Question

What were the early initiatives taken by the Planning Commission for building new India?

What were the early initiatives taken by the Planning Commission (now NITI Aayog) for building a new India?

Answer 1

1. Like the USSR, the Indian Planning Commission opted for five-year plans (FYP). The basic idea is that the Government of India prepares a document outlining its income and expenditure plan for the next five years.
2. Accordingly, the budget of the central and all the state governments is divided into two parts: the non-plan budget, which is spent on routine items annually, and the plan budget, which is spent on a five-year basis according to the priorities fixed by the plan.
3. The draft of the First Five-Year Plan and then the actual plan documents released in December 1951 generated a lot of excitement in the country. People from all walks of life academicians, journalists, government and private sector employees, industrialists, farmers, and politicians, discussed and debated the documents extensively.
4. The excitement with planning reached its peak with the launching of the second Five-Year Plan in 1961. The Fourth Plan was due to start in 1966
5. By this time, the novelty of planning had declined considerably, and moreover, India was facing an acute economic crisis. The government decided to take a ‘planned holiday’. Although many criticisms emerged about both the process and the priorities of these plans, the foundation of India’s economic development was firmly in place by then.

Answer 2

Early initiatives taken by the Planning Commission for building a new India were mainly through the First Five-Year Plan:

1. Gave top priority to agriculture to increase food production and achieve self-sufficiency.
2. Built big dams and expanded irrigation facilities to control floods, provide power, and support farming.
3. Tried to raise literacy and improve education and social services.
4. Encouraged savings and investment so that national income and per capita income could rise.