Economic Planning in India
Economic planning is a system where the government manages a country's resources to achieve specific goals. These goals usually include higher income, better health, and jobs for all. Instead of leaving everything to the market, the government makes a roadmap for the future. In India, this process started because the country was very poor after British rule. The leaders wanted to grow quickly and fairly. They created the Planning Commission in 1950 to make 'Five Year Plans'.
Concepts (3)
This is a type of planning where the government sets targets but does not force businesses to follow them. It works by giving incentives, like lower taxes or subsidies (financial help), to certain industries.
This is a type of planning where the government sets targets but does not force businesses to follow them. It works by giving incentives, like lower taxes or subsidies (financial help), to certain industries. India adopted this style after the 1991 reforms. For example, the government might encourage tech companies to build offices in rural areas by offering cheaper land.
Named after scientist P.C. Mahalanobis, this model was the base for the Second Five Year Plan. It suggested that India should focus on 'Heavy Industries' like steel and chemicals first.
Named after scientist P.C. Mahalanobis, this model was the base for the Second Five Year Plan. It suggested that India should focus on 'Heavy Industries' like steel and chemicals first. The idea was that these industries would create tools for other sectors. For example, building a steel plant helps in making tractors for farmers later.
This concept means that the Central government and State governments work together as partners. NITI Aayog uses this approach. Unlike the old system where the Center gave orders, here states participate in making policies.
This concept means that the Central government and State governments work together as partners. NITI Aayog uses this approach. Unlike the old system where the Center gave orders, here states participate in making policies. An example is the 'Aspirational Districts Program' where states compete to improve health and education.
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