DOON SCHOOL OF AGRICULTURE

AND ALLIED SCIENCE

Presentation On General
Economics
TOPIC :- Economic Planning , Planning
Commision and Niti Aayog
Presented By :- MOHIT GARG
Date : 30th SHARAD
Nov 2019 CHAUDHARY
Time -
11:15 TO 11:30 AM Presented To : P R O F . D r . S H I K H A
SINGH
HERE WE WILL DISCUSS:

ECONOMIC PLANNING
 INTRODUCTION
 DEFINITION
 OBJECTIVE
 NEEDS

PLANNING COMMISION
 INTRODUCTION
 ACHIEVEMENTS
 DRAWBACKS
 CONCLUSION

NITI AAYOG
 INTRODUCTION
 FUNCTION
 ANALYSIS
INTRODUCTION
PLANNING COMMISSION
 ESTABLISHED IN MARCH 1950.
 A STATUTORY BODY WITH THE PRIME MINISTER OF
INDIA AS ITS CHAIRMAN.
 SET UP TO FORMULATE BASIC ECONOMIC POLICIES,
DRAFT PLANS AND WATCH ITS PROGRESS AND
IMPLEMENTATION.
 PT. JAWAHARLAL NEHRU WAS THE FIRST CHAIRMAN
OF THE PLANNING COMMISSION.
DEFINITION
 Economic planning means the direction,
regulation and control of economic affairs of
the country by a central planning authority.
 “Economic Planning is essentially a way of
organizing and utilizing to maximum
advantage in terms of social ends”
OBJECTIVE OF ECONOMIC
PLANNING
 Economic growth .
 Reduction of economic in equalities .
 Balanced regional development.
 Modernization.
 Reduction of unemployment.
NEED FOR ECONOMIC PLANNING
 Mess Poverty And Low Per Capital Income.
 High Rate Of Growth Of Population.
 Industrial Growth Was Negligible.
 Low Level Of Literacy.
 Backward Technology.
 Traditional Attitude.
 Social And Economic Problem Created By
Partition Of Country
PLANNING COMMISSION OF INDIA

Planning commission of India was setup in March

1950 by government of India. The task before
planning commission of India are:

 Effective utilization of resources.

 Prepare five year plan along with its objective.
 Coordination with state government of India
for execution of plan
 Determination of priorities, stages of plan and
propose of allocation of resources for due
completion of stages.
PLANNING COMMISSION
 THE DEVELOPMENT PLANS ARE DRAWN BY
THE PLANNING COMMISSION TO ESTABLISH
INDIA'S ECONOMY ON A SOCIALISTIC PATTERN
IN SUCCESSIVE PHASES OF FIVE YEAR PERIODS
CALLED THE FIVE YEAR PLANS. IT CONSISTS
OF:
 (I) PLANNING COMMISSION OF INDIA
 (II) NATIONAL PLANNING COUNCIL
 (III) NATIONAL DEVELOPMENT COUNCIL AND
STATE PLANNING COMMISSIONS
FIVE YEAR PLANS
THE GOALS OF THE FIVE YEAR PLANS ARE:
 GROWTH
 MODERNISATION
 SELF-RELIANCE
 EQUITY.
FIVE YEAR PLANS

First Five-Year Plan (1951-1956)

 The 1st five year plan was presented by
Jawaharlal Nehru, who was the Prime Minister
during that period. It was formulated for the
execution of various plans between 1951 to
1956. The Planning Commission was responsible
for working out the plan.
 The primary aim of the 1st five year plan was
to improve living standards of the people of
India.
 The target set for the growth in the gross
domestic product was 2.1percent every year.
Second Five-Year Plan (1956–1961)
 The second five-year plan focused on
industry, especially heavy industry. This plan
particularly focused in the development of
the Public Sector.
 Target Growth:4.5% Growth achieved:4.0%
Third Five-Year Plan (1961–1966)
 The third plan stressed on agriculture and
improvement in the production of wheat, but
the brief Sino-Indian War of 1962 exposed
weaknesses in the economy and shifted the
focus towards the ‘Defense industry or Indian
army’.
 Target Growth: 5.6% Actual Growth: 2.4%
Fourth Five-Year Plan (1969–1974)
 Indira Gandhi was the Prime Minister. The
Indira Gandhi government nationalized 14
major Indian banks and the Green Revolution
in India advanced agriculture.
 Target Growth: 5.7% Actual Growth: 3.3%
Fifth Five-Year Plan (1974–1979)
 The plan focused on employment, poverty
alleviation, justice and self-reliance in
agricultural production and defense.
 Target Growth: 5.23% Actual Growth: 45.3%
Sixth Five-Year Plan (1980–1985)
The sixth plan marked the beginning of
economic liberalization. Price controls were
eliminated and ration shops were closed.
 Target Growth: 5.2% Actual Growth: 5.4%
Seventh Five-Year Plan (1985–1990)
 The main objectives of the 7th five-year
plans were to establish growth in areas of
increasing economic productivity, production
of food grains, and generating employment.
 Target Growth: 5.0% Actual Growth: 5.7%
Eighth Five-Year Plan (1992–1997)
 1989–91 was a period of economic instability
in India and hence no five-year plan was
implemented. Between 1990 and 1992, there
were only Annual Plans. the country took the
risk of reforming the socialist economy and
launched India's free market reforms.
 Target Growth: 5.6% Actual Growth: 6.78%
Ninth Five-Year Plan (1997–2002)
 Main objective was to prioritize agricultural
sector and emphasize on the rural
development, to generate adequate
employment opportunities and promote
poverty reduction, to stabilize the prices.
 Target Growth: 6.5% Actual Growth: 5.35
Tenth Five-Year Plan (2002–2007)
 Reduction of poverty rate by 5 percentage
points by 2007.
 Providing gainful and high-quality
employment at least to the addition to the
labor force.
 Reduction in gender gaps in literacy and
wage rates by at least 50% by 2007.
 Target growth:8.1% Growth achieved:7.7%
Eleventh Five-Year Plan (2007–2012)
INCOME AND POVERTY
Accelerate growth rate of GDP from 8% to 10%
and then maintain at 10% in the 12th plan in
order to double per capita income by 2016-17.
Increase agricultural GDP growth rate to 4%
per year.
Reduce educated unemployment to below 5%.
Raise real wage rate of unskilled workers by
20%.
 EDUCATION
 Reduce dropout rates of children from
elementary school from 52.2% in 2003-04 to
20% by 2011-12.
 Increase literacy rate for persons of age 7
years or more to 85%.
 Lower gender gap in literacy to 10% points.
 Increase the percentage of each cohort going
to higher education from the present 10% to
15% by the end of the 11th plan.
 Health
 Provide clean drinking water for all by 2009
and ensure that there are no slip-backs by
the end of the 11th plan.
 Reduce malnutrition among children of age
group 0-3 to half its present level.
 Reduce anemia among women and girls by
50% by the end of the 11th Plan.
 Women and Children
 Ensure that at least 33% of the direct and
indirect beneficiaries of all government
schemes are women and girl children.
 Ensure that all children enjoy a safe
childhood, without any compulsion to work.
 Infrastructure
 Ensure electricity connection to all villages
and BPL households by 2009 and round-the-
clock power by the end of the plan.
 Connect every village by telephone by
November 2007 and provide broadband
connectivity to all villages by 2012.
 Provide homestead sites to all by 2012 and
step up the pace of house construction for
rural poor to cover all the poor by 2016-17
 Environment
 Increase forest and tree cover by 5% points.
 Attain WHO standards of air quality in all
major cities by 2011-12.
 Treat all urban waste water by 2011-12 to
clean river waters.
 Increase energy efficiency by 20% points by
2016-17
ACHIEVEMENTS OF PLANNING IN INDIA

 INCREASE IN NATIONAL AND PER CAPITA INCOME

 PROGRESS IN AGRICULTURE
Progress in the use of agricultural inputs.
Increased Agricultural Production.
 PROGRESS IN INDUSTRY
 DEVELOPMENT OF ECONOMIC INFRASTRUCTURE
 DIVERSIFICATION OF EXPORTS AND IMPORT
SUBSTITUTION
 DEVELOPMENT OF SCIENCE AND TECHNOLOGY
 DEVELOPMENT OF EDUCATIONAL SYSTEM
FUNDAMENTAL FAILURES OF PLANNING

 FAILURE TO ELIMINATE POVERTY

 FAILURE TO PROVIDE EMPLOYMENT
 FAILURE TO REDUCE INEQUALITIES OF
INCOME AND WEALTH
 FAILURE TO CHECK THE GROWTH OF BLACK
MONEY
 FAILURE TO REDUCE CONCENTRATION OF
ECONOMIC POWER
 FAILURE TO IMPLEMENT LAND REFORMS
CONCLUSION
 Economic planning help in mobilizing and allocating
the resources in desired manner.
 Objective of economic planning is to reduce
inequality, economic growth, balanced regional
growth, modernization.
 Each five year plan aims to achieving certain
target. Five year plan constitute the steps toward
the fulfillment of objectives of economic planning.
 The 12th Plan has taken off, it is yet to be formally
approved with the aim of the growth rate at 8%.
NITI AAYOG
 The National Institution for Transforming
India, also called NITI Aayog , was formed via
a resolution of the Union Cabinet on January
1, 2015.
 NITI Aayog is the premier policy ‘Think
Tank’ of the Government of India, providing
both directional and policy inputs.
 While designing strategic and long term
policies and programmes for the Government
of India, NITI Aayog also provides relevant
technical advice to the Centre and States.
CONTD…
 The Government of India, in keeping with its
reform agenda, constituted the NITI Aayog to
replace the Planning Commission instituted
in 1950.
 This was done in order to better serve the
needs and aspirations of the people of India.
An important evolutionary change from the
past, NITI Aayog acts as the quintessential
platform of the Government of India to bring
States to act together in national interest,
and thereby fosters Cooperative Federalism.
NITI AAYOG
Designation
 Chairperson:
 Vice Chairperson:
 Full-Time Member:
 Full-Time Member:
 Full-Time Member:
 Full-Time Member:
 Chief Executive Officer:
Name
Shri Narendra Modi
Dr. Rajiv Kumar
Prof. Ramesh Chand
Shri V.K. Saraswat
Shri Bibek Debroy
Dr. V.K. Paul
Shri Amitabh Kant
NITI AYOG

 Aims to involve the states in economic

policy making in INDIA .
 Will provide strategic and technical advice
to the central and state government.
 An institute of think tank with experts in it.
FUNCTIONS OF NITI AYOG

 1. Think tank for Government policy

formulation.
 2. Find best practices from other countries.
 3. Cooperative Federalism: 
 4. Sustainable development: 
 5. Urban Development: 
 6. Participatory Development: 
 7. Inclusive Development.
 8. Poverty elimination.
 9. Focus on 5 crores Small enterprises.
 10. Monitoring and feedback.
CONTD…
11. Make policies to reap demographic
dividend and social capital.
12. Regional Councils will address specific “issues”
for a group of states. Example: Regional Council
for drought, Left-wing extremism, Tribal welfare
and so on.
13. Extract maximum benefit from NRI’s geo-
economic and Geo-political strength for India’s
Development.
14. Use Social media and ICT tools to ensure
transparency, accountability and good governance.
15. Help sorting inter-departmental conflicts.
ANALYSIS
 NITI Aayog has left an impression on the Indian
government stressing the significance of States
 It seeks to provide critical directional and
strategic input in the development process.
 Focusses on long-term issues, with solutions that
are not just economic or technological but also
social and political — of strengthening
democracy, building institutions and regaining
policy space.
 Beneficial for the country in giving a new
direction of development.