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The planning of subsequent economic actions by taking decisions on the development of certain policies is considered economic planning. The concept of economic planning is derived from Russia and the importance of having economic planning is to focus on the country’s scarcity, supply, demand, cost, benefit, and incentives.

Overview of the Economic Planning in India

The concept of Economic planning was first introduced by P. V. Narasimha Rao who was a great politician and also considered as the father of the concept of Economic planning. The prime minister Jawaharlal Nehru introduced a five-year plan to the Indian parliament to make the Indian economy stronger and better. In the year 1951, the parliament focused on the development of the primary sector. P. V. Narasimha also stated that the Indian economy is largely based on the Agricultural sector and 17 percent of GDP is based on it. Other important factors are airways, railways, and manufacturing handicrafts which can also play an important role in the Indian economy.

The Concept of Economic Planning in India is Derived from

As stated before, the concept of Economic development is derived from Russia. Though the concept of the economic condition is based on the major financial choices of a country which could be different from each other. However, understanding the strongest sector of a country to increase the GDP percentage of a country is the main aim to achieve by implementing this planning.

Main Objectives of Economic Planning in India

The main objective of introducing and implementing this idea is to increase the standard of living. In India, a large population is living their lives below the poverty level. If the per capita income can be increased by adopting this strategy, it can be beneficial for the country. It can also increase the employment section and increase the rate of social service. Equal distribution of income can be beneficial for decreasing the population who belong below the poverty level. It can also provide a stable economic condition to the country, increase the self-sufficiency level, increase the rate of regional development, reduce economic inequality and increase social justice.