For aspirants preparing for the UPSC (Union Public Service Commission) examination, understanding the intricacies of India’s economic planning is crucial. The NCERT (National Council of Educational Research and Training) notes on Indian Economy serve as a comprehensive guide, offering in-depth insights into the economic landscape of India, particularly focusing on economic planning. This segment of study delves into the evolution, objectives, and implementation of various economic plans formulated by the Indian government since independence. From the era of the First Five-Year Plan to the contemporary strategies aimed at sustainable growth and development, these notes elucidate the theoretical frameworks, policy measures, and their real-world implications. Grasping the nuances of economic planning in India through the lens of NCERT notes equips UPSC aspirants with a solid foundation to tackle questions pertaining to economic policies, development models, and the socio-economic dynamics shaping the nation’s progress.
Meaning of Economic Planning:
- Economic planning entails the course of actions outlined through policy measures for future implementation in pursuit of predetermined objectives.
- The concept of planning gained prominence in the aftermath of the Great Depression of 1930, as it laid bare the shortcomings of capitalism.
- The free-market economy of capitalism resulted in widespread unemployment, poverty, income inequality, and a gross neglect of its social benefits.
- These challenges prompted economists to seek alternatives. Consequently, economic planning was initially embraced in the USSR in 1928, and India followed suit.
- Economic and social planning in India is enshrined in the Concurrent List of the 7th schedule of the Indian Constitution.
- The Planning Commission (now NITI Aayog) defines economic planning as the judicious utilization of a country’s resources for developmental activities in alignment with national priorities.
- It is a consciously executed process for the optimal utilization of existing resources to fulfill well-defined objectives.
Objectives of Planning:
- The objectives of planning are elucidated through the following points:
- Ensuring proper distribution of resources.
- Ending the cycle of poverty.
- Removing unemployment.
- Developing infrastructure.
- Coordinating the development of agriculture and industry.
- Achieving development goals with social justice.
- Establishing political democracy as well as economic democracy.
- Promoting inclusive growth alongside rapid economic growth.
- Encouraging investment and capital formation.
- Fostering self-reliance and modernization.
Types of Planning
Planning can be classified on the following grounds
| Types of Planning | |
| Based on State Intervention | |
| Centralized Planning | Decentralized Planning |
| Based on the Goal Achievement Strategy | |
| Prescriptive Planning | Instructional Structural Planning |
| Functional Planning | |
| Based on the Process of Planning | |
| National Planning | Regional Planning |
| Based on Duration | |
| Long-range Planning | Rolling Plan |
| Short-term Planning |
- Prescriptive Planning: In this planning, the state plays a crucial role with an apex body at the central level overseeing planning and implementation.
- Decision-making is centralized, hence termed as centralized planning.
- The state determines the goals, and the responsibility for achieving them is assigned to various bodies, with limited market forces involved.
- Instructional Planning: rates as a decentralized system with indirect and symbolic state intervention, focusing on policy formulation and encouragement.
- Structural Planning: Involves extensive changes in the distribution and ownership of resources, production methods, and institutional arrangements to achieve economic goals.
- Examples include the nationalization of banks and land reforms, contributing to enhancing the economy’s foundational capacity.
- Functional Planning: Adopts a strategy of optimal exploitation without fundamental changes in resources, ownership structure, production methods, or institutional arrangements.
- Examples include bringing changes in the agriculture sector through the Green Revolution and increasing milk productivity through the White Revolution.
- Centralized Planning: Planning responsibility rests with the central authority or organization, often referred to as prescriptive planning.
- All economic decisions related to planning are taken by the central government, known as top-down planning.
- Decentralized Planning: In decentralized planning, the Central Government, State Government, local government, private sector, etc., actively participate in planning and implementation.
- The central authority is effective only in specific situations, emphasizing the crucial role of lower-level institutions.
- Planning decisions are collectively made by the government, local bodies, and individual entrepreneurs, making it known as strategic planning or directive planning.
- National Planning: The plan formulated by the Central organization at the national level is termed national planning.
- Goals and strategies are determined nationally, and notable examples include the Swachh Bharat Abhiyan and the Twelfth Five-Year Plan’s role in economic growth.
- Regional Planning: Planning designed for specific areas is referred to as regional planning, such as development projects for regions like the North-Eastern states.
- Often part of national planning, regional planning is implemented in specific areas.
- Long-Range Planning: Planning goals and objectives are set over an extended period, with central strategies determined for long-term implementation. Examples include Vision 2020 and the National Population Policy 2000, with planning periods typically lasting 10 years or more.
- Rolling Plan: Long-term plan goals and strategies are assessed annually in the rolling plan. Revised goals are determined to achieve targets within set time limits.
- Introduced by the Janata Party Government in 1978, this plan operates on an annual basis, much like the annual financial details presented in the budget.
- Short-Term Planning: Short-term planning involves the annual review of plan goals and strategies, usually covering a three- or four-year period.
Economic Planning in India
- The concept of a planned economy took shape in the 1930s, influenced by socialist philosophy.
Visvesvaraya Plan:
- Sir M Visvesvaray published “Planned” in 1934, presenting a constructive draft for India’s development in the next ten years.
- The core idea focused on shifting labor from agriculture to industries and doubling national income.
| Congress Plan: In 1938, Congress President Subhash Chandra Bose initiated the National Planning Committee, with Jawaharlal Nehru as its President, to develop a national plan for India. The committee’s work was impacted by the Second World War, leading to the submission of its report in 1948. |
Bombay Plan
- In 1944, eight industrialists from Bombay, including JRD Tata, GD Birla, Purshottamdas Thakurdas, Lala Shriram, Kasturbhai Lalbhai, AD Shroff, Ardeshir Dalal, and John Mathai, collaboratively drafted ‘A Brief Memorandum Outlining a Plan of Economic Development for India,’ known as the Bombay Plan.
- The plan aimed to double per capita income in 15 years and triple national income within the same period. While Nehru did not officially accept the plan, many of its ideas influenced subsequent plans.
People’s Plan
- MN Roy drafted the People’s Plan for ten years, prioritizing agriculture.
- The main feature was the nationalization of all agriculture and production, aligning with Marxist socialism. This plan was prepared on behalf of the Indian Federation of Lahore.
Gandhian Plan
- Acharya Sriman Narayan Agarwal, Principal of Wardha Commercial College, drafted the Gandhian Plan.
- It emphasized economic decentralization, giving precedence to rural development through the promotion of cottage industries.
Sarvodaya Plan
- Drafted by Jaiprakash Narayan in 1950, the Sarvodaya Plan drew inspiration from the Gandhian Plan and Vinoba Bhave’s Sarvodaya Idea. The plan emphasized agriculture, and small and cottage industries, advocated freedom from foreign technology, and stressed land reforms and decentralized participatory planning.
| Department Planning and Development In August 1944, the Planning and Development Department was established under the charge of Ardeshir Dalal. However, this department was abolished in 1946. |
Planning Advisory Board
- In October 1946, the Interim Government set up the Planning Advisory Board to review plans, and projects, and provide recommendations.
Planning Commission
- After independence in 1947, the Economic Programme Committee (EPC) was formed, chaired by Nehru.
- In 1948, the committee recommended the formation of a Planning Commission. In March 1950, in line with the government’s objectives, the Planning Commission was established as an advisory and specialized institution.
- Jawaharlal Nehru was the first Chairman, and Narendra Modi was the last Chairman. Gulzarilal Nanda was the first Deputy Chairman, and Montek Singh Ahluwalia was the last Deputy Chairman.
- The Planning Commission, an extra-constitutional body, was tasked with assessing and balancing the country’s resources, formulating effective plans, and determining priorities.
List of Chairmen of Planning Commission
| Name | From | Upto |
| Jawaharlal Nehru | March, 1950 | 27th May, 1964 |
| Lal Bahadur Shastri | June, 1964 | January, 1966 |
| Mrs Indira Gandhi | January, 1966 | 24th March, 1977 |
| Morarji Desai | 25th March, 1977 | 9th August, 1979 |
| Chaudhary Charan Singh | 10th August, 1979 | January, 1980 |
| Mrs Indira Gandhi | January, 1980 | 31st October, 1984 |
| Rajiv Gandhi | November, 1989 | December, 1989 |
| VP Singh | 22nd December, 1989 | November, 1990 |
| Chandrashekhar | December, 1990 | 24th June, 1991 |
| PV Narasimha Rao | June, 1991 | 15th May, 1996 |
| Atal Bihari Vajpayee | 16th May, 1996 | 31st May, 1996 |
| HD Devegowda | 1st June, 1996 | 20th April, 1997 |
| IK Gujral | 21st April, 1997 | 18th March, 1998 |
| Atal Bihari Vajpayee | 19th March, 1998 | 22nd May, 2004 |
| Dr Manmohan Singh | 22nd May, 2004 | 22nd May, 2014 |
| Narendra Modi | May, 2014 | 31st December, 2014 |
National Institution for Transforming India (NITI Aayog)
- The National Institution for Transforming India (NITI) Aayog is a governmental policy think-tank that replaced the Planning Commission.
- Its primary objective is to engage states in the process of economic policy formulation. Led by the Prime Minister as its Chairman, NITI Aayog offers strategic and technical advice to both the Central and State Governments.
- Established on January 1, 2015, through a resolution of the Union Cabinet, NITI Aayog serves as a crucial platform for providing directional and policy inputs.
- It focuses on designing strategic and long-term policies and programs while advising the Center, States, and Union Territories on technical aspects. NITI Aayog plays a pivotal role in promoting cooperative federalism by bringing states together to collaborate in the national interest.
NITI Aayog Composition
NITI Aayog is headed by the Prime Minister. Its structure is made as follows:
Basic Structure of NITI Aayog
| Position | Headed By |
| Chairperson | Prime Minister |
| Governing Council | Members include Chief Ministers and Administrators of Union Territories |
| Special Invitees | Experts, Specialists, and Practitioners with domain knowledge (nominated by the Prime Minister) |
| Vice-President | Appointed by the Prime Minister |
| Full-time Members | Five in number |
| Part-time Members | Two ex-officio members and a university teacher |
| Ex-officio Members | Four Central Ministers |
| CEO | Secretary-level officer from the Centre, appointed for a fixed term |
Differences between NITI Aayog and Planning Commission
| Parameter | NITI Aayog | Planning Commission |
| Financial Clout | Advisory body or think-tank. Allocation of funds may be under the Finance Ministry. | Enjoyed powers to allocate funds to Ministries and State Governments. |
| Full-time Members | Likely to have fewer full-time members than the Planning Commission. | The last commission had eight full-time members. |
| States Role | States are expected to play a more significant role than in the Planning Commission. | State’s role was limited to the National Development Council and annual interactions during plan meetings. |
| Member Secretary | Known as CEO, appointed by the Prime Minister. | Member Secretary and Secretaries are appointed through the usual process. |
| Part-time Members | Likely to have part-time members based on need. | No provision for part-time members in the Full Planning Commission. |
Objectives of NITI Aayog:
- NITI Aayog aims to achieve the following objectives and opportunities:
- Establish an administrative paradigm where the government serves as an enabler rather than the primary provider.
- The transition from a focus solely on food security to a balanced approach encompassing agricultural production and ensuring fair returns for farmers.
- Ensure the active engagement and realization of the potential of the economically vibrant middle class.
- Harness India’s pool of entrepreneurial, scientific, and intellectual human capital.
Functions of NITI Aayog:
- NITI Aayog performs the following roles or functions:
- Shared National Agenda: Develop a shared vision for national development priorities and strategies with the active involvement of states, providing a framework for the Prime Minister and Chief Ministers.
- Cooperative and Competitive Federalism: Serve as the primary platform for operationalizing cooperative federalism, enabling states to actively participate in formulating national policy and achieving time-bound implementation of targets.
- State’s Best Friend at the Centre: Support states in addressing their challenges, leveraging strengths, and utilizing comparative advantages through coordination, championing ideas, consultancy support, and capacity building.
- Conflict Resolution: Provide a platform for resolving inter-sectoral, inter-departmental, inter-state, and Centre-State issues.
- Network of Expertise: Integrate external ideas and expertise into government policies and programs through collaboration with national and international experts, practitioners, and partners, acting as the government’s link to the outside world.
- Harmonization: Facilitate the harmonization of actions across different layers of government.
| 15 Years Vision Document in Place of a Five-year plan In 2014, the National Democratic Alliance Government made a significant decision to move away from the traditional five-year plan and introduced a 15-year Vision. Document. This shift aimed at addressing the central objective of poverty eradication. The inaugural 15-Year Vision Document took effect from 2017-2018, marking the conclusion of the Twelfth Five-Year Plan. Accompanying this vision was a 7-year National Development Agenda that outlined programs, schemes, and strategies aligning with the long-term vision. The comprehensive perspective plan encompassed a three-year mass economic framework spanning from 2017-2018 to 2032-2033, while the National Development Agenda covered the period from 2017-2018 to 2024-2025. Within this framework, a specific focus was given to the Three-Year Action Agenda, which was designed to be repeated every three years from 2017-2018 to 2019-2020. |
The National Development Council (NDC),
- The National Development Council (NDC), established in 1952 by the Union Cabinet through an executive order, played a pivotal role in this structure. Although not a constitutional or statutory body, the NDC, headed by the Prime Minister, consisted of Central Ministers, Chief Ministers of States, Lieutenant Governors, Administrators of Union Territories, and members of the Planning Commission.
- The Secretary of the Planning Commission served as the Secretary of the Council. It’s important to note that, from a strictly legal perspective, the National Development Council (NDC) held essential significance in the approval process of five-year plans.
| Post | Name |
| President/Chief | Prime Minister of India |
| Member | All Union Cabinet Ministers, Chief Ministers of States, Union Territories Lieutenant Governor/Administrator, Member of NITI Aayog |
| Secretary | Secretary of NITI Aayog |
India’s Five-Year Plans
- Following independence, India initiated a series of Five Year Plans to optimize the utilization of the country’s resources and propel rapid economic development.
- Development plans in India were crafted within the framework of a mixed economy. The adoption of Economic Planning in the form of five-year plans was deemed essential for various reasons:
- Limitations of the market mechanism due to India’s economic backwardness at the time of independence.
- The imperative for social justice, given the observation that economic gains in a free enterprise economy may not automatically benefit all sections of society.
- Strategic mobilization and allocation of resources in the context of the nation’s overall development program, considering resource constraints.
- Since 1951, India has formulated twelve Five Year Plans, with the Twelfth Five Year Plan (2012-2017) coming into effect upon approval by the National Development Council on December 27, 2012.
Formulation of Five Year Plan
- The process begins with the creation of an Approach Paper outlining the macro-economic dimensions, strategies, and objectives of the plan. This paper is prepared by the Planning Commission (NITI Aayog) through extensive consultations.
- The Approach Paper is then presented to the National Development Council (NDC).
- Based on the parameters established in the NDC-approved Approach Paper, Central Ministries and States develop their respective plans with the assistance of numerous Steering Committees or Working Groups.
- The States and Central Ministries submit their detailed plans and programs based on the reports from these committees and groups.
| Implementation of Five-Year Plan The Five Year Plan is executed through Annual Plans, providing a comprehensive breakdown of resource allocation between the Centre and States, as well as for various sectoral activities in the government. This implementation involves the allocation of budgetary resources and a thorough examination of public sector projects, programs, or schemes. The approval of government expenditure is achieved through the Annual Budget, which is annually passed by the Parliament. |
Brief Description of The Five Year Plan
| Plans | First Plan (1951-1956) | Second Plan (1956-1961) | Third Plan (1961-1966) (Gadgil Yojana) | Annual Plan (1966-1969) | Fourth Plan (1969-1974) | Fifth Plan (1974-1979) | Rolling Plan (1978-1980) (Gunnar Myrdal) |
| Brief Description of Plan | – Highest priority to agriculture due to large foodgrain imports. – Increase investment rate from 5% to 7%. | – Nehru-Mahalanobis plan for rapid industrialization. – Promote a socialistic pattern of society. – Increase national income by 25%. | – Increase investment rate from 7% to 11%. – Thrust towards substitution of basic and capital goods industries. | – Self-reliant economy, balancing industry and agriculture. | – Increase national income by 30%. – Priority to agriculture and basic industries. – Achieve a self-reliant and self-generating economy. | – Correct earlier trend of wealth concentration. – Direct attack on poverty (Garibi Hatao). – Attainment of self-reliance. | – Enlarge employment potential in agriculture. – Raise income of lowest income classes through minimum needs program. |
| Objectives/Facts | – Agriculture production increased dramatically. – National income up by 18%, per capita income by 3.6%. – Stable price levels. | – Moderately successful, targeted growth rate 4.5% achieved 4.1%. | – Failure due to famine, conflicts, and resource diversion. | – Delayed due to conflicts, drought, and economic challenges. | – Successful first two years with Green Revolution. – Widened industrial base. – Targeted growth 5.7%, achieved 3.3%. | – Runaway inflation, refugee influx, plan terminated one year early. | – Introduced by Janata Party Government. Focus on employment in agriculture and minimum needs program. |
| Assessments | – Targeted growth rate was 2.1% and First Plan achieved 11%. – Price level was stable. | – Durgapur (UK), Bhillai (USSR), and Rourkela (W Germany) steel plants set up. – Inflation and low agricultural production due to Suez Crisis. | – A failure due to worst famine (1965-1966) and conflicts with Indo-China (1962) and Indo-Pakistan (1965), diverting resources from development to defense. | – Postponement of Fourth Plan by 3 years. – Targeted growth 5.6%, achieved growth 2.8%. | – Fourth Plan delayed due to conflicts, drought, and Three Annual Plans between 1966 to 1969. – Plan Holiday declared. | – Targeted growth 4.4% and achieved growth 4.8%. – Fifth Plan cost calculations based on 1971-1972 prices were wrong. – Plan terminated one year early in March 1978. | – Brought to the fore problem of coalition government affecting five-year plan formulation. – Rolling Plan introduced in 1978 under Morarji Desai’s Janata Party government |
| Plans | Objectives/Facts | Assessments |
| Sixth Plan (1980-1985) | – Removal of poverty through strengthening of infrastructure for both agriculture and industry. – Emphasis on greater management, efficiency, and monitoring of various schemes. – Involvement of people in formulating schemes of development at the local level. | – No specific assessments provided in the text. |
| Seventh Plan (1985-1990) | – Indian economy made all-round progress. – Targeted growth 5.2%, achieved growth 5.4%. – Accelerate foodgrains production. – Increase employment opportunities. – Raise productivity. – Outward looking strategy with gradual liberalization of the economy. | – Foodgrain production grew by 3.23%, crossing the Hindu Rate of Growth barrier. – Average Annual Growth Rate was 6.0%, exceeding the targeted 5.0%. – Beginning of the liberalization of the Indian economy. |
| Annual Plan (1990-1992) | – Eighth Plan could not take off due to fast-changing political situations at the Centre. Therefore, annual plans were formulated. | – No specific assessments provided in the text. |
| Eighth Plan (1992-1997) | – Process of Fiscal Reforms and Economic Reforms initiated by Narasimha Rao Government. – Increase average industrial growth rate to 7.5%. – Provide a new dynamism to the economy and improve the quality of life. – Also called Rao-Manmohan Singh model. | – Higher economic growth rate of 6.8% achieved compared to the targeted 5.6%. – Improvement in trade, current account deficit, and significant reduction in fiscal deficit. – Unshackled private sector and foreign investment control led to high growth. – Overall socio-economic development indicators were low. |
| Ninth Plan (1997-2002) | – Growth with social justice and equality. – Emphasis on Seven Basic Minimum Services (BMSs). – Pursued the policy of fiscal consolidation. – Decentralization of planning with greater reliance on states. – Ensuring food and nutritional security to all. – Empowerment of women, SC/STs/OBCs. | – Global economic slowdown led to revision of targeted growth rate from 7% to 6.5%, not achieved. – The economy grew at 5.4% only. – Agriculture grew by 2.1% as against the target of 4.2% per annum. |
| Tenth Plan (2002-2007) | – Aimed at achieving 8.1% GDP growth, assuming Incremental Capital Output Ratio (ICOR) will decline. – Increase domestic saving rate and gross capital formation. – Improve overall governance framework. – Agriculture was the core element. | – GDP growth increased to 7.6% compared to 5.5% in the Ninth Plan. – Reduction in ICOR to 4.2%. – Increase in Foreign Exchange Reserves (FER) to US $287 billion. – Socio-economic indicators and agricultural growth rate were meager. |
| Eleventh Plan (2007-2012) | – Average GDP growth of 8.1% per year. – Agricultural GDP growth of 4% per year. – Generation of 58 million employment opportunities. – Improvement in sex ratio for age group 0-6 years. | – Growth rate during the Eleventh Plan period was about 7.9%, higher than the Tenth Plan. – Agriculture sector registered a growth of only 3% against the target of 4%. – Services sector continued to register a growth rate of more than 10%. – Industrial growth rate showed at 7.9%. |
| Twelfth Plan (2012-2017) | – Average GDP growth of 8% per year. – Seek to achieve 4% growth in the agricultural sector. – Reduce headcount poverty by 10%. – Improve child sex ratio (0-6) to 950. – Provide access to banking services to 90% Indian households. | – GDP growth rate achieved in FY 2012-2013, 2013-2014, 2014-2015, 2015-2016, and 2016-2017 was 5.6%, 6.6%, 7.5%, 8.0%, and 6.6% respectively. – Child sex ratio (0-6) was 914. – Final report not published. |
Growth Rates of Five-Year Plans/Special Achievements
| Plan | Growth Rate Agriculture | Industry | Services | Achieved Growth Rate |
| First Plan | 2.71 | 5.54 | N/A | 17 |
| Second Plan | 4.5 | 3.15 | 5.59 | 4.94 |
| Third Plan | 5.6 | 5.7 | -0.73 | 2.57 |
| Fourth Plan | 6.28 | 4.91 | 5.26 | 3.22 |
| Fifth Plan | 4.4 | 3.28 | 6.55 | 5.66 |
| Sixth Plan | 5.2 | 2.52 | 5.32 | 5.41 |
| Seventh Plan | 5.0 | N/A | N/A | 5.4 |
| Eighth Plan | 5.6 | 3.47 | 4.68 | 6.77 |
| Ninth Plan | 6.5 | 2.06 | 4.51 | 7.78 |
| Tenth Plan | 8.0 | 2.34 | 8.90 | 9.4 |
| Eleventh Plan | 8.1 | 4.0 | 10.5 | 9.9 |
| Twelfth Plan | 8.0 | 4.0 | 10.9 | 10 |
| Special Preferences/Programmes |
| – Agriculture and related community development program |
| – Heavy industries, health, and medical |
| – Rourkela, Bhilai, and Durgapur steel plants established |
| – Food and agriculture |
| – Agriculture and irrigation |
| – Development to achieve stability and self-sufficiency |
| – Public health and social welfare |
| – Slogan of poverty eradication and self-reliance |
| – Agriculture, Industry, Power |
| – Relentless Plan |
| – Poverty eradication |
| – Power, Food |
| – Human Resource (Education, health, employment) |
| – Social justice, Rural Development, Job creation |
| – Growth with equitable distribution or equality |
| – Development of social infrastructure, employment, and energy |
| – Rapid economic growth |
| – Job creation |
| – Availability of basic physical and educational services |
| – Accelerated sustainable and inclusive growth rate |
Prelims Facts
- Economic planning is a subject of which list?-Concurrent List [HPSC (Pre) 2012]
- Who authored the book, “Planned Economy for India’? -JRD Tata (MPPSC (Pre) 2018]
- Who drafted the ‘Sarvodaya Plan’? -Jayapra kash Narayan (MPPSC (Pre) 2013]
- Who formulated the ‘Gandhian Plan’? -Sriman Narayan Agarwal (UPPSC (Pre) 2015, IAS (Pre) 2016]
- India Vision 2020 was prepared by which committee? – SP Gupta Committee [MPPSC (Pre) 2017]
- Under Gadgil-Mukherjee formula, the higher weightage is given to – Population (UPPSC (Mains) 2008]
- ‘National Planning Committee’ was setup by whom?- Subhash Chandra Bose (MPPSC (Pre) 2013]
- Who was the author of the book titled, ‘Planning and the Poor’? – BS Minhas [RAS/RTS (Pre) 1998, UK UDALDA (Mains) 2007
- The idea that ‘the Indian planning of the future should focus more on individuals than one object’ was expressed by – Amartya Sen [UP Lower 2004
- Who opposed ‘Planned Development’ in India? – Mahatma Gandhi [UPPSC (Pre) 2019
- The Planned Development Model was adopted in India from – 1st April, 1951 [UKPSC (Pre) 2012
- Core sector in the planning means – Selected basic industries [RAS/RTS (Pre) 1996)
- From where, the maximum resources mobilised for India’s public expenditure under plans? – From deficit (CGPSC (Pre) 2013
UPSC NCERT Practice Questions
1. Which of the following are associated with ‘Planning’ in India? IAS (Pre) 2014
1. The Finance Commission
2. The National Development Council
3. The Union Ministry of Rural Development
4. The Union Ministry of Urban Development
5. Parliament
Codes
(a) 1, 2 and 5
(b) 1, 3 and 4
(c) 2 and 5
(d) All of these
2. Consider the following statements.
1. NITI Aayog is structured to promote cooperative federalism.
2. NITI Aayog is to centralize the planning process in response to scarcity of resources.
Which of the statements) given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
3. The government of India has established NITI Ayog to replace the IAS (Pre) 2015
(a) Human Rights Commission
(b) Finance Commission
(c) Law Commission
d) Planning Commission
4. The Governing Council on NITI Aayog comprises of
(a) Prime Minister and all Chief Ministers
(b) Chief Minister and Experts and Specialists
(c) All Chief Ministers and Lieutenant
(d) Chief Ministers and Union Finance Minister
5. Consider the following statements.
1. NITI Aayog or National Institution for transforming India Aayog is a policy think tank of the government, that replaces the Planning Commission.
2. NITI Aayog will provide strategic and technical advice to the State Government.
Which of the statements) given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
6. The National Development Council is mainly concerned with
(a) implementing plans
(b) approval of five-year plans
(c) approving and assessing major development projects in India
(d) implementing community development programs
7. Consider the following statements.
1. First Five Year Plan was based on Harrod Domar Strategy.
2. Second Five Year Plan was based on Nehru Mahalanobis Strategy.
Which of the statements) given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
8. The term Hindu Rate of Growth refers to the 3.70% per annum growth rate achieved by the Indian economy over the First Six Five Year Plans. The term was coined by
(a) JN Bhagwati
(b) KN Raj
(c) Raj Krishna
(d) Sukhamoy Chakravarty
9. Consider the following statements regarding Indian planning.
1. The Second Five-Year Plan emphasized on the establishment of heavy industries.
2. The Third Five-Year Plan introduced the concept of import substitution as a strategy for industrialization.
Which of the statements) given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
10. Under Gadgil Mukherjee’s formula, the higher weightage is given to
(a) performance
(b) per capita income
(c) population
(d) special problems
11. Arrange the following events in the relevant order of their occurrence in India.
1. Mahalanobis Model
2. Plan Vacation
3. Rolling Plan
Codes
(a) 1, 2, 3
(b) 3, 2, 1
(c) 2, 3, 1
(d) 1, 3, 2
12. Which one of the following Five Year Plans for India’s economy diversified the planning shifting focus from heavy and basic industries to new sunrise industries like telecommunication, computers, and electronics?
(a) Second Five-Year Plan
(b) Fourth Five-Year Plan
(c) Seventh Five-Year Plan
(d) Ninth Five-Year Plan
13. The Rolling Plan concept in Nation Planning was introduced by
(a) Indira Gandhi Government
(b) The National Government
(c) The Janata Party Government
(d) Rajiv Gandhi Government
14. The main objective of the Twelfth Five-Year Plan was IAS (Pre) 2011
(a) inclusive growth and poverty reduction.
b) inclusive and sustainable growth.
(c) sustainable and inclusive growth to reduce unemployment.
(d) faster, sustainable, and more inclusive growth.
15. Consider the following statements.
1. In the Eleventh Five Year Plan, the agriculture sector contributed more than 25% to the overall GDP of India.
2. In the Twelfth Five Year Plan, the growth rate of the agriculture sector was above 4%.
Which of the statements) given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
16. Arrange the following in their chronological order
1. First Five Year Plan was submitted to Parliament.
2. The National Development Council was set up.
3. The first devaluation of Indian currency after independence took place.
4. India became a member of the International Monetary Fund (IMF).
Select the correct answer by using the codes given below.
(a) 2, 4, 1, 3
(b) 4, 3, 1, 2
(c) 1, 2, 3, 4
(d) 2, 4, 3, 1
Know Right Answer
1 (c)
2 (a)
3 (d)
4 ( a)
5 (a)
6 (b)
7 (c)
8 (c)
9 (a)
10 (c)
11 (a)
12 (c)
13 (c)
14 (d)
15 (d)
16 (b)
Frequently Asked Questions (FAQs)
Q1: What is the significance of economic planning in India according to UPSC NCERT Notes?
A1: Economic planning in India, as per UPSC NCERT Notes, holds significant importance as it helps in the judicious allocation of resources, promotes balanced regional development, and ensures inclusive growth. It serves as a roadmap for the country’s economic development, guiding policies and strategies to achieve sustainable and equitable progress.
Q2: How do UPSC NCERT Notes explain the role of Five-Year Plans in Indian economic development?
A2: According to UPSC NCERT Notes, the Five-Year Plans have played a crucial role in shaping India’s economic trajectory. These plans, initiated by the Planning Commission (now replaced by NITI Aayog), aimed at achieving specific targets and objectives within set time frames. They focused on key sectors like agriculture, industry, and infrastructure, laying the foundation for industrialization, technological advancements, and social welfare.
Q3: What are the challenges associated with economic planning in India, as highlighted in UPSC NCERT Notes?
A3: UPSC NCERT Notes point out several challenges in Indian economic planning, including the need for flexibility in plans to adapt to changing global scenarios, efficient implementation of policies at the grassroots level, addressing regional disparities, and the continuous evaluation and modification of plans to ensure relevance and effectiveness in achieving sustainable development goals. The notes emphasize the importance of overcoming these challenges to foster robust economic planning in India.
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