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By- Sweety Gupta
• India at the time of independence was left with crippling
economy by British, which needed attention and well
planned strategies to boom again in the global market.
• The Planning Commission was set up by a Resolution of
the Government of India in March 1950 in pursuance of
declared objectives of the Government to promote a
rapid rise in the standard of living of the people by
efficient exploitation of the resources of the country,
increasing production and offering opportunities to all for
employment in the service of the community.
• The Planning Commission was charged
with the responsibility of making
assessment of all resources of the
country, augmenting deficient resources,
formulating plans for the most effective
and balanced utilisation of resources and
• Five year plan objectives:
• To deal with disparity of income and wealth
• Govt. activism required for socially desirable activities with
available resources and foreign exchange
• Govt. intervention required for development of infrastructure
• Balanced regional development.
• In 12th five year plan, 9% GDP growth is expected. Higher
investment and fund mobilization will induce market development
• Well regulated and integrated markets would generate enough jobs
and live hood opportunities. Development through efficient capital
markets and public private partnership will further boost the
economy and thus may sustain the growth rate of 9 %.
• Growth of a sector through PPP model would lead to
decentralization of economies and inclusion of various sectors, such
that a parallel economic development is induced from this multi-
sectoral growth approach.
India is now self dependent for domestic food demands as a result
of green revolution and previous five year plans. Rural economy
growth has to be enhanced by sustained agriculture growth and
development of rural areas by providing rural infrastructure and
• A balanced regional development can be achieved through agro-
• Innovative technologies and open-market economies would
enhance HDI of rural population. For all perishable products
investments and institutional development are more important than
subsidies or price support systems.
• Forest economies and tribal societies need greater protection and
• In order to attain an overall growth urban governance, urban
renewal, finance and urban transportation reforms should be
• Adequate transport facilities would result in efficient distribution
network, thereby reducing in accessibility and consequently save
the cost involved. Improved connectivity would also help in
managing urbanization and reduction of migration in metro cities,
leading to development of small and medium town.
• Energy efficient transport systems needs to be incorporated with
emphasis on eco-friendly and renewable resources.
• With the fast pace of industrialisation, India is already loosing area
under forest cover rapidly. More human interventions will lead to
severe loss of habitat.
• • Environmental degradation and ecological imbalance are the two
aspects which result out of development initiatives at local and
global levels. Growth of economy without compromising on
environment is a key issue to be addressed as, sustainable growth
is essential now.
• • Technological advancement, equitable distribution, affordability
along with public awareness is major points of concern.
• • Previous five years plans have faced the reluctance of public
participation.The 12th five year plan however talks about
decentralization, empowerment and information.
• • The policy making process should trickles down to the lowest level
of society and more people should have a say in the process.
• • Citizens should be well informed and more powers should be given
to the public to efficiently convey the issues by letting people know
their powers and rights.
• Globalization has led to rapid industrialization and competition in the
market. Technological and organizational innovation will help to
enhance productivity and efficiency.
• • Technological innovations leads to faster results and
organizational innovation would help in efficient utilization of
resources, facilitated by providing incentives and tax subsidies.
• Healthcare conditions are improving in the country but its
affordability and accessibility is still an area to be focused on.
Curative and preventive healthcare would help in increasing general
quality of life.
• • Focus on women and children is essential but importance to
elderly class and handicaps in order to achieve inclusive healthcare
development is essential.
• • Shortage of qualified medical personnel at all levels is a major
hurdle in improving the outreach of the healthcare system,
especially the public health facilities
• Energy being the wheel of growth has to be focused to ensure faster
and inclusive growth.
• Dependency on traditional energy resources has to be reduced with
more emphasis on domestic renewable energy production.Use of
Non Renewable Sources of Energy being restricted to priority based
industries while promoting Non-Conventional Energy Resources for
rest of the sector.
• Nuclear power program must continue, with necessary safety
review. Active efforts need to be made to allay the apprehensions of
people regarding the safety of nuclear power plants.
• • Solar mission is seriously underfunded and requires more support.
Wind power too requires greater support, especially for off-shore
locations which have not been sufficiently explored
• Education being a concerned sector in five year plans has to be now
emphasized more on accessibility, affordability and quality.
• • The employability is to be increased for optimum exploitation of
human resources. Improvement in educational infrastructure,
research and developments.
• • Vocational education will need to be given greater emphasis and
made more attractive. Skill Development needs a major focus at all
The economy will enter the 12th plan period in an environment of
great promise but also one that presents major challenges. India
has done well on the growth front, but not so well on inclusion. Much
of what needs to be done to accelerate GDP growth to 9% so will be
done by the private sector, but the central and state governments
have a crucial role to play in providing a policy environment that is
seen as investor friendly and is supportive of inclusive growth.
Finally, the efficiency in implementation of projects on the ground
needs to be greatly improved.
• Most of what needs to be done in this context rests with state
governments but the central government must find ways of
improving project design, prioritising resources to fund well
designed interventions that work, devolving resources to lower
levels and helping build capacity. Evidence-based evaluation is
critical for redesign and prioritisation.