INDIAN ECONOMIC PLANNING

ECONOMIC PLANNING
    

An instrument of development Adopted in 1951 Over 58 year Currently eleventh plan is going on Govt mobilizes domestic resources and raises the foreign finance which induces productive activities in pvt sector

Adoption of certain policies like- licenecing, liketxation, tariffs, wages, and interest rates

Reasons for Economic Planning

  

Limitations of the market mechanism The need for social justice Resources mobilization and allocation in the control of overall development programmes

IMPORTANT FEATURES
   

Indicative economic planning Indian plans are comprehensive Physical Planning & economic planning Unreliable data

Five Year Plans

 1.

2. 3. 4.

5.

The earlier Period: 1951 to 1969 In April 1951 covered he period of 1951-1952, 195119551955- 1956 No specific model Problem was non accountable In 1954 parliament accepted the socialist pattern Main emphasis on production, distribution, consumtion.

  

The third five year Plan 1961-1962, 1965- 1966 19611965War with China in 1962, Pakistan in 1965 The Plan holiday from 1966-1969 1966-

  

The fourth & Fifth Plans 1970 Study by VM Dandekar & N. Rath Poverty in 1971 That more than 40% people not having basic necessity

1980 the Sixth & Seventh Plan

 

1980- 19861980-85, 1986- 1990 Employment & technological development Environmental development Agricultural development Mahalanobis strategy

  

The eighth & ninth plan

  

1990 economic crisis delayed Started in 1992- 97, 1997-2002 19921997LPG

The tenth plan

  

20022002-07 Aim to achieve 8% I poverty reduction, unemployment, illiteracy, education, health, living etc.

Eleventh five year plan

  

20072007-2012 Faster and more inclusive growth Targeted to 9 %

Main is infrastructure & Environment

Strategy of Economic Development

  

Sound base of the process of long term growth High priority to industrialization Emphasis on Development of capital goods industries.

Import substitution
   

Savings foreign exchange Building up a sound industrial structure Failure to increase exports Import substitution helps in solving the problem of unemployment Improves economic welfare