why is India called a planned economy
Answers
India is known as the planned economy because it is a developing country and hence the investment of the capital good is done according to the production plans and the economy-wide economics.
It is essential to have a proper national or regional plan before investing in anything because they have to take care of the whole nation with limited resources.
Answer:
India is a planned economy because through planning (five year plan), the country sets it's priority first and provides the financial estimates to achieve the same, and efforts are made to mobilize resources at lease cost.
After every planning, a review is made analysing the achievements and short falls, to rectify things in the next plan.
Explanation:
India is a planned economy. Its development plan has been continuing through Five Year Plans since the first plan in 1951-56. Through planning, the country sets it's priority first and provides the financial estimates to achieve the same, and efforts are made to mobilize resources at lease cost. India has completed eleven five year plans and the twelfth plan is in progress. After every plan, a review is made analysing the achievements and short falls, and things are rectified in the next plan. Today, India is a growing economy and recognised everywhere as a future economic power and is seen as a big market for products.