Do you agree with the following statement? Give reasons.
No progress has been made in India in 50 years of economic planning.
No progress has been made in India in 50 years of economic planning.
Economic Planning has been in operation for more than 50 years. we can not say that during this period no progress has been made in India as the achievements of Planning are clearly visible in various sectors of the economy such as -
1. Increase in National Income:
Increase in national income is a sign of economic development. During British rule, national income of India increased at the rate of 0.5 percent per annum. So Indian economy was a stagnant economy. During the period of Planning, the rate of increase in national income has been 3.7 percent per annum.
2. Increase in per capita Income:
Before independence, rate of increase in per capita income had been almost zero but during the period of planning per capita income increased at the rate of 2.1 percent per annum.
3. Increase in Rate of Capital Formation:
During five year plans rate of capital formation has significantly increased. Rate of capital formation depends on the rate of saving and investment.
4. Institutional Reforms in Agriculture and Green Revolution:
Plans have contributed to the development of agriculture in two ways. Firstly land reforms have been introduced in agriculture. These reforms have created congenial conditions for the improvement of agricultural production.
5. Development of Industries:
Due to planning industrial sector developed a lot. Basic and capital goods industries like iron and steel, machinery, chemical fertilizers etc. have developed sufficiently. Public sector has developed a lot. Country become self sufficient in consumption goods.
6. Development of Economic Infrastructure:
Infrastructure includes transport and communication, irrigation facilities and generation capacity of power. During the period of planning, infrastructure of the economy has also developed considerably.
7. Social Infrastructure:
Social infrastructure like education, health, medical facilities, family planning etc. have expanded.
Economic Planning has been in operation for more than 50 years. we can not say that during this period no progress has been made in India as the achievements of Planning are clearly visible in various sectors of the economy such as -
1. Increase in National Income:
Increase in national income is a sign of economic development. During British rule, national income of India increased at the rate of 0.5 percent per annum. So Indian economy was a stagnant economy. During the period of Planning, the rate of increase in national income has been 3.7 percent per annum.
2. Increase in per capita Income:
Before independence, rate of increase in per capita income had been almost zero but during the period of planning per capita income increased at the rate of 2.1 percent per annum.
3. Increase in Rate of Capital Formation:
During five year plans rate of capital formation has significantly increased. Rate of capital formation depends on the rate of saving and investment.
4. Institutional Reforms in Agriculture and Green Revolution:
Plans have contributed to the development of agriculture in two ways. Firstly land reforms have been introduced in agriculture. These reforms have created congenial conditions for the improvement of agricultural production.
5. Development of Industries:
Due to planning industrial sector developed a lot. Basic and capital goods industries like iron and steel, machinery, chemical fertilizers etc. have developed sufficiently. Public sector has developed a lot. Country become self sufficient in consumption goods.
6. Development of Economic Infrastructure:
Infrastructure includes transport and communication, irrigation facilities and generation capacity of power. During the period of planning, infrastructure of the economy has also developed considerably.
7. Social Infrastructure:
Social infrastructure like education, health, medical facilities, family planning etc. have expanded.
