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A plan spells out how the resources of a nation should be put to use. It should have some general goals as well as specific objectives which are to be achieved within a specified period of time.
At the time of independence, the Indian economy was in its worst stage. The GDP, National, and Per Capita income were very low and the unemployment was very high. The Industrial growth was insignificant also the Agricultural Sector was not doing well. The resources were very limited. So India opted for planning because it helps in spelling out how the resources of a nation should be used efficiently and economically, so that rate of economic growth can be accelerated.
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Mandakini Singh
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Harpreet Kaur
IELTS, Interviewer, Spoken English trainer with 2 years of experience in IELTS industry.
Planning was undertaken to make the public sector work to improve the basic economic framework and to encourage private sector firms to contribute towards the economic growth. With the objective, that the government would undertake comprehensive planning for the nation as a whole and the Planning Commission was established in 1950.
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