ECONOMIC REFORMS&

ECONOMIC PLANNING

ECONOMIC REFORMReform- A change for the better

Economic Reforms – Necessary Structural and Institutional adjustments/ changes in the economy

NEED OF ECONOMIC REFORMS

Increase in Fiscal DeficitIncrease in adverse Balance of Payment

Gulf CrisisFall in Forex ReserveRise in pricesPoor performance of public sector

ECONOMIC REFORMS IN INDIA

In 1990 & 1991- Liberalization was started

Followed a Gradualistic Approach

Satisfactory results in different fields

MAJOR ECONOMIC REFORMS

New Industrial PolicyNew Trade PolicyFiscal ReformsMonetary ReformsCapital Market ReformsPhasing out SubsidiesDismantling Price Control

ECONOMIC PLANNINGA continuous processKey decisions are madeBy Planning CommissionTo achieve particular goals

A Development Plan is constructed

NATURE & SCOPE OF ECONOMIC PLANNINGPlanning as Capitalist Economy

Planning as Socialist Economy

Planning as Mixed Economy

SIGNIFICANCE OF ECONOMIC PLANNING

Better utilization of resourcesHelps in identifying the deficiencies

Facilitates Institutional changes

Ensures every player play their part

Inter relationship between national economy can be seen

ECONOMIC PLANNING IN INDIA

Five Year Plan1st Five Year Plan – 1950Finance Commissioners are appointed every 5 years

Annual plans were also formulated

THE PLANNING MACHINERY

Planning Commission

National Development Council

OBJECTIVES OF ECONOMIC PLANNING

Increase in National IncomeFull EmploymentReduction in Inequalities of Income & Wealth

Social JusticeOther Objectives