Question

Q. Consider the following statements with reference to Planning in India:

Which of the above given statements is/are correct?

• A. 2 and 3 only
• B. 1 and 2 only
• C. 1 only
• D. 1, 2 and 3

Answer 1

The correct option is A 2 and 3 only

Explanation:

The term economic planning is used to describe the long term plans of the government of India to develop and coordinate the economy with efficient utilization of resources. Economic planning in India started after independence in the year 1950, it was deemed necessary for economic growth and development of the nation.

Statement 1 is incorrect: Economic planning in India dates back to the pre- Independence period. M. Visvesvaraya is regarded as a pioneer of economic planning in India. His book “Planned Economy for India” published in 1934 suggested a ten year plan.

Statement 2 and 3 are correct: The Planning Commission was set up on the 15th of March, 1950 through a Cabinet Resolution. The Planning Commission had evolved over time from developing a highly centralised planning system towards indicative planning, where the Planning Commission concerns itself with the building of a long term strategic vision of the future and decides on priorities for the nation. The intended objective of Indian Economic policymakers was to evolve an indicative policy framework where the Public sector had to play a major role towards development of the economy. It works out sectoral targets and provides promotional stimulus to the economy by way of planned fund allocations in order to grow in the desired direction.