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Economic Planning in India

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Economic Planning in India changed into a hard mission for our country wide leaders, they have been going through a massive problem, the way to construct the economic system, 20% of humans had been controlling 80% of assets, so the factor turned into the way to make Independence meaningful to the hundreds due to the fact until and until the monetary empowerment, all  empowerment is incomprehensible or shallow. – PowerPoint PPT presentation

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Updated: 2 February 2018
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Title: Economic Planning in India


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(No Transcript)
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Economic Planning in India
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Economic Planning in India Started After the
Independence in 1947Economic Planning in
India was a tough challenge for our national
leaders, they were facing a big problem, how to
construct the economy, 20 of people were
controlling 80 of resources, so the point was
how to make Independence meaningful to the masses
because unless and until the financial
empowerment, all  empowerment is meaningless or
shallow.Furthermore, the main challenge was how
to reconstruct economy, how to equalize the
distribution of resources among people, at the
time of Independence all sectors were shattered,
none of the sectors were in shape, the problem
was with an adaptation of model for Economic
Planning in India, then our National leaders look
at various models, like there were so many
countries earlier were colonies like USA under
British, but earlier in 1947 these countries were
developed, In the meanwhile our National leaders
thought that if it is possible to implement a
model which has implemented in these countries so
that we can ensure better lifestyle and can
eradicate poverty, unemployment from our
country.
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  • So then we started looking various models
    compared to and then we were agreed that no 2
    models ever be the same, plans are designed to
    specific requirements of the country.There were
    several models across the globe which can be
    divided into 2 categories such asCapitalistic
    Plan ModelCapitalistic plan model is where
    economic decisions are taken by market forces
    like what to produce, where to produce, whom,
    when, etc., according to the demand and supply.
    This plan was also a success, as for example
    America, Australia was poor Nations, but this
    plan successfully contributed in bringing these
    Nations from poor to rich.
  • So the leaders in India were decided to implement
    same but the problem was with capital, we had
    landlords, but we had not disposable capital that
    we can invest, demand and supply cannot be
    created since 80 of people were poor and lack of
    technology and capital. However, this model was
    ignoring social considerations, and its only goal
    is to make profits, so again decided not to
    implement then we turn to another method
    Socialistic model.Socialistic Plan ModelUnder
    Socialistic plan model, the economic decisions
    are taken by the Government and it was successful
    in USSR and East European countries. This model
    was close to the heart of leaders because it was
    working towards down-up strategy and most of our
    people were poor. Then planned to adopt this
    model to implement because it was close to our
    Ideology, it works to eliminate poverty. But the
    problem was with landlords we cannot overrule
    them and princely states this was the only
    problem they had.

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  • Because if we see the history we find that the
    reason behind the failure of 1857 revolt was
    because of landlords and capitalist they did not
    co-operate with our freedom fighters, they
    supported Britishers hence, that is why freedom
    struggle failed. In the mean, while India itself
    was a result of communal problems forcing
    separation from India, thats why we gave special
    rules for princely states and right to property
    in our constitution to decrease the fear of
    landlords and building confidence to the princely
    states.
  • Moreover, there are problems to implement both
    the models that are why the economic planners
    decided to combine both Capitalistic and
    Socialistic model and finally adopted Mixed
    Economy to achieve better growth in all aspects
    and leaders contributed their knowledge to our
    Economic Planning in India.Features of Economic
    Planning in India Economic Planning in India
    was not so easy therefore we had no previous
    experience of politics because before British
    came to India kings and queens were ruling, but
    it was necessary to make an Economic plan in
    India. Definite ObjectiveThe most important
    features of economic planning should possess
    definite objectives. Planning means conscious and
    purposeful undertaking for a definite objective.
    For instance, economic planning has the objective
    to increase the rate of growth, elimination of
    trade cycles, bringing the stability and a attain
    full employment in the economy. Central
    Planning AuthorityThe existence of central
    planning authority is another feature of economic
    planning. The central planning authority is
    responsible to prepare different central schemes
    of development and coordinating the
    various activities. In short, the central
    authority takes all decisions relating to
    production and consumption in an economy.

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  •  Democratic CharacterAnother discover feature
    is its Democratic nature. No doubt, despite the
    various plans are prepared by experts but at the
    same time, adequate opportunities are provided to
    the people to actively participate at various
    levels. Being federal structure of Indian
    constitution, the Union Government only uses its
    fiscal monetary and physical controls to guide
    and give direction in relevance to the five -year
    plan subsequently. Only An Advisory Role of
    Planning CommissionIn the decentralized set-up
    of the planning commission is the apex body. It
    provides the necessary perspective, guidance, and
    coordination. Furthermore, it serves as a close
    link between agencies so that functioning may be
    smooth in this regard, the planning commission is
    an advisory character. Feasible Policies and
    TargetsA good planning is based on the initial
    resources of the country to achieve the feasible
    goals and policies. In this way, domestic
    resources are planned for attaining economic
    stability.
  •  Planning for ConsumptionIn a centrally
    planned economy it should not be confined to
    production alone but the same time, it must cover
    the distribution and consumption also. In other
    words, the planning authority should not decide
    what and how to produce but it must keep in mind
    and decide accordingly among whom it is to be
    distributed.

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  • Importance of Economic Planning In
    IndiaEconomic Planning is a resource allocation
    planning that is compared with the market
    mechanism. As a coordinating mechanism for
    socialism, economic planning substitutes factor
    markets and is defined as a direct allocation of
    resources, contrasted with the indirect
    allocation mechanism of the market. Rapid
    Economic DevelopmentBefore Independence, the
    long period of British rule and exploitation had
    made India one of the poorest nations in the
    world. The main task before the National
    Government was to undertake some positive
    development 
  • measures to initiate a process of development,
    which can be done effectively only through the
    instrument of planning. Quick Improvement in
    the Standard of LivingIn an Unplanned economy,
    the countrys resources and materials cannot be
    employed for increasing the peoples welfare as
    the private capitalists in such an economy direct
    their activities in increasing their own profits.
    The path of planning has been chosen to promote a
    rapid rise in the standard of living of the
    people by efficient exploitation of resources.

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  •  Removal of PovertyEconomic Planning In India
    is necessary for the early removal of abject
    poverty of the people, This can be done
    through.a) Planned for an increase in the
    employment opportunities of the people.b)
    Planned for production of mass consumption goods
    and their planned distribution among the
    people.c) Fulfillment of minimum needs program
    by providing essential facilities like roads,
    water, etc.d) Planned to increase the
    consumption of the poorest section of the people.
  •  Rational Allocation and Efficient Utilization
    of ResourcesIndia is rich in natural resources
    but these resources are not fully exploited to
    get maximum benefits. The resources tend to
    engage in the production of goods and services
    which make more profits only this will be
    concentrated in an unplanned economy, as a
    result, rational allocation of resources is not
    possible, so India planned for the pattern of
    Investment of resources and allocation. Increas
    ing the Rate of Capital FormationPlanning can
    also raise the rate of capital formation in the
    low-level countries like India. The surplus of
    public enterprises as found in the planned
    economy can be utilized for Investment and
    capital formation. In India, the Government has
    been increasing, the rate of capital formation
    through planned Investment like roads,
    manufacturing machines, etc.

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  •  Reduction in Unequal Distribution of Income and
    WealthIn absence of Economic Planning In India,
    inequality tends to increase due to growing
    concentration of Eco-resources at the hands of
    few capitalists. planning can change this trend
    with proper guidance and control of 
  • production, distribution, investment, etc. The
    development works established an increase in
    Income and employment. Reorganization of
    Foreign TradeThe Foreign trade structure may be
    the direction of the primary producing economy to
    the Industrialized economy. Through proper
    controls of import and effective promotion of
    export of Industrial goods, the development plans
    can reorganize the foreign trade structure. Thus
    owing to such development the trade structure is
    not like colonial as it was before. Regional
    Balanced DevelopmentProper development programs
    may be taken for the all-round development of
    background areas, as a result, that all the
    regions are sufficiently developed. More
    Industries are to be set up in the less developed
    regions and plan should provide dispersal of
    Industries.For the most part, these are the few
    reasons for thinking towards Economic Planning In
    India.

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  • Read Importance of Agricultural Marketing in
    India and Government Steps
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