Planning Commission of India

The Planning Commission was a government agencythat paved way for the economic and social development of India, especially throughFive Year Plans.

It was a non-constitutional and non-statutory advisory council established on March 15, 1950, under the leadership of Jawaharlal Nehru in line withArticle 39of the constitution, which is a part of thedirective principles of state policy.

However, it was scrapped in 2014 after 64 years of functioning by Prime Minister Narendra Modi and was renamed as NITI Aayog.

The Planning Commission was an important topic for Kerala PSC and over the years, the PSC has asked several questions on this topic.

When the British left us and India became independent, the overall state of our country's social, economic, and political situation was very dire. The community was segregated based on caste, class, and religion and was in a highly impoverished condition.

The economy of the nation was in shambles as a result of the British's wealth drain and deindustrialization policies.

It was believed that the British were able to earn around 12 million pounds annually from India. As a result, India, the "brightest jewel in the British Crown," became the poorest country in the world, an impoverished "Third World" country.

We'll now take a look at some of the significant milestones on the path to forming the Planning Commission of India, which are listed below:

The first attempt to build a national plan for India began much earlier, in1938, when Congress president Subhash Chandra Bose established the National Planning Committee, which was chaired by Jawaharlal Nehru. However, it did not result in any key solutions due to Second World War and other issues.TheBombay Plan of 1944under the leadership of Ardeshir Dalal was the second attempt.J.R.D. Tata, G.D. Birla, Purshottamdas Thakurdas, Lala Shriram, Kasturbhai Lalbhai, AD Shroff, Ardeshir Dalal, and John Mathaiwere among the eight prominent industrialists who suggested it.In their "A Brief Memorandum Outlining a Plan of Economic Development for India," they recommended doubling per capita income and tripling national income in 15 years.It envisioned a significant public sector with governmental interventions and restrictions to preserve indigenous businesses. However, politicians, including Nehru, deemed it unworkable, and the plan was abandoned.M. N. Roythen created thePeople's Plan (1945), which was based on Marxist socialism. It was a ten-year plan that highlighted the need of supplying people with the "basic essentials of life" and placed a strong emphasis on agriculture.Sriman Narayan Agarwaldevised theGandhian Plan in 1944. Influenced by Gandhian economic thought, it stressed economic decentralization with a focus on rural development through the growth of cottage industry.TheSarvodaya Plan of 1950, developed byJaiprakash Narayan, was inspired by Vinoba Bhave's Sarvodaya notion and the Gandhian Plan. Its focus was on agriculture as well as small and cottage enterprises.In1944, the British government established a 'Planning and Development Department' led by Ardeshir Dalal. It was, however, scrapped in 1946.The Interim Government established a planning advisory board led by K. C. Neogy in October 1946 to assess plans and future projects and provide recommendations.

The All India Congress Committee constituted theEconomic Programme Committee (EPC)immediately after independence in 1947, withJawaharlal Nehruas its chairman.This committee was tasked with developing a strategy to balance corporate and governmental partnerships, as well as urban and rural economies. This committee advocated the formation of a planning commission in 1948 and the issue of planning was reviewed in 1949.

In his1950 budget speech, then finance ministerJohn Mathaiannounced the setting up of the Planning Commission.

The Planning Commission was established bya resolution of the Government of IndiaonMarch 15, 1950, in order to promote a rapid rise in the standard of living of the people through efficient exploitation of the country's resources, increased production, and offering opportunities to all for employment in the service of the community.

National Development Council (NDC)

The National Development Council, also known as theRashtriya Vikas Parishad, was  established onAugust 6, 1952,as the apex body to reinforce and organize the nation's effort and resources in support of the Planning Commission's Five Year Plans.After Parliament, the National Development Council is the apex body for making judgments on matters pertaining to the approval of the country's five-year plans.ThePrime Minister chairs the Council, the Secretary to the Planning Commission serves as its secretary, and the Commission provides administrative and other support to the Council.There was a proposal to disband NDC, but it has yet to be implemented.

NamePeriodGulzari Lal Nanda(Minister of Planning )1953-60 &1960-63V.T. Krishnamachari1953-60C.M. Trivedi1963Ashok Mehta(Minister of Planning)1963-67Dr. D.R. Gadgil1967-71C. Subramaniam(Minister of Planning)1971-72D.P. Dhar(Minister of Planning)1972-74P.N. Haksar1975-77Dr. D.T. Lakdawala1977-80N.D. Tiwari(Minister of Planning)1980-81S.B. Chavan(Minister of Planning)1981-84P.C. Sethi(Minister of Planning)1984P.V. Narasimha Rao(Minister of Planning)1984-85Dr. Manmohan Singh1985-87P. Shiv Shanker(Minister of Planning)1987-88Madhav Singh Solanki(Minister of Planning)1988-89R.K. Hegde1989-90Prof. Madhu Dandavate(Finance Minister)1990Mohan Dharia1990-91Pranab Mukherjee1991-96Prof. Madhu Dandavate1996-98Jaswant Singh1998-99K.C. Pant1999-2004Montek Singh Ahluwalia2004-09 &2009-14

What were the Functions and Responsibilities of the Planning Commission?

Make an assessment of the material, capital, and human resources of the country, including technical personnel, and investigate the possibilities of augmenting such of these resources as are found to be deficient in relation to the nation’s requirement;Formulate a Plan for the most effective and balanced utilization of 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;Determine the nature of the machinery which will be necessary for securing the successful implementation of each stage of the Plan in all its aspects;Appraise from time to time the progress achieved in the execution of each stage of the Plan and recommend the adjustments of policy and measures that such appraisal may show to be necessary; andMake such interim or ancillary recommendations as appear to it to be appropriate either for facilitating the discharge of the duties assigned to it or on a consideration of prevailing economic conditions, current policies, measures, and development programmes or on an examination of such specific problems as may be referred to it for advice by Central or State Governments.

The Planning Commission has planned projects worth approx.Rs 200 lakh crore in its 64 yearsof existence.Twelve five-year planswere planned. As a result, India attained agricultural self-sufficiency and made significant development in capital and consumer goods.It placed a premium on infrastructure development and support. As a result, huge investments were made in education, energy, industry, railways, and irrigation.The planning commission was involved in various significant ideals, including nationalization and the green revolution, and adapted to new concepts like liberalization, privatization, and inclusivity.Social justice, governance, job creation, poverty reduction, health, and skill development were all also prioritized by the Planning Commission.This methodical and steady execution of planning has been credited with India's transformation from a poor to an emerging economic power.