INDIAN ECONOMY 1950-1990
CHAPTER 2
PLANNING IN INDIA
WHAT IS ECONOMIC PLANNING?
Economic planning refers to a system under which central authority (like
planning commission in India) sets a set of targets and specifies a set of
programmes and policies to achieve those targets within a specified period of
time.
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,INDIAN ECONOMY 1950-1990
TYPES OF PLANNING-
1. DIRECTIVE PLANNING
System in which planning is done only to direct the forces of demand and
supply to maintain equilibrium. There is no direct participation of the
state. Pursued in capitalist economy.
2. COMPREHENSIVE PLANNING
System of planning where government itself participates in the process of
growth and development. Pursued in socialist economies.
After two hundred years of being colonised, India finally got freedom on 15
August, 1947. There was an immediate need of planning as-
Indian economy was backward and stagnant Indian economy
the Government of independent India was to decide the type of ‘economic
system’, to boost the process of development.
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,INDIAN ECONOMY 1950-1990
CAPITALIST SOCIALIST
ECONOMY ECONOMY
MIXED
ECONOMY
A capitalist economy is the one in which the means of production are owned,
controlled and operated by the private sector. Production is done mainly for
earning profits.
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, INDIAN ECONOMY 1950-1990
A social economy is the one in which the means of production are owned,
controlled and operated by the government. Their main aim is social welfare of
the people.
A mixed economic system refers to a system in which the public sector and the
private sector are allotted their respective roles for solving the central problems
of the economy.
DOWNLOAD RKG INSTITUTE APP | WWW.RKGINSTITUTE.COM | 9650719104 0r 9315230704
CHAPTER 2
PLANNING IN INDIA
WHAT IS ECONOMIC PLANNING?
Economic planning refers to a system under which central authority (like
planning commission in India) sets a set of targets and specifies a set of
programmes and policies to achieve those targets within a specified period of
time.
DOWNLOAD RKG INSTITUTE APP | WWW.RKGINSTITUTE.COM | 9650719104 0r 9315230704
,INDIAN ECONOMY 1950-1990
TYPES OF PLANNING-
1. DIRECTIVE PLANNING
System in which planning is done only to direct the forces of demand and
supply to maintain equilibrium. There is no direct participation of the
state. Pursued in capitalist economy.
2. COMPREHENSIVE PLANNING
System of planning where government itself participates in the process of
growth and development. Pursued in socialist economies.
After two hundred years of being colonised, India finally got freedom on 15
August, 1947. There was an immediate need of planning as-
Indian economy was backward and stagnant Indian economy
the Government of independent India was to decide the type of ‘economic
system’, to boost the process of development.
DOWNLOAD RKG INSTITUTE APP | WWW.RKGINSTITUTE.COM | 9650719104 0r 9315230704
,INDIAN ECONOMY 1950-1990
CAPITALIST SOCIALIST
ECONOMY ECONOMY
MIXED
ECONOMY
A capitalist economy is the one in which the means of production are owned,
controlled and operated by the private sector. Production is done mainly for
earning profits.
DOWNLOAD RKG INSTITUTE APP | WWW.RKGINSTITUTE.COM | 9650719104 0r 9315230704
, INDIAN ECONOMY 1950-1990
A social economy is the one in which the means of production are owned,
controlled and operated by the government. Their main aim is social welfare of
the people.
A mixed economic system refers to a system in which the public sector and the
private sector are allotted their respective roles for solving the central problems
of the economy.
DOWNLOAD RKG INSTITUTE APP | WWW.RKGINSTITUTE.COM | 9650719104 0r 9315230704
