Chapter 3: Economic Planning in India
- What is economic planning?
Economic planning is a systematic effort by the government to allocate resources to achieve specific goals like growth, employment, and poverty reduction. - When did India start economic planning?
India adopted economic planning in 1951 with the launch of the First Five-Year Plan, inspired by socialist models. - What is the main objective of economic planning in India?
To promote rapid economic growth, reduce poverty, ensure employment, and achieve social justice and self-reliance. - What are five-year plans?
Five-year plans are medium-term plans where government sets targets for economic development over a five-year period. - Who prepared India’s five-year plans?
Till 2014, five-year plans were prepared by the Planning Commission. Later, it was replaced by NITI Aayog. - What was the focus of the First Five-Year Plan (1951–56)?
It emphasized agriculture, irrigation, and land reforms to ensure food security and rural development. - What was the goal of the Second Five-Year Plan (1956–61)?
Focused on industrial development, especially heavy industries, based on the Mahalanobis Model. - What is the Planning Commission?
Established in 1950, it was a central body for formulating India’s five-year plans and allocating funds to states. - What is NITI Aayog?
Established in 2015, NITI Aayog replaced the Planning Commission. It focuses on cooperative federalism, innovation, and decentralized planning. - What are the major goals of economic planning?
Growth, employment generation, poverty reduction, infrastructure development, and balanced regional development. - What is inclusive growth?
Growth that benefits all sections of society, especially the poor and marginalized, ensuring equality and access to resources. - What is self-reliance in economic planning?
Self-reliance means reducing dependence on foreign aid and imports by promoting domestic production and technology. - What was the focus of the Third Plan (1961–66)?
Emphasized self-sufficiency in food and expansion of basic industries. It failed due to wars and droughts. - Why was there a plan holiday in 1966–69?
Due to economic crisis, wars, and failure of the Third Plan, three annual plans replaced the Five-Year Plan temporarily. - What is a rolling plan?
Introduced in 1978–80, rolling plans have no fixed time frame. Targets are revised annually. It was short-lived in India. - What was the target of the Fourth Plan (1969–74)?
Focused on growth with stability and self-reliance. It also launched the Green Revolution for agricultural growth. - What was the importance of the Fifth Plan (1974–79)?
It aimed at poverty removal (Garibi Hatao) and employment generation through public investment and rural schemes. - What was the focus of the Sixth Plan (1980–85)?
Aimed to reduce poverty, promote modernization, and improve productivity in all sectors. - What was the objective of the Eighth Plan (1992–97)?
Focused on liberalization, privatization, and globalization (LPG) policies after economic reforms in 1991. - Which plan introduced economic reforms in India?
Economic reforms began in 1991 during the Eighth Plan, focusing on opening markets, deregulation, and fiscal discipline. - What is poverty alleviation?
It refers to reducing the number of people living below the poverty line through schemes like MGNREGA, PDS, and self-employment programs. - What is balanced regional development?
It means promoting development in backward and rural areas along with developed regions to reduce economic disparities. - What are employment-oriented plans?
Plans that prioritize job creation in agriculture, industries, and services. Example: Sixth and Seventh Plans focused on employment. - What was the last Five-Year Plan in India?
The 12th Plan (2012–2017) was the last. After that, NITI Aayog took over with a new vision for development. - What are the achievements of Indian economic planning?
Increase in national income, self-sufficiency in food, infrastructure growth, reduction in poverty, and rise in literacy and health. - What are the limitations of planning in India?
Uneven growth, rising unemployment, slow implementation, and persistent poverty despite ambitious targets. - What is a target growth rate?
It’s the GDP growth rate that a plan aims to achieve over its duration. For example, the 12th Plan targeted 8%. - How does NITI Aayog differ from Planning Commission?
NITI Aayog focuses on policy guidance, cooperative federalism, and real-time data, unlike the centralized control of Planning Commission. - What is decentralized planning?
Planning at the grassroots level (village, district) to address local needs and involve community participation. - Why is planning still relevant today?
Despite reforms, planning is essential for social justice, environmental protection, infrastructure, and inclusive economic development.