Major objectives of economic planning in India

Objectives :-)



Know the state of the Indian economy at the time of independence.



Explain the meaning of economic planning.



Indicate why economic planning is better than free market.



Discuss the major objectives of economic planning in India.



Outline the role of the Planning Commission in India.



What you have learnt :-)



At the time of independence, the Indian economy was not only marked by low income levels but also

a considerable degree of inequality.



Excessive dependence on agriculture, backward technology, low productivity and traditional attitudes

made the economic situation extremely difficult.



There was an urgent need for economic development. Economic growth only would not be sufficient

as the levels of living of the poor had to be raised.



Free market system could not have guaranteed the desired rate of economic growth along with

reduction in inequalities. So there was a need for planning in order to best utilize the resources

for the benefit of the people rather than a few.



Economic planning refers to the setting of targets for different sectors of the economy and in

doing so allocating resources to these sectors to fulfill their targets.



The long term objectives of economic planning in India are economic growth, reduction in ineqaulities,

self-reliance, modernization, reduction in unemployment levels and balanced regional growth.



Each five year plan is prepared and developed by the Planning Commission and aims at achieving certain

targets. The planning Commission co-ordinates the execution of the plans with state and central

governments.





Terminal exercise.



Explain the condition of the Indian economy at the time of independence.



State the impact of partition on the Indian economy.



Did India need economic growth or economic development at the time of independence? explain.



What is economic planning? Why did Indian policy makers adopt economic planning for the development

of India?



State the major objectives of the Five year plans in India.



Explain the objective of self-reliance.



Enumerate the tasks undertaken by the Planning Commission of India.

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