Historical Evolution of Planning in India

In 1934, M. Visvesvaraya, a visionary, came up with a plan to boost India’s income by proposing a ten-year strategy. He suggested investing Rs. 1,000 crore in capital and aiming for a six-fold increase in industrial output each year. Fast forward to 1938, when Netaji Subhash Chandra Bose and the Indian National Congress took the reins and formed the National Planning Committee (NPC), led by Pandit J.L. Nehru. Their goal was to tackle poverty and unemployment through economic development planning. Unfortunately, the outbreak of World War II in 1939 and the imprisonment of leaders halted the NPC’s progress, preventing them from preparing the much-needed report.

Bombay Plan

In 1944, eight influential industrialists from Bombay collaborated to create the Bombay Plan, envisioning significant government involvement in economic development. They focused on boosting the industrial sector, aiming to triple the national income and double per capita income within 15 years. According to this plan, planning and industrialization were seen as inseparable.

Around the same time, M.N. Roy proposed the People’s Plan, which was further developed by his colleagues G.D. Parikh, V.M. Tarkunde, and B.N. Banerjee. Their Ten-Year Plan aimed to reconstruct the Indian economy with a budget of approximately Rs. 15,000 Crores. The People’s Plan emphasized agriculture and social services, highlighting its self-financing nature.

The Gandhian Plan

The Gandhian Plan, inspired by Gandhian philosophy, focused on promoting the growth of small-scale production and agriculture. At its core, the plan aimed to decentralize the economic structure by fostering self-contained villages and cottage industries. Rather than relying on large-scale industries, the emphasis was on empowering local communities and creating self-sufficient villages. The estimated budget for this plan was Rs. 3,500 crores, reflecting a commitment to a decentralized economy and the promotion of grassroots development through both agricultural and industrial activities.

Sarvodaya Plan

In 1946, during a crucial time in India’s history, an interim government was established to tackle the pressing issues hindering the country’s development. Recognizing the need for comprehensive progress, Jai Prakash Narayan took a significant step in 1950 by presenting the ‘Sarvodaya Plan.’ This document outlined a visionary roadmap for the well-rounded advancement of the ordinary people, addressing economic, political, and social aspects. Narayan’s plan aimed to uplift the common masses, fostering overall development for a brighter future.

Planning Commission

Post-independence, the Indian Government established the Planning Commission in March 1950 with a clear mandate. The Commission’s first task was to assess the country’s material, capital, and human resources. The goal was to create a comprehensive plan for their optimal and balanced utilization. Determining priorities and defining stages were pivotal. The Commission aimed to propose resource allocations for each stage to ensure the plan’s successful implementation.

Serving as an advisory body to the Union Government, the Commission played a crucial role in providing expert guidance. Recognizing the socio-political landscape, the Commission was tasked with establishing conditions suitable for executing the plan. Acting as a bridge between the central and state governments, the Commission was instrumental in providing advice to both levels of governance. With the completion of the Twelfth Five Year Plan, the planning landscape underwent a transformation. The Planning Commission evolved into NITI Aayog, signaling a new phase in India’s development journey.

National Development Council

This setup came into being on August 6, 1952. The National Development Council (NDC) plays a crucial role by approving all plans proposed by the planning commission. It was formed to foster collaboration between the States and the Centre. Similar to the Planning Commission, NDC is an extra-constitutional legal body.

At the state level, the Apex Planning body is the State Planning Board.
The Chief Minister serves as the Chairman of the State Planning Board.
The Finance and Planning Ministers of the State automatically become members, and additional technical members are appointed by the state governments.
District Planning Committees operate at the district level.
These committees consist of both official and non-official members.