The Planning Commission
is an institution in the Government of India
, which formulates India's Five-Year Plans
, among other functions.
Rudimentary economic planning, deriving the sovereign authority of the state
, first began in India in 1930s under the British Raj
, and the colonial government of India formally established a planning board that functioned from 1944 to 1946. Private industrialists and economist formulated at least three development plans in 1944.
After India gained independence, a formal model of planning was adopted, and the planning commission, reporting directly to the Prime Minister of India
was established. Accordingly, the Planning Commission was set up on 15 March 1950, with Prime Minister Jawaharlal Nehru
as the chairman. Planning Commission though is a non statutory as well extra constitutional body, i.e. has been brought by an executive order.
The first Five-year Plan was launched in 1951 and two subsequent five-year plans were formulated till 1965, when there was a break because of the Indo-Pakistan Conflict. Two successive years of drought, devaluation of the currency, a general rise in prices and erosion of resources disrupted the planning process and after three Annual Plans between 1966 and 1969, the fourth Five-year plan was started in 1969.
The Eighth Plan could not take off in 1990 due to the fast changing political situation at the Centre and the years 1990-91 and 1991-92 were treated as Annual Plans. The Eighth Plan was finally... Read More