Economic Development and Planning of INDIA

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AN INTRODUCTION

Planning may be defined as the conscious and

deliberate choice of economic priorities by some

public authority

According to DICKINSON Planning is the making of

major economic decision what and how much is

to be produced, how, when and where it is to be

produced, to whom it is to be allowed, by theconscious decisions of a determinate authority,

on the basis of comprehensive survey of the

economic system as a whole.



OBJECTIVES OF ECONOMIC

PLANNING

E conomic Development : Economic development

is the most important objective of

underdeveloped economies like India. The cruel

circle of poverty can be broken by the

development in agriculture, industry and

infrastructure.

Price Stability: Another objective of economicplanning in India is stability in the price level.

Economic planning is a must in order to eliminate

price fluctuations which result in control on

depression



OBJECTIVES OF ECONOMIC

PLANNING

Maximizing National Income and Raising Living

Standards- There is no doubt that only planned

efforts can raise national income. The unplanneddevelopment does not register any substantial

progress in this direction because the productive

effort are waste in uncoordinated economic

activity.

Additional E mployment- Another objective is tocreate additional employment opportunities in

developed as well as undeveloped economies. As

in case of underdeveloped economies like India,

economic planning is needed to create stable

conditions of employment.





Rectifying imbalances in E conomy: it is found that

economic development in India is irregular and

uneven. The reason being 75% people are

engaged in agriculture where as nearly 10%

pursue industry. This is an example of unbalance

economy. To provide stability to the economy it

becomes necessary to reduce this imbalance.

Planning helps in correcting such imbalance



Reduction in population: Over population is the

major threat in the path of Economic

development. The poor and backward people

remain busy to fulfill their basic needs. They are

unable to think about the new opportunities and

innovations which promote economic

development. Therefore, economic planning

without the population planning is useless.





C omprehensiveness: Another feature of

planning is its comprehensiveness. It means that

the central planning authority takes decisions

regarding production, consumption, distribution

etc. thus, it must cover the entire economy which

must be comprehensive in nature.



Rational and balanced allocation of

resources:- In the underdeveloped economy like

India, available resources are scare and these

resources are allocated in such a way as to get the

maximum social welfare. It needs to fix certain

priorities and the resources are distributed or

allocated in accordance to those priorties.



NECESSARY CONDITION FOR

THE SUCCESS OF PLANNING

C entral planning authority- The first and the

foremost condition for the success of planning is

the setting up of central planning authority. For

example, in India there is planning commission

which carries a group of experts, economists and

statisticians and poilicy makers etc who deal with

the different aspects of the economy



Suitable development policy- For the success of

economic planning the state must formulate

suitable development policy. The condition for

the development policy are

a. Better utilization of resources

b. Provision of sufficient infrastructurec. Provision of training facilities

d. Promoting savings both at private and public

level

e. Better credit, insurance and banking facilities

f. Better commodity and security market



T arget and Priorities- For the success of economic

planning it is necessary to fix the targets and

priorities. The target and priorities must keep flexible

but no rigid. They must be changed as the need of the

economy.

Hones Administration- For the success of

economic planning there must be honest

administrative machinery. Even the best plan fail on

account of corrupt and inactive administration.

Documents

Economic Development and Planning of INDIA