Give the principal long-term objectives of planning as accepted by the Government of India.
Economics planning is defined as the making of major economics decisions what and how much is to be produced, when, how and where it is to be produced and to whom it is to be allocated by the conscious decision of a determinate authority on the basis of a comprehensive survey of the economic system as a whole. Soon after independence, the Government of India set-up the Planning Commission in 1950, which was assigned the task of assessing the resources of the country and this formulate a plan.The principal long-term objectives of planning as accepted by the Government of India are:
- Securing an increase in national and per capita income by increasing production to the maximum possible extent.
- Achieving a planned rate of investment within a given period.
- Reducing the inequality in distribution of income and wealth and reducing the concentration of economic power over resources.
- Providing additional employment.
- Objective of removal of poverty.
- Adopting measures to remove three bottlenecks i.e. agricultural production, the manufacturing capacity for producer’s goods and the balance of payments, for achieving stability both external and internal in the economy.
From the beginning, the Prime Minister has been the Chairman of the Planning Commission. The preparation of a fiver-year plan is usually spread over a period of two to three years. The first stage in the consideration of the general approach to the formulation, involving an examination of the state of the economy, an appraisal of past trends in production and the rate of growth in relation to the \ long-term view of the economy.
The second stage consists of studies which are intended to lead to a consideration of the physical content of the plan, The first five year plan released in 1952 stated the long-term economic goals of planning in the following words. Maximum production and full employment, the attainment of economic equality or social justice which constitute the accepted objectives of planning under present day conditions are not really so many different ideas but a series of related aims which the country must work for. None of these objectives can be pursued to the exclusion of others, a plan of development must place balanced emphasis on all of them”. Planning Commission.
In a nutshell, the main objective of the Indian plans have been proper utilization of the national resources in accordance of the national priorities and fast development of the economy, alleviation and ultimate removal of unemployment and poverty, and improvements in the standard of living in general. The avowed objectives of planning like rapid increase in income, generation of employment, social or re-distributive justice, self-reliance etc., are the obvious means to achieve the objectives or aspects of the objectives already mentioned. For the attainment of these objectives, the Government of India, opted for the framework of mixed economy in India in which private enterprise and public enterprise were to co-exist.