The Indira Gandhi government 14 major Indian banks and the advanced agriculture. There was also a severe drought in 1965. In case of our Five Year plans, the long-term objectives are: i A high rate of growth with a view to improvement in standard of living. In these industrial policy statements certain changes were made in the industrial licensing policies and procedures which were designed to facilitate capacity expansion in the private sector and create competitive environment. Economic stability has been one of the objectives of every Five year plan in India.
In the Fifth Plan, our objective was to earn sufficient foreign exchange through export promotion and important substitution. The Ninth Five-Year Plan looks through the past weaknesses in order to frame the new measures for the overall socio-economic development of the country. There were inflationary pressures and large scale imports of food grains. Removal of Poverty: Upto the end of the Fourth Five Year Plan, it was felt that the benefits of development had received a raw deal to tackle the problem of poverty. Hence there was a shift to protectionist policies toward the small scale sector, in the form of reservation. Conversely, tax planning measures are aimed at generating white money having a free flow and generating without reservations for the overall progress of the nation.
Expectations of an immediate devaluation of the rupee led to withdrawal of deposits by non-resident Indians. The objective of the substantial reforms which begun in mid-1991 we shall study this under the next section-the New Economic Policy is the removal of these constraints. Again, Third Five Year Plan aimed to secure an increase in nation income of 5 per cent per annum. This high rate of growth is considered a significant achievement of the Indian planning against the concept of a Hindu rate of growth. It was further thought that the rate of capital formation depended on the domestic rate of saving which could be raised by the adoption of proper fiscal and monetary policies.
The fleet had been deployed to warn India against attacking and extending the war. It helps managers to make appropriate decisions and anticipate problems before they arise. No wonder that the change in plan strategy was called for. As a result, backlog of unemployment went on increasing with each successive Five Year Plan. These anti-poverty schemes were merely added to the Fifth Five Year Plan without integrating them with the growth programmes.
It has opened the avenues for a new and bold economic and social order based on equality and social justice, and commitment. Tenth Plan is currently under execution. Self-Sufficient: It has been the objective of the plans that the country becomes self-sufficient regarding food grains and industrial raw material like iron and steel etc. Further, in the Sixth Plan employment generation and poverty eradication were given high priority. Due to non-availability of adequate funds, public sector investment was reduced from the mid-sixties onwards. Many plans leave their programmes incomplete because they hesitate to exercise their regulatory functions. Plan number two kept changing as per the requirements of the.
The plan also focused on in agricultural production and defence. First, Late Prof Sukhamoy Chakravarty attributed it to the gross inefficiency of public sector enterprises which were given a crucial role in economic development during this plan period. First, to accelerate economic growth economists and planners recognized that raising the rate of saving and investment was essential to accelerate the rate of economic growth. The other drawback of planning in the first four decades has been that industrialisation to which a large chunk of resources were allocated failed to generate adequate employment opportunities and the goal of transformation of occupational structure by transfer of population from agriculture to organised industries and services remain unfulfilled. It may be further noted that after war with Pakistan in 1965 on Kashmir issue and then in 1971 on Bangladesh issue, India could not get much foreign aid. In his two sector model, he divided the entire economy into investment goods industries R and consumer goods industries c We can consider machines to be of two types those that produce directly consumer goods and those which make only more machines.
In the total outlay, the share of the center was approximately 57% while it was 43% for the states and the union territories. The situation became more grim with the successive two droughts that hit the country in 1966 and 1967. Therefore, in the development of infrastructure, the State and planning had an important role to play. Further, to achieve other objectives of planning such as restraining the concentration of economic power in a few big business houses, the private sector was subjected to industrial licensing controls. In view of the assumption of pessimistic export possibilities for India, import substitution policies would lead to reduced dependence on imports and conserve the scarce foreign exchange earnings. In the Indian context, it implies that dependence on foreign aid should be as minimum as possible.
Further, to reduce regional inequality specific programmes have been adopted for the backward areas of the country. The First Five-Year Plan was based on the with few modifications. The strategic planning process involves six steps. Therefore, first we will study the period of post independence till 1990, and then the new economic policy adopted since 1991. Tackling the Problems of Poverty and Unemployment: The other problem which makes role of planning and state intervention important is the need to tackle the problems of poverty and unemployment. Article shared by Free sample essay on the concept of Planning In India.
To improve living standards of the people, it was necessary to accelerate rate of economic growth. Some argued that benefits of economic growth did not trickle down to the poor. In order to reduce the inequality in the distribution of landed assets, land reforms have been adopted. Therefore in order to develop high priority was assigned to the industrial sector by the Indian planners. To stimulate investments inspite of high cost of domestically produced capital goods, capital was subsidized through cheap credit, resulting in distortion of factor prices. The Fourth Plan concentrated on the goal of self- reliance in its document. To Reduce Economic Inequalities: Every Plan has aimed at reducing economic inequalities.
They provide direction for the organization and form the basis of operational plans. When earnings invested in the avenues recognised by law, they are not only relieved of the brunt of taxation but they are also converted into means of furthering earnings. But rapid growth of agriculture itself requires a good deal of state intervention and planning. High Rate of Growth 2. The other important aspect of development strategy of the Seventh Plan was that it planned for a non-inflationary growth process by laying greater emphases on the production and supply of mass consumption goods like food grains, edible oils, sugar, cooking fuel and textiles. Objectives The main objective of the Ninth Five-Year Plan was to correct historical inequalities and increase the economic growth in the country.