ECONOMIC PLANNING IN INDIA

History Of Planning in India

  • First attempt to initiate economic planning in India was made by Sir M.Visvesvarayya, a noted engineer and politician, in 1934 through his book, ‘Planned Economy for India’.
  • In 1938 ‘National Planning Commission’ was set-up under the chairmanship of JL Nehru by the Indian National Congress. Its recommendations could not be implemented because of the beginning of the Second World War and changes in the Indian political situation.

     THE PLANNING COMMISSION

·         The Planning Commission was set-up on Mar 15, 1950 under the leadership of JL Nehru, by a resolution of Union Cabinet.

·         It is an extra-constitutional, non-statutory body.

·         It consists of Prime Minister as the ex-officio Chairman, one Deputy-Chairman appointed by the PM and some full time members.

·         The tenure of its members and deputy chairman is not fixed. There is no definite definition of its members also. They are appointed by the Government on its own discretion. The number of members can also change according to the wishes of the Government.

      FUNCTIONS

·         Assessment of material, capital and human resources of the country.

·         Formulation of plans for the most effective and balanced utilization of country’s resources.

·         To determine the various stages of planning and to propose the allocation of resources on the priority basis.

·         To act as an advisory body to the Union Government.

·         To evaluate from time to time the progress achieved in every stage of plan and also to suggest remedial measures.

·         To advise the Centre and State Governments from time to time on special matters referred to the Commission.

      NATIONAL DEVELOPMENT COUNCIL

·         All the plans made by the Planning Commission have to be approved by National Development Council first. It was constituted to build co-operation between the States and the Planning Commission for economic planning.

·         It is an extra-constitutional and extra-legal body.

·         It was set-up Aug 6, 1952, by a proposal of the Government. The PM is the ex-officio chairman of NDC. Other members are Union Cabinet Ministers, Chief Ministers and Finance Ministers of all States, Lt. Governors of Union Territories and Governors of Centrally-ruled States.

STATE PLANNING BOARD

·         Apex planning body at State level is generally a State Planning Body comprising the Chief Minister as Chairman, Finance and Planning Ministers of that State and some technical experts.

·          District Planning Committee is also there comprising both official and non-official members.

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