Of all the objectives, economic growth has received the strongest priority in all the plans. This is because the Indian economy is caught in the vicious circle of poverty due to low per capita income and the consequent low rate of saving and capital formation.
This objective seems to be totally justified, particularly in the context of economic stagnation during the two centuries of British rule.
ADVERTISEMENTS:
Economic planning in India aims at bringing about a rapid economic development in all sectors. The key sectors are agriculture, industry, power and transport. Through rapid economic development the country aims at increasing national and per capita incomes. Thus poverty will be removed and the standard of living improved.
Objective # 2. Economic Equity and Social Justice:
Two aspects of social justice involve the reduction of poverty and the reduction in the inequality in the distribution of income and wealth.
Growing concentration of economic power in the hands of a few people with rising national income is not desirable. In an otherwise capitalist framework, inequality in the distribution of income and wealth is inevitable. In India’s socio-political set-up, vast inequalities exist. Indian plans aim at reducing such inequalities so that the benefits of economic development spread to the poor. This point was not explicitly mentioned by the planners until the Fifth Plan (1973-78). The objective of removal of poverty got its clear-cut enunciation only in that Plan for the first time.
Objective # 3. Full Employment:
The removal of unemployment is considered to be another important objective of India’s five year plans. But, unfortunately, it never received the priority it deserved. In the Sixth plan (1978-83) the than Janata Government gave employment a place of pride for the first time.