UPSC Economy GS 3

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📍 FUNCTIONS OF PLANNING COMMISSION [PART 1] #Planninginindia 💡 Make an assessment of the material, capital and human resources of the country, including technical personnel, and investigate the possibilities of augmenting such of those resources as are found to be deficient in relation to the nation’s requirements; 💡 Formulate a plan for the most effective and balanced utilisation of the country’s resources; 💡 On a determination of priorities, define the stages in which the plan should be carried out and propose the allocation of resources for the due completion of each stage; 💡 Indicate the factors which are tending to retard economic development, and determine the conditions which, in view of the current social and political situation, should be established for the successful execution of the plan; ▪️@upsc_economy_notes

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📍 PLANNING COMMISSION 💡 In March 1950 the Planning Commission (PC) was set up by the government by a Cabinet Resolution (without resorting to legislation). 💡An extra-constitutional (i.e., non-constitutional) and non-statutory body (though planning originates from the Constitution there is no reference to the PC in it). 💡 An advisory body to the Government of India on an array of issues of economic development. 💡 A ‘think tank’ on economic development with the Prime Minister as its ex-officio Chairman and with the provision or a Deputy Chairman. The main function of the Deputy Chairman was to co-ordinate the work of the Commission. 💡 Had an open provision for the number of its membership (as many area experts are required by the particular proposed period of planning) other than six Union Cabinet Ministers as its ex-officio member and a Member Secretary. 💡 An autonomous body entitled to form its own views on important issues and place them before the governments. ▪️@upsc_economy_notes

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📍 THE SARVODAYA PLAN [PART 1] #Planninginindia 💡 After the reports of the NPC were published and the government was set to go for the five-year plans, a lone blueprint for the planned development of India was formulated by the famous socialist leader Jayaprakash Narayan— the Sarvodaya Plan published in January 1950. 💡 Major inspirations from the Gandhian techniques of constructive works by the community and trusteeship as well as the Sarvodaya concept of Acharya Vinoba Bave, the eminent Gandhian constructive worker. 💡 Ideas of the plan were similar to the Gandhian Plan like emphasis on agriculture, agri based small and cottage industries, self-reliance and almost no dependence on foreign capital and technology, land reforms, self-dependent villages and decentralised participatory form of planning and economic progress, to name the major ones. 💡 Early 1960s, Jayaprakash Narayan had become highly critical increasing centralising nature and dilution of people’s participation in it. ▪️@upsc_economy_notes

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📍 THE GANDHIAN PLAN #Planninginindia 💡 Espousing the spirit of the Gandhian economic thinking, Sriman Narayan Agarwal formulated The Gandhian Plan in 1944. The plan laid more emphasis on agriculture. 💡 Even if he referred to industrialisation, it was to the level of promoting cottage and village-level industries. 💡 The plan articulated a ‘decentralised economic structure’ for India with ‘self-contained villages. ▪️@upsc_economy_notes

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📍 BOMBAY PLAN [PART 2] #Planninginindia Agreements: 💡 Basic agreement on the issue of the agrarian restructuring—abolition of all intermediaries, minimum wages, guarantee of minimum or fair prices for agricultural products, cooperatives, credit and marketing support. 💡 Agreement on rapid industrialisation for which both the plans agreed upon an emphasis on heavy capital goods and basic industries. 💡 The NPC and the Bombay Plan both were in favour of a simultaneous development of the essential consumer goods industries, but as a low-key affair. 💡 Both the plans agreed upon the importance of promoting the medium scale, small-scale and cottage industries. 💡 Both the plans wanted the state to play an active role in the economy through planning, controlling and overseeing the different areas of the economy. 💡 Large-scale measures for social welfare were favoured by both the plans, which suggested to be based on issues. 💡 Both the plans agreed upon a planning which could do away with gross inequalities.

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📍 BOMBAY PLAN [PLAN 1] #Planninginindia 💡 The Bombay Plan was the popular title of ‘A Plan of Economic Development for India’, which was prepared by a cross-section of India’s leading capitalists. 💡 The eight capitalists involved in this plan were Purshotamdas Takurdas, J.R.D. Tata, G.D. Birla, Lala Sri Ram, Kasturbhai Lalbhai, A.D. Shrof, Avdeshir Dalal and John Mathai. 💡 Out of these eight industrialists, Purshotamdas Takurdas was one among the 15 members of the National Planning Committee (1938); J.R.D. Tata, G.D. Birla and Lala Sri Ram, were members of the sub-committees (29 in total) of the National Planning Committee. ▪️@upsc_economy_notes