INDIAN INSTITUTE OF LEGAL STUDIES

TOPIC ON:-
(INDIA`S FIVE YEAR PLANNING)

SUBMITTED BY – AMIT RAJ

SUPERVISED BY – SANJAY DUTTA
(ASST. PROF. OF ECONOMICS)

COURSE – B.COM. LLB

SEMESTER – II
ROLL NO – 01
REASEARCH METHOLOGY
a) Aims and Objectives
The following are the key objectives that were kept in mind while
making the research paper. These are the core areas the paper will
cover:
 To understand and explain the five years plan.
 To understand and explain the history and origin of the five year
plan.
 To understand and explain basic features of five year plans.
 To understand and explain achievement of five year plans.
 To understand and explain basic failure of five year plans.
b) Research Questions
 What is the five years plan?
 What is the history and origin of the five year plan?
 What are the basic features of five year plans?
 What is the basic achievement of five year plans?
 What is the basic failure of five year plans?

c) Method of Research
The research methodology followed in this project is the
DOCTRINAL MEATHOD.

d) Statement of Problem
is mixed economy suitable for India ?
ACKNOWLEDGEMENT
I extrude my warm regards and gratitude to respected principal and the
insight full subject teacher to make it possible to work on the project.
The project is interesting and has helped me to exercise my
philosophical and writing skills. I have enjoyed working on this topic
and I am thankful to the subject teacher for allowing me to work on an
otherwise unusual topic . I also thank the authority for providing
the necessary time in order to complete this project.
CONTENT

S.NO TOPIC PAGE

NO.
01 INTRODUCTION 01
02 HISTORY AND ORIGIN OF THE FIVE YEAR PLANS 02
03 BASIC FEATURES OF FIVE YEAR PLANS 03
04 NEED FOR PLANNING IN INDIA 05
05 ACHIEVEMENTOF FIVE YEAR PLANS 11
06 BASIC FAILUREOF FIVE YEAR PLANS 12
07 CONCLUSION 13
BIBLIOGRAPHY i
 1. INTRODUCTION
Mixed economy is the combination of both capitalist and socialist economy in
which both government and private sector co-exist. Private sector will produce
whatever the goods they are produced well and government will produce the
goods which private sector fails to produce. Mixed economy is also known as
golden path as it solves all the problems of socialist and capitalist economy.
Hence in India also both private and government co-exist.
 2.Mixed Economy- Concept and Features
It is an economic system characterised by coexistence of public and private
ownership over means of production. State owned means of production are used
to promote social welfare. Privately owned means of production generally serve
private interests but within the norms laid down by the State. But it must be kept
in mind that in a Mixed economy, the private enterprise should co-ordinate the
element of self interest with that of social interest. Further, private enterprise may
not be allowed to figure prominently in every sector of the economy. There may
even be certain sectors which may be regarded as of strategic and national
importance to which private enterprise may not be allowed at all. Mixed
economy is necessarily a planned economy where the market forces of demand
and supply also work. In other words, Mixed Economy is one which tries to
strike a midway between the two extremes of Capitalistic and Socialistic patterns
of Economy. Given below are the features of A Mixed Economy:

1. Co- existence of Private and Public Sectors:

The chief feature of a mixed economy is the co-existence and co-ordination
between private and public sectors. The industries are divided into two parts, one
of which is responsible to the State. It is controlled and managed by the
Government. The part is left to private enterprises. However, the Government
keeps a check on the working of the private sector.
2. Private Ownership of Means of Production:
Under Indian Constitution, private ownership of means of production has been
allowed. The various means of production are under the private ownership of
individuals. The private individuals can hold, use or sell the mas they like. Right
of inheritance by the sons and daughters or other legal heirs is implicit in this
right.

3. Profit Motive:
Production activities in the private sector are driven by profit motive. It is profit,
which makes an entrepreneur invest in any economic activity. However, the
Government makes sure that the want for profit does not clash with the goal
of social welfare.

4. Price Mechanism and Government Control:

The prices of goods and services in the private sector are determined by the
industrialist and capitalists, with a view to maximize their profits, through the
working of Price mechanism. The market forces of demand and
supply interact to find an equilibrium price. However, the Government imposes a
reasonable check to make sure that the prices do not become oppressive. As far
as the Public Sector is concerned, the decisions regarding production, investment,
prices etc. are made by the government.

5. Protection of Consumer’s Sovereignty:

In a mixed Economy, the Consumer’s
Sovereignty is protected. He has the freedom to choose and consume according
to his wish. Itis the demand of the consumers which guides the private enterprises
to take decisions regarding the production of commodities. They undertake to
produce the commodities according to the demands and preferences of
consumers.

6. Freedom of Enterprise:
There is no restriction on the right of the individual to engage in any business or
enterprise which is lawful and for which he has the necessary means. However
some sectors, such as the strategic industry or those industries which are
considered of national importance are not open for the private sector.
Occupational freedom is also controlled by the Government through its policy of
Licensing. Some industries have been set aside which require a license from the
Government, for example, the liquor Industry, or the fireworks industry. Through
this policy, the government also checks that there is no further investment in a
industry in which there is already excessive investment or excessive capacity.

7. Establishing Economic Equality in the Society:

In a mixed economy, the social objectives of equity, employment, balanced
regional development, family welfare are emphasized. The government
intervenes to prevent undue concentration of economic power, and monopolistic
and restrictive trade practices. The government also endeavours to take care of
the consumption levels and objectives of the weaker sections of the society
through public distribution system, and poverty alleviation programs.
 3.Types of Mixed Economy
The mixed economy may be classified in two categories:
Capitalistic Mixed Economy:
In this type of economy, ownership of various factors of production remains
under private control. Government does not interfere in any manner. The main
responsibility of the government in this system is to ensure rapid economic
growth without allowing concentration of economic power in the few hands.

Socialistic Mixed Economy:

Under this system, means of production are in the hands of state. The forces of
demand and supply are used for basic economic decisions. However, whenever
and wherever demand is necessary, government takes actions so that basic idea of
economic growth is not hampered.

However, this system is again sub-divided into two parts:

(i) Liberal Socialistic Mixed Economy:
Under this system, the government interferes to bring about timely changes in
market forces so that the pace of rapid economic growth remains uninterrupted.

(ii) Centralised Socialistic Mixed Economy:

In this economy, major decisions are taken by central agency according to the
needs of the economy.
 4.Problems of Mixed Economy in India
Sometimes it has been experienced that the economy does not work well
successfully under a mixed economy. In Indian economy, there is a Public Sector
to a large extent on the one hand and a weak and controlled Private Sector on the
other. As a matter of fact, the Public Sector flourishes in a planned economy. The
undue importance to the first at the cost of the latter tends to some sort of
problems in the pace of economic development.

The difficulties may follow as under:

1. The Private Sector has to work under certain restrictions and control and it is
likely to carry out its programmes under a National Plan. But it is experienced in
Indian Economy that the process of private sector ultimately depends on the
profit motive system and it is generally against the objectives of national
planning.

2. The transportation of Private Sector into Public Sector, as a State Policy of

nationalization of private enterprises, tends to a lot of fear and confusions against
private entrepreneurs.

3. The Public Sector is encouraged throughout the planning period but its
performance is not satisfactory and is almost misfit in the framework of national
planning. With the result that none of them fulfills the objectives of national
planning and hence it is one of the major factor causing the failure of a long-term
planning in India.
 5. Measures for the Efficient Working of a Mixed
Economy in India
Following are the important steps which can be taken up for the efficient working
of a Mixed Economy in India:

1. Political Stability at the Centre:

There should be a strong central government along with the political stability.

2. Timely Execution of Plans is Essential:

The prompt and timely execution of plans in inevitably necessary.

3. State Policy should be Clear:

The state policy of nationalisation should be clear and understandable to general
public.

4. Private Sector should Work within the National Guidelines:

The Private Sector should work strictly within the structure of National
Economic Planning.

5. To Maintain balance between Public and Private Sector:

The Government of India has made it clear that in future, the Government has no
programme of nationalisation of any industry and therefore has decided to
maintain a balance between the two sectors. So no danger of take-over by the
Government.