Economic Planning has assumed different forms in different countries. Hence three is hardly any agreement among economists on the concept and nature of economic planning". Elaborate on this statement in light of economic planning in India.
Introduction : Write the meaning and different forms of economic planning.
Body : Discuss which form India adopted economic planning and what are its characteristics.
Conclusion : Conclude with features of economic planning of India and difference in opinion have affected it.
Different Forms of economic Planning
Economic planning has assumed different forms in different countries. Hence there is hardly any agreement among economists on the concept of economic planning. Broadly speaking, it has been used in two different types.
imperative planning or directive planning,
indicative planning or planning by inducement.
Indian Context of economic Planning:
In India, economic planning was adopted in 195 1 in an economic system characterized by coexistence of private and public sectors. For four decades, the public sector was considered to be the engine of growth. However, with the beginning of the liberalization process, the government has been withdrawing from direct involvement in productive activities leaving the whole space to the private sector. Thus, the private sector has now become the dominant sector and the public sector is merely an adjunct to the former.
In such an institutional setting of the Indian economy, there are two principal components of economic planning
1. The government mobilizes financial resources, both domestic and foreign, to undertake such projects which, on account of high linkages with the private sector, induce productive activities in the latter. .
2 The government implements such monetary and fiscal polices which are expected to stimulate private economic activity and thereby the overall economic growth.
Indian Economic planning have been mainly based on different types based on different decades. Initially we followed state controlled directive planning later on transferred to indicative model especially after liberalisation