Question

What was the role of the Planning Commission?

Answer 1

• Soon after India attained independence, it was facing the problem of economic development and lifting a large population out of poverty.
• Hence there was a need to plan for development.
• The Planning Commission was assigned the task of designing and executing suitable policies for the development of the economy.
• The Planning Commission was established in 1950 by the Government of India.
• One of the major objectives was building a modern industrial and technical base for the nation.
• To generate more jobs and to increase production, both the private sector and the Government would play complementary and important roles, hence there was a broad agreement for a mixed economy.
• The Planning Commission had to define how to achieve a balance between different states and regions, which industries must be initiated by the market and which industries should be initiated by the states.