Idea of Planning and Mixed Economy

 The Nehru-Mahalanobis plan not only led emphasis on heavy industrial changes but also led to a
number of social changes, like:
 Expansion of Industrial worker.
 Migration due to industrialization and fall in agriculture.
 This led to urban poverty and civic problems.
 Unemployment led to increase in crimes.
 Gandhian Mode of Planning (1978-82).
 Village autonomy means village became the central point and agricultural reforms
would take place.
 Making the villages self-sufficient.
 Material and cultural enrichment of people.
 Equitable distribution at the production level.
 LPG Model {Liberalization, Privatization and Globalization}.
 Launched by the Prime Minister P.V. Narsimha Rao and the finance minister
Manmohan Singh.
 Also known as Economic Reforms.
 Private capital, Private investments were encouraged.
 Various sector, earlier reserved for the public sector were opened for private
sector.
 Private investment was made easier through FDI, FII etc.
 Loss making units were sold up or disinvested.
 PSUs were started being professionally managed and were given more autonomy.
 Made India a globalized country in terms of trade and commerce, culture, foreign
influence etc.
 A new class of highly paid executives was created, mostly urban.
 Led to the startup culture.
 Labor conflict increase.
 Unskilled unemployment increased.
 Migration and civic problems remained a problem.

Economic Planning of India

 Why planning is required?
 What is the meaning of Planning?
 Identify and list out the tasks
 Arrange the tasks based on priority (Importance/Urgent)
 Segregate based on short-term and long-term tasks.
 Budgeting with respect to money as well as resources.
 Allocate (Money/Resources).
 Implementing the Plan
 Need for Course Correction.
 Review
 Doing all these for continual improvement.
 Idea of Planning and Mixed Economy
 Objectives of Planning:
(i) Economic Development
(ii) Increased Employment
(iii) Self-Sufficiency
(iv) Economic Stability
(v) Social Welfare
(vi) Regional Development
(vii) Sustainable Development
(viii) Reduction in Inequality (Economic inequality)
(ix) Social Justice
(x) Increased Standard of Living.

Multilevel or Decentralized Planning

 Levels of Planning in India
(i) National level planning: Interstate planning
(ii) State level planning: Inter-district planning
(iii) District level Planning: For each Block coming under the district
(iv) Block level Planning: Villages
(v) Panchayat / village level Planning: For each single village planning.
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