It is not possible to give any precise or universally acceptable definition of Economic Planning. There is no unanimity among political thinkers and economists about the concept of planning. Different economists across the world have defined economic planning in a variety of ways.
Mrs.Brbara Wooton the Director of studies in economics at Girton defines “Economic planning” is a system in which the market mechanism is deliberately manipulated with the object of producing a pattern other than which would have resulted from its own spontaneous activity”.
Dr. Hermann Levy, Ph.D., Professor at the University of Heidelberg defines it as “Economic planning means securing a better balance between demand and supply by conscious and thoughtful control either of production or distribution”.
Dr.George Dalton an economic anthropologist and faculty member at Northwestern University says, “Economic planning in the widest sense is the deliberate direction by persons in charge of large resources of economic activity towards chosen end”
Lewis Levitzki Lorwin an American economist defines a planned economy “as a scheme of economic organization in which individual and separate plants, enterprises and industries are treated as coordinate units of one single system for purpose of utilizing all available resources to achieve for maximum satisfaction of the people’s needs within a given time”
Henry Douglas Dickinson, (1899-1968) Cambridge-trained historian of economic thought defines economic planning as “Economic Planning is the making of major economic decisions what and how much is to be produced, how, when and where it is to be produced, and to whom it is to be allocated by the comprehensive survey of the economic system as whole”.
As per the Planning Commission of India, “Economic planning is a resource allocation mechanism based on a computational procedure for solving a constrained maximization problem with an iterative process for obtaining its solution. Planning is a mechanism for the allocation of resources between and within organizations contrasted with the market mechanism.
Economic planning in India began in 1950 after independence. The concept of economic planning is derived from Russia which is a long-term government strategy to develop and coordinate the economy. The Planning Commission of India was responsible for economic planning in India until the NITI Ayog replaced it. Here are some features of economic planning in India:
Objectives: Economic planning in India aims to achieve economic growth, increase employment, reduce poverty and income inequality, and modernize the economy.
Infrastructure: Economic planning in India has led to the development of infrastructure such as roads, railways, and hydro projects.
Resource allocation: Economic planning in India focuses on efficiently utilizing resources.
Regional development: Economic planning in India aims to reduce regional differences in development.
Education: Economic planning in India aims to contribute to developing the education sector.
Setting targets: Economic planning in India involves setting realistic targets.
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