Economy Chapters

1. Economy and Economics2. Characteristics of Indian Economy3. Agriculture and Land Development4. National Income5. Planning6. Unemployment7. Trade and Commerce8. New Economic Policy9. Indian Financial System10. Indian Fiscal System11. Banking in India12. Tax System13. Industry14. Foreign Trade15. Glossary of Economic and Financial Terms16. Some Noteworthy Facts17. Socio Economic and Caste Census 2011

Planning

The process of formulating strategies and allocating resources to achieve economic development and growth.

Definition

Planning in economics refers to the systematic process by which the government sets economic goals and decides the allocation of resources to achieve balanced growth and development.

Key Features of Economic Planning

  • Objective-Oriented: Planning sets clear economic goals like growth, equity, and stability.
  • Resource Allocation: Efficient use of scarce resources to avoid wastage.
  • Balanced Development: Focus on all sectors: agriculture, industry, and services.
  • Reducing Inequality: Address regional and income disparities.
  • Time-Bound: Plans are usually formulated for fixed periods, e.g., Five-Year Plans.
  • Guiding Role: Acts as a blueprint for government policy and investment.

Planning in India

  • First Five-Year Plan (1951-56): Focus on agriculture and irrigation.
  • Second Five-Year Plan (1956-61): Emphasis on industrialization and public sector.
  • Planning Commission: Established in 1950 to formulate and oversee plans (now replaced by NITI Aayog).
  • NITI Aayog: Established in 2015 to promote cooperative federalism and strategic planning.
  • Importance of Planning: Guided India’s economic growth post-independence.

Previous Year Questions

  • SSC CGL 2020: What was the main focus of the First Five-Year Plan in India?
  • Agriculture and irrigation.
  • HSSC 2019: Which institution replaced the Planning Commission in India?
  • NITI Aayog.
  • RRB JE 2018: What is economic planning?
  • The process of setting economic goals and deciding resource allocation.
  • SSC CHSL 2021: How long is a typical Five-Year Plan?
  • Five years.
  • HSSC 2021: What is the objective of balanced development in planning?
  • To ensure all sectors and regions develop evenly.
  • SSC MTS 2020: Name one key feature of economic planning.
  • Efficient resource allocation.
  • RRB NTPC 2020: When was the Planning Commission established?
  • In 1950.
  • SSC GD 2021: What is the role of planning in reducing inequality?
  • To address income and regional disparities through targeted schemes.
  • HSSC 2019: Which plan emphasized industrial development?
  • The Second Five-Year Plan.
  • SSC CGL 2021: What is the significance of time-bound plans?
  • They provide clear targets within a fixed timeframe.
  • RRB JE 2021: What does NITI in NITI Aayog stand for?
  • National Institution for Transforming India.
  • SSC MTS 2019: What was the focus of the Third Five-Year Plan?
  • Self-reliance and agriculture development.
  • HSSC 2020: Why is economic planning important for developing countries?
  • It helps in efficient use of resources and balanced growth.
  • SSC CHSL 2019: What role does government play in planning?
  • Formulating plans, allocating resources, and implementing policies.
  • RRB NTPC 2019: What does the term ‘Five-Year Plan’ signify?
  • A detailed economic plan for a period of five years.
  • SSC GD 2020: How does planning promote economic stability?
  • By forecasting economic challenges and guiding policy responses.
  • HSSC 2021: Name one recent change in India’s planning institutions.
  • Replacement of Planning Commission by NITI Aayog in 2015.
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