Question

Which of the following statements accurately describe the concept of economic planning in India ?

1. Economic planning is the process of setting economic objectives for society and devising strategies to achieve them within a specified timeframe using available resources.
2. Economic planning's primary role is to hinder economic growth by imposing strict regulations on resource utilization.
3. The main objective of economic planning is to decrease the production of goods and services to conserve resources.
4. Economic planning is crucial for accelerating economic growth and achieving societal economic goals.

• A. 1, 4
• B. None of these
• C. 2 only
• D. All

Answer 1

Answer:

A. 1, 4

ECONOMIC PLANNING

• It is the preparation to achieve the economic objectives of the society, using the available resources within specific period of time.
  

• Economic planning plays a significant role in accelerating economic growth.

Milestones in Economic Planning

• In 1938, National Planning Committee was formed under the leadership of Jawaharlal Nehru.
  

• It was followed by ‘Bombay Plan’ (1944) prepared by a group of industrialists who assembled in Bombay for the economic development of India.
  

• The ‘Peoples Plan’ prepared by the renowned social activist, M.N Roy also helped in shaping India’s planning.

• The first industrial policy (1948) formulated in independent India strengthened economic development through planning.
  

• The ‘Father of Indian planning, M. Visvesvaraia, who authored the famous ‘Planned Economy for India’ in 1934 gave clear direction to economic planning.
  

• The Indian Cabinet which met in 15^th March 1950 passed a resolution to establish the Planning Commission of India.

Objectives of economic planning 

1. Growth
   Economic growth indicates the increase in output of goods and services produced in the country. It is an important objective of economic planning as it contributes to national progress.

2. Modernisation

• Modernisation is making use of the latest technology.

• It also includes making a change in the perception of the society which involves protection of women’s rights, social security, and openness to social changes.

3. Self reliance

• The aim of self reliance is to attain self – sufficiency in agriculutral, industrial and service sectors using the available resoruces and to avoid foreign dependence.

4. Equity

• Ensuring equity is essential for the people to benefit the fruits of growth, modernisation, and self reliance
  

• The objective of equity will be attained when all citizens receive basic necessities of life, health protection and righteous distribution of wealth