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 India faces.

One of the biggest challenges that India faces 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 challenge that India faces is inequality. The gap between the rich and the poor in India is growing wider. The richest 1% of Indians own more than half of the country’s wealth. This inequality is a problem because it leads to social unrest and political instability.

India also faces a number of environmental challenges. Air Pollution is a major problem in many Indian cities. The air quality in Delhi, for example, is among the worst in the world. Air pollution can cause a number of health problems, such as respiratory infections, heart disease, and cancer.

India also faces a number of Climate change challenges. The country is already experiencing the effects of Climate Change, such as more frequent and severe droughts and floods. Climate change is a major threat to India’s economy and its people.

Despite these challenges, India has made significant progress in recent years. The country’s economy has grown at an average rate of 7% per year for over a decade. This growth has helped to reduce poverty and improve living standards for millions of Indians.

India has also made progress in terms of social development. The country has made significant progress in reducing illiteracy and improving access to healthcare. India has also made progress in terms of Gender Equality. The number of Women in parliament has increased significantly in recent years.

India has also made progress in terms of Infrastructure-2/”>INFRASTRUCTURE-development/”>Infrastructure Development. The country has built a number of new roads, bridges, and Airports. India has also made progress in terms of energy development. The country has increased its use of RENEWABLE ENERGY sources, such as solar and wind power.

India is facing a number of challenges, but it is also a country with a lot of potential. The country has a young and growing Population, a large and diverse economy, and a strong Democracy. With the right policies and investments, India can overcome its challenges and become a global leader in the 21st century.

Here are some of the challenges that India faces:

Poverty: 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.
Inequality: The gap between the rich and the poor in India is growing wider. The richest 1% of Indians own more than half of the country’s wealth. This inequality is a problem because it leads to social unrest and political instability.
Environment: India faces a number of environmental challenges. Air pollution is a major problem in many Indian cities. The air quality in Delhi, for example, is among the worst in the world. Air pollution can cause a number of health problems, such as respiratory infections, heart disease, and cancer. India also faces a number of climate change challenges. The country is already experiencing the effects of climate change, such as more frequent and severe droughts and floods. Climate change is a major threat to India’s economy and its people.

Here are some of the prospects for India:

Economic growth: India’s economy has grown at an average rate of 7% per year for over a decade. This growth has helped to reduce poverty and improve living standards for millions of Indians.
Social development: India has made significant progress in terms of social development. The country has made significant progress in reducing illiteracy and improving access to healthcare. India has also made progress in terms of gender equality. The number of women in parliament has increased significantly in recent years.
Infrastructure development: India has made progress in terms of infrastructure development. The country has built a number of new roads, bridges, and airports. India has also made progress in terms of energy development. The country has increased its use of renewable energy sources, such as solar and wind power.
Democracy: India is a strong democracy. The country has a vibrant and active civil society. India has also made progress in terms of Human Rights.

India is a country with a lot of potential. With the right policies and investments, India can overcome its challenges and become a global leader in the 21st century.

Here are some frequently asked questions and short answers about development experience and development planning in India:

What are the main challenges facing India’s development?

India faces a number of challenges, including poverty, inequality, Corruption, and Environmental Degradation.

What are the main achievements of India’s development?

India has made significant progress in reducing poverty, improving education and healthcare, and expanding economic opportunities.

What are the main policies and programs that have been implemented to promote development in India?

The Indian government has implemented a number of policies and programs to promote development, including the Five Year Plans, the National Rural Employment Guarantee Act, and the Pradhan Mantri Jan Dhan Yojana.

What are the main successes and failures of these policies and programs?

The Five Year Plans have been successful in promoting economic growth, but they have also been criticized for their top-down approach and for not adequately addressing the needs of the poor. The National Rural Employment Guarantee Act has been successful in providing employment to the rural poor, but it has also been criticized for its high cost and for not being effective in reducing poverty. The Pradhan Mantri Jan Dhan Yojana has been successful in providing financial Services to the poor, but it has also been criticized for its lack of transparency and for not being effective in reducing poverty.

What are the main challenges facing India’s development in the future?

India faces a number of challenges in the future, including the need to improve infrastructure, education, and healthcare, and to address climate change.

What are the main opportunities for India’s development in the future?

India has a number of opportunities for development in the future, including its large population, its growing economy, and its skilled workforce.

What are the main recommendations for India’s development in the future?

India needs to continue to invest in infrastructure, education, and healthcare, and to address climate change. It also needs to improve its governance and to reduce corruption.

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) Agricultural development
(C) Population control
(D) Economic growth
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) Increase industrial production
(C) Increase employment
(D) Reduce poverty
The main objective of the White Revolution IN INDIA was to:
(A) Increase milk production
(B) Increase meat production
(C) Increase fish production
(D) Increase egg production
The main objective of the National Rural Employment Guarantee Act (NREGA) in India is to:
(A) Provide employment to rural people
(B) Provide Food Security to rural people
(C) Provide housing to rural people
(D) Provide education to rural people
The main objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in India is to:
(A) Provide bank accounts to poor people
(B) Provide insurance to poor people
(C) Provide pensions to poor people
(D) Provide housing to poor people
The main objective of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) in India is to:
(A) Provide training to youth
(B) Provide employment to youth
(C) Provide loans to youth
(D) Provide scholarships to youth
The main objective of the Pradhan Mantri Awas Yojana (PMAY) in India is to:
(A) Provide housing to poor people
(B) Provide electricity to poor people
(C) Provide water to poor people
(D) Provide toilets to poor people
The main objective of the Pradhan Mantri Jan Arogya Yojana (PMJAY) in India is to:
(A) Provide health insurance to poor people
(B) Provide education to poor people
(C) Provide employment to poor people
(D) Provide housing to poor people

I hope these MCQs are helpful. Let me know if you have any other questions.