Tag: economics of development and planning

India after becoming independent, planning commission was introduced on 15 March 1950 by Indian government to improve standards of living of people who were deprived for centuries. First chairman of planning commission in India was Jawaharlal Nehru as he was the Prime Minister then.

The author of 'Planned Economy for India' is M. Visveswaraiah.
Mokshagundam Visvesvaraya, KCIE was an Indian engineer, scholar, statesman and the Diwan of Mysore from 1912 to 1918. He is a recipient of the Indian Republic's highest honour, the Bharat Ratna, in 1955. He was knighted as a Knight Commander of the British Indian Empire (KCIE) by King George V for his contributions to the public good. 15 September is celebrated as Engineer's Day in India in his memory. He is held in high regard as a pre-eminent engineer of India. He was the chief engineer responsible for the construction of the Krishna Raja Sagara dam in Mysore as well as the chief designer of the flood protection system for the city of Hyderabad.

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.

Economic planning is a term used to describe the long term plans of an incumbent government to manage the economy. Economic planning is a common feature of big government and usually dictates increased spending and deficits to fund government programs and public works projects. During the 20th century, in order to achieve faster economic development, many countries adopted economic planning.

Welfare states is a concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. A welfare state is based on the principles of equality of opportunity, equitable distribution of wealth and public responsibility for those unable to avail themselves of the minimal provisions of a good life. Under this system, the welfare of its citizens is the responsibility of the state.

Economic fluctuations are simply fluctuations in the level of the national income of a country representing growth or contraction. A market economy is not static. It's dynamic. A rise in national income means an economy is growing, while a decline in national income means that an economy is contracting.

The tertiary sector of the economy is the service industry. This sector provides services to the general population and to businesses. Activities associated with this sector include retail and wholesale sales, transportation and distribution, entertainment (movies, television, radio, music, etc.), restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law. In most developed and developing countries, a growing proportion of workers are devoted to the tertiary sector.

Five-Year Plans (FYPs) are centralized and integrated national economic programs. Joseph Stalin implemented the first Five Year Plan in the Soviet Union in the late 1920s. Most communist states and several capitalist countries subsequently have adopted them.

The National Development Council (NDC) or the Rashtriya Vikas Parishad is the apex body for decision making and deliberations on development matters in India, presided over by the Prime Minister.

The father of economic planning in India is M. Visveswaraiah.