University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

486

Pages:

2
Author:

JJIssac

FIVE YEAR ECONOMIC PLANS IN INDIA India's path of economic growth has always had a big influence from government planning. The Five-Year Plans determine the focus and funding priorities for different industries and sectors. So whatever businesses or areas want to develop rely a lot on what gets emphasized in the latest Plan. State Plans About half the total government funds go towards State Plans which handle important stuff at that level like farming, infrastructure, education and services. Each state has a planning board to coordinate between departments and align with the national goals. Plan Formulation Process Planning Commission The Planning Commission was created back in 1950 to assess resources, figure out what's needed for development, and design the best strategy. They form guidelines and the National Development Council, made up of top ministers and leaders, helps approve and monitor progress. Developing a Five Year Plan takes a couple years. First they look at past trends and get preliminary feedback. Then sector-wise target groups study needs and challenges. After discussions with politicians and experts, a draft plan lays out the broad ideas. More talks happen before a final detailed document gets parliamentary approval to implement. NITI Aayog Plan Objectives After six decades, the Planning Commission was replaced in 2015 by NITI Aayog to help guide a new vision. Their goals include fostering cooperation between central and state governments, ensuring security is considered in economic strategies, focusing on disadvantaged groups, and constantly evaluating what's working. But some argued the change was unnecessary and that national planning is still important for India's progress. The key goals have always been utilizing resources properly based on priorities, reducing unemployment and poverty, and improving living standards. Other focus areas evolved over time like boosting certain industries or self-reliance. Recent Plans emphasized inclusive growth, rural welfare, and human development indicators. 11th Plan Vision Aiming for around 10% annual economic growth, more productive jobs, robust farming at 4%, lower regional disparities with universal infrastructure and services access. Also recognizing gender equality, individual rights and grassroots participation in progress. 12th Plan Targets Instead of just GDP, the 12th Plan from 2012-2017 adopted 25 social targets covering economic and human welfare goals. These included poverty reduction, education and literacy targets, health outcomes like infant/maternal mortality, infrastructure coverage and quality living standards for all. The Five Year Plans have been instrumental in systematically developing India's economy over decades. While the approach has evolved, national planning still plays an important role in allocating resources fairly according to the country's priorities and raising living standards over time.