Indian Planning Commission and the Aftermath

Abstract

The article discusses the context and the objectives of setting up a Planning Commission in a mixed economy framework that India had adopted in the post-colonial period. It also deals with its working, the method of framing a Five-Year Plan, the operation of a plan in the federal democratic system and its adaptation in the paradigm shift from a command economy to a market-driven system. The article further discusses both its contributions, as well as the various frailties that have crept into its functioning, and makes a case for restructuring and reforms. The article briefly indicates the shape of things to come after dismantling the Planning Commission in 2015 and replacing it with a new institution called the National Institution for Transforming India (NITI) Aayog, with new mandates.

JEL Code: O29

Keywords

Planning Commission National Institution for Transforming India Aayog physical control Five-Year Plan

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