📘 Economic Planning in India – Summary Notes
✅ Definition
Economic Planning: A process where a central authority (like the government) plans and controls economic activities to achieve certain goals (growth, equity, development).
🧩 Types of Planning
Indicative Planning: Govt. sets targets, private sector encouraged to participate.
Directive Planning: Govt. allocates resources, strict control.
India follows a mixed economy model — mix of both.
🏁 Planning in India Started
Year: 1951
Agency: Planning Commission
Inspired by: Soviet Union model
🏛️ Important Planning Bodies
Planning Commission (1950–2014)
First Chairman: Jawaharlal Nehru
Formulated Five-Year Plans
NITI Aayog (Established 2015)
Replaced Planning Commission
Chairman: Prime Minister
CEO: Appointed by Govt
Focus: Cooperative federalism, bottom-up approach
🗓️ Five-Year Plans Overview
| Plan | Period | Focus | Result |
|---|---|---|---|
| 1st | 1951–56 | Agriculture | Success |
| 2nd | 1956–61 | Industrialization (Nehru-Mahalanobis Model) | Good growth |
| 3rd | 1961–66 | Self-reliance | Affected by wars/drought |
| Plan Holidays | 1966–69 | Annual Plans due to crisis | |
| 4th | 1969–74 | Growth with stability | Moderate |
| 5th | 1974–78 | Poverty removal (Garibi Hatao) | Populist |
| 6th | 1980–85 | Tech. self-reliance | Mixed |
| 7th | 1985–90 | Social justice & productivity | Good |
| 8th | 1992–97 | LPG reforms | Successful |
| 9th | 1997–2002 | Human development | Mixed |
| 10th | 2002–07 | Faster GDP growth | 7% avg |
| 11th | 2007–12 | Inclusive growth | Social focus |
| 12th | 2012–17 | Faster, Sustainable & Inclusive | Last plan |
📉 End of Five-Year Plans
Last Plan: 12th Five-Year Plan (2012–17)
Replaced by: NITI Aayog
NITI Aayog now prepares 3-year action, 7-year strategy, and 15-year vision documents
🎯 Objectives of Planning in India
Growth
Poverty & Unemployment reduction
Self-reliance
Social justice
Modernization
Inclusive development
🔍 Key Terms
Plan Holiday: 1966–69
Rolling Plan: 1978–80 (Janata Govt)
Gadgil Formula: Fund allocation to states
📚 Current Planning Approach (Post-2017)
NITI Aayog framework
Sector-specific goals
Sustainable Development Goals (SDGs) aligned
Data-driven, evidence-based planning