Planning in India
Planning in India
1. Five Year Plans
1.1 Definition and Purpose
- Five Year Plans (FYPs) are medium-term socio-economic development programs formulated by the Government of India to achieve specific economic and social goals.
- Aimed at promoting industrialization, agricultural growth, and infrastructure development.
- First introduced in 1951 under the leadership of Pt. Jawaharlal Nehru.
1.2 Key Features
- Central Planning Authority (CPA) was the body responsible for the formulation of the plans.
- Plans were based on GDP growth targets, employment generation, and infrastructure development.
- Emphasis on self-reliance and planned economic growth.
1.3 Evolution of Five Year Plans
| Plan | Period | Key Focus | Notable Features |
|---|---|---|---|
| 1st | 1951–1956 | Industrialization, agricultural growth | First plan to lay foundation for industrial development |
| 2nd | 1956–1961 | Industrialization, self-reliance | Emphasis on heavy industries and self-reliance |
| 3rd | 1961–1966 | Economic growth, poverty alleviation | Shift towards more balanced growth |
| 4th | 1969–1974 | Poverty alleviation, employment | Focus on rural development and employment |
| 5th | 1974–1978 | Poverty alleviation, food security | Introduction of Garibi Hatao (Remove Poverty) |
| 6th | 1980–1985 | Economic liberalization, structural adjustment | Shift towards market-oriented reforms |
| 7th | 1985–1990 | Economic liberalization, structural adjustment | Continued focus on economic reforms |
| 8th | 1990–1995 | Economic liberalization, structural adjustment | Introduction of Liberalization, Privatization, and Globalization (LPG) |
| 9th | 1995–2000 | Economic liberalization, structural adjustment | Continued LPG reforms |
| 10th | 2000–2012 | Sustainable development, inclusive growth | Focus on inclusive growth, poverty reduction, and infrastructure development |
| 11th | 2012–2017 | Sustainable development, inclusive growth | Focus on inclusive growth, poverty reduction, and infrastructure development |
| 12th | 2017–2022 | Sustainable development, inclusive growth | Focus on inclusive growth, poverty reduction, and infrastructure development |
1.4 Key Facts for Exams
- First Five Year Plan (1951–1956): Laid the foundation for industrial development.
- Second Five Year Plan (1956–1961): Emphasized self-reliance and heavy industries.
- Third Five Year Plan (1961–1966): Shifted focus towards balanced growth.
- Fifth Five Year Plan (1974–1978): Introduced Garibi Hatao.
- Tenth Five Year Plan (2000–2002): Marked the start of the LPG reforms.
- Eleventh Five Year Plan (2007–2012): Emphasized inclusive growth and poverty reduction.
- Twelfth Five Year Plan (2012–2017): Continued focus on inclusive growth and infrastructure development.
2. NITI Aayog
2.1 Definition and Purpose
- NITI Aayog (National Institution for Transforming India) is the policy think tank of the Government of India.
- Replaced the Planning Commission in 2015 under the leadership of Narendra Modi.
- Focuses on inclusive growth, sustainable development, and policy formulation.
2.2 Key Features
- A non-statutory body with a chairperson and members.
- Promotes collaboration between the central and state governments.
- Focuses on data-driven policy-making, innovation, and capacity building.
2.3 Structure and Leadership
- Chairperson: Appointed by the President of India.
- Members: Includes Union Ministers, state chief ministers, and experts.
- Chief Executive Officer (CEO): Oversees the day-to-day operations.
2.4 Key Initiatives
- Smart Cities Mission
- Digital India
- Startup India
- Make in India
- Ayushman Bharat
- Swachh Bharat Mission
2.5 Differences Between Planning Commission and NITI Aayog
| Feature | Planning Commission | NITI Aayog |
|---|---|---|
| Status | Statutory body | Non-statutory body |
| Formation | 1955 | 2015 |
| Focus | Central planning | Collaborative planning |
| Leadership | Planning Commission | NITI Aayog |
| Approach | Centralized planning | Decentralized and participatory planning |
2.6 Key Facts for Exams
- NITI Aayog was established in 2015.
- Replaced the Planning Commission.
- Focuses on inclusive growth, sustainable development, and policy innovation.
- Promotes collaboration between central and state governments.
- Key initiatives include Smart Cities Mission, Digital India, and Startup India.
- Chairperson is appointed by the President of India.
- CEO is responsible for the day-to-day operations of NITI Aayog.