ECONOMIC PLANNING IN INDIA PART 1

·         ECONOMIC PLANNING IN INDIA
INDIAN ECONOMY/BUSINESS ENVIRONMENT

·         CONTENTS

a)   

INTRODUCTION OF PLANNING IN INDIA

b)    THE NATIONAL DEVELOPMENT COUNCIL

c)    NITI AAYOG

d)    SALIENT FEATURES OF FIVE YEARS PLANNING IN INDIA

• INTRODUCTION
• INDIA BEING A UNION OF STATES HAS ACCEPTED PLANNING BOTH FOR ITS CENTRAL AND STATE GOVERNMENT. THE PLANNING COMMISSION OF INDIA WAS SET UP FOR THE FIRST TIME IN MARCH 1950 WITH PANDIT JAWAHAR LAL NEHRU AS ITS CHAIRMAN. THE PLANNING COMMISSION IS COMPOSED OF EIGHT MEMBERS:-

a)    PRIME MINISTER( CHAIRMAN)

b)    FOUR FULL TIME MEMBERS ( INCLUDING DEPUTY CHAIRMAN)

c)    MINISTER OF PLANNING

d)    MINISTER OF FINANCE

e)    MINISTER OF DEFENSE

• WITH THE CHANGE IN GOVERNMENT ANEW PLANNING COMMISSION IS FORMED.
• THE FUNCTION OF THE PLANNING COMMISSION

1. MAKING REAL ASSESSMENT OF VARIOUS RESOURCES AND INVESTIGATE INTO THE POSSIBILITY OF INCREASING THE RESOURCES
2. FORMULATION OF PLAN
3. DEFINING STAGES OF PLAN IMPLEMENTATION AND DETERMINING PLAN PRIORIES
4. IDENTIFICATION OF THE FACTORS WHICH ARE CRITICAL FOR ITS SUCCESS
5. DETERMINING PLAN MACHINERY AT EACH STAGE OF PLANNING PROCESS
6. MAKING PERIODIC ASSESSMENT
7. MAKING RECOMMENDATION

• NATIONAL DEVELOPMENT COUNCIL

1. TO FULFILL THE REQUIREMENT OF A COORDINATING AGENCY THE NATIONAL DEVELOPMENT COUNCIL WAS SET UP BY THE GOVERNMENT OF INDIA ON 6 TH AUGUST,1952.
2. EVERY PLANNING DECISION IN INDIA ORIGINATED FROM THE PLANNING COMMISSION AND BEING FINALLY APPROVED BY NDC
3. IN NDC REPRESENTATIVE OF BOTH CENTRAL AND STATE GOVERNMENT SIT TOGETHER TO FINALLY APPROVE ALL IMPORTANT DECISIONS RELATING TO PLANNING

• NDC WAS COMPOSED OF THE FOLLOWING MEMBERS

1. PRIME MINISTER OF INDIA
2. ALL STATE CHIEF MINISTERS
3. MEMBERS OF PLANNING COMMISSION

4.     WORKING AS AN ADVISORY COUNCIL AND IN THIS COUNCIL THE STATE GOVERNMENT OCCUPY THE IMPORTANT POSITION.

• NITI AAYOG

1. FOR SIX AND HALF DECADES,THE FIVE YEAR PLANS WER FORMULATED BY THE PLANNING COMMISSION. WITH EFFECT FROM JANUARY 1,2015,THE PLANNING COMMISSION HAS BEEN REPLACED BY NITI AAYOG (NATIONAL INSTITUTION FOR TRANSFORMING INDIA)
2. THE INSTITUTION WILL SERVE AS “ THINK TANK” OF THE GOVERNMENT- A DIRECTIONAL AND POLICY DYNAMO.
3. IT WILL PROVIDE GOVERNMENT AT CENTRAL AND STATE LEVELS WITH RELEVANT STRATEGIC AND TECHNICAL ADVICE  FOR THE KEY ELEMENT OF THE POLICY:-
4. ALSO INCLUDE MATTERS OF NATIONAL AND INTERNATIONAL IMPORTANCE ON THE ECONOMIC FRONT
5. BEST PRACTICES FROM WITH IN THE COUNTRY AS WELL FROM THE INTERNATIONAL

• THE STRUCTURE OF NITI AAYOG

1. CHAIRPERSON: PRIME MINISTER
2. GOVERNING COUNCIL: MEMBERS ARE CHIEF MINISTERS AND ADMINISTRATORS OF THE UNION TERRITORIES
3. REGIONAL COUNCILS:-CREATED AS PER NEED AND ITS MEMBERS WOULD BE  CHIEF MINISTERS AND ADMINISTRATORS OF UTI OF RESPECTIVE REGIONS
4. VICE CHAIRPERSON:-APPOINTED BY PRIME MINISTER

• ALSO HAS

a)    FULL TIME MEMBERS ( NUMBER NOT SPECIFIED)

b)    PART TIME MAXIMUM 2 ( SCHOLARS FROM THE UNIVERSITY)

c)    EX OFFICIO MEMEBERS ( MAXIMUM FOUR MINISTERS FROM THE UNION COUNCILS

d)    SPECIAL INVITTE APPOINTED BY PRIME MINISTER FOR FIXED TENURE

e)    CHEIEF EXECUTIVE OFFICER APPOINTED BY NITI AAYOG

• THE OBJECTIVE OF NITI AAYOG

a)    PROVIDE A CRITICAL DIRECTIONAL STRATEGIC INPUT TO THE DEVELOPMENT PROCESS OF INDIA

b)    SERVE AS A THINK TANK OF THE GOVERNMENT AT CENTRE AND STATE LEVEL

c)    TRY TO REPLACE THE CENTRE TO SATE ON WAY OF FLOW OF POLICY WITH AN AMICABLY SETTLED POLICY WITH A GENUINE AND CONTINUED PARTNERSHIP OF STATES FRAMES

d)    SHARED VISION OF NATIONAL DEVELOPMENT AND FOSTER COOPERATIVE FEDERALISM

e)    FORMULATE CREDIBLE PLANS AT VILLAGE LEVEL

f)     CREATE KNOWLEDGE,INNOVATION AND ENTREPRENEURIAL SYSTEM THROUGH A COLLABORATIVE COMMUNITY OF NATIONAL AND INTERNATIONAL EXPERTS

g)    MONITOR AND EVALUATE THE IMPLEMENTATIONS OF PROGRAMMES AND ALSO FOCUS ON UPGRADING TECHNOLOGY AND BUILDING CAPACITY

• FUNCTIONS OF NITI AAYOG

a)    TO ACT AS RESOURCE CENTRE AND KNOWLEDGE HUB

b)    DESIGN POLICY AND PROGRAMME FRAMEWORK

c)    FOSTER CO OPERATIVE FEDERALISM

d)    MONITORING AND EVALUATION

·         TWO HUBS:

1. TEAM INDIA HUB
2. THE KNOWLEDGE AND INNOVATION HUB
3. FLEXI POOL UNDER PROGRESS

• SALIENT FEATURES OF INDIA’S FIVE YEARPLANS ( HISTORY)

1. DEMOCRATIC:-WHILE FORMULATING A FIVE YEAR PLANS OPINIONS OF VARIOUS TIERS OF GOVERNMENT,VARIOUS ORGANIZATIONS,INSTITUTIONS,EXPERTS ARE BEING GIVEN DUE CONSIDERATION.
2. DECENTRALIZED PLANNING”-DECENTRALIZED PLANNING IS A KIND OF PLANNING AT THE GRASS ROOT LEVEL OR PLANNING FROM BELOW. EMPHASIS HAS BEEN GIVEN ON THE INTRODUCTION OF DISTRICT  PLANNING,SUBDIVISION PLANNING AND BLOCK LEVEL PLANNING SO AS TO REACH FINALLY THE VILLAGE LEVEL PLANNING SUCCESSFULLY
3. REGULATORY MECHANISM:- THAT IT IS BEING DIRECTED BY A CENTRAL PLANNING AUTHORITY THAT IS THE PLANNING COMMISSION OF INDIA WHICH PLAYS THE ROLE OF REGULATORY MECHANISM. FOR PROPER COORDINATION BETWEEN CENTRE AND STATE A COORDINATING AGENCY THE NATIONAL DEVELOPMENT COUNCIL WAS SET UP IN 1952
4. EXISTENCE OF CENTRAL PLAN AND STATE PLAN”-CO EXISTENCE OF BOTH THE CENTRAL AND STATE PLANS. IN EVERY FIVE YEAR PLANS OF THE COUNTRY,SEPARATE OUTLAY IS EARMARKED BOTH FOR THE CENTRAL PLAN AND ALSO FOR THE STATE PLAN. CENTRAL PLAN IS UNDER THE EXCLUSIVE CONTROL OF THE PLANNING COMMISSION AND THE SATE PLAN IS UNDER STATE PLANNING BOARD AND STATE GOVERNMENT WHICH ALSO REQUIRE APPROVAL FROM THE PLANNING COMMISSION.
5. PUBLIC AND PRIVATE SECTOR: ANOTHER NOTABLE FEATURE OF INDIA’S FIVE YEAR PLANS IS THAT EACH PLAN A SEPARATE OUT LAY IS EARMARKED BOTH FOR PUBLIC SECTOR AND PRIVATE SECTOR
6. PERIODIC PLAN” ONE OF THE IMPORTANT FEATURES OF INDIAN PLANNING HAS ADOPTED PLAN OF FIVE YEARS HAVING FIVE SEPARATE ANNUAL PLANS COMPONENTS,
7. BASIC OBJECTIVE: MAJOR OBJECTIVES:-

1. ATTAINMENT OF HIGHER ECONOMIC GROWTH
2. REDUCTION OF INCOME INEQUALITIES
3. ACHIEVING FULL EMPLOYMENT
4. ATTAINING  SELF ECONOMIC RELIANCE
5. MODERNIZATION OF VARIOUS SECTORS
6. REDRESSING THE IMBALANCES IN THE ECONOMY
7. GRWOTH AND JUSTICE IS THE MAIN OBJECTIVE

8. FIVE YEAR PLANS IN INDIA ARE DETERMINING ITS PRIORITIES CONSIDERING THE NEEDS OF THE COUNTRY.
9. IMPORTANCE TO BALANCED REGIONAL DEVELOPMENT
10. PERSPECTIVE PLANNING ON BASIC ISSUES OR PROBLEMS
11. INDIAN PLANNING SYSTEM IS BROADLY SUPPORTED BY PROGRAMME IMPLEMENTATION AND EVALUATION MACHINERY WHICH PLAYED A VITAL ROLE