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P LANNING P ARADIGM
Table 3 . Investment Pattern in Five Year Plans
78 THE IIPM THINK TANK
Agri. &
Alied Irrigation Power Industries Transport & Commun.
Rural
Development
Social
Services Total
First FYP 15 16 13 6 27 23 100
Second FYP 11 9 10 24 28 18 100
Third FYP 14 9 13 24 20 20 100
Fourth FYP 17.4 4.4 10.1 24.8 16.8 26.5 100
Fifth FYP 11.8 8.8 18.6 26 17.5 17.3 100
Sixth FYP 5.8 12.5 27.2 15.4 15.9 7.2 16 100
Seventh FYP 14.27 * 30.48 12.48 16.36 6.76 19.65 100
Eighth FYP 12.7 * 26.6 10.8 18.7 9.4 21.8 100
Ninth FYP 10.9 * 25.1 8.1 19.6 8.9 27.4 100
Tenth FYP 10.63 * 26.48 3.86 21.3 9.36 28.37 100
Eleventh FYP 8.55
* 4.04 @ 9.01 13.39 65.01 100
Note: Due to presentational changes, the data may not be strictly comparable. The above table, constructed from plan documents, is believed to present broad shifts.
* included in Agri & allied sectors. Included in Social services
Source : Plan documents
technology and foreign investments.
Domestic price controls which were
quite widespread till 1980s have been
reduced considerably. Further, government
has moved away from the objective
to controlling the commanding heights of
the economy to a more limited role to
provide public goods particularly to
weaker sections of the society. Rather
than substituting the market processes
through government ownership and state
controls, the government seeks to follow
market friendly policies to attract private,
including foreign investment in a wide
array of industries. In sectors where private
operators are not only permitted but
encouraged, the existing public sector
entities face competitive business environment
and are required to improve
their performance. The positive effects of
competitive environment are most notably
visible in telecom, fi nancial services,
and air lines as also several segments of
manufacturing industry in terms of range
of products, lower prices and resulting
higher penetration.
Though the importance of public sector
has apparently declined, its role remains
crucial in the delivery of different social
and economic services particular to the
weaker sections of the society. Therefore
performance of PSEs would continue to
be crucial in achievement of planned objectives.
PC can play a crucial role in plan
implementation if it can facilitate the
process of toning up the performance of
PSEs Though several features of Indian
economic structure & policy have
changed signifi cantly over the years the
structure and role of PC has remained
broadly unchanged. It has been recently
reported that the government intends to
take a relook at the role and structure of
the PC in the changed context of economic
planning and recommend appropriate
changes in the. Some have seen
future role of Planning Commission as a
think tank which would generate innovative
and useful ideas. Unless a new role is
envisaged for PC and a structure to facilitate
effective discharge of it PC would
remain essentially as described by Dr.
Ashok Mitra an “essay writer”.
References and
Additional Thinking
• Ahluwalia I (1985) Industrial growth
in India; Stagnation since the mid Sixties
Oxford University Press, New
Delhi .
• Bardhan P.K> (1984) The Political
Economy of Development in India
Oxford University Press, New Delhi
• Brahmananda P. R. and C. N. Vakil
(1956) Planning For an Expanding
Economy, Bombay.
• Chakravarty S (1987) Development
Planning; The Indian Experience Oxford
University Press, New Delhi
• Patnaik Prabhat “Some Indian Debates
on Planning” in Byres T.J (ed) (1998)
The Indian Economy Major Debates
since Independence Oxford University
Press, New Delhi.
(The views expressed in the write-up are
personal and do not reflect the offi cial
policy or position of the organization.)