Planning Commission of India, Historical Background, Composition

The Planning Commission of India was formed on 15th March 1950 and marked a landmark institution that laid the foundation of India’s economic and social development in the post-independence era. Its responsibilities included formulating and overseeing the five year plans and taking the nation towards planned development, resource mobilization and focusing on socio-economic growth objectives. In this article, we are going to cover all about the Planning Commission, its historical background, its functions and objectives. 

Planning Commission of India

The Planning Commission was an apex body established by a Government of India resolution in 1950, under the chairmanship of Prime Minister Jawaharlal Nehru. It was a non-constitutional and non-statutory body. Its purpose was to guide India’s economic development through structured Five-Year Plans. Its responsibilities included:

• Assessing national resources (natural, financial, and human).
• Formulating plans and setting developmental priorities.
• Allocating resources for different sectors and ministries.
• Monitoring plan implementation and making mid-course corrections.
• Advising the government on policy matters concerning development.
• In essence, the Commission worked as the chief architect of India’s post-independence economic strategy.

Planning Commission of India Historical Background

The creation of Planning Commission of India can be traced back on the lines of the following historical background: 

• First Five-Year Plan (1951–1956): Focused on agriculture, irrigation, and energy to address food security and basic needs.
• Second Plan (1956–1961): Inspired by the Mahalanobis model, it emphasized rapid industrialization and the growth of the public sector.
• Third Plan (1961–1966): Aimed at making India self-reliant but was disrupted by wars with China (1962) and Pakistan (1965), along with a severe drought.
• Plan Holiday (1966–1969): Annual plans were introduced due to resource constraints, inflation, and currency depreciation.
• Fourth Plan (1969–1974): Restarted the planned development framework with a focus on growth with stability and self-reliance.
• Eighth Plan (1992–1997): Introduced after the 1991 economic crisis and liberalization, focusing on modernization, privatization, and globalization.
• Ninth Plan onwards (1997–2002): Shifted attention towards social justice, poverty alleviation, and decentralized planning.
• The Planning Commission continued its work until the Twelfth Five-Year Plan (2012–2017), after which it was abolished and replaced by NITI Aayog. 

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Planning Commission of India Composition

The Planning Commission of India consists of the following members: 

• Chairman: The Prime Minister of India served as the ex-officio Chairman.
• Deputy Chairman: The de facto executive head responsible for drafting and presenting the Five-Year Plans. Equivalent in status to a Cabinet Minister but without voting powers.
• Full-time Members: Experts in economics, planning, agriculture, industry, and administration.
• Part-time Members: Central Ministers holding key portfolios.
• Ex-Officio Members: The Finance Minister and Planning Minister. 

Planning Commission of India Functions

The Planning Commission body of India served the following functions: 

1. Formulating Five-Year Plans: Designing developmental blueprints with clear objectives, targets, and investment patterns.
2. Resource Assessment: Evaluating India’s financial, natural, and human resources.
3. Prioritization: Allocating resources to sectors based on national priorities.
4. Monitoring and Evaluation: Reviewing implementation, identifying bottlenecks, and suggesting corrective action.
5. Inter-Ministerial Coordination: Ensuring policy alignment across ministries and departments.
6. Research and Innovation: Encouraging scientific research and supporting institutions.
7. Policy Advisory Role: Advising the government on economic, industrial, and social development strategies.
8. Regional Balance: Promoting equitable development among states and regions.
9. Social Justice: Emphasizing inclusion of marginalized sections – women, minorities, and disadvantaged communities.
10. Stakeholder Participation: Involving experts, industries, and citizens in shaping policies.

Difference Between the Planning Commission and NITI Aayog 

The Planning Commission of India was finally dissolved in 2014 and taken over by the NITI Aayog. This new planning body reflects India’s shift from centralised, top-down planning to a more flexible, decentralised and participatory policy framework. Here is a list of differences between the Planning Commission of India and the NITI Aayog.