After independence the biggest task in front of our leaders was to draft a just constitution for India as well as to manage the administration of the country at the same time. The constitutional assembly very efficiently played both roles and adopted the constitution of India on 26th November 1949. After that the constitution came into force on 26th January 1950. Even though we managed to create worlds longest constitution, it was just the first successful step of free India. After tackling the political problem the next issue was to rebuild the nation after 150 years of British exploitation. There was only one way to achieve economical development of nation which was by rigorous financial planning suitable for highly diverse India. Now let us first understand the concept of financial planning. Financial planning means strategic utilization of country's resources to achieve economic growth and development of the nation. Financial planning can be categorized into two broader categories i.e. Regional Planning and National planning. Regional planning means the entire focus will be on a priority region which might need special attention for its economical development and national planning means policies are considered at macroeconomic level. Since our entire country was in ruins when the British left us, it was obvious that we needed national planning model.

      Accordingly under the chairmanship of Pandit Jawaharlal Nehru the Planning Commission of India was set up on 15th March 1950. The Planning Commission was a non constitutional body because it wasn't created as a provision of Indian Constitution instead it was created by a resolution of government of India. It was expected from this commission that it should consult the central ministries and the state governments while formulating national policies and for better and efficient participation of state governments the National Development Council was setup on 6th august 1952. This council was entrusted with the responsibility of critically analyzing the work of planning commission and provide guidance whenever necessary. 

         Currently the Planning Commission has been abolished and replaced with the NITI AYOG. So far There were 12 five year plans designed and implemented by the planning commission. Every plan marks the ups and downs of  political and economical development of India. We will learn about all the five year plans one by one in detail in the upcoming posts.

Posted By

Prabhat Sir