Tag: business economics and quantitative methods

The tenth five year plan period was from 2002-2007. The main objectives of the Tenth Five-Year Plan were:

• Attain 8% GDP growth per year
  
• Reduction of poverty rate by 5% by 2007
  
• Providing gainful and high-quality employment at least to the addition to the labor force
  
• Reduction in gender gaps in literacy and wage rates by at least 50% by 2007
  
• 20-point program was introduced
  
• Target growth: 8.1% – growth achieved: 7.7
  
• The tenth plan was expected to follow a regional approach rather than sectoral approach to bring down regional inequalities.

• The free market is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions. Based on its political and legal rules, a country’s free market economy may range between very large or entirely black market.
  
• China is one of the countries which is not considered in free market economy.
  

The prices in a free market are determined by the market forces through the interactions of supply and demand in the marketplace. Where demand is the quantity of a product that buyers are willing to purchase according to a given price and supply is the amount of a product that sellers can give to customers at a given price.

The first year plan (1951–56) was a plan, essentially a ‘repair plan’, made to take care of the severe damage to the country economy caused by war, famine (1943) and the partition of the sub-continent in 1947. The first year plan was Harrod – Domar model of development economics. FYP had a target of 2.1% PA growth in national income. Top priority was given to the development of agricultural sector. The idea was agricultural development would lead to higher rate of economic growth. The performance of the plan was good due to a good harvest and the National income increased at the rate of 3.6% PA.

National Development Council is also known as Rashtriya Vikas Parishad. It was set on 6 August 1952 with a purpose to strengthen the nation in support of the plan. It is the apex body for decision making on development matters in India presided over by the Prime Minister. The Council is responsible to prescribe guidelines for the formulation of Plan, to review and to give recommendations, if necessary.

The Integrated Rural Development Programme (IRDP) was started by Government of India during 1978 and it was put into effect in 1980. The objective of this program is to provide employment opportunity to the poor people as well as a chance for employment to improve their living habitation. IRDP is generally accomplished where the basic physical and organizational structures and facilities are available.

After India achieved Independence, a formal model of planning was adopted, and accordingly, the Planning Commission, reporting directly to the Prime Minister of India, was established on 15 March 1950 with Prime Minister Jawaharlal Nehru as the Chairman. Authority for the creation of the Planning Commission was not derived from the Constitution of India or statute; it is an arm of the Central Government of India.

• The Planning Commission was established in March 1950 by an executive resolution of the Government of India, on the recommendation of the Advisory Planning Board constituted in 1946, under the chairman of KC Neogi. Thus the Planning Commission is neither constitutional nor a statutory body.
• It is a non-constitutional (not created by the Constitution) and a non-statutory body (not created by an act of Parliament).
• In India, it is the supreme organ of planning for social and economic development. It is not responsible for taking and implementing decisions. This responsibility rests with the Central and State governments.
• The Planning Commission is only a staff agency- an advisory body and has no executive responsibility.
• The critics have described it as a 'Super Cabinet', an 'Economic Cabinet' a 'Parallel Cabinet', the 'Fifth Wheel of the Coach' etc.
  

Economic Planning is the making of major economic decisions. The principal reasons for planning in India are: