Economic planning is a technique, a means to an end being the realization of certain predetermined and well defined aims and objectives laid down by a Central planning authority. So friends, in today’s article we are going to know about the Failure of Economic Planning in India and also know the Features of Economic Planning in India. So let’s discuss in details.
Top 8 Features of Economic Planning
The most important features of economic planning in India are mentioned below-
• Democratic – Indian economic Planning is democratic type. India is the largest democratic country in the world. It’s economic Planning process is also based on democratic norms.
• Decentralised Planning – Indian planning system is decentralized type where plan is formulated from the gross root level. Here plan is being prepared at the district, sub- division, block and village level.
• Existence of Central and State plan – India is a federal country where there are two primary type of government, Central and State government. As a result there are two types of planning, Central and State planning.
• Periodic Plan – One of the important feature of Indian planning is that it has adopted a periodic plan of five year period having 6 separate annual plan components.
• Planning Authority – In order to prepared 5 year plans. There is a well defined Central planning authority. It is called the planning commission of India.
• Basic Objectives – Another feature of Indian plan is that each and every plan is guided by certain basic objective which are almost come in most of our plans.
• Public sector and private sector plan – Another important feature of India’s five year plan is that in each plan, a separate outlay is earmark both for public sector and the private sector. In each five year plan of the country, public sector investment and private sector investment amount is separately fixed which comprises the total investment in each plan.
• Balanced Regional Development – Another silent feature of Indian Five year plan is that it constantly attaches much importance on balanced regional development. Development of backward regions is one of the important objectives of Indian planning.
Top 6 Failure of Economic Planning in India
The major failure of economic planning in India during the pre-liberalization period are mentioned below-
• Growth of unemployment – The most important failure of Indian planning is the growth of unemployment rate. It means the planning process did not able to create gainful employment opportunities both in the organized and unorganized sectors.
• Rise in Price level – Another major failure of Indian planning is the inflation. The government could not able to check the raising price level of essential goods and services. It makes the poverty problem more complex.
• Inadequate growth in the production sectors – Both agricultural and industrial sectors have failed to attain the target level of production. The rate of growth of agricultural output remained all along poor.
• Growing deficit in BOP – During plan period India has been experiencing the growing deficit in the BOP. As a result the country is facing foreign exchange crises.
• Poor level of Implementation – The level of implementation of plan projects specially in respect of rural development, agriculture and social welfare sector remained all along poor. The benefits of plan projects do not touch the target groups people.
• Inequality in the distribution of income and wealth – Another failure of Indian planning is the growing gap between rich and poor. Thus the objective of attaining a Socialistic pattern of society has remained a more slogan.
So friends, this was the concept of Failure of Economic Planning in India and the Features of Economic Planning in India. Hope you get the full details about it and hope you like this article.
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