Examine the importance of Development Planning in India Mixed Economy, and analyze its problems and prospects. (UPSC CSE Mains 2019 - Sociology, Paper 2)

Developmental planning in India refers to the process of formulating and implementing economic and social policies aimed at promoting economic growth, reducing poverty, and improving the living standards of the population. It involves the systematic use of national resources, both human and material, to achieve specific objectives within a specified period. Developmental planning in India has its roots in the post-independence era when the government adopted a planned approach to economic development to address the challenges of poverty, unemployment, and social inequality. From a sociological perspective, the prospects of developmental planning in India can be analyzed in the following aspects:

  1. Historical context - The idea of developmental planning in India emerged in the backdrop of the colonial experience, which left the country with a stagnant economy, widespread poverty, and underdeveloped infrastructure. The newly independent nation needed a comprehensive plan to address these issues and to chart a path towards self-reliance and modernization. The establishment of the Planning Commission in 1950 marked the beginning of the era of planned development in India, with the First Five-Year Plan launched in 1951.
  1. Role of the state - In the initial years of developmental planning, the Indian state played a dominant role in steering the economy and shaping the social structure. The state adopted a mixed economy model, with the public sector leading the way in key industries and infrastructure development, while the private sector was encouraged to grow within the framework of state regulations. The state also played a crucial role in promoting social welfare through various policies and programs aimed at poverty alleviation, education, health, and rural development.
  1. Social justice and equity - One of the primary objectives of developmental planning in India has been to promote social justice and equity. This involves addressing the deeply entrenched social hierarchies and inequalities that exist in Indian society, particularly those based on caste, class, and gender. Developmental planning has sought to create opportunities for the marginalized sections of society through affirmative action policies, such as reservations in education and employment, and targeted welfare schemes for the upliftment of the poor and disadvantaged.
  1. Regional disparities - Developmental planning in India has also grappled with the challenge of regional disparities in terms of economic growth and social indicators. The uneven distribution of resources, infrastructure, and investment has led to significant differences in the levels of development across various states and regions in the country. Developmental planning has attempted to address these disparities through special packages and schemes for the backward regions, as well as by promoting balanced regional development.
  1. Sustainable development - In recent years, the focus of developmental planning in India has shifted towards sustainable development, which emphasizes the need to balance economic growth with environmental protection and social equity. This has led to the incorporation of environmental concerns and social inclusion in the planning process, as well as the adoption of a more participatory approach involving local communities and stakeholders in decision-making.
  1. Globalization and liberalization - The process of economic liberalization and globalization, which began in the early 1990s, has had a significant impact on developmental planning in India. The opening up of the economy to foreign investment and competition has led to a reorientation of the planning process, with a greater emphasis on market-driven growth and private sector participation. This has also raised concerns about the potential erosion of the state’s role in promoting social welfare and addressing inequalities.

Problems in Planning Process

The profit motive and the acquisitive spirit of the private sector on the one side and the inefficiency of the public sector on the other have resulted in serious distortion. The main distortions are :

  • Distortion of production structure due to persistence of inequality
  • Growth of unemployment due to failure to control rapid growth of population and emphasis on capital intensive production.
  • Failure of state to check concentration of economic power
  • Emergence of black economy or parallel economy in India
  • Failure to check the increase in prices
  • Failure to bring about a redistribution of income.
  • Failure of planning process to significantly reduce the proportion of people below poverty line.
  • We find that all our plans have been oriented towards something, sometimes self-reliance in agricultural production, sometimes employment, sometimes industrial growth, and so on. But poverty and unemployment have invariably increased. Though the government claimed that the number of people below the poverty line came down to 33 per cent in 1998 yet we cannot concede that poverty has decreased. No wonder, more people feel frustrated today and the number of agitations is increasing every year.

According to Ronald Lippit for success of a plan certain strategies have to be put into practice.

  • Development proposals and procedures should be mutually consistent,
  • Goals of development must be stated in terms that have positive value to the community,
  • Planners must have a thorough knowledge of the beliefs and values of the community’s culture,
  • Development must take the whole community into account,
  • Community must be an active partner in the development process, and
  • Communication and coordination between various agencies of development is essential.

Developmental planning in India has thus evolved over the years in response to the changing economic, social, and political context. While it has achieved significant progress in terms of economic growth and poverty reduction, the challenges of social inequality, regional disparities, and sustainable development remain critical concerns. The future of developmental planning in India will depend on its ability to adapt to these challenges and to strike a balance between economic growth, social equity, and environmental sustainability.



POSTED ON 02-10-2023 BY ADMIN
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