Model Answer
0 min readIntroduction
India’s tryst with planned development began even before independence, with the Bombay Plan of 1944 advocating for a state-led industrialization strategy. However, the formal institutionalization of planning came with the establishment of the Planning Commission in 1950, spearheaded by Jawaharlal Nehru. The Commission served as a centralizing force, formulating Five-Year Plans aimed at achieving self-sufficiency and social justice. While the Commission was dissolved in 2014 and replaced by NITI Aayog, its imprint on India’s development trajectory remains significant, shaping policy frameworks, institutional structures, and even the mindset of policymakers. This answer will explore the enduring legacy of the Planning Commission on India’s development policies.
The Era of Centralized Planning (1950-1990)
The Planning Commission, modeled after the Soviet Gosplan, adopted a top-down approach to economic planning. Key features included:
- Five-Year Plans: These plans prioritized industrialization, particularly in the public sector, and aimed for rapid economic growth. The First Five-Year Plan (1951-56) focused on irrigation and power projects, while the Second (1956-61) emphasized heavy industries.
- Resource Allocation: The Commission played a crucial role in allocating resources across states and sectors, often favoring those aligned with national priorities.
- National Development Council (NDC): Established in 1952, the NDC, with the Prime Minister as its chairman, served as the apex body for decision-making on development matters.
- State Planning Boards: The Commission encouraged the establishment of State Planning Boards to facilitate decentralized planning.
This period witnessed significant achievements, including increased literacy rates, improved healthcare access, and the development of a robust public sector. However, it also faced criticisms regarding bureaucratic inefficiencies, a lack of flexibility, and a neglect of the agricultural sector.
The Reforms and the Commission’s Decline (1991-2014)
The economic crisis of 1991 forced India to adopt liberalization, privatization, and globalization (LPG) policies. This shift challenged the core principles of the Planning Commission. While the Commission continued to formulate Five-Year Plans, its influence diminished as market forces gained prominence.
- Eighth Plan (1992-97): This plan acknowledged the role of the private sector and emphasized human development.
- Ninth Plan (1997-2002): Focused on employment generation and regional balance.
- Tenth Plan (2002-07): Aimed for a growth rate of 8% and emphasized poverty reduction.
- Eleventh Plan (2007-12): Focused on inclusive growth and reducing regional disparities.
- Twelfth Plan (2012-17): Emphasized sustainable and equitable growth.
Despite these adaptations, the Commission was increasingly criticized for being overly bureaucratic, lacking in expertise, and failing to adequately address emerging challenges like climate change and technological disruption.
The Rise of NITI Aayog and the Enduring Legacy
In 2014, the Planning Commission was dissolved and replaced by NITI Aayog (National Institution for Transforming India). NITI Aayog adopted a bottom-up approach, emphasizing cooperative federalism and promoting state-led development. However, the legacy of the Planning Commission continues to shape India’s development policies in several ways:
- Institutional Framework: Many of the institutions established during the Planning Commission era, such as the NDC and State Planning Boards, continue to exist, albeit with modified roles.
- Data Collection and Analysis: The Commission’s extensive data collection and analysis infrastructure, including the National Sample Survey Office (NSSO), remains crucial for policymaking.
- Five-Year Plan Mindset: Despite the shift to a more flexible planning framework, the Five-Year Plan mindset – setting medium-term goals and targets – persists in many government departments.
- Sectoral Focus: The Commission’s emphasis on key sectors like agriculture, industry, and social services continues to influence policy priorities.
- Centralized Resource Allocation: While NITI Aayog promotes greater state autonomy, the central government still plays a significant role in resource allocation through schemes and programs.
| Feature | Planning Commission | NITI Aayog |
|---|---|---|
| Approach | Top-down, centralized | Bottom-up, cooperative federalism |
| Role | Formulate Five-Year Plans | Policy think tank, facilitator |
| Structure | Highly bureaucratic | More flexible and agile |
Conclusion
The dissolution of the Planning Commission marked a significant shift in India’s approach to development. However, its legacy remains deeply embedded in the country’s institutional structures, policy frameworks, and even the mindset of policymakers. NITI Aayog, while attempting to address the shortcomings of its predecessor, continues to build upon the foundations laid by the Commission. Moving forward, India needs to strike a balance between centralized planning and decentralized decision-making, leveraging the strengths of both approaches to achieve sustainable and inclusive growth. The challenge lies in adapting the lessons of the past to the complexities of the present and the uncertainties of the future.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.