Give the achievements of economic planning.

Or

How for the various objectives of planning have been realised prior to economic reform?    

Major achievements of economic planning:

(a) Increase in National Income : Increase in national income is a sign of economic development. Prior to planning and during British regime, national income of India increased at the rate of 0.5% p.a. During the period of planning, the rate of increase in national income has been 4. percent per annum.

(b) Increase in per capita income : Prior to independence, rate of increase in per capita income had been almost zero but during the period of planning, per capita income increased at the rate of 2% p.a.

(c) Increase in rate of capital formation : Capital formation plays a significant role in the economic growth of a country. During five year plans rate of capital formation has significantly increased. As the rate of capital formation dependes on the rate of saving and investment, there has been considerable increase in the rate of saving and investment.

(d) Institutional reforms in agriculautre and Green Revolution : Plans have contributed to the development of agriculture in two ways:

(a) land reforms have been introduced in agriculture.

(b) Since 1966, stress has been given another technological advancement of agriculture. It resulted into Green revolution. During the period of planning, production of foddgrains has trebled.

(c) Development of industries: Industrial sector has received a lot of encouragement as a result of planning. Basic and capital goods industries like iron and steel, machinery, chemical fertilizers etc. have developed adequately. Public sector has gratly expanded. In the matter of customer goods industries, the country has become almost self-sufficient. Industries have been diversified and modernised industrial production capacity has gone up

considerbly. Indian economy is now ranked as the tenth industrial economy of the world. During the period of planning growth rate of industrial production has been around 6.9 percent per annum industrial production during the First Five Year Plan increased by 8 percent.

(f) Development of Economic Infrastructure : Economic infrastructure mainly includes transport means of communication irrigation facilities and the generation capacity of power etc. During the period of planning economic infrastructure has developed considerly.

(g) Development of Social Infrastructure : During the period of planning, country's social services like education health and medical facilities, family planning etc. also developed appreciably.

(i) Death rate that stood at 27 percent per thousand in 1951 came down to 8 per thousand in 2004.

(ii) Average life expectancy increased from 32 years in 1951 to 65.4 in 2001.

(iii) Several deadly diseases like malaria etc. have been eradicated.

(iv) A charm of National Laborataries and Research Centres have been set up across the country.

(v) Educational facilities were expanded considerbly.

(h) Employment : Serious efforts have beenmade during plans to increase employment opportunities.

(i) Modernisation : It ructural and institutional changes taking place during the period of planning testify to the fad that important itructural changes are—

• Increase contribution of industry in the composition of national income.

• Income in the number of industries using modern technique.

• Increasing use of modern technology in agricultural sector. Institutional changes during the plan are also significant. It includes development of public sector and of late trend towards liberalisation privatisation and globalisation.