- The five years economic planning started immediately after the enforcement of the constitution in 1951 by the first prime minister of India.
- 5years economic planning was based on Soviet Union Socialistic approach.
It's main Objectives are
- Self reliable Economic growth and Stability
- Employment Generation
- Poverty Eradication
- Improving social conditions
- Technology development and Modernisation
Drawbacks of the five year economic planning
- It followed a Centralised and top to bottom approach, it doesn't suit for Larger population most of which living in rural areas.
- Change in government every 5 years also impacts the implementation of planning and growth
- Improper planning,monitoring and lack of vision
- Focused mainly on Agriculture, Closed economy with more restrictions on trade
- Constitutional status is not given to the planning.
Shift from Socialistic approach to a balanced growth through Socialistic Capitalism with LPG reforms :- Liberalisation Privatisation and Globalisation 1991.
- This is a revolutionary approach towards inclined growth for India , an open economy by trade with different countries which helped in GDP growth, focused on priorities,
- Inclusive growth and development,
- Eradication of poverty,
- Infrastructure Development,
NITI AAYOG NATIONAL INSTITUTION FOR TRANSFORMING INDIA , a think tank with long term of 15 years bottom to top approach .
With Improvements in planning, the GDP will increase which helps improving the standards of living and Poverty Eradication,with well being of the people. This will shape us into a leading country in World towards SDGs .