by a committee but due to the changes in the political era and second World War, it did not materialize. . Bombay Plan ( ): The leading industrialists of Bombay presented “Bombay Plan”. It was a Year Investment Plan.
. S. N Agarwal ( ) gave the “Gandhian Plan” focusing on the agricultural and rural economy. .
M.N. Roy ( ) drafted ‘People’s Plan”. It was aiming at mechanization of agricultural production and distribution by the state only. .
J.P. Narayan ( ) advocated, “Sarvodaya Plan” which was inspired by Gandhian Plan and with the idea of Vinoba Bhave. It gave importance not only for agriculture, but encouraged small and cottage industries in the plan. After considering all the plans, in the same year.
The Planning Commission was set up to formulate Five Year Plans in India by Jawaharlal Nehru. He was the first Chairman of Planning Commission, Government of India. . .
. Case for planning The economic planning is justified on the following grounds. . To accelerate and strengthen market mechanism: The market mechanism works imperfectly in underdeveloped countries because of the ignorance and - - Economics of Development and Planning unfamiliarity with it.
A large part of the economy comprises the non-monetized sector. The product, factor, money and capital markets are not organized properly. Therefore the planned economy will be a better substitute for free economy. .
To remove unemployment: Capital being scarce and labour being abundant, the problem of providing gainful employment opportunities to an ever-increasing labour force is a difficult task. The need for planning in underdeveloped countries is further stressed by the necessity of removing widespread unemployment and disguised unemployment in such economies. . To achieve balanced development: In the absence of sufficient enterprise and initiative, the planning authority is the only institution for planning the balanced development of the economy.
For rapid economic development, underdeveloped countries require the development of the agricultural and industrial sectors, the establishment of social and economic overheads, the expansion of the domestic and foreign trade sectors in a harmonious way. i) Development of Agriculture and Industrial Sectors: The need