Has the
system of planned
economy in India
been successful in
producing high economic growth?
why? Why not?
Answers
Answer:
One of the basic objectives of economic planning in India is to increase national and per capita incomes. As a direct consequence of economic planning, India's national and per capita income rose, though not as rapidly as the Plans projected. ... This means that India did not achieve steady growth
Answer:
One of the basic objectives of economic planning in India is to increase national and per capita incomes. As a direct consequence of economic planning, India’s national and per capita income rose, though not as rapidly as the Plans projected. National income at 1999-2000 prices rose from Rs. 224,786 crores in 1950-51 to Rs. 3,114,452 crores in 2006-07, sharing a CARG of 4.8%.
On the other hand, the per capita income in real terms had increased at a much lower rate indicating that part of the increase in real national income had been eaten up by the growing population. During the same period PCI increased from Rs. 5,752 to Rs. 22,239, showing a CARG of 2.5%. There was quite some fluctuation in the growth rates over the entire Plan Period. This means that India did not achieve steady growth.
Explanation: