The Planning Commission of India was established in 1950 as a non-constitutional body to promote a rapid rise in the standard of living of the people through efficient exploitation of resources. It played a crucial role in India’s economic development until its dissolution in 2014.
Key functions of the Planning Commission included:
1. Formulating Five-Year Plans: It designed comprehensive plans for economic growth and social justice, setting targets for various sectors.
2. Resource allocation: It determines the allocation of resources among different sectors and states.
3. Policy formulation: It advised the government on economic and social policies.
4. Progress evaluation: It monitored and evaluated the implementation of plans and suggested necessary adjustments.
5. Coordination: Coordination between various ministries and state governments for efficient plan implementation.
The Commission’s approach evolved over time, shifting from a Soviet-style centralized planning model to a more market-oriented approach. It played a significant role in India’s industrialization, agricultural development, and poverty alleviation efforts.’
However, the Planning Commission faced criticism for being too bureaucratic and out of touch with ground realities. It was also accused of hampering the federal structure by interfering with state-level planning.
In 2014, the Planning Commission was replaced by NITI Aayog (National Institution for Transforming India), which aims to be a more collaborative and adaptive think tank for guiding India’s development strategy.
While the Planning Commission’s legacy is mixed, it undeniably played a crucial role in shaping India’s economic policies and development trajectory for over six decades.
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