Discuss the strategy and technology in indian planning
Answers
Answer:
In order to achieve the long-term and short-term objectives set in the each five year, specific strategies are required. It involves allocation resources across different sectors of the economy in tandem with the specified objectives. It involves selection choices like development of agricultural sector or industrial sector, public sector or private sector involvement, closed economy or open economy model. Indian planning strategies can be split into two phases: pre-1991 phase and post – 1991 phase.
Contents
Pre 1991 Phase or Pre-reform Phase
Heavy Reliance on Public Sector
Regulated Expansion of Private Sector
Development of Heavy Industries
Protection of Small Scale Industry
Inward Looking Trade Strategy
Thrust on Savings and Investment
Restriction on Foreign Capital
Adherence to Centralised Planning
Post 1991 Phase (Post-reform Phase)
Pre 1991 Phase or Pre-reform Phase
During pre – 1991 phase (1951 to 1990), India followed the strategy of planning with greater reliance on the public sector along with a regulated private sector. Following strategies are followed during 1951-91 phase:
Heavy Reliance on Public Sector
Greater reliance was placed on public sector compared to private sector. As private sector was not able to invest in large amount for development of heavy industries, government turned towards public sector for provision of essential and basic needs for the people. At the same time private sector was not willing to provide the services in backward regions of the country.
Regulated Expansion of Private Sector
Private sector was restricted to few areas of activities. New legislations were created for the restriction for the restriction of private sector.
Development of Heavy Industries
Government invested heavily in development of Heavy industry like iron industry.
Protection of Small Scale Industry
Small scale industry was protected by means of establishment of boards for different small scale industries and reserving few areas of production exclusively for the small scale industry.
Inward Looking Trade Strategy
Domestic industry was protected from competition in the international market. Heavy import duty was imposed to curb competitive imports, while domestic industries were encouraged to produce domestic substitutes of essential imports.
Thrust on Savings and Investment
Promotion of savings and investment was the undisputed objective of monetary and fiscal policies of the government. Savings are induced through high rate of interest. Tax concessions were to mobilise savings.
Restriction on Foreign Capital
Several types of restrictions were imposed on foreign direct investment. To control and regulate it, Foreign Exchange Regulation Act (FERA) was enforced.
Adherence to Centralised Planning
State level plans were aligned in sync with the over all objectives and strategy of growth as specified in Five Year Plans.
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Answer:
Explanation:
Economic Planning Strategy in India. In order to achieve the long-term and short-term objectives set in the each five year, specific strategies are required. It involves allocation resources across different sectors of the economy in tandem with the specified objectives