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ECONOMIC PLANNING :Economic planning in India comprise of both long

term as well as short term goals

LONG TERM GOALS: Long term goals are basically the aims which takes
long period of time in their achievement. Some of the main long term goals
in India are as follows:
1. Increase in GDP(gross domestic product) and per capita GDP, briefly
called growth
Increase in GDP implies increase in the level of output in the economy
This is an index of increase in the overall level of economic activity in
the economy
2. Full employment
It refers to a situation when all the people in the working age group are
actually engaged in some gainful employment and getting income
from that work.
3. Equitable distribution or Equity
It means that every individual in the society get the same or the equal
share in the countrys national income or resources.
4. Modernisation
It means updating our technical knowhow and adoption of new
technology in the growth process of the country
5. Self-sufficiency
It means that the country should de dependant on the domestically
produced goods, particularly the food grains

SHORT TERM GOALS:Short term goals are basically the aims which
take short period of time in their achievement.
These plans go hand in hand with long term plans.
These plans depend upon the our needs and means
Depending upon the global transformation in the area of production
and technology our planners keeps on redefining them accordingly
Currently the focus is on achieving better quality of life across all the
sections of the society



Heavy dependence or reliance on the public sector to achieve

the main objective of socialistic pattern of the society which will help in
enhancing the social welfare

Regulated development of private sector which imposed certain

restrictions on the private sector so that they do not dominate the
economy by concentrating the economic powers in their hands.
Protecting the small scale industries and putting regulations on the
large scale industries in order to promote the products of small scale
industries in the global market
Development of heavy industries like electricity power generation and
engineering goods industries.
Promote savings and investments
Protection of domestic industries from foreign competition.
Focus on import substitution. It means domestic production of the
goods rather than importing it from outside.
Putting restrictions on the foreign capital
Centralised planning


There is an increase in the national income which indicates economic

growth, although it was less than the target rate which was expected
Increase in the per capita income which implies that that there is a rise
in the quality of the people in terms of per capita availability of goods
and services
During the five year plans the rate of capital formation has significantly
There has been a drastic change in the agriculture by significant
technical transformation which resulted into the green revolution in the
country. Because of this technical advancement in the agriculture India
has almost achieved self-sufficiency in the production of food grains
Industrial sector has received a significant growth as a result Indian
economy is now ranked as the tenth largest industrial economy
There has been a significant growth in the economic infrastructure
which includes means of transportation & communication, irrigation
facilities & power banking & insurance etc
Health and educational facilities are the key parameters of social
infrastructure & it has been significantly increased in India.
Continuous efforts have been made to provide employment to the
people which subsequently increased the number of employed people
in the country.
Since independence the volume and the value of Indias foreign trade
have increased. India is now exporting a variety of finished products

including industrial goods. This a sign of India emerging as an

industrial nation.
1.Poverty 2.Mounting inflation 3.Unemployment problem 4.Poor and deficient
infrastructure 5.Skewed or unequal distribution

Farming in India is depended majorly depended on rainfall and the is

no permanent means of irrigation which effects the crops very badly
Mostly the Indian farmers are poor and there is lack of finance which
hinders modernization of Indian agriculture.
Conventional outlook is another problem because the Indian farmer do
not want to adopt new &innovative farming practices and farming
There are small and scattered holdings of agricultural lands
The agricultural relations are basically between the landlords and the
tenets or the farmers and landlords usually exploit the innocent
There is a lack of organized marketing system where the farmers can
sell their produce at a good price as a result they sell their produce in
the local markets at very low price


Use of high yielding variety (HTV) seeds which will rise the crop
Use of chemical fertilizers along with the manure
Scientific methods should be used in the farming including selection of
crops, their quality, preparation of soil, crop rotation, selection of
seeds, judicial use of fertilizers etc.
Use of machines in the cultivation and providing loan to the farmers so
that they can buy such machines. Ex- Use of tube wells, tractors etc.


Abolition of intermediaries specially zamindars in order to avoid


In order to put an end to excessive and illegal extortion/exploitation

from the cultivators the rent has been fixed.
In order to minimize small or scattered holdings the holdings have
been consolidated which enabled the concentration of agricultural land
together rather than scattered into small pieces.
Celling on land holding was done to ensure equal distribution of land.
The surplus land has been reassumed by the government and
distributed amongst the small holdings or landless laborers.
Co-operative farming is encouraged to further consolidate of holdings


General reforms include the following steps:

Improving and expanding/improving the irrigational facilities
Providing loans or financial help at a moderated or low rate of interest.
Government regulated markets for avoiding exploitation and
establishing co-operative markets.
Establishing Price support policy. Under this policy the government
assures a minimum price to the farmer for its produce.


There is a subsequent rise in the crop production

Increase in the Acreage or area under cultivation. The use of HYV
seeds, technology, chemical fertilizers led to the substantial rise in
gross area under cultivation.
There is a change in the cropping pattern. The farmers now favor
growing commercial crops rather than the subsistence crop or food
Commercialization of agriculture has caused a change in the outlook of
the farmers. They now recognized agriculture as commercial venture.
It made India self sufficient in food grain production and it also started
keeping a stock of food grains to be used during period of crises or low
farm supplies.