Economics Book Essay

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Dream Dare Win www.jeywin.com Indian Economy PLANNING IN INDIA Introduction The philosophy behind economic planning recognizes that markets and price system alone cannot ensure welfare of the citizens of a state. While individuals are the best judges of what is good for them, the sum total of such judgement need not be the best option for the society as a whole. Moreover, areas like infrastructure require large investments without immediate tangible returns and therefore do not attract private investment. This requires the state to step in either directly as in the past or through private-public partnership, which is the principle behind the build-operate-transfer (BOT) type of infrastructure development. Finally, the government provides for some goods called public goods, such as the quality of environment and national defences which can be enjoyed by one person without depriving others of similar enjoyment. The credit for concertising ideas on national planning goes to Sri M.Visvesvaraya, the visionary engineer and statesman of Mysore who published his Planned Economy for India in 1934, which was a blue-print for a ten-year programme of planned economic development for India. Indian National Congress set up a National Planning Commission as far back as 1938 with Jawaharlal Nehru Chairman. Over the next decade, there were several initiatives. The most important were: • ‘A Plan for Economic Development in India (1944), popularly known as the Bombay Plan which gave priority to the development of basic industries, while at the same time seeking the doubling of agricultural production and of per capita income within a 15 years’ framework. • The People’s Plan drafted by Shri M N Roy which had a 10-year period and which sought to give greatest priority to agriculture. It advocated the nationalization of all agricultural production and distribution. • The

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