Business Environment (BE)

MGT511

Keshri Nandan Chaudhary

+91 9501445120
Why to study Planning?
 Pattern of economic development in
India is significantly affected by planning
 Decides the direction of development
pattern of various sectors and also the
relative priorities within different sectors
 Scope and prospects of diff. industries
depends on 5 yrs PLans
Why to study Planning?
 A lot of information needed for business
decision making like investment
decision making can be derived by
analyzing the 5 yrs Plans
Objectives of Planning
 Proper utilisation of national resources
in accordance of the national priorities
and fast development of economy
 Alleviation and ultimate removal of
unemployment and poverty
 Improvements in std of living
Planning Machinery
 Planning Commission (PC)
 National Development Council (NDC)
Planning Commission(PC)
 Members include PM, Ministers of
finance, defense ,Planning and 4 full
time members
 Functions of PC :
 To make assessment of material, capital
and human resources of country
including technical personnel and to
investigate possibilities of “ augmenting”
the deficient resources
Planning Commission(PC)
 To formulate a plan for the most
effective and balanced utilisation of
country’s resources
National Development
Council (NDC)
Consists of PM, CM’s ,Union cabinet
ministers
Functions of NDC :
 Provide guidelines for the formulation of
the National Plan
 consider imp. Questions of social and
economic policy affecting national
development
National Development
Council (NDC)
 Periodic review of working of plan and
recommending measures necessary for
achieving aims and target set out
(Follow ups)
 consider imp. Questions of social and
economic policy affecting national
development
State Plans
 Accounts of about ½ of total outlay of a
5 yrs Plan
 Vital sectors such as agriculture , small
industries, power , roads , transport ,
education & social services comes under
state jurisdiction
 Success implementation of National
policy requires coordination at state level
Formulation of Plan
 Spreads over a period of 2-3 years
 First stage consists of an examination of
state of economy, appraisal of past
trends in production and rate of growth
relative to the long term view of
economy
 Second stage consists of studies ,
experts’ recommendations for
respective sectors etc…
General Trends in 5 yrs
Plans
 Development priority shifted from
agriculture in 1st plan to ‘basic and
heavy’ industries in 2nd plan
 3rd plan recognized the importance of
export promotions
 4th plan emphasised ‘self-reliance’
(Green revolution)
General Trends in 5 yrs
Plans
 Development priority shifted from
agriculture in 1st plan to ‘basic and
heavy’ industries in 2nd plan
 3rd plan recognized the importance of
export promotions
 4th plan emphasised ‘self-reliance’
(Green revolution)
General Trends in 5 yrs
Plans
 7th plan focus was on food, work and
productivity
 8th plan emphasised economic reforms
process and on private initiative in
industrial development.( ‘human
development ‘ is the core of all
development)
 ‘Growth with social justice and equity’
was the focus of 9th plan, etc…