Planning Commission of India
Planning Commission of India: The Planning Commission of India was a governmental organization tasked with developing the country’s five-year plans and carrying out a number of other duties. The creation of opportunities for everyone to find work in fields that advance society was one of its main missions.
The Planning Commission was founded in 1950, shortly after India gained independence.
The Planning Commission’s primary functions encompassed formulating long-term and short-term plans, allocating resources to various sectors, and assessing progress through periodic evaluations.
The Planning Commission and NITI Aayog are both important institutions in the context of India’s economic planning and policy formulation. However, they serve different roles and have distinct structures. Here’s an overview of both:
Principles | NITI Aayog | PC |
Approach | Bottom-up | Top-down |
Finance | Only think tank | Did financing too |
States | Cooperative federalism and competitive federalism, release indices (E.g.: Composite water management index) | The only representation of states, that too not in the Planning Commission |
Schemes implementation | Flexible. Eg- the Aspirational Districts program | One size fits all approach |
Planning | Only macro level. Micro level left to states | Both macro and micro level |
Structure | Less permanent members. Everyone expert in their own field. E.g.: Vivek Debroy, economist; V K Saraswat, DRDO chairman | More permanent members |
design | National agenda and cooperative federalism | Five Year Plans |
The Planning Commission and NITI Aayog stand as milestones in India’s journey toward economic development and prosperity. While the Planning Commission provided a structured approach to post-independence economic planning, NITI Aayog brings a more flexible and collaborative framework, aligning with contemporary global economic dynamics. The transition from the former to the latter underscores India’s commitment to embracing change, innovation, and inclusive growth in an ever-evolving world.
Understanding the historical significance and transformation of the Planning Commission is essential for UPSC aspirants to comprehend the evolution of India’s planning and policy landscape.
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The Planning Commission's main role was to formulate and implement comprehensive Five-Year Plans that aimed to achieve specific economic targets and social objectives. It was responsible for resource allocation, policy coordination, and evaluating progress across various sectors.
The Planning Commission was established in 1950 shortly after India gained independence. It was recognized as a need by India's first Prime Minister, Jawaharlal Nehru, to guide the nation's economic development, especially in the aftermath of colonial rule.
The Planning Commission acted as a bridge between the central government and the states, coordinating efforts for balanced regional development. It facilitated resource allocation, prioritized projects, and set sectoral targets to achieve ambitious economic goals.
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