{"id":31817,"date":"2026-11-10T17:48:04","date_gmt":"2026-11-10T12:18:04","guid":{"rendered":"https:\/\/vajiramandravi.com\/upsc-exam\/?p=31817"},"modified":"2026-11-10T17:48:04","modified_gmt":"2026-11-10T12:18:04","slug":"planning-commission-of-india","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/upsc-exam\/planning-commission-of-india\/","title":{"rendered":"Planning Commission of India (1950), Chairman, NITI Aayog, Members"},"content":{"rendered":"<p><span style=\"font-weight: 400\">The <\/span><b>Planning Commission of India<\/b><span style=\"font-weight: 400\">, established on 15 March 1950 through a Cabinet Resolution, was India's central institution for formulating Five Year Plans and guiding economic development. It aimed to promote balanced growth, efficient resource utilisation and social justice through coordinated national planning.<\/span><span style=\"font-weight: 400\"><br \/>\r\n<\/span><span style=\"font-weight: 400\">The Commission played a significant role in India's industrialisation, infrastructure development, poverty alleviation and expansion of public-sector investment. However, its centralised, top-down approach, limited state participation, bureaucratic functioning and weak implementation mechanisms attracted criticism, eventually leading to its replacement by NITI Aayog in 2015.<\/span><\/p>\r\n<h2><span style=\"font-weight: 400\">Planning Commission of India About<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Planning Commission of India was an important institution responsible for formulating India's economic and social development strategies after independence. It played a central role in allocating resources, preparing <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/five-year-plans-of-india\/\" target=\"_blank\"><span style=\"font-weight: 400\"><strong>Five Year Plans of India<\/strong><\/span><\/a><span style=\"font-weight: 400\"> and guiding national development priorities.<\/span><\/p>\r\n<h3><span style=\"font-weight: 400\">Planning Commission Established<\/span><\/h3>\r\n<p><span style=\"font-weight: 400\">The Planning Commission was set up in March 1950 through a resolution of the Government of India. It was an extra-constitutional and non-statutory body, meaning it was neither created by the Constitution nor established through an Act of Parliament. It was established on 15 March 1950, through a Cabinet Resolution of the Government of India.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The institution was inspired by the idea of planned economic development, in which the government played a significant role in directing investment, resource allocation and development activities.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The Prime Minister of India served as the ex-officio Chairman of the Planning Commission. It worked closely with Union Ministries, State Governments and other institutions to formulate development policies and monitor their implementation.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400\">State Planning Commission<\/span><\/h3>\r\n<p><span style=\"font-weight: 400\">Several Indian States also had their own State Planning Commissions or State Planning Boards. These bodies prepared State-level development plans, aligned them with national priorities, and coordinated with the central Planning Commission.<\/span><\/p>\r\n<h2><span style=\"font-weight: 400\">Planning Commission of India History<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The <\/span><b>Planning Commission in India<\/b><span style=\"font-weight: 400\"> emerged during the pre-independence period to address poverty, industrial backwardness, and economic inequalities. Several plans and institutional initiatives laid the foundation for establishing a central planning body after Independence.<\/span><\/p>\r\n<h3><span style=\"font-weight: 400\">Pre-Independence Initiatives<\/span><\/h3>\r\n<p><span style=\"font-weight: 400\">Several leaders, economists, and industrialists proposed different approaches to economic development, highlighting the need for systematic national planning.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Visvesvaraya's Plan (1934):<\/b><span style=\"font-weight: 400\"> M. Visvesvaraya proposed a ten-year plan for India's industrialisation in his book Planned Economy for India.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>National Planning Committee (1938):<\/b><span style=\"font-weight: 400\"> It was established by the Indian National Congress under <\/span><strong><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/jawaharlal-nehru\/\" target=\"_blank\">Jawaharlal Nehru<\/a><\/strong><span style=\"font-weight: 400\"> to formulate a comprehensive national development strategy.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Alternative Economic Plans (1944\u201345):<\/b><span style=\"font-weight: 400\"> Three major proposals emerged:<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Bombay Plan, which was proposed by leading industrialists, emphasising industrialisation.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Gandhian Plan was proposed by S.N. Agarwal, focusing on village industries and decentralisation.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">People's Plan was proposed by M.N. Roy, prioritising agriculture and nationalisation.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Advisory Planning Board (1946):<\/b><span style=\"font-weight: 400\"> It was established under K.C. Neogy, which recommended setting up a permanent planning body.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400\">Post-Independence Initiatives<\/span><\/h3>\r\n<p><span style=\"font-weight: 400\">Following Independence, the need for coordinated resource utilisation and balanced economic development led to the creation of formal planning institutions.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Planning Commission (1950):<\/b><span style=\"font-weight: 400\"> The Planning Commission was established on 15 March 1950 through a Cabinet Resolution to assess national resources, formulate development plans and promote balanced economic growth.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>National Development Council (1952):<\/b><span style=\"font-weight: 400\"> It was established to strengthen Centre\u2013State coordination and facilitate the participation of states in economic planning.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Five-Year Plans (1951):<\/b><span style=\"font-weight: 400\"> The First Five-Year Plan marked the beginning of systematic economic planning in independent India.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Replacement by <\/b><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/niti-aayog\/\" target=\"_blank\"><b>NITI Aayog<\/b><\/a><b>:<\/b><span style=\"font-weight: 400\"> On 1 January 2015, the Government of India replaced the Planning Commission of India with NITI Aayog to promote cooperative federalism, policy innovation and participatory governance.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">Planning Commission of India Objectives<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Planning Commission of India was established to guide India's socio-economic development through systematic planning and optimal utilisation of available resources. Its objectives focused on economic growth, social justice and balanced regional development.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Economic Growth: <\/b><span style=\"font-weight: 400\">To promote a rapid increase in national and per capita income through planned development.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Resource Utilisation: <\/b><span style=\"font-weight: 400\">To identify and effectively utilise the country's material, capital and human resources.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Balanced Regional Development: <\/b><span style=\"font-weight: 400\">To reduce regional disparities by promoting development in backward and underdeveloped areas.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Employment Generation: <\/b><span style=\"font-weight: 400\">To expand productive employment opportunities and improve people's living standards.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Social Justice:<\/b><span style=\"font-weight: 400\"> To reduce inequalities in income and wealth and ensure equitable distribution of development benefits.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Self-Reliance:<\/b><span style=\"font-weight: 400\"> To strengthen domestic production capacity and reduce dependence on external resources.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">Planning Commission of India Composition<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Planning Commission of India had a flexible organisational structure comprising political leaders, economic experts and senior administrators. It was headed by the <\/span><strong><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/prime-minister\/\" target=\"_blank\">Prime Minister<\/a><\/strong><span style=\"font-weight: 400\">, with the Deputy Chairman managing its executive functions and expert members providing technical advice. The Planning Commission members included:<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Planning Commission Chairman: <\/b><span style=\"font-weight: 400\">The Prime Minister of India served as the ex-officio Chairman of Planning Commission of India. The Chairman provided overall leadership and guidance to the institution.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Jawaharlal Nehru was the first Chairman of Planning Commission. The last Chairman was Narendra Modi, who served until the Commission\u2019s dissolution in 2014.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Deputy Chairman:<\/b><span style=\"font-weight: 400\"> He was appointed by the Central Cabinet and functioned as the de facto executive head. He was responsible for formulating and submitting five-year plans and enjoyed Cabinet Minister rank.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Gulzarilal Nanda was the first Deputy Chairman of Planning Commission of India.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Ex-officio Members:<\/b><span style=\"font-weight: 400\"> Finance Minister and Planning Minister, along with selected Union Ministers.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Full-time Members:<\/b><span style=\"font-weight: 400\"> Generally 4\u20137 experts with backgrounds in economics, administration and other specialised fields; enjoyed Minister of State rank.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Member-Secretary:<\/b><span style=\"font-weight: 400\"> A senior IAS officer responsible for administrative coordination and secretarial functions.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">Planning Commission of India Functions<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">Planning Commission of India played a central role in India's economic planning by formulating development strategies, coordinating national priorities, and promoting the efficient utilisation of resources. Its major functions included:<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Assessment of Resources: <\/b><span style=\"font-weight: 400\">The Commission assessed the country's material, capital, and human resources and identified possibilities for their expansion.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Plan Formulation:<\/b><span style=\"font-weight: 400\"> It prepared Five Year Plans by determining national development priorities, objectives and targets.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Priority Setting:<\/b><span style=\"font-weight: 400\"> It identified key sectors and established development priorities based on national economic and social needs.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Resource Allocation<\/b><span style=\"font-weight: 400\">: It recommended the distribution of plan assistance among different sectors and states.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Centre\u2013State Coordination:<\/b><span style=\"font-weight: 400\"> It facilitated coordination between Central Ministries and State Governments for effective implementation of development programmes.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Monitoring and Evaluation:<\/b><span style=\"font-weight: 400\"> It reviewed the progress of development plans and assessed the achievement of their objectives and targets.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Policy Recommendations:<\/b><span style=\"font-weight: 400\"> It suggested changes in economic policies and administrative arrangements to improve planning and development outcomes.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">Planning Commission of India and Five Year Plans<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Planning Commission of India played a central role in India's Five-Year Plan system, which was adopted to organise economic development through medium-term targets and investment priorities. India launched its First Five-Year Plan in 1951, focusing primarily on agriculture, irrigation and rehabilitation after independence. A total of 12 Five-Year Plans were implemented between 1951 and 2017.<\/span><\/p>\r\n<table style=\"width: 95.3379%;height: 841px\">\r\n<tbody>\r\n<tr style=\"height: 51px\">\r\n<td class=\"tb-color\" style=\"width: 24.4048%;height: 51px\"><b>Five-Year Plan<\/b><\/td>\r\n<td class=\"tb-color\" style=\"width: 21.3607%;height: 51px\"><b>Period<\/b><\/td>\r\n<td class=\"tb-color\" style=\"width: 71.4246%;height: 51px\"><b>Major Focus<\/b><\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>First Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1951\u20131956<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Agriculture, irrigation and rehabilitation<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Second Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1956\u20131961<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Heavy industries and industrialisation<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Third Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1961\u20131966<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Self-reliance and agricultural development<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Plan Holiday<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1966\u20131969<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Three Annual Plans<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Fourth Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1969\u20131974<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Growth with stability and self-reliance<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Fifth Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1974\u20131979<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Poverty removal and self-reliance<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Rolling Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1978\u20131980<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Flexible planning approach<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 76px\">\r\n<td style=\"width: 24.4048%;height: 76px\">\r\n<p><b>Sixth Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 76px\">\r\n<p><span style=\"font-weight: 400\">1980\u20131985<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 76px\">\r\n<p><span style=\"font-weight: 400\">Poverty alleviation and technological development<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Seventh Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1985\u20131990<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Food, work and productivity<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Annual Plans<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1990\u20131992<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Economic adjustment and stabilisation<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Eighth Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1992\u20131997<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Human resource development<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Ninth Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">1997\u20132002<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Growth with social justice and equality<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Tenth Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">2002\u20132007<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Faster and equitable growth<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Eleventh Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">2007\u20132012<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Faster and more inclusive growth<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr style=\"height: 51px\">\r\n<td style=\"width: 24.4048%;height: 51px\">\r\n<p><b>Twelfth Plan<\/b><\/p>\r\n<\/td>\r\n<td style=\"width: 21.3607%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">2012\u20132017<\/span><\/p>\r\n<\/td>\r\n<td style=\"width: 71.4246%;height: 51px\">\r\n<p><span style=\"font-weight: 400\">Faster, more inclusive and sustainable growth<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h2><span style=\"font-weight: 400\">Planning Commission of India Achievements<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Planning Commission of India contributed to India's socio-economic transformation through successive Five Year Plans, focusing on economic growth, self-reliance, social justice, modernisation and economic stability. Its major achievements can be understood through the following areas:<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Agricultural Growth &amp; Food Security:<\/b><span style=\"font-weight: 400\"> Initiated targeted investments and the Green Revolution (starting from the 3rd Plan), turning India from a food-aid-dependent nation into a grain-surplus country with foodgrain production expanding dramatically (from 51 million tonnes to nearly 292 million tonnes by later decades).<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Economic Growth:<\/b><span style=\"font-weight: 400\"> India's average annual <\/span><strong><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/gross-domestic-product-gdp\/\" target=\"_blank\">Gross Domestic Product (GDP)<\/a><\/strong><span style=\"font-weight: 400\"> growth improved from around 3.7% before 1980 to 5.4% during the Sixth Plan, 5.8% during the Seventh Plan and 6.8% during the Eighth Plan.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Economic Self-Reliance:<\/b><span style=\"font-weight: 400\"> India achieved self-sufficiency in foodgrain production by the end of the Fifth Plan, while the share of foreign aid in plan outlays declined from 28.1% in the Second Plan to 5.5% in the Eighth Plan.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Social Justice:<\/b><span style=\"font-weight: 400\"> Various land reforms, poverty alleviation programmes and targeted development initiatives were introduced to improve the socio-economic conditions of weaker sections, including SCs and STs.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Modernisation:<\/b><span style=\"font-weight: 400\"> Championed the Mahalanobis model in the Second Plan, establishing heavy public-sector steel plants (Bhilai, Durgapur, Rourkela), multi-purpose river valley dams (such as Bhakra Nangal), and core machine-building capabilities that reduced import dependence.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Educational &amp; Technical Infrastructure:<\/b><span style=\"font-weight: 400\"> Laid the groundwork for world-class technical and research institutions, including the early setting up of the Indian Institutes of Technology (IITs) and the University Grants Commission (UGC), lifting national literacy significantly.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">Planning Commission of India Limitations<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">Despite its contribution to India's economic development, the Planning Commission of India faced several structural and operational limitations that affected the effectiveness of economic planning and implementation.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Centralised Planning:<\/b><span style=\"font-weight: 400\"> Its top-down approach limited the autonomy of State Governments and reduced their participation in national planning.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Weak Cooperative Federalism: <\/b><span style=\"font-weight: 400\">The Commission's control over plan assistance and centrally sponsored schemes created an imbalance in Centre\u2013State financial relations.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Implementation Gaps: <\/b><span style=\"font-weight: 400\">Delays in project execution, administrative inefficiencies, and inadequate monitoring resulted in gaps between planned targets and actual achievements.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Political Interference:<\/b><span style=\"font-weight: 400\"> Political considerations sometimes influenced resource allocation and the selection of development priorities.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Limited Grassroots Participation: <\/b><span style=\"font-weight: 400\">Insufficient involvement of <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/panchayati-raj-institutions\/\" target=\"_blank\"><span style=\"font-weight: 400\"><strong>Panchayati Raj Institutions<\/strong><\/span><\/a><span style=\"font-weight: 400\">, <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/urban-local-bodies\/\" target=\"_blank\"><span style=\"font-weight: 400\"><strong>urban local bodies<\/strong><\/span><\/a><span style=\"font-weight: 400\">, and local communities weakened decentralised planning.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Bureaucratic Approach:<\/b><span style=\"font-weight: 400\"> Excessive dependence on administrative procedures and centralised decision-making reduced flexibility and responsiveness.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">Replacement of Planning Commission of India<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Planning Commission of India was replaced by the National Institution for Transforming India (NITI Aayog) on 1 January 2015 through a Cabinet Resolution. The reasons for replacement were:<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Changing Economic Environment: <\/b><span style=\"font-weight: 400\">India's transition towards a liberalised, globalised and market-orientated economy required a more flexible approach to development planning.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Centralised Planning:<\/b><span style=\"font-weight: 400\"> The top-down planning approach of the Commission limited State Governments' autonomy in determining their development priorities.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Need for Cooperative Federalism:<\/b><span style=\"font-weight: 400\"> Greater involvement of States was necessary to promote shared decision-making and participatory development.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>One-Size-Fits-All Approach:<\/b><span style=\"font-weight: 400\"> Regional differences in resources, economic conditions, and development requirements demanded state-specific strategies.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Implementation Challenges:<\/b><span style=\"font-weight: 400\"> Delays in policy execution and inadequate coordination among ministries highlighted the need for stronger institutional mechanisms.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Changing Role of Government:<\/b><span style=\"font-weight: 400\"> The shift from direct resource allocation towards policy facilitation, regulation, and enabling private investment required a different institutional framework.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">Difference Between Planning Commission and NITI Aayog<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Planning Commission of India and NITI Aayog differ in their institutional structure, approach to planning, relationship with states and role in resource allocation.<\/span><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td class=\"tb-color\">\r\n<p><b>Basis<\/b><\/p>\r\n<\/td>\r\n<td class=\"tb-color\">\r\n<p><b>Planning Commission<\/b><\/p>\r\n<\/td>\r\n<td class=\"tb-color\">\r\n<p><b>NITI Aayog<\/b><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Establishment<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Established on 15 March 1950 through a Cabinet Resolution.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Established on 1 January 2015 through a Cabinet Resolution.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Nature<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Central planning and advisory body.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Government's policy think tank.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Approach<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Followed a largely top-down planning approach.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Promotes bottom-up and participatory planning.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Federalism<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Limited direct participation of States in its organisational structure.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Promotes cooperative and competitive federalism.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Resource Allocation<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Influences the allocation of Plan funds to States and Ministries.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">It has no independent power to allocate funds; financial allocations are handled by the Ministry of Finance.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Planning Framework<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Formulated Five Year Plans and Annual Plans.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Develops long-term strategies, policy frameworks and action agendas.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Role of States<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">States participated mainly through the National Development Council and Plan discussions.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Chief Ministers and Lieutenant Governors participate through the Governing Council.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Policy Formulation<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Recommended policies and development priorities through centralised planning.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Provides strategic and technical advice based on regional requirements and national priorities.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Membership<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Chairman, Deputy Chairman, full-time members and other designated members.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Chairperson, Vice-Chairperson, full-time members, part-time members, ex-officio members and CEO.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Monitoring<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Monitored the implementation and performance of Five Year Plans.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Monitors and evaluates government programmes and policy outcomes.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><b>Accountability<\/b><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Influenced development through plan allocations and performance assessments.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400\">Emphasises policy outcomes, performance indicators and cooperative engagement.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h2><span style=\"font-weight: 400\">Planning Commission of India UPSC PYQs<\/span><\/h2>\r\n<p><b>Q1:<\/b><span style=\"font-weight: 400\"> The Government of India has established NITI Aayog to replace the <\/span><b>(UPSC Prelims 2015)<\/b><\/p>\r\n<p><span style=\"font-weight: 400\">(a) Human Rights Commission<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">(b) Finance Commission<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">(c) Law Commission<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">(d) Planning Commission<\/span><\/p>\r\n<p><b>Ans: (d)<\/b><\/p>","protected":false},"excerpt":{"rendered":"<p>Planning Commission of India, established in 1950, prepared Five Year Plans for economic growth. Know its objectives, functions, achievements and replacement by NITI Aayog.<\/p>\n","protected":false},"author":22,"featured_media":31834,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[38,22],"tags":[2203,40,611],"class_list":["post-31817","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-notes","category-upsc-post-independence-history-of-india-notes","tag-planning-commission-of-india","tag-quest","tag-upsc-post-independence-india-notes"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts\/31817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/comments?post=31817"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts\/31817\/revisions"}],"predecessor-version":[{"id":31828,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts\/31817\/revisions\/31828"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/media\/31834"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/media?parent=31817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/categories?post=31817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/tags?post=31817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}