Business Environment

(BE)
MGT511

Keshri Nandan
Chaudhary
+91 9501445120
Why to study Planning?
 Pattern of economic development in
India is significantly affected by planning
 Decides the direction of development
pattern of various sectors and also the
relative priorities within different sectors
 Scope and prospects of diff. industries
depends on 5 yrs PLans
Why to study Planning?
 A lot of information needed for
business decision making like
investment decision making can be
derived by analyzing the 5 yrs
Plans
Objectives of Planning
 Proper utilisation of national resources in
accordance of the national priorities and
fast development of economy
 Alleviation and ultimate removal of
unemployment and poverty
 Improvements in std of living
Planning Machinery
 Planning Commission (PC)
 National Development Council
(NDC)
Planning
Commission(PC)
 Members include PM, Ministers of finance,
defense ,Planning and 4 full time members
 Functions of PC :
 To make assessment of material, capital and
human resources of country including technical
personnel and to investigate possibilities of “
augmenting” the deficient resources
Planning
Commission(PC)
 To formulate a plan for the most
effective and balanced utilisation
of country’s resources
National Development
Council (NDC)
Consists of PM, CM’s ,Union cabinet ministers
Functions of NDC :
 Provide guidelines for the formulation of the
National Plan
 consider imp. Questions of social and economic
policy affecting national development
National Development
Council (NDC)
 Periodic review of working of plan and
recommending measures necessary for
achieving aims and target set out (Follow ups)
 consider imp. Questions of social and
economic policy affecting national
development
State Plans
 Accounts of about ½ of total outlay of a 5 yrs Plan
 Vital sectors such as agriculture , small industries,
power , roads , transport , education & social
services comes under state jurisdiction
 Success implementation of National policy requires
coordination at state level
Formulation of Plan
 Spreads over a period of 2-3 years
 First stage consists of an examination of
state of economy, appraisal of past trends
in production and rate of growth relative to
the long term view of economy
 Second stage consists of studies , experts’
recommendations for respective sectors
etc…
General Trends in 5 yrs
Plans
 Development priority shifted from agriculture in 1st plan to
‘basic and heavy’ industries in 2nd plan
 3rd plan recognized the importance of export promotions
 4th plan emphasised ‘self-reliance’ (Green revolution)
General Trends in 5 yrs
Plans
 Development priority shifted from agriculture in 1st plan to
‘basic and heavy’ industries in 2nd plan
 3rd plan recognized the importance of export promotions
 4th plan emphasised ‘self-reliance’ (Green revolution)
General Trends in 5 yrs
Plans
 7th plan focus was on food, work and productivity
 8th plan emphasised economic reforms process
and on private initiative in industrial
development.( ‘human development ‘ is the core
of all development)
 ‘Growth with social justice and equity’ was the
focus of 9th plan, etc…