Economic Planning is a process under which a central authority defines a set of targets to be achieved within a specified period of time.it refers to a system under which a central authority sets a set of targets and specify a set of programmed and policies to achieve those targets within the specified period.
In India, Prime Minister is the Chairperson of Economic Planning commission
According to Planning commission, Economic Planning means utilization of country’s resources for different development activities in accordance with national Priorities. Economic planning was applied through Five Year plan.
Following have been the common goals of the Five year plans:
- Self sufficiency
There is some development strategy under the Economic Planning of five year plans up to 1900 may be as
Agriculture – Under the first five-year plan following measures were taken to develop agriculture ;
- Abolition of intermediaries and making the tillers owners of land through land reforms.
- Reduction in the concentration of land ownership in a few hands.
- Promoting scientific cultivation through the increased use of high yielding varieties of in seeds, fertilizers and irrigation facilities. This resulted green revolution in India.
- Subsidies and price support policy.
- Balanced regional development.
- Support to small scale industries.
- Encouragement to the to capital formation and discouraging
- Extensive role to public sector and the role of private sector complementary to the public sector.
- Development of infrastructure.
Major achievements of economic planning in India.
- Increase in agricultural production
- Increase industrial production.
- Creation of economic infrastructure, transport and communication.
- increase in social service like health,education and housing.
Foll owing are the failures of Economi planning commission in India.
- poor growth rate
- poor performance of public sector.
- Increase in poverty.
- Increase in unemployment.
- Inequality of income and wealth.
- High rate of inflation.