Question

What is meant by economic planning? discuss its long term goals in the indian context?

Answer 1

The fundamental purpose of economic life is the satisfaction of human wants which are basically unlimited. All the economic activities of any modern society are directed towards satisfying human needs with limited (scarce) resources.

The limitation of resources forces society to make choice and allocation. Economic resources are scarce in relation to the demands for their alternative uses. The primary economic problem is the allocation of scarce resources to satisfy human wants in an manner that brings maximum satisfaction.