Question

indian planning is a classic example of notable achievements . justify​

Answer 1

Explanation:

gher Rate of Growth:

Economic plan­ning in India aims at bringing about rapid eco­nomic development in all sectors. In other words, it aims at a higher growth rate.

India’s macroeconomic performance has been only moderately good in terms of GDP growth rates. The compound annual rate of growth stands at 4.4% at 1993-94 prices for the whole planning period (1950-51 to 1999-00). Compared to the pre­-plan period when she was caught in a low level equilibrium trap, growth acceleration during the last 50 years has been impressive indeed. How­ever that it is not yet clear as to how much of this acceleration has been due to the change in the world economic boom since World War II and how much due to India’s own planning efforts.

(b) Growth of Economic Infrastructure:

ADVERTISEMENTS:

In­dia’s performance in building up the necessary economic infrastructure is really praiseworthy. It is to be noted that the process of industrialisation of any country largely depends on the develop­ment of economic infrastructure in the form of transport and communications, energy, irrigation facilities, and so on.

At the inception of economic planning road length was 4 lakh kms, but by 1996- 97 it rose to approximately 24.66 lakh kms, rail­way route length increased from 53,596 kms in 1951 to about 62,800 kms in 1999-00. Today, the Indian railway system is the largest in Asia and the fourth largest in the world. Similarly, other modes of transport (such as shipping and civil aviation) have also expanded phenomenally.

The electric power generated jumped from a meager 61.26 million kw in 1970-71 to 526.7 billion kw in 1999- 00. However, as per the needs of the economy, it is still inadequate. The gross irrigated area as a per­centage of gross cropped area increased from 17.4% in 1950-51 to 38.7% in 1996-97.

(c) Development of Basic and Capital Goods Industries:

Another major area of success of In­dian planning is the growth of basic and capital goods industries. With the adoption of the Mahalanobis strategy of development during the Second Plan period, some basic and capital goods industries like iron and steel witnessed spectacu­lar growth.

Major Failures of Planning:

(a) Inadequate Growth Rate:

In quantita­tive terms, the growth rate of the Indian economy may be good but not satisfactory by any stand­ards. Since the actual growth rate was less than the planned or targeted rate of growth it was not possi­ble to meet other goals of planning such as pov­erty alleviation and improvement of living stand­ards.

Except in the First and the Sixth Five Year Plans, the actual growth rate remained below the targeted growth rates of GNP and per capita in­come. India remains one of the poorest nations of the world even after 50 years of economic planning. It has been estimated that at least 7 to 7 ½ years are required to attain the five-yearly targeted growth rates of various plans.

Let us now turn to the desired rate of growth which involves several non-economic (mainly socio-psychological) variables such as people’s hopes and aspirations, desires and rising expecta­tions. An ordinary man evaluates planning in terms of availability of essential goods and services at affordable prices.

The per capita availability of cotton cloth has, in fact, increased marginally from 12.9 metres per annum in 1980-81 to 14.2 metres p.a. in 1999-00. Per capita availability of food-grains has increased from 394.9 grams per day in 1950-51 to 470.4 grams per day in 1999-00. The falling or slow growth of per capita supplies of necessary wage goods (such as food-grains, tex­tiles, tea, etc.) is a matter of grave concern and is an indication of tragic failure-of planning.

(b) Move Toward Socialistic Pattern of So­ciety:

Indian planning aims at building up a ‘so­cialistic pattern of society’, in a mixed economy, through various egalitarian measures. These are (i) land reform measures with the purpose of redis­tribution of land among poorer peasants, (ii) re­duction of concentration of economic power in the hands of a few big bourgeoisie and (iii) expan­sion of the public sector and nationalisation of certain important industries.

Most land reform measures have failed a achieved partial success. Security of tenure, con­ferment of ownership rights on actual tillers, ceil­ing on landholdings, etc. are all on paper.

The concentration of economic power in a few hands has to be reduced. But mainly due to India’s tax system and industrial licensing policy the big firm have become bigger over the plan period. In recent years, the Government has en­couraged privatisation in a large measure by de-licensing industries. This has led to further in­equality.