Explain the Two Failure of Economic Planning in India ? (40-60 words).
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Price stability has been one of the objectives of every five year plan in India. But almost all the plans witnessed considerable rise in price-level. In first plan, price level came down. In all other plans, the prices recorded a steep rise. Price level rose on average by 63 percent in second plan, 5.8% in third plan, 9% in fourth plan, 6.3% in fifth plan, 3.6 percent in Ninth plan and 4% in 2004-05.
2. Increase in unemployment:
During the period of five year plans, unemployment went on rising. At the end of first five year plan 53 lakh persons were unemployed. Their number rise to 349 in 2004-05. In the last 22 years employment opportunities have increase by 2.3 percent while the supply of labour has increased by 2.5% resulting in an increase in unemployment.
. Inequality in Distribution of Income and Wealth:
One of the main objectives of five year plans has been to minimise inequality in distribution of income and wealth. But the plan witnessed only increase in inequality. Rich Class becomes richer and poor class poorer. This inequality is found not only in industrial sector but in agriculture sector also. According to one estimate, 3 percent of household own roughly 50 percent of cultivable land.
5. Inefficient Administration:
An expert team of U.N.O. observed that one of the main short comings of Indian plans has been with reference to its implementation. Plans are formulated after good deal of discussion and deliberation but their targets are not achieved due to inefficient administration, dishonesty, vested interest and red tapism etc.
6. Lack of Strong Foundation:
In spite of the fact that nine five year plans have rolled by still the economic base is far from being strong. We are still dependent on weather God for good harvest. In 1965-66, 1966-67, 1979-80, 1982-83 and 2002-03, the economy received a big jolt due to failure of monsoons. Large scale import of food grains was resorted to Gulf war in 1991 also caused disruption to Indian Economy. In 1998, due to shortage in the production of onions, the prices increased to Rs. 60 per kg.
7. Extra Ambitious:
Indian plans are criticised on the ground that their targets are very ambitious. Two factors may account for its first shortage of resources and second faulty implementation of the plans. These has been a wide gap between the targets of growth rate and their achievements during the period of planning average growth rate of Indian economy has been 4.4 percent as against the target of 5%. The gap between the targets and achievements underlines the failures of the plans.
2. Increase in unemployment:
During the period of five year plans, unemployment went on rising. At the end of first five year plan 53 lakh persons were unemployed. Their number rise to 349 in 2004-05. In the last 22 years employment opportunities have increase by 2.3 percent while the supply of labour has increased by 2.5% resulting in an increase in unemployment.
. Inequality in Distribution of Income and Wealth:
One of the main objectives of five year plans has been to minimise inequality in distribution of income and wealth. But the plan witnessed only increase in inequality. Rich Class becomes richer and poor class poorer. This inequality is found not only in industrial sector but in agriculture sector also. According to one estimate, 3 percent of household own roughly 50 percent of cultivable land.
5. Inefficient Administration:
An expert team of U.N.O. observed that one of the main short comings of Indian plans has been with reference to its implementation. Plans are formulated after good deal of discussion and deliberation but their targets are not achieved due to inefficient administration, dishonesty, vested interest and red tapism etc.
6. Lack of Strong Foundation:
In spite of the fact that nine five year plans have rolled by still the economic base is far from being strong. We are still dependent on weather God for good harvest. In 1965-66, 1966-67, 1979-80, 1982-83 and 2002-03, the economy received a big jolt due to failure of monsoons. Large scale import of food grains was resorted to Gulf war in 1991 also caused disruption to Indian Economy. In 1998, due to shortage in the production of onions, the prices increased to Rs. 60 per kg.
7. Extra Ambitious:
Indian plans are criticised on the ground that their targets are very ambitious. Two factors may account for its first shortage of resources and second faulty implementation of the plans. These has been a wide gap between the targets of growth rate and their achievements during the period of planning average growth rate of Indian economy has been 4.4 percent as against the target of 5%. The gap between the targets and achievements underlines the failures of the plans.
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1. Rice in prices...
Price stability has been one of the main things of every five year plan in India. but all plans seems price level rises as it's witnessed...
2. Increase in unemployment....
During the period of five year plans, unemployment is being rising. people are unemployed even who as with higher studies
these are the 2 failures of economic plans...
hope it will help u....
..
Price stability has been one of the main things of every five year plan in India. but all plans seems price level rises as it's witnessed...
2. Increase in unemployment....
During the period of five year plans, unemployment is being rising. people are unemployed even who as with higher studies
these are the 2 failures of economic plans...
hope it will help u....
..
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