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The following points highlight the top twelve features of Indias five year plan. The features are: 1. Democratic 2. Decentralised Planning 3. Regulatory Mechanism 4. Existence of Central Plan and State Plan 5. Public Sector and Private Sector Plan 6. Periodic Plan 7. Basic Objectives 8. Unchanging Priorities and Others.
Feature # 1. Democratic:
The first important feature of Indian planning is that it is total democratic. India being the largest democratic country in the world has been maintaining such a planning set up where every basic issue related to its Five Year Plan is determined by an democratically elected Government. Moreover, while formulating a Five Year Plan, opinions of various tiers of Government, various organisations, institutions, experts etc. are being given due considerations.
Feature # 2. Decentralised Planning:
Although since the inception of First Plan, the importance of decentralised planning was emphasised so as to achieve active people’s participation in the planning process, but the real introduction of decentralised planning was made in India for the first time during the Seventh Plan. Till the Sixth Plan India had adopted the system of centralised planning with little variation.
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Decentralised planning is a kind of percolation of planning activities or process from the centre to the sub-state levels, i.e., district, sub-division, block and village level. Thus decentralised planning is a kind of planning at the grass root level or planning from below.
Under decentralised planning in India, emphasis is laid on the introduction of district planning, sub-divisional planning and block-level planning so as to reach finally the village level planning successfully.
Feature # 3. Regulatory Mechanism:
Another important feature of Indian planning is that it is being directed by a central planning authority, i.e., the Planning Commission of India which plays the role of regulatory mechanism, so as to provide necessary direction and regulation over the planning system.
Moreover, in order to have proper co-ordination between Centre and States, a coordinating agency, the National Development Council (NDC) was set up by the Government of India on 6th August, 1952. Thus under the present regulatory mechanism, every planning decision in India originates from the Planning Commission and is finally approved by the National Development Council.
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Moreover, the Planning Commission of India is also having adequate regulatory mechanism over the successful implementation of planning.
Feature # 4. Existence of Central Plan and State Plan:
Another important feature of Indian planning is that there is the co-existence of both the Central Plan and State Plans. In every Five Year Plan of the country, separate outlay is earmarked both for the Central Plan and also for the State Plans.
Central Plan is under the exclusive control of the. Planning Commission and the Central Government, whereas the State Plan is under the exclusive control of State Planning Board and State Government which also requires usual approval from the Planning Commission.
Feature # 5. Public Sector and Private Sector Plan:
Another notable feature of India’s Five Year Plan is that in each plan, a separate outlay is earmarked both for public sector and the private sector. In each five year plan of the country, public sector investment and private sector investment amount is separately fixed, which comprises the total investment in each plan.
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India, being a mixed economy, it is quite natural that a separate investment outlay for public as well as the private sector is being maintained in each plan.
Feature # 6. Periodic Plan:
One of the important features of Indian planning is that it has adopted a periodic plan of 5-year period having five separate Annual Plan components. This type of periodic plan approach is quite suitable for realising its definite targets. Moreover, the system of Annual Plan has provided the facility for making necessary modifications in the plan outlay, allocations and targets.
Feature # 7. Basic Objectives:
One of salient features of Indian Five Year Plan is that each and every plan is guided by certain basic or fundamental objectives which are almost common in most of our plans.
Major objectives of economic rimming in India mostly consist:
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(a) Attainment of higher rate of economic growth,
(b) Reduction of economic inequalities,
(c) Achieving full employment,
(d) Attaining economic self reliance,
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(e) Modernisation of various sectors and
(f) Redressing the imbalances in the economy.
In general, Growth with social justice” is the main objective of economic planning in India.
Feature # 8. Unchanging Priorities:
Five year plans in India are determining its priorities considering the needs of the country. It is being observed that Indian Five Year Plans have been giving too many priorities on the development of industry, power and agriculture with minor modifications.
Thus there are no remarkable changes in the priority pattern of Indian planning, although in recent years increasing priorities are also being given to poverty eradication programmes and on employment generating schemes.
Feature # 9. Balanced Regional Development:
Another salient feature of India’s Five Year Plan is that it constantly attaches much importance on balanced regional development. Development of backward regions is one of the important objectives of Indian planning.
India’s planning system has even isolated some states under “special category states” so as to channelize additional resources to these backward states for their rapid development. Special budgetary relief in the form of tax holiday or tax relief for establishing industries into backward regions of the country.
Feature # 10. Perspective Planning on Basic Issues or Problems:
Another important feature of Indian planning is that it has adopted the system of perspective planning on some basic issues or problems of the country, for a period of 15 to 20 years on the basis of necessary projections.
Although Indian plans are mostly five year plans but perspective planning on some important aspects like production of food, petroleum goods, steel etc. are quite important considering the growing demand of such goods. Thus the perspective plan safeguards the future interest of the economy.
Feature # 11. Programme Implementation and Evaluation:
Indian planning system is broadly supported by programme implementation and evaluation machinery, which used to play a very important role. Programme implementation machinery includes various Government departments which are usually involved for the implementation of the plan.
More there is an Evaluation machinery which usually conducts pre-project evaluation and post-project evaluation of every planning project of the country.
Feature # 12. Shortfalls in Target Realisation:
Another notable feature of India’s Five Year Plan is its shortfalls in target realisation. Although targets are fixed for every plans in respect of rate of growth of national income, employment, population, production of some important items etc. But in most of the cases these targets are not fulfilled to the fullest extent, excluding certain specific cases.
Such shortfalls in target realization leads to the problems of spill over of projects into next five year plans and cost over-runs. Thus we have seen that salient features of India’s Five Year Plans, although numerous but some of these are quite common to that of other countries while some are very much uncommon.
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