In India, Economic planning was the responsibility of the National Planning Commission that was established on March 15, 1950 and till 2014. The Prime Minister was always the ex-officio chairman of the Planning Commission. From 2014 ,Planning Commission replaced it by the think tank called NITI Aayog. NITI stands for National Institution for Transforming India.
Achievements of Economic Planning in India:
1. Economic Growth: Economic planning in India has been successful in increasing the national income and the per capita income of the country resulting in economic growth. The net national income at factor cost increased from Rs. 4393.45 billion in 1966- 67 to Rs.45, 733 billion in 2011-12 . The per capita income increased from Rs.8876 to Rs.38, 048 during the 2011-12. The average growth rate has increased from 3.5 percent during 1950 to 1970 to about 5.5 percent after 1990’s. and to 7.8 percent during the eleventh five- year plan.
2. Progress in Agriculture: The first five-year plan focused on agricultural development. The index of agricultural production increased from 85.9 in 1970-71 to 165.7 in 1999-2000 . With the introduction of green revolution, the yield per hectare of food grains has increased from 600 kg in 1959-60 to 2000 kg in 2015-16. Various reforms in the agricultural sector such as the Rashtriya Krishi Bima Yojana and Kisan credit cards and National Food Security Mission and Rashtriya Krishi Vikas Yojana etc have been successful in improving the performance of the agricultural sector.
3. Industrial Growth: Economic planning has also contributed to the progress of the industrial sector. The index of industrial production increased from 54.8 in 1950-51 to 152.0 in 1965-66 and to 232.0 in 1993-94. The introduction of reforms in 1991 relieved the industrial sector from numerous bureaucratic restrictions that were prevalent earlier.India has made remarkable progress in cotton textiles, paper, medicines, food processing, consumer goods, Information technology etc.
4. Public Sector: There were only 5 industrial public sector enterprises in 1951, the number increased to 244 in 1990 with an investment of Rs.99, 330 cores. The ratio of gross profit to capital employed increased from 11.6 percent in 1991-92 to 21.5 percent in 2004-05. Very high profits were recorded by petroleum, telecommunication services, power generation, coal and lignite, financial services, transport services and minerals and metal industries. Navaratnas, Miniratnas status granted to PSU with various power and autonomy to PSUs.
5. Infrastructure: Development of infrastructure such as transport and communication, power, irrigation etc., is a pre-requisite to rapid economic growth and development. The total road length increased from about 400,000 km in 1951 to about 4.7 million km in 2011. The route length of the Indian railway network has increased from about 53,596 km in 1951 to about 64,450 km in 2011. The investment in infrastructure as a percentage of GDP was about 5.9 percent during the tenth plan.
6. Education and Health Care: Education and health care are considered as human capital as they contribute to increased productivity of human beings. The number of universities increased from about 22 in 1950-51 to 22 central universities, 345 state universities, 123 deemed universities and about 41,435 colleges in 2016. India has been able to successfully control a number of life threatening diseases such as small pox, cholera, polio, TB etc. As a result, there has been a fall in the death rate from 27.4 per thousand persons in 1950-51 to 7.3 per thousand persons in 2016. The life expectancy has increased from about 32.1 years in 1951 to 68.01 years in 2014. The infant mortality rate has declined from 149 per thousand in 1966 to 37.42 per thousand in 2015.
7. Service Sector: Service sector is the key contributor to the economic growth of India. The service sector contributed to about 53.2 percent of the gross value added growth in 2015-16. The contribution of the IT sector to India’s GDP increased from about 1.2 percent in 1998 to 9.5 percent in 2015. Financial services, insurance, real estate and business services are some of the leading services that have been recording a robust growth in the past few years.
8. Science and Technology: India is making rapid progress in nuclear technology. ISRO has made a record of launching of satellites including chandrayaan-2 in Jul’19.
9. Foreign Trade: With the development of heavy industries , India has been able to reduce its dependence on other countries and was able to achieve self-reliance in a number of commodities. With the liberalisation of trade, India exports has been increased.