Economic planning in India has been an important tool for the country’s economic development since independence. It involves setting objectives and policies to achieve specific economic and social goals, with the aim of improving the standard of living for the people.
Objectives of economic planning in India
- Economic growth: The primary objective of economic planning in India is to achieve high rates of economic growth. This is done through investment in infrastructure, technology, and industry, which creates job opportunities and increases productivity. The government sets targets for growth in the Gross Domestic Product (GDP) and Gross National Product (GNP).
- Employment generation: Another important objective of economic planning in India is to generate employment opportunities, especially in the rural areas. This is achieved through investments in agriculture, small-scale industries, and other labor-intensive sectors. The government also provides training programs to improve the skills of the workforce.
- Poverty reduction: Economic planning aims to reduce poverty and improve the standard of living for the poor. The government provides subsidies and other benefits to the marginalized sections of society, including scheduled castes, scheduled tribes, and other backward classes. Various poverty alleviation programs such as the National Rural Employment Guarantee Scheme (NREGS) and the Pradhan Mantri Awas Yojana (PMAY) have been launched to achieve this objective.
- Balanced regional development: Economic planning aims to achieve balanced regional development by reducing regional disparities. This is done through investment in infrastructure, health and education facilities, and other social welfare programs in the less developed regions of the country. This ensures that development is not limited to the urban areas but also reaches the rural and remote regions.
- Self-reliance: The objective of economic planning is to achieve self-reliance in key areas such as food production, energy, and defense. This is done through investment in research and development, promotion of indigenous industries, and reduction of dependence on imports.
- Environmental protection: Economic planning aims to promote sustainable development and environmental protection. The government has launched various programs to reduce carbon emissions, promote renewable energy sources, and protect the natural resources of the country.
Economic planning in India has played a crucial role in achieving the country’s economic and social goals. The objectives of economic planning in India are varied and aim to improve the standard of living of the people, reduce poverty, generate employment opportunities, promote regional development, achieve self-reliance, and protect the environment.
MCQs on Objectives of Economic Planning in India
Question 1: Which of the following are the two main objectives of economic planning in India?
- A. Economic development and social justice
- B. Economic development and economic stability
- C. Social justice and economic stability
- D. Economic development, social justice, and economic stability
Answer: The answer is (D). Economic planning in India has two main objectives: economic development and social justice. Economic development refers to the process of increasing the country’s output of goods and services. Social justice refers to the fair and equitable distribution of the benefits of economic development.
Question 2: Which of the following is not an objective of economic planning in India?
- A. Increasing national income
- B. Improving the standard of living
- C. Reducing economic inequality
- D. Promoting regional development
Answer: The answer is (A). Increasing national income is not an objective of economic planning in India. The objective of economic planning in India is to increase the standard of living of the people. This can be achieved by increasing national income, but it is not the only objective.
Question 3: Which of the following is not a measure to achieve economic stability in India?
- A. Controlling inflation
- B. Preventing price deflation
- C. Increasing foreign exchange reserves
- D. Reducing government spending
Answer: The answer is (D). Reducing government spending is not a measure to achieve economic stability in India. Economic stability refers to the absence of large fluctuations in the economy. Reducing government spending can help to reduce inflation, but it can also lead to a slowdown in economic growth.
Question 4: Which of the following is not a social objective of economic planning in India?
- A. Providing education and healthcare to all
- B. Promoting gender equality
- C. Reducing poverty
- D. Increasing economic growth
Answer: The answer is (D). Increasing economic growth is not a social objective of economic planning in India. Economic growth is important for improving the standard of living of the people, but it is not the only goal of social planning.
Question 5: Which of the following is the main document that outlines the objectives of economic planning in India?
- A. The Constitution of India
- B. The National Development Plan
- C. The Five-Year Plan
- D. The Economic Survey
Answer: The answer is (C). The Five-Year Plan is the main document that outlines the objectives of economic planning in India. The Five-Year Plan is a comprehensive document that sets out the government’s goals for economic development and social justice.
Question 6: Which of the following is not a feature of indicative planning?
- A. The government sets out the broad goals of economic development
- B. The government provides financial and technical assistance to the private sector
- C. The government controls the prices of goods and services
- D. The government plays a leading role in the economy
Answer: The answer is (C). Indicative planning does not involve the government controlling the prices of goods and services. Indicative planning is a more hands-off approach to economic planning, where the government sets out the broad goals of economic development and leaves it to the private sector to achieve those goals.
Question 7: Which of the following is not a criticism of economic planning in India?
- A. It is too slow and bureaucratic
- B. It is not flexible enough to respond to changes in the economy
- C. It has not been effective in reducing poverty
- D. It has led to a decrease in economic growth
Answer: The answer is (D). Economic planning has not led to a decrease in economic growth in India. In fact, the Indian economy has grown at a rapid pace since the introduction of economic planning. However, there are other criticisms of economic planning, such as that it is too slow and bureaucratic, and that it is not flexible enough to respond to changes in the economy.
Question 8: Which of the following is the main difference between indicative planning and command planning?
- In indicative planning, the government sets out the broad goals of economic development, while in command planning, the government controls the production and distribution of goods and services.
- In indicative planning, the government plays a leading role in the economy, while in command planning, the private sector plays a leading role in the economy.
- In indicative planning, the government provides financial and technical assistance to the private sector, while in command planning, the government does not provide financial and technical assistance to the private sector.
Answer: The answer is (A). Indicative planning and command planning are two different approaches to economic planning. In indicative planning, the government sets out the broad goals of economic development, while in command planning, the government controls the production and distribution of goods and services.