Planning Meaning Planning is a technique, a means to an end, the end being the realization of certain pre-determined and well-defined aims and objectives laid down by a central planning authority. The end may be to achieve economic, social, political or military objectives. Definitions Economic Planning is “collective control or suppression of private activities of production and exchange”. -Robbins- “Economic Planning in the widest sense is the deliberate direction by persons in-charge of large resources of economic activity towards chosen ends”.
Dalton- . . . Economic Planning in India Consists of economic decisions, schemes formed to meet certain pre- determined economic objectives and - - Economics of Development and Planning a road map of directions to achieve specific goals within specific period of time.
The current thinking of economic planning is fairly new, somewhat rooted in Marxist socialism. In the 20th century, intellectuals, theorists, thinkers from Europe put forward the idea of state involvement to stop capitalism and the inequality of society. Soviet Union adopted economic planning for the first time in that enabled the country to turn into an industrial superpower. The idea of economic planning was strengthened during the Great Depression in 1930s.
The outbreak of the World War II also required adequate and suitable planning of economic resources for the effective management after the effects of post war economy. After Independence, in , a declaration of industrial policy was announced. The policy suggested the creation of a National Planning Commission and the elaboration of the policy of a mixed economic system. On January , , the Constitution came into force.
In logical order, the Planning Commission was created on March , and the plan era began on April , with the launch of the first five year plan ( - ). The evolution of planning in India is stated below: . Sir M. Vishveshwarayya ( ): a prominent engineer and politician made his first attempt in laying foundation for economic planning in India in through his book, “Planned Economy of India”.
It was a year plan. . Jawaharlal Nehru ( ): set-up “National Planning Commission”