In this blog, we will learn about economic planning. Problems such as poverty, price rise, or unemployment are linked with the process of economic development. To tackle these problems and to increase prosperity, our country decided to implement a time-bound program of economic development. It established a Planning Commission in 1950 under the chairmanship of the prime minister.

The Commission charted out a planned program of economic development in the form of Five-year plans. Our essence of economic development lies in these Five Year Plans.

The objectives of our economic planning are as follows:

1. to increase national income;
2. to develop agriculture and industries;
3. to utilize human as well as natural ;
4. resources such as water, energy, minerals in the most effective way;
5. to provide employment opportunities and reduce unemployment.

The Planning Commission has drawn up ten five-year plans between 1951-2002 for the economic development of the country.

There were three annual plans after the Third Plan for the years 1966-69, another one during 1979-80, and two annual plans after the Seventh Plan in 1990-92. During these plans, considerable development has taken place in the fields of agriculture, industries, and social welfare.

Industrial development under the Five Years Plans

Agriculture undoubtedly is the mainstay of our economy but without industrial development, no nation can make progress. Realizing this, the Five Year plans focused not only on the expansion of agriculture but also on the development of industries.

The Planning Commission put emphasis on expansion of the existing industries, setting up of new industries, construction of large scale industrial units by government, and priority to heavy industries. At the same time encouragement was also to be given to cottage industries.

From the time of the First Plan till Tenth Plan, key industries like iron, steel, cement, fertilizers, railways, chemicals, and medicines have been set up and developed.

As a result, there is plentiful production of goods like steel, cement, and petroleum products in our country. Remarkable progress has been made in certain industries like sugar, textiles, and chemicals.

The production of consumer goods like electronic equipment, televisions, radios, watches, etc, has also increased. Thus, in the industrial sector, we have made considerable progress.

Read More: Agrarian Reforms: Five Years Plan and Agriculture - Class 8 Notes