Planning Commission of India for UPSC Notes

Here is a brief overview of the Planning Commission:

1. Establishment: The Planning Commission was established on March 15, 1950, by a Cabinet Resolution. It was set up to replace the earlier Advisory Planning Board, which had been created in 1946.
2. Objective: The primary objective of the Planning Commission was to formulate plans and policies to promote economic development, improve the standard of living, and address regional imbalances.
3. Five-Year Plans: The Planning Commission’s most notable function was the formulation of five-year plans. These plans outlined specific targets for different sectors of the economy and provided a roadmap for development over each five-year period.
4. Role in Economic Development: The Planning Commission played a crucial role in directing public investment, setting priorities for various sectors, and allocating resources to achieve specific developmental goals. It sought to ensure that economic growth was inclusive and benefited all sections of society.
5. Decentralized Planning: While the Planning Commission operated at the national level, it also encouraged decentralized planning at the state and local levels. It aimed to involve states in the planning process and ensure that regional priorities were taken into account.
6. Criticism and Controversies: Over the years, the Planning Commission faced criticism for its centralized approach, bureaucratic structure, and rigid planning processes. Critics argued that it was sometimes slow to adapt to changing economic realities and lacked the flexibility needed for effective planning.
7. Abolishment: The Planning Commission was dissolved on January 1, 2015, and was replaced by the NITI Aayog (National Institution for Transforming India). The decision to disband the Planning Commission was based on the need for a more contemporary and flexible institution that could better address the dynamic challenges of India’s evolving economy.
8. Legacy: While the Planning Commission had its share of criticisms, it played a crucial role in shaping India’s development trajectory during the early decades after independence. Its legacy is visible in the various institutions and policies that have shaped India’s economic and social landscape.

For UPSC Notes

1. Planning Commission of India:
   • The Planning Commission was a body that formulated India’s Five-Year Plans and other socioeconomic development policies.
   • It was established in 1950 by a Cabinet resolution and functioned as an extra-constitutional authority.
   • The Prime Minister of India served as the ex-officio Chairman of the Planning Commission.
   • The Deputy Chairman, along with a full-time Member-Secretary, and other members, played key roles in formulating and implementing plans.
2. Discontinuation and Replacement:
   • The Planning Commission was dissolved on 31st December 2014.
   • The decision to replace the Planning Commission with a new institution was taken to bring about a more cooperative federalism and to involve states in the economic planning process.
3. NITI Aayog:
   • NITI Aayog was established on January 1, 2015, to serve as the premier policy think tank of the Government of India.
   • It is chaired by the Prime Minister, and its structure includes Vice Chairman, CEO, and other full-time members.
   • Unlike the Planning Commission, NITI Aayog operates as a collaborative body that includes the participation of the states in the planning process.

For UPSC preparation, it’s important to stay updated with any changes in government structures and policies. You may also refer to the latest government publications and official websites for the most recent information.