Planning

1.      Define a plan.

Answer:

A plan spells out how the resources of a nation should be put to use. It should have some general goals as well as specific objectives which are to be achieved within a specified period of time.

2.      Why did India opt for planning?

Answer:

At the time of independence Indian economy was in its worst stage. The GDP, National and per-capita income were very low and unemployment was very high. The industrial growth was insignificant and agriculture sector was not doing well. The resources were very limited so India opt for planning because it spells out how resources of a nation should be used efficiently and economically so the rate of growth can be accelerated.

3.      Why should plans have goals?

Answer:

We have limited resources and unlimited wants. We may not achieve all our objectives in one go. So one much set certain goals and plan to achieve them in specific time period. A plan may have some general goals as well as some specific goals which are to be achieved in specified period of time. Goals are desired achievements for which all the efforts and resources are directed to achieve it.

1.      Explain ‘growth with equity’ as a planning objective.

Both growth and equity are the two important objectives of Indian planning. While growth refers to the increase in national income over a long period of time, equity refers to an equitable distribution of this income so that the benefits of higher economic growth can be passed on to all sections of population to bring about social justice. Growth is desirable as you must have the cake to distribute it but growth in itself does not guarantee the welfare of society. Growth is assessed by the market value of goods and services produced in the economy (GDP) and it does not guarantee an equitable distribution of the income from this production. In other words, the major share of Gross Domestic Product (GDP) might be owned by a small proportion of population which may result in exploitation of weaker sections of society. Hence, growth with equity is a rational and desirable objective of planning. This objective ensures that the benefits of high growth are shared by all people equally and hence, inequality of income is reduced along with growth in income.

2.      Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.

No, modernization as a planning objective does not contradict employment generation rather modernization and employment generation share a positive relationship in the long run. Modernization refers to the use of new and modern technology in the production process. This may make some people lose their jobs in the initial stages.
But gradually, the use of modern technology and input will raise the productivity a n d consequently, the income of the people that will further raise the demand for goods and services. In order to fulfil this increased demand, more production output will be required and there will be more job opportunities that will lead to higher employment in the economy.
Even in short run, modernization leads to creation of employment opportunities for skilled workers and if proper training and vocational education is provided, it will lead to better employment in terms of quality of work and earnings. Hence, both modernization and employment generation are not contradictory but are complementary to each other