Tag: economics

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.

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.

NITI Aayog or the National Institution for Transforming India is a Government of India policy think-tank established by the Narendra Modi government to replace the Planning Commission which followed the top-down model. The stated aim for NITI Aayog's creation is to foster involvement and participation in the economic policy-making process by the State Governments of India.The emphasis is on bottom-up approach and make the country to move towards cooperative federalism . The Union Government of India announced the formation of NITI Aayog on 1 January 2015, and the first meeting was held on 8 February 2015. The Prime Minister serves as the Ex-officio chairman.The governing council consists of all state Chief Ministers,Lieutenant Governers of union territories,and vice chairman nominated by the Prime Minister. In addition ti full members, there are two part time members and four ex-officio members and a chief executive officer. The temporary members are selected from the leading universities and research institutions.

Sir M Visvesvaraya, a Bharat Ratna recipient, was an engineer, statesman, and a scholar. He served as the Diwan of Mysore during the period of 1912-1918. In 1934, he published a book titled “Planned Economy in India”, in which he presented a constructive draft of the development of India in next ten years. His core idea was to lay out a plan to shift labour from agriculture to industries and double up National income in ten years. This was the first concrete scholarly work towards planning.

A public sector company is that company in which the Union Government or State Government or any Territorial Government owns a share of 51 % or more. It plays an important role in capital formation, employment generation, export promotion, etc. Its aims are to promote balanced regional growth, to promote redistribution of income and wealth, to encourage the development of small-scale and ancillary industries, etc

In India, the Panchayati Raj is followed for grassroot level planning the small villages. Panchayati Raj generally refers to the local self-government of villages in rural India A grassroots planning  is one which uses the people in a given  village,district, region, or community as the basis for a political or economic movement.