Planning can be defined as “an orderly arrangement of the future.” When we assess our economic resources on the basis of “comprehensive survey of the economic system as a whole” and predetermine where these resources would be utilised, it is called economic planning.
It is through economic planning that a nation can improve the living standards of the people by using its resources to optimum capacity.
Soon after Independence the need for a plan for the “most effective and balanced utilisation of the country’s resources” was felt by the Indian Government.
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Basic Objectives of Planning in India :
The main objective of Planning in India was to start a process of development for raising the living standards of people and make available to the people new opportunities for a richer and more varied life.
Secondly, its object was to check the growing population within a reasonable period.
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Thirdly, it aimed at reducing the need for foreign assistance. Besides economic development of the country, it was also the objective of our planning to provide social and cultural development.
Yet another basic objective of our planning was upliftment of people at all levels and to bring about a social order and a broad-based leadership at the level of the community and creation of the institution of democracy so that people could seek solution to their common problems and develop human resources.
Need for Planning:
Planning plays an important role in the development of any country. It is necessary because economy left to it does not grow quickly. In India, income per head remained almost same from 1901 to 1951.
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Without proper planning a programme can be successful. For example, even for building a house, planning has to be done in advance. First one has to assess the cost of plot, cost of construction, then arrange for money and other materials.
It is only after preparation of a building-plan by the architects that the actual construction work starts. Likewise, proper planning for utilising the available resources is necessary for rapid development of any country.
Historical Background :
As we all know, during the British rule, India did not achieve any economic development. The British government did not make any attempt in this direction. As a result, India remained economically backward.
But even long before independence, our leaders were seriously thinking in terms of fast development of our economy in a planned manner. Unfortunately, they were helpless at that time.
So immediately after attaining independence, our national leaders took up the work of planning in their hands.
The Government of India appointed a Planning Commission in 1950. Its main job was to prepare a blueprint of development keeping in view the needs and resources of the country. Pt. Jawaharlal Nahru, the Prime Minister of India, was its Chairman.