Indian Economy
Planning and NITI Aayog
GS Paper III
Planning and NITI Aayog — Quick Revision
One-page UPSC revision of Indian planning: pre-independence plans, Planning Commission and NDC, twelve Five-Year Plans, and NITI Aayog's structure.
SyllabusGS III · Indian economy and issues relating to planning, mobilisation of resources, growth, development and employment
A last-week sheet for planning. Prelims loves plan-to-theme matching and the status of bodies; Mains wants the planning-versus-policy debate.
Pre-independence Plans
| Year | Plan | Author / sponsor |
|---|---|---|
| 1934 | Planned Economy for India | M. Visvesvaraya |
| 1938 | National Planning Committee | Congress, chaired by Jawaharlal Nehru |
| 1944 | Bombay Plan | Industrialists |
| 1944 | Gandhian Plan | S.N. Agarwal |
| 1945 | People’s Plan | M.N. Roy |
| 1950 | Sarvodaya Plan | Jayaprakash Narayan |
Five-Year Plans
| Plan | Period | Remember it by |
|---|---|---|
| 1st | 1951-56 | Agriculture, irrigation; Harrod–Domar |
| 2nd | 1956-61 | Heavy industry; Mahalanobis |
| 3rd | 1961-66 | Self-sustaining economy; wars and drought |
| Plan holiday | 1966-69 | Three Annual Plans |
| 4th | 1969-74 | Growth with stability; self-reliance |
| 5th | 1974-79 | Garibi Hatao; ended in 1978 |
| Rolling plan | 1978-80 | Janata government |
| 6th | 1980-85 | Poverty eradication |
| 7th | 1985-90 | Food, Work and Productivity |
| Annual Plans | 1990-92 | Crisis years |
| 8th | 1992-97 | Post-reform; human resource development |
| 9th | 1997-2002 | Growth with social justice and equality |
| 10th | 2002-07 | Monitorable targets |
| 11th | 2007-12 | Faster and more inclusive growth |
| 12th | 2012-17 | Faster, more inclusive and sustainable growth |
Planning Commission vs NITI Aayog
| Planning Commission | NITI Aayog | |
|---|---|---|
| Set up | 15 March 1950 | 1 January 2015 |
| Basis | Cabinet resolution | Cabinet resolution |
| Chair | Prime Minister | Prime Minister |
| Day-to-day head | Deputy Chairman | Vice-Chairperson |
| States’ forum | National Development Council (1952) | Governing Council |
| Funds | Allocated plan assistance | None |
| Output | Five-Year Plans | Strategy documents, indices, evaluation |
High-yield facts
- “Economic and social planning” is Entry 20 of the Concurrent List.
- Neither the Planning Commission, the NDC nor NITI Aayog is constitutional or statutory.
- Governing Council: CMs of all States and UTs with legislatures + Lt Governors of other UTs, chaired by the PM.
- NITI’s CEO is appointed by the PM, in the rank of Secretary to the Government of India.
- Atal Innovation Mission (2016) and the Aspirational Districts Programme (2018) are anchored in NITI Aayog.
- The Plan/non-Plan expenditure distinction ended with the 2017-18 Budget.
NITI Aayog Indices
| Index | Measures |
|---|---|
| SDG India Index | States’ progress on the Sustainable Development Goals |
| Composite Water Management Index | Water management by States |
| School Education Quality Index | School education outcomes |
| India Innovation Index | Innovation capacity of States |
| Export Preparedness Index | States’ export readiness |
| National Multidimensional Poverty Index | Deprivations in health, education and living standards |
Traps
- Mahalanobis = Second Plan, not First.
- NITI Aayog does not allocate funds; the Finance Commission (Article 280) handles devolution.
- The Twelfth Plan was the last; there is no Thirteenth Plan.
- The rolling plan (1978-80) and the plan holiday (1966-69) are different gaps.
Related Topics
- Planning in India and NITI Aayog
- Planning and NITI Aayog: practice questions
- Fiscal Policy and the Budget
- All quick revision sheets
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