Economic Planning in India: Objectives and Evolution

Economic Planning in India: Objectives and Evolution

In this blog we will understand how India's Economic Planing Emerged and a shift to NITI Aayog and what were it's main objective. 

Economic Planning in India: Objectives and Evolution
Economic Planning In India

Economic Planing in India:

Economic planning is the process of creating a long-term vision and strategy for the country's economic development. Economic planning in India started in 1951 with the adoption of the First Five-Year Plan, which was designed to promote economic growth, reduce poverty and unemployment, and improve the standard of living of the people. The main objective of economic planning in India is to achieve balanced and sustainable economic growth that benefits all sections of society

India's economic planning journey began with the establishment of the Planning Commission in 1950. Tasked with shaping the nation's development trajectory, the Commission crafted Five-Year Plans outlining goals for sectors like agriculture, industry, and services.

The Planning Commission aimed to reduce poverty and promote social justice through targeted strategies. Over the years, it played a pivotal role in steering the country toward economic growth. However, in 2015, the Planning Commission was replaced by NITI Aayog.

NITi Aayog:

The National Institution for Transforming India (NITI Aayog) introduced a fresh perspective, focusing on cooperative federalism. This approach emphasizes collaboration between the central and state governments to ensure a more inclusive and coordinated development agenda.

NITI Aayog brought flexibility to economic planning, acknowledging the need for adaptability in a rapidly changing world. This shift from rigid planning to a more dynamic framework allows for timely adjustments based on emerging challenges and opportunities.

The overarching goal remains consistent – fostering sustained growth and prosperity. Each Five-Year Plan, including the recent ones, lays out specific targets and policies. These plans serve as roadmaps, guiding India through the complexities of economic development, ensuring that the nation remains on the path to inclusive and equitable progress. As India continues to evolve, so too does its approach to economic planning, ensuring a resilient and responsive strategy for the future.

Objectives of Indian Economic Planning

The objectives of Indian economic planning are to:

1. Promote Growth: Foster sustained economic growth in key sectors like agriculture, industry, and services.

2. Poverty Alleviation: Reduce poverty and enhance living standards through targeted policies and programs.

3. Social Justice: Ensure equitable distribution of resources and opportunities across diverse sections of society.

 4. Employment Generation: Create employment opportunities to address unemployment and underemployment issues.

 5. Infrastructure Development: Build and strengthen infrastructure to support economic activities and enhance connectivity.

6Technology Advancement: Encourage technological innovation and adoption to boost productivity and competitiveness.

7. Regional Balanced Development: Promote balanced development across regions to prevent regional disparities.

8. Environmental Sustainability: Integrate environmental considerations into development plans for sustainable growth.

9. Human Capital Development: Invest in education, healthcare, and skill development to enhance the quality of human capital.

10. Global Competitiveness: Position India as a globally competitive economy by fostering international trade and cooperation.

These objectives guide the formulation of Five-Year Plans and other strategic initiatives, aiming to create a robust and inclusive economic framework for the nation.

Athar Maqsood

Woking as an Author and Writer since 2020.
Education :
Bachelor in Political Science and Economics. Diploma in Computer Science, Tally, and Typing.

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