PLANNING IN INDIA
Planning in India has been a cornerstone of its economic and social policy since independence in 1947. The primary aim of planning has been to foster a balanced and sustainable growth trajectory, reduce poverty, improve living standards, and ensure equitable distribution of resources. India's planning process was institutionalized with the establishment of the Planning Commission in 1950, which was tasked with the formulation and implementation of Five-Year Plans.
The need for planning arose from the necessity to address the multifaceted challenges facing the country post-independence, including widespread poverty, underdeveloped infrastructure, and an agrarian-based economy. The planning model adopted by India was inspired by the Soviet Union's central planning approach but tailored to suit the unique socio-economic fabric of the nation. Over the decades, India's planning philosophy has evolved, reflecting changes in economic policy, global influences, and internal socio-political dynamics.
In 2015, the Planning Commission was replaced by the NITI Aayog (National Institution for Transforming India), signalling a shift towards a more decentralized and cooperative approach to development. The new body emphasizes the importance of states in the planning process and focuses on fostering competitive and cooperative federalism.
Planning in India has thus transitioned from a rigid, centralized system to a more flexible, inclusive, and participatory framework, aiming to harness the diverse potentials of its regions while addressing the developmental needs of its population. This introduction sets the stage for understanding the detailed mechanisms, successes, and challenges of the planning process in India.
These efforts laid the foundation for the comprehensive and structured planning processes that emerged post-independence. Although the colonial government did not have a formalized approach to economic planning, several individuals and groups, motivated by the socio-economic challenges of the time, initiated significant planning efforts. These early plans, though not implemented at the national level, highlighted the need for a structured economic strategy and influenced the planning mechanisms adopted after 1947.
1.Sir M. Visvesvaraya's Planned Economy for India (1934)