efficient, honest and dedicated officers for the implementation of plan. To appraise from time to time the progress achieved in the execution of each stage of the plan and also recommend the adjustments of policy and measures which are deemed important vis-a-vis a successful implementation of the plan. She terminated the Sixth Flan formulated under the patronage of the Janata Government and declared that a new plan for would be formulated. Authority for creation of the Planning Commission was not derived from the Constitution of India or statute; it is an arm of the Central Government of India.

The price level again reached the level of Sixth Plan categorically mentioned this objective of modernisation for the first time. The process of transmitting all the necessary information to planners is thus inefficient.

Functions of planning commission

There are in all twenty-six such Technical Units in the Planning Commission. They can even be given out in response to some specific problems referred to the commission by the central or the state governments. Essay on the Failures of Economic Planning in India: Although the economic planning has achieved a considerable progress on various socio-economic fronts but it has also failed in certain respects. India has been experiencing continuous rise in the price level. Seventh Five-Year Plan: Seventh Five-Year Plan, , sought to achieve an overall growth rate of five per cent for the economy with the growth rate of agriculture fixed at four percent and that of industry at eight percent. To indicate the factors that tend to retard economic development. Thus due to such move, simultaneous growth of various industries takes place.

Fifth Plan in its employment policy laid special emphasis in absorbing increments in labour force during this Fifth Plan Period. It suggested that the Planning Commission should not interfere in the implementation of plan.

features of economic planning

Patel, retired I. There were shortfall in attaining the overall average growth rate of Indian economy during the Second, Third, Fourth and Fifth Plans and other plans.

Indian planners were also influenced by Fabian socialist strategy of adopting fiscal policy of taxation and public expenditure so as to achieve two important social objectives of planning, i.

economic planning introduction

Planning at District and Block Levels: Below the State level an attempt is made to undertake the work of planning at the District and Block levels.

Thus, the Soviet economic model was often referred to as a command economy or an administered economy as plan directives were enforced by inducements in a vertical power structure, but planning played little functional role in the allocation of resources. The reorganized commission organized itself into two secretariat branches for dealing with the work relating to: i Administrative work in the Planning Commission; and ii Coordination.

It is usually found that the targets fixed are too high for achievement by the administration. Thus this model gave active encouragement for the development of cottage and small scale industries producing consumer goods by using modern machinery and electricity.

Economy national planning commision essay

Development of capital goods alone cannot solve the problem of growing demand for consumption goods. The department keeps close touch with the Central Planning Commission and the various departments of the State, coordinating their programmes for development and formulating the development plan for the State as a whole.

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Planning Commission of India