Development Experience And Development Planning Of India

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Development Experience and Development Planning of India

POVERTY, low per capita income, under-development, Unemployment, prompted the newly established Indian Polity to adopt economic planning for the development of the country. The idea of economic planning can be traced to 1934, when M. Visvesverayya in his book 'Planned economy of India', advocated for planning to increase the NATIONAL INCOME. It was taken up by the Indian National Congress in 1938 when it formed the National Planning Committee under the chairmanship of Jawaharlal Nehru. The Bombay Plan, the People's Plan and Gandhian Plan, provided further impetus in the direction of economic planning. After independence, a Planning Commission was set up in March 1950 by a Cabinet Resolution with the Prime Minister as its ex-officio Chairman to formulate Five Year Plans for the Economic Development of the country.

Role of Planning in India

Accelerating Economic Growth:

There were two main features of India’s economic policy that emphasized the role of planning and intervention by the State in the development process of the Indian economy in the first three decades of planning. First, to accelerate economic growth economists and planners recognized that raising the rate of saving and Investment was essential to accelerate the rate of economic growth.

Emphasis on Industrialisation, Second, the strategy of development, adopted since the adoption of Second Five Year Plan which was based on Mahalanobis growth model, laid Stress on the industrialisation with an emphasis on the development of basic heavy industries and Capital Goods industries.

To Compensate for Market Failures

The dominant view in development economics in the fifties and sixties also laid stress on the planning by the State to compensate for ‘market failures’. It was argued that while market mechanism was efficient in distributing a given stock of available goods, it was quite inefficient in allocating Resources over time for investment.

Regulatory Role of the State

There is another important aspect of the role of State and planning in the development of the Indian economy which dominated economic thinking in the pre-reform period. Though the private sector was given an important role to play in the framework of Mixed Economy, to achieve optimal allocation of resources among different industries according to plan priorities, economic activities in the private sector were required to be regulated by the State. Further, to achieve other objectives of planning such as restraining the concentration of economic power in a few big business houses, the private sector was subjected to industrial licensing controls.

Tackling the Problems of Poverty and Unemployment

The other problem which makes role of planning and state intervention important is the need to tackle the problems of poverty and unemployment. Since the beginning of the seventies the Indian planners realised, especially in the Fifth, Sixth and Seventh Five Year Plans, that even if growth rate of GDP was raised to 5 to 6 per cent per annum, it was not possible to make a significant dent on the problems of mass poverty and unemployment prevailing in the Indian economy.

India’s rate of economic development has not been very impressive by most standards. But compared to what it was prior to independence, there is cause for celebration. At independence in 1947, India was an extremely poor country with an annual per capita income of only $50 for its 350 million people. Life expectancy was 32 years and Literacy rate was 17 percent. National Savings rate was around 10 percent. agriculture accounted for 60 percent of GDP and 80 percent of EMPLOYMENT. Per capita food production and per capita income had been declining continuously for nearly the prior fifty years.

After independence, even under the growth-retarding effects of Nehruvian Socialism and central planning, India’s performance improved. In a study of cross-country growth experience of 85 countries from 1960 to 1992, India’s performance is almost precisely Average. This is poor in relation to the potential that India has given the degree of human, institutional, and natural capital at its command. Economists such as Jagdish Bhagwati have attributed that failure to the “nearly three decades of illiberal and autarkic policies” before the reforms of the early 1990s.

Some observers have called the change from an inward-looking autarkic economy to an open, market-driven one since 1990 as the Indian Growth Miracle. The neo-liberal Economic Reforms propelled India to become one of the fastest-growing economies in the world. Yet India should have been one of the fastest growing economies in the decades before 1990, and not just in the post 1990 period. It did not because its planners chose to insulate the economy from the global economy. That conferred some benefits in terms of shielding India from external shocks, but it paid a very high price in terms of foregone growth.

From planning commission to Niti Ayog

Reflecting the spirit and the changed dynamics of the new India, the institutions of governance and policy have to adapt to new challenges and must be built on the founding principles of the Constitution of India, the wealth of knowledge from our civilizational history and the present-day socio-cultural-economic contexts. The aspirations of India and its citizens require institutional reforms in governance and dynamic policy shifts that can seed and nurture unprecedented change.

In keeping with these changing times, the Government of India has decided to set up NITI Aayog (National Institution for Transforming India), in place of the erstwhile Planning Commission, as a means to better serve the needs and aspirations of the people of India.

In essence, effective governance in India will rest on following ‘pillars’:

Pro-people agenda that fulfils the aspirations of the Society as well as individual,
Pro-active in anticipating and responding to their needs,
Participative, by involvement of citizenry,
Inclusion of all groups,
Equality of opportunity to our country’s youth,
Sustainable Development, by protecting Environment,
Transparency that uses technology to make government visible and responsive.

India is a country with a rich history and culture. It is also a country with a rapidly growing economy. In recent years, India has made significant progress in terms of development. However, there are still many challenges that the country faces.

One of the most important challenges facing India is poverty. According to the World Bank, over 200 million people in India live below the Poverty Line. This means that they live on less than $1.90 per day. Poverty is a major problem in India because it leads to a number of other problems, such as Malnutrition, lack of Education, and poor Health.

Another major challenge facing India is inequality. The gap between the rich and the poor in India is growing wider. This is due to a number of factors, such as the unequal distribution of land and resources, and the lack of opportunities for the poor. Inequality is a major problem because it leads to social unrest and conflict.

Despite these challenges, India has made significant progress in recent years. The economy has grown at a rapid pace, and the standard of living has improved for many people. India has also made progress in terms of social development, such as education and health.

One of the key institutions in India’s development planning is the Planning Commission. The Planning Commission was established in 1950 to help the government plan and implement development programs. The Commission has been responsible for formulating five-year plans, which are the country’s long-term development strategies.

The first five-year plan was launched in 1951. The focus of this plan was on agriculture and Infrastructure-2/”>INFRASTRUCTURE-development/”>Infrastructure Development. The second five-year plan, which was launched in 1956, focused on industrialization. The third five-year plan, which was launched in 1961, focused on social development. The fourth five-year plan, which was launched in 1966, focused on economic growth. The fifth five-year plan, which was launched in 1971, focused on self-reliance.

The Planning Commission was abolished in 2014. However, the five-year planning process continues. The current five-year plan, which is the 12th five-year plan, was launched in 2012. The focus of this plan is on Inclusive Growth.

India has also made progress in terms of economic reforms. In 1991, the government launched a series of economic reforms that were designed to liberalize the economy. These reforms have led to increased foreign investment, economic growth, and job creation.

India is a country with a bright future. The economy is growing rapidly, and the standard of living is improving for many people. However, there are still many challenges that the country faces, such as poverty and inequality. The government is working to address these challenges, and India is well on its way to becoming a developed country.

In addition to the challenges mentioned above, India also faces a number of other challenges, such as Environmental Degradation, Energy Security, and Climate change. These challenges are complex and require a multi-pronged approach. The government is working to address these challenges, but progress has been slow.

Despite the challenges, India is a country with a lot of potential. The economy is growing rapidly, and the Population is young and educated. India is well-positioned to take advantage of the opportunities of the 21st century.

Here are some frequently asked questions and short answers about India:

What is the capital of India?
The capital of India is New Delhi.
What is the population of India?
The population of India is over 1.3 billion people.
What is the Official Language of India?
The official language of India is Hindi.
What is the currency of India?
The currency of India is the Indian rupee.
What is the religion of India?
The majority religion of India is Hinduism-2/”>Hinduism.
What is the flag of India?
The flag of India is a tricolor flag with three horizontal bands of saffron, white, and green. The saffron band is at the top, the white band is in the middle, and the green band is at the bottom. The saffron band represents courage, sacrifice, and the spirit of renunciation. The white band represents peace and purity. The green band represents faith and fertility.
What is the national animal of India?
The national animal of India is the tiger.
What is the national bird of India?
The national bird of India is the peacock.
What is the national flower of India?
The national flower of India is the lotus.
What is the National Anthem of India?
The national anthem of India is Jana Gana Mana.
What is the national motto of India?
The national motto of India is Satyameva Jayate, which means “Truth alone triumphs.”
What is the national holiday of India?
The national holiday of India is Republic Day, which is celebrated on January 26.
What is the GDP of India?
The GDP of India is over $2 trillion.
What is the literacy rate of India?
The literacy rate of India is over 70%.
What is the life expectancy of India?
The life expectancy of India is over 68 years.
What is the infant mortality rate of India?
The infant mortality rate of India is about 35 deaths per 1,000 live births.
What is the poverty rate of India?
The poverty rate of India is about 20%.
What is the unemployment rate of India?
The unemployment rate of India is about 6%.
What is the education system in India?
The education system in India is divided into three levels: primary, secondary, and tertiary. Primary education is compulsory for all children aged 6-14. Secondary education is optional for children aged 14-18. Tertiary education is offered at universities and other higher education institutions.
What is the healthcare system in India?
The healthcare system in India is a mix of public and private providers. The public healthcare system is funded by the government and is available to all citizens. The private healthcare system is funded by individuals and businesses.
What is the infrastructure in India?
The infrastructure in India is a mix of old and new. The old infrastructure is in need of repair and upgrade. The new infrastructure is modern and efficient.
What is the economy of India?
The economy of India is the world’s sixth-largest economy. The economy is growing at a rapid pace and is expected to become the world’s third-largest economy by 2050.
What is the government of India?
The government of India is a federal republic. The head of state is the president, who is elected by an electoral college. The head of government is the prime minister, who is appointed by the president. The parliament is bicameral, consisting of the Lok Sabha (the lower house) and the Rajya Sabha (the upper house).
What is the culture of India?
The culture of India is diverse and complex. It is influenced by Hinduism, Buddhism-2/”>Buddhism, Islam, and other religions. The culture is also influenced by the country’s history, geography, and people.
What are the challenges facing India?
The challenges facing India include poverty, illiteracy, unemployment, Corruption, and environmental degradation.
What are the opportunities for India?
The opportunities for India include a large and growing population, a young workforce, a rapidly growing economy, and a rich culture.

Sure, here are some MCQs on the topics of Development Experience and Development Planning of India:

Which of the following is not a goal of the Five Year Plans in India?
(A) Rapid industrialization
(B) AGRICULTURE DEVELOPMENT
(C) Population control
(D) Economic Liberalization-2/”>Liberalization
The First Five Year Plan in India was launched in:
(A) 1951
(B) 1956
(C) 1961
(D) 1966
The Planning Commission of India was established in:
(A) 1947
(B) 1950
(C) 1951
(D) 1952
The main objective of the Green Revolution in India was to:
(A) Increase agricultural production
(B) Reduce poverty
(C) Improve Nutrition
(D) All of the above
The main objective of the White Revolution IN INDIA was to:
(A) Increase milk production
(B) Reduce poverty
(C) Improve nutrition
(D) All of the above
The main objective of the National Rural Employment Guarantee Act (NREGA) in India is to:
(A) Provide employment to rural people
(B) Reduce poverty
(C) Improve Infrastructure in Rural Areas
(D) All of the above
The main objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in India is to:
(A) Provide financial Services to the poor
(B) Reduce poverty
(C) Improve Financial Inclusion
(D) All of the above
The main objective of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) in India is to:
(A) Provide training to the youth
(B) Reduce unemployment
(C) Improve skills of the workforce
(D) All of the above
The main objective of the Pradhan Mantri Awas Yojana (PMAY) in India is to:
(A) Provide housing to the poor
(B) Reduce poverty
(C) Improve housing conditions
(D) All of the above
The main objective of the Pradhan Mantri Jan Arogya Yojana (PMJAY) in India is to:
(A) Provide health insurance to the poor
(B) Reduce out-of-pocket expenditure on healthcare
(C) Improve access to healthcare
(D) All of the above

I hope these MCQs are helpful!