which of the following could be one of the reasons for pruning of development targets of the second five year plan?
Answers
Explanation:
Introduction :
7.1 Indian planning is an open process. Much of the controversy and the debates that
accompany the preparation of the plans are public. The initial aggregate calculations
and assumptions are either explicitly stated or readily deducible, and the makers of the
plans are not only sensitive but responsive to criticism and suggestions from a wide
variety of national and international sources. From original formulation through
successive modifications to parliamentary presentation, plan making in India has
evolved as a responsive democratic political process and the culmination of the same in
the final document is an impressive manifestation of the workings of an open society.
But by its very nature it also generates many problems from the point of view of
mapping an optimal strategy for economic development.
History Of Planning in India & Origin of Five Year Plans:
7.2 Though the planned economic development in India began in 1951 with the
inception of First Five Year Plan , theoretical efforts had begun much earlier , even prior
to the independence. Setting up of National Planning Committee by Indian National
Congress in 1938 , The Bombay Plan & Gandhian Plan in 1944, Peoples Plan in
1945 (by post war reconstruction Committee of Indian Trade Union), Sarvodaya Plan
in 1950 by Jaiprakash Narayan were steps in this direction.
7.3 Five-Year Plans (FYPs) are centralized and integrated national economic programs.
Joseph Stalin implemented the first FYP in the Soviet Union in the late 1920s. Most
communist states and several capitalist countries subsequently have adopted them.
China and India both continue to use FYPs, although China renamed its Eleventh FYP,
from 2006 to 2010, a guideline (guihua), rather than a plan (jihua), to signify the central
government’s more hands-off approach to development.
7.4 After independence, India launched its First FYP in 1951, under socialist influence
of first Prime Minister Jawaharlal Nehru. The process began with setting up of Planning
Commission in March 1950 in pursuance of declared objectives of the Government to
promote a rapid rise in the standard of living of the people by efficient exploitation of the
resources of the country, increasing production and offering opportunities to all for
employment in the service of the community. The Planning Commission was charged
with the responsibility of making assessment of all resources of the country,
augmenting deficient resources, formulating plans for the most effective and balanced
utilisation of resources and determining priorities.
7.5 The first Five-year Plan was launched in 1951 and two subsequent five-year plans
were formulated till 1965, when there was a break because of the Indo-Pakistan
Conflict. Two successive years of drought, devaluation of the currency, a general rise in
prices and erosion of resources disrupted the planning process and after three Annual
Plans between 1966 and 1969, the fourth Five-year plan was started in 1969.
7.6 The Eighth Plan could not take off in 1990 due to the fast changing political situation
at the Centre and the years 1990-91 and 1991-92 were treated as Annual Plans. The
Eighth Plan was finally launched in 1992 after the initiation of structural adjustment
policies.
7.7 For the first eight Plans the emphasis was on a growing public sector with massive
investments in basic and heavy industries, but since the launch of the Ninth Plan in
1997, the emphasis on the public sector has become less pronounced and the current
thinking on planning in the country, in general, is that it should increasingly be of an indicative nature