Study Material for SSC CGL, CHSL, MTS, Prasar Bharti, FCI Exams : Indian Economy
History of Planning in India
First attempt to initiate economic planning in India was
made by Sir M.Visvesvarayya, a noted engineer and politician in 1934 through
his book ‘Planned Economy For India’.
In 1938 ‘National Planning Commission’ was set-up under
the chairmanship of J.L. Nehru by the Indian National Congress. Its
recommendations could not be implemented because of the beginning of the
Second World War and changes in the Indian political situation.
In 1944 ‘Bombay Plan’ was presented by 8 leading
industrialists of Bombay.
In 1944 ‘Gandhian Plan’ was given by S. N. Agarwal.
In 1945 ‘People’s Plan’ was given by M. N. Roy.
In 1950 ‘Sarvodaya Plan’ was given by J. P. Narayan. A
few points of this plan were accepted by the Government.
The Planning Commission
The Planning Commission was set up on March 15, 1950
under the chairmanship J.L. Nehru, by a resolution of Union Cabinet.
It is an extra-constitutional, non-statutory body.
It consists of Prime Minister as the ex-officio Chairman,
one deputy-Chairn appointed by the PM and some full time members.
The tenure of its members and deputy chairman is not
fixed. There is no defi definition of its members also. They are appointed
by the Government on its c discretion. The number of members can also change
according to the wishes of Government.
Assessment of material, capital & human resources of the
Formulation of plans for the most effective & balanced
utilization of country’s resources.
To determine the various stages of planning and to
propose the allocation of resources on the priority basis.
To act as an advisory body to the Union Government.
To evaluate from time to time the progress achieved in
every stage of the plan and also to suggest remedial measures.
To advise the Centre and the State Governments from time
to time on special matters referred to the Commission.
National Development Council
All the plans made by the Planning Commission have to be
approved by National Development Council first. It was constituted to build
co-operation between the States and the Planning Commission for economic
It is an extra-constitutional and extra-legal body.
It was set up on August 6, 1952, by a proposal of the
Government. The PM is the ex-officio chairman of NDC. Other members are
Union Cabinet ministers, Chief’ Ministers & Finance Ministers of all States,
Lt. Governors of Union Territories and Governors of Centrally Ruled States.
State Planning Boards
Apex planning body at State level is generally a State
Planning Body comprising the Chief Minister as Chairman, Finance and
Planning ministers of that State and some technical experts.
District Planning Committee is also there comprising both
official and non-official members.