Planning in India Notes with PDF

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1. The Planning Commission (1950-2014)

A. Establishment and Structure

• Date Established: 15th March, 1950.
• Legal Basis: Established by a resolution of the Union Cabinet. It was an extra-constitutional and non-statutory body (not established by an Act of Parliament or mentioned in the Constitution).
• Leadership:
  • The Prime Minister was the ex officio Chairman.
  • The Deputy Chairman held a rank equivalent to a Cabinet Minister.

B. Key Personnel

• First Chairman: Pt. Jawaharlal Nehru.
• Notable Deputy Chairmen: Dr. Manmohan Singh, Montek S. Ahluwalia.
• Notable Figures Never Deputy Chairman: Pranab Mukherjee, P. Chidambaram.

C. Function and Role

• Served as the highest decision-making body for economic planning in India.
• Described as the “economic cabinet” for both the Union and the States.
• Primary function was to formulate Five-Year Plans for the balanced utilization of the country’s resources.
• The Secretary of the Planning Commission also acted as the Secretary of the National Development Council (NDC).

D. Abolition

• Abolished in 2014 by Prime Minister Narendra Modi.

2. NITI Aayog (National Institution for Transforming India)

A. Establishment and Nature

• Date Established: January 2015 (replaced the Planning Commission).
• Legal Basis: Established by a resolution of the Union Cabinet. It is an extra-constitutional and non-statutory body.
• Governing Principle: Based on Cooperative Federalism.

B. Structure and Leadership

• Has a full-time Chairman (a specific feature highlighted in the data).
• Chairman: Prime Minister Narendra Modi.
• First Vice-Chairman: Arvind Panagariya.

3. The National Development Council (NDC)

A. Establishment

• Date Formed: 6th August, 1952.
• Constitutional Status: An extra-constitutional body (not mentioned in the Constitution).

B. Composition

• Members:
  • The Prime Minister (presides over meetings).
  • Chief Ministers of all States.
  • Ministers of the Union Cabinet.
• Not a Member: The Chairman of the Finance Commission.

C. Function and Role

• Primary functions are to:
  • Approve Five-Year Plans.
  • Discuss the progress of the National Plan.
  • Suggest ways to achieve the goals of the National Plan.
  • Give guidelines for the formulation of the National Plan.
• The Secretary of the Planning Commission acted as the Secretary of the NDC.

4. Constitutional Status Summary of Key Bodies

Know More About The Planning Commission / NITI AAYOG:

• Planning in India – Old Year Questions