Telangana TSBIE TS Inter 2nd Year Economics Study Material 4th Lesson Planning and NITI Aayog Textbook Questions and Answers.
TS Inter 2nd Year Economics Study Material 4th Lesson Planning and NITI Aayog
Essay Questions
Question 1.
What are the major objectives of planning in India? Give an evaluation of the same.
Answer:
Planning of the development programmes under the central government was accepted and the Planning Commission was setup in March 1950 to formulate a plan for the most effective and balanced utilization of the resources in the country. Planning era, thus,; started in independent India in 1950.
The Planning Era :
With the formulation of the First five year plan, India embarked upon the programme of planned economic development of the country. The First five year plan covered the period 1951-56 followed by the Second Plan (1956-61) and the Third Plan (1961 – 66). Later plan holiday was adopted due to the impact of external shocks such as hostilities with Pakistan and severe drought conditions for two years. The country adopted annual plans for 1966-67, 1967-68,1968-69. Planning was renewed with the Fourth Plan in 1969 for the period of 1969 – 74. Then came the Fifth Plan (1974-79) which didn’t complete its full term because of the changes of the party in power. Janata Government came to power and launched Sixth Plan covering the period 1978-83.
Again with the change in the government in 1980 a new Sixth Plan was started for the period 1980 – 85 followed by the Seventh Plan (1985-90). The Eighth Plan was to begin from April 1990 but, could not be finalized and again annual plans were implemented for two years. Eighth Plan was launched in 1992 covering the period 1992 – 97 followed by the Ninth Plan covering the period 1997-2002 and the Tenth Plan .covering the period 2002-07. Eleventh Plan was launched for the period 2007 – 12. The Twelfth Plan started on April, 2012 and cover, the period 2012-17.
Major Objectives :
Although from one five year plan to another five year plan, some of the aims difered; a few important long term socio economic objectives recurred in all the five year plans. These are : 1. Economic growth, 2. Self reliance, 3. Balanced regional development, 4. Enhancement of the employment opportunities, 5. Reduction in income inequalities, 6. Elimi-nation of poverty, 7. Modernization and 8. Inclusiveness and sustainability of growth.
The objective of economic growth continues to be an important objective including in the 12th five year plan which aims to achieve 8% gross domestic produt (GDP) growth per annum. In each five year plan, different priorities were laid down. For example while the First and Second five year plans prioritized agriculture and industries respectively, the Sixth plan prioritized unemployment reduction and that of faster growth of economy in the Seventh plan. The 10th five year plan prioritized agriculture, roads and infrastructure. The Eleventh and. Twelfth five year plans laid focus on faster, sustainable and more inclusive growth.
On the whole, India completed twelve five year plans (1951-2017). Various objectives stressed under five year plans are given here under :
Major Objectives under Different Plans (1951 – 2012)
| Plans | Plan Period | Major Objectives |
| I | 1951 – 56 | Agriculture and irrigation development |
| II | 1956 – 61 | Development of large scale industries |
| III | 1961 – 66 | Self-sufficiency in food grains production |
| IV | 1969 – 74 | Steady growth, self-reliance and gareebi hataoo |
| V | 1974 – 79 | Poverty eradication & self – reliance |
| VI | 1980 – 85 | Poverty eradication through providing gainful employment |
| VII | 1985 – 90 | Increase in food grain production and productivity |
| VIII | 1992 – 97 | Human resource development |
| IX | 1997 – 2002 | Equality, economic growth with social justice |
| X | 2002 – 2007 | Equality, social just ice, enhancement in the quality of human resources |
| XI | 2007 – 2012 | Inclusive growth |
| XII | 2012 = 2017 | Faster, sustainable and more inclusive growth |
Question 2.
Review the performance of five year plans in India in relation to the objectives.
Answer:
The achievements of the economy in the post – independent era under five year plans are briefly reviewed hereunder in relation to the major objectives of successive five year plans.
Economic Growth :
During the first half of the 20th century there.was a near stagnation in per capita income while the growth in national income was minimal. There was a steady growth in both gross domestic product (GDP) and GDP per capita during the second half of the 20th century.
During the palnning era the growth in national income was I percent per annum. This is composed of hardly 0.3 percent of growth rate in agriculture and 2 percent in industry. The growth in per capita income during the planning era was 0.2 per cent per annum. Between 1900-01 and 1946-47, at 1938-39 constant prices, national income for the undivided India increased from Rs. 15.4 billion to Rs. 24.9 billion by 60 percent, whereas per capita income from Rs. 54 to Rs. 60 by a mere 11 percent. A study revealed that between 1950-51 and 2004-05, at constant prices, gross domestic product (GDP) increased by 1,000 percent while gross domestic product per capita increased by 250 percent. Against this backdrop an attempt is made to assess the pattern of economic growth during the planned period of 1951-2017.
The following Table provides data pertaining to the targets fixed under different plans and the actual growth rate achieved.
Growth performance in the Five Year Plans, (at 1993-94 Prices)
NNP at Factor Cost (Percent per Annum)
Trends in the growth rates and contribution of different .sectors to gross domestic prod- ‘ uct. (GDP), over a period of time are briefly presented here under:
1. The average growth rate during the period of First to Eleventh Plan works out to be about 4.5 percent. This is quite a considerable achievement compared to 1 percent growth during the pre-independence period as stated earlier.
2. Agriculture has been growing at 2 – 3 percent during the plan periods as against 0.3 per cent growth during the pre-independence period.
3. Spectacular industrial progress has been made during the plan periods. The industrial growth rate is recorded at 6-8 percent which is nearly 3 to 4 times higher than the 1′ growth rate during pre – independence period.
4. The trend growth rate during the first three decades of economic planning was extremely modest at the rate of 3.5 percent for annum. In the later phase of 1981 – 2013. the growth rate was recorded at 5.9 percent per annum.
5. It is clear that there was a sharp acceleration in the rate of growth since 1980.1twent almost unnoticed. It came ito the limelight in the early 2000s. A majority of scholars opined that the structural break in the economic performance of independent India ocured around 1980. The growth was impressive, not only in comparison with the part in India but also in comparison with the performance of most developed countries in the world.
6. As per the Ministry of Statistics and Programme Implementation, composition of agriculture industry and service sectors during 2018-19 at 2011-12 prices are 14 – 39 per cent, 31.46 percent and 54.15 percent respectively.
7. In developed economies, the industrial and service sectors contrihbute a major share in GDP, with agriculture accounting for a relatively lower share. During the progres of growth over the years, the Indian economy too experienced and improvement i the shares of industry (31.46 percent) and services sectors (54.15 percent) in overall GDP. However, the share of the agricultural secor in GDP has been continuously declining and it came down to 14.19 percent in 2018 – 19. It is a cause of worry, as the Indian agriculture has been in crisis with crop holidays and farmers suicides.
8. Service sector is the largest sector of India. At 2011-12 pricesffcervice sector accounts for 54,15 percent in gross value added (GVA) during 2018-19. It reflects the structural transformation of the economy as it mvoes to a somewhat higher level of develop- t ment, However, one should think about the sustainability of this pattern of growth. The real failure, throughout the secong half of the 20th century, was India’s inability to transform its growth into deelopment, which Would have brought about aft improvement in the living conditiofts of common people.
Question 3.
Explain the growth performance during the five year plans.
Answer:
The growth performance during five year plans in India can be studied as under.
1. Self – Reliance :
The Fourth plan (1969-74) set before itself the two principal objectives of “growth with stability” and “progressive achievement of self-reliance”. Even in the subsequent plans, planned development enabled India to be self sufficient in most of the important sectors and productive activities, it is no small achievement to note that India is the only country with self – sufficiency to a considerable extent among the 115 developing countrie of the world
2. Balanced Regional Development :
Regional disparities in development have been a major concern throughout the plan period. The Planning Commission of India has sought to tackle the probelm of regional disparities in three ways :
a) the recognition of backwardness as a factor to be taken into account in the transfer of financial resources from the centre to the states.
b) Special area development programmes directed at development of backward areas, and
c) Measures to promote private investment in backward areas.
3. Enhancement of Employment Opportunities :
The extent of unemployment in the country at the start of the planning and its reduction over the years shows how eradication of unemployment is being undertaken. As per the 68th round of National Sample Survey Organisation (NSSO); unemployment rate according to usual principal status (UPS) was 2.7 per cent for 2011-12, while it was 3.7 percent according to current weekly status (CWS) and 5.6 percent according to current daily status (CDS). It implies that high degree of intermittent unemployment is there in India. Rural unemployment in the form of seasonal unemployment is higher than urban unemployment.
4. Reduction in Income Inequalities :
As per the world development indicators in 2013, the, net worth of 100 richest Indians is as high as one sixth of India’s GDP During the whole plan period, income inequalities have not been reduced in India. In the post reform period, especially last one and half decades income inequalities have been further widening.
5. Elimination of Poverty :
During the plan period, various measures were introduced by the government to reduce the problem of poverty in the country. Provision of essential food items and kerosene through the public distribution system (PDS) at subsidized prices, rural and urban employment programmes, free educstion, health and housing facilities are some key government programmes in thi direction. The government has also proposed food securiy legislation according to which food at affordable prices would be made available to the people living below the poverty line.
6. Modernisation :
The term modernisation means a variety of structural and institutional changes in the economic activities. India has given importandce to science, technology and rationalization during the plan period to improve productivities. ‘New agricultural strategy’ in the form of green revolution was introduced in the Third five year plan. From the Seventh plan onwards technological advances were given priority under modernisation.
7. Inclusiveness and Sustainability of Growth :
Inclusive growth is a broader concept covering economic,social and cultural aspects of development. The major components of inclusive growth in India are : (i) agriculture growth, (ii) employment generation and poverty reduction, (iii) reduction in regional and other disparities and (iv) achieving an equitable growth.
The objective of inclusiveness is reflected in the adoption of 26 monitarable targets at the national levle related to 1) income and poverty 2) education 3) health 4) women and children 5) infrastructure and 6) environment. The Twelfth five year plan specifically stated the need for environmental protection. Inclusiveness primarily aims at providing economic benefits to higher to neglected marginalized sections so that the economy can move towards an equitable growth.
Question 4.
Explain the causes for regional Imbalances and suggest remedial measures to reduce the same.
Answer:
The situation of coexistence of relatively developed and economically backward states and regions with the states with in the states is referred to as regional inbalances or regional disparities.
Causes of Regional Imbalances in India :
The regional imbalances became hurdles for national integration, economic growth and overall development. Backward states/regions develop the feeling of dissatisfaction and development becomes lopsided.
British rule :
in India was responsible for some regions to be backward. Maharashtra and West Bengal were the two states preferred by the British. The three presidency towns Viz, Calcutta, Bombay and Madras attracted most of the industries and the rest of the country remained industrially backward. British rule through land revenue paperized the rural people and drove them into poverty.
Geographical Conditions :
Land, soil, mountains, rivers influence economic growth. Even today hilly and mountain areas remain backward in UP, Himachal Pradesh and Jammu & Kashmir. Agricultural prosperity along with the agro activities depend the geographical condi-tions of the area. Good rainfall and favourable climate help economic development and contribute for higher agricultural output. Regions with unfavourable climate conditions suffer from low agricultural and industrial activity.
Private Investment: Since the scope of profits is high. The reasons for concentration of industries in Mumbai, Calcutta and even in Chennai are due to the factors like availability of skilled labour, infrastructural facilities and well developed financial institution.
Natural resources :
Play a vital role in regional imbalances. Some regions are endowed with quality natural resources, while otherwise in short supply. Regions with more natural resources can develop fast and linkages can be maintained. Some areas/states have developed t infrastructure facilities like roads, electricity, telecommunications, railway and water ways, They develop at higher rate than those lacking them.
Policy issues and suggestions for reducing regional imbalances :
- Investment should be increased in backward states for higher economic growth arid reduction in the incidence of poverty. Private capital is also to be channelized into the backward regions for which infrastructure, technology and skilled labour are to be developed by the centre and state government.
- Backward states need to concentrate on the development of physical infrastructure, health facilities, training and education.
- Less developed states have to initiate policies to reduce growth rate of population in their efforts to encourage economic growth.
- Agriculture is in a state of crisis so many backward states. Investment in irrigation, credit facilities and remunerative prices are to be provided to encourage the growth of agricultural output.
- Technology has an important role in reducing regional imbalances both in agriculture and industry. Hence technology needs to be developed to suit the needs of the back-ward areas.
- Employment should be expanded to reduce poverty in the backward states. In this connection increase in the guranteed days at employment under MGNREGA needs to be enhanced especially in the tribal and most backward areas.
- The social sector allocation and performance should be improved in the backward regions. The allocation in the past reform period have come down at the national level.
- in the poor states SC, STs and other neglected sections of the society should be made participatory in the process of development.
- Governance to be effective and transparent in the backward regions.
- Based on the available resources, cottage, house hold and small scale industries should be promoted in the backward regions through subsidies, tax concessions, training and monitoring.
Additional Questions :
Question 5.
Describe the nature objecives, organisation structure of national Institution for transforming India (NITl) Ayog,
Answer:
National Instituion for Trans forming India (NITI) was established by the Government of India as a replacement for the Planning Commission on January 1, 2015. It was formed on the basis of extensive consultations across the stakeholders viz state governments, relevant institutions, experts and the people at large. NITI Aayog has not come into existence all of a sud-den.
NITI Aayog shifts the focus towards cooperative federalism. It hopes to replace the one way centre – to – state flow of policy with ’cooperative federalism’. The NITI Aayog will now recommend policies. Their implementation will be upto governments. Importantly, unlike the Planning Commission, the NITI Aayog does not have the power of allocation central funds to states. This will now be done by the Finanfce Ministry.
Nature of NITI Aayog
- The Planning Commission era witnessed centre-to-state one way flow of policy. NITI Aayog seeks genuine and continuing partnership of centre and Indian states.
- It will emerge as a “think – tank” to provide strategical and technical advice to the central and state governments.
- It helps to evolve, promote and stregthen cooperative federalism believing that strong sates make a strong nation.
- It develops mechanisms to formualte village level plans and integrate them at higher levels of government.
- It ensures that all sections of socieyt would benefit adequately from economic processes.
- It will create knowledge, innovation and entrepreneurial support through collaboratins,
- It acts as a paltform for resolution of inter-sectoral and inter-departmental issues to accelerate development.
- It is to monitor and evaluate the implementation of progrmmes and focus on upgradation and capacity building.
Objectives of NITI Aayog :
- To change the role of the government from provider of the firs and last resort to that of an “enabler”.
- To focus on a mix of agricultural production with food security at the base to benefit the farmers.
- To ensure that India is an active player in the deliberations on the global issues.
- To utilize the economically vibrant middle class in the process of production to realize their potential, in full.
- To leverage entrepreneurial, scientific and intellectual human capital.
- To incorporate the non – resident Indian community in the process of development.
- To enhance the use of modem technology in the growing urban centers for making them secure habitats.
- To promote good governance through the use of technology.
Organisational Structue of NITI Aayog
It is an organization, a network of expertise focusing on functionality, flexibility and domain knowledge.
I. Its organization consists of :
1. Chairperson :
Prime Minister
2. Vice-chairperson :
To be appointed by the Prime Minister
3. Members : (i) Full time members (ii) Part time members :
Two from research institutions / leading universities on rotational basis.
4. Ex-officio Members :
Maximum four from the union council of ministers to be appointed by the Prime Minister.
5. Chief Executive Officers :
To be appointed by the Prime Minister for a fixed tenure in the rank of secretary to the Government of India.
NITI Aayog works in close co-operation, consultation and co-ordiantion with the state governments and central ministers.
II. The Governing Council comprises of the chief ministers of all state and governors of union territories.
III. Regional Councils address specific issues and contingencies impacting moe than one state or region. Regional councils have specified tenures. They evolve strategies and overall implementation. They are headed by one of the chief ministers of the group. They also have central ministers, experts and academic institutions as members. They have a support cell in the NITI Aayog secretariat.
Question 6.
Describe the census for the Rural-urban divide and explain the remedial measures to reduce the rural urban divide.
Answer:
Causes for the Rural-Urban Divide :
Rural urban imbalances have excised since recorded history in India. However they have come out in a greater dimension at present confronting the development process.
Three different types of factors contribute to the disparities :
A. Natural Differences :
Historically cities and towns have grown where natural resources, waer and good climate were avilable. This historical advantage has helped the urban centres to develop better infrastructure over the years. Industries, business, educatinal and health facilities have also been expanded in the cities and towns owing to the favourable conditions. These factors create the rising differences between urabn and rural areas.
B. Non-Economic Factors :
Values, traditions joint family and attitudes affect social and economic mobility. Social restrictions, caste system, fatalistic attitude and feeling of inferiority discourage mobility and innovative spirit in the rural areas. On the other hand, in the urban areas heterogeneous individuals in higher density of population live in a spirit of competition with no sentiments. Urban people specialize in production and find demand for their products in big amrkets. All these contribute for economic development.
C. Policies of the Government :
Disparities between rural and urban areas are also due to the urban bias in development policies of the government. Huge amounts of money have been spent on the development and maintenance of infrastructure in the cities and towns. Sometimes the incomes of the rural farmers are affected due to the policy of the government to favour the urbanites. Governments also spend more on services like health and education in the urban centers neglecting the rural areas.
D. Other Factors :
Rural India suffers from illiteracy, higher infant mortality rates, more anemic women and children, lack of transport and communication facilities, low level of incomes, uncertain wage employment days, shortage of drinking water facility and lack of hospital facilities. They feel that even the poor in the urban areas are better than many of them.
Remedial Measures :
The government of India hs initiated a variety ©f programmes for the development of rural India and to reduce the urban – rural divide. The Bharath Nirman Programme aims to develop rural infrastructure and create irrigation, road connectivity, hous-ing, water supply, electrification and telephone facilities.
The following remedial measures also ensure the development of rual areas and arrest urban migration.
a) NREGA scheme is to porovide training to the rural youth in different vocational and service sectors. Such a scheme had already been undertaken by states like Rajasthan and Assam, where the results are encouraging.
b) Marginal farmers and small farmers are to be provided with credit facilities to discourage money lenders and commission agents. Crop insurance schemes should be made effective and remunerative prices to the farmers should be ensured.
c) Private investment in infrasstructure in the rural areas may be encouraged by the government wherever possible. Private and public participation in infrastructure development ‘ in rural areas can be activised.
d) Rural youth should be provided with quality education, training and skill formation so that self employment can be enhanced. It is unfortunate that India spends less than 2 percent of GDP on health care. Public health system in the rural areas is ineffective and has lost its credibility. Improvement of health – care would definitely increase productivity and the social security scenario in the rural areas.
Short Answer Questions
Question 1.
Write a note on Nm Aayog. or discuss the functions of NITI Aayog.
Answer:
National Institution for transforming India. (NITI) Aayog was established by the government of India as replacement for the planning commission on January 1, 2015. It was formed on the basis of extensive consultatios across the stakeholders like state governments, relevant institutions, experts and the people at large.
Functions of NITI Aayog :
- It will facilitate to transform India into cooperative and competitive federalism. “National agenda” is provided to the prime minister and chief ministers for development along with priorities and strategies.
- It introduces bottom – up model through decentralized planning. It prepares vision and scenario plans for the states and nation.
- It prepares domain strategies with experts to assist the central and state ministries. It serves as a knowledge and innovation hub by accumulating and disseminating research and best practices.
- It augurs an integrated and holistic approach to development. It also resolves inter state and inter – sectoral conflicts.
- It serves as the nodal agency for harnessing global expertise and resources. It acts as a consultant to the central and state governments on policies, programmes and skills in governance.
- It enables capacity building and technology upgradation.
- Finally it monitors the implementation of the policies and programmes and evaluates their impact.
Question 2.
What is planning? Explain the MPCs of planning.
Answer:
Every country has its economic planning in some degree with its own methods of implementation. Economic planning implies deliberate control and direction of the economy by a control authority for the purpose of achieving definite targets and objectives within a specified period of time.
As per Todaro, economic planning may be described as “The conscious governmental error to influence, direct and in some cases, even control changes in the principle economic variables consumption, investment, savings, exports, imports etc. of a certain country or region over the course of time in order to achieve a predetermined set of objectives, the essence of economic planning is summed up in these nations of government influence, direction and control”.
A plan is simply a document a blue print, an action oriented model. But planning includes the blue print and the efforts to achieve the goals; The essence of planning is scientific choice and systamatic thinking and economic efforts to achieve the choices. Planning is for the economy as a whale in a given period of time to achieve certain objectives. National priorities and basic needs decides the objectives. Resources are to be mobilized and allocated in the planning process of different sectors. Planning is for both production and distribution, based on the national goals which are technically called plan objectives.
Question 3.
Explain the measures taken by the government for balanced regional development.
Answer:
Balanced Regional Development: It implies the extension of the economic progress to the backward areas and wide spread diffusion of industry. It does not mean equal development of the different regions in the country.
Measures taken by the government for balanced regional development: The regional imbalances became hurdles for national integration, economic growth and overall development. Backward states/regions develop the feeling of dissatisfaction and development becomes lopsided.
British rule :
In India was responsible for some regions to be backward. Maharashtra and West Beqgal were the two states preferred by the British. The three presidency towns Viz, Calcutta, Bombay and Madras attracted most of the industries and the rest of the country remained industrially backward. British rule through land revenue paperized the rural people and drove them into poverty.
Geographical Conditions :
Land, soil, mountains, rivers influence economic growth. Even today hilly and mountain areas remain backward in UP, Himachal Pradesh and Jammu & Kashmir. Agricultural prosperity along with the agro activities depend the geographical conditions of the area. Good rainfall and favourable climate help economic development and con-tribute for higher agricultural output. Regions with unfavourable climate conditions suffer from low agricultural and industrial activity.
Private Investment :
Since the scope of profits is high. The reasons for concentration of industries in Mumbai, Calcutta and even in Chehnai are due to the factors like availability of skilled labour, infrastructural facilities and well developed financial institution.
Natural resources :
Play a vital role in regional imbalances. Some regions are endowed with quality natural resources, while otherwise in short supply. Regions with more natural resources can develop fast and linkages can be maintained. Some areas/states have developed infrastructure facilities like roads, electricity, telecommunications, railway and water ways. They develop at higher rate than those lacking them.
Policy issues and suggestions for reducing regional imbalances :
- Investment should be increased in backward states for higher economic growth and reduction in the incidence of poverty. Private capital is also to be channelized into the backward regions for which infrastructure, technology and skilled labour are to be developed by the centre and state government.
- Backward states need to concentrate on the development of physical infrastructure, health facilities, training and education.
- Less developed states have to initiate policies to reduce growth rate of population in their efforts to encourage economic growth.
- Agriculture is in a state of crisis so many backward states. Investment in irrigation, credit facilities and remunerative prices are to be provided to encourage the growth of agricultural output.
- Technology has an important role in reducing regional imbalances both in agriculture and industry. Hence technology needs to be developed to suit the needs of the backward areas.
- Employment should be expanded to reduce poverty in the backward states. In this connection increase in the guranteed days at employment under MGNREGA needs to be enhanced especially in the tribal and most backward areas.
- The social sector allocation and performance should be improved in the backward regions. The allocation in the past reform period have come down at the national level.
- In the poor states SC, STs and other neglected sections of the society should be made . participatory in the process of development.
- Governance to be effective and transparent in the backward regions.
- Based on the available resources, cottage, house hold and small scale industries should be promoted in the backward regions through subsidies, tax concessions, training and monitoring.
Question 4.
Explain briefly different concepts of planning.
Answer:
There are different types of planning in the literature of economics. Some of he major concepts ae explained here under :
1. Planning under Capitalism :
Capitalism is driven by market forces, freedom of enter-prise and choice of the customers. Profit motive and self interest guide capitalism. Capitalism and planning never go together as they differ conceptually. The state may intervene by providing basic facilities and control law and order for the smooth functioning. Moreover in the modem world, there is no country which is purely capitalist in nature.
2. Planning in a Mixed Economy :
In a mixed economy, public secor and private sector coexist. India is a good example for a mixed economy. In a mixed economy the central planning authority prepares the plan and the private sector should also comply with it. Through planning process private sector is assisted, contgrolled and regualted in he interets of plan objectives.
3. Planning under Socialism :
A socialist economy must necessarily have economic plans. The central planning authority mobilizes the resources and allocates them to different sectors in accordance with the plan objectives. Market forces has no role in resources allocation. Economic plans are implemented in letter and spirit in socialist economies.
4. Democratic Planning versus Authoritarial Planning :
In democratic planning, the stae will not control all the means of production. It helps the masses an takes the public opinion. Objectives and targets of the plan are fixed by considering the opinions of the people. Freedom in economic activities is allowed in democratic planning. Authoritarian planning is nothing but socialist centralized planning. In this type, the entire economy is directed and
controlled by the planning authority.
5. Centralised and Decentralised Planning :
Centralized planning was adopted in the former Soviet Russia. It is a socialist planning. Decentralized planning is ‘planning in a mixed economy’ like India. Important decisions are taken by the planning authority and freedom in given to the units in execution. In a decentralized planning system, coordination among the units in executio is ensured.
6. Planning from Above and Below :
Under planning from above, the central planning authority prepares the plans for the nation and forwards them to the regional units. They have to implement the plans as they are. Planning from below is based on local needs and conditions. People at the grassroots leel particiapte and prepare regional plans. All these regional plans are Consolidated and a national plan is proposed and this type of planning is more realistic and democratic.
7. Perspective Planning and Annual Planning :
Perspective planning is long term planning in which targets are set for a period of 15 – 20 years or 25 years. It s a blue print of development o be undertaken over a longer period. Perspective plan is normally split into short term plans of 3 – 5 years. A perspective plan ensures continuity in planning. Each short term plan is again divided into annual plans for operational purposes. Annual plans are subdivided into annual allocations and targets for implementation. Strictly speaking annual plans are the real worksheets of the economy in a particular year.
Very Short Answer Questions
Question 1.
Balanced Regional Development.
Answer:
lt implies the extension of the economic progress to the backward areas and wide spread diffusion of industry. It does not mean equal development of the different regions in the country.
Question 2.
Inclusive growth.
Answer:
Inclusive growth refers to both the pace and the patem of the economic growth. This concept stresses the inclusiveness of th higher to scheduled population in the growth process, which is respected to bring in several, other benefits as well to the economyh. -It the bottom 20% share can increase to 5 to 10% at lease, then it ca be termed as incljsive growth.
Question 3.
Pearsons for rural – urban imbalances.
Answer:
Reasons for Growth of Urbanisation :
The growth of urbanization in India is mainly due to the imbalances between urban and rural areas in different aspecs prompting rural people to migrate to cities and towns.
Rural people go to urban centres and settle there because of the following reasons :
- Rural areas fail to provide non – agricultural employment. Employment opportunities ae more in urban centers. So rural labour migrate in search of means of livelihood.
- Industrial expansion and growth of service sectors attract educated and skilled rural youth to the urban areas.
- Transport, communication, educational and health facilities assure a comfortable living and hence some of the rural people migrate to urabn centre.
- Urban centers give scope for anonymous living with little interference in the personal issues and some sections migrate with the hope of a peaceful living.
- Life in the urban centers attracts some of the rural people to migrate.
Question 4.
Democratic planning and authoritarian planning.
Answer:
Democratic Planning versus Authoritarial Planning :
In democratic planning, the stae will not control all the means of production. It helps the masses an takes the public opinion. Objectives and targets of the plan are fixed by considering the opinions of the people. Freedom in economic activities is allowed in democratic planning. Authoritarian planning is nothing but socialist centralized planning. In itheis type, the entire economy is directed and controlled by the planning authority.
Question 5.
Perspective planning and an Annual planning.
Answer:
Perspective Planning Annual Planning :
Perspective planning is long term planning in which targets are set foHa period of 15 – 20 years or 25 years. It s a blue print of development o be undertaken over a longer period. Perspective plan is normally split into short term plans of 3 – 5 years. A perspective plan ensures continuity in planning. Each short term plan is again divided into annual plans for operational purposes. Annual plans are subdivided into annual allocations and targets for implementation. Strictly speaking annual plans are the real worksheets of the economy in a particulare year.
Question 6.
NITI Aayog.
Answer:
National Institution for transforming India. (NITI) Aayog was established by the government of India as replacement for the planning commission on January 1, 2015. It was formed on the basis of extensive consulratios across the stake holders like state govenments, relevant institutions, experts, and the people at large.