Five Year Plan in India
The Indian economy operated on the premise of planning from 1947 to 2017. The Five-Year Plans were developed, executed, and monitored by the Planning Commission (1951-2014) and the NITI Aayog (2015-2017). It is headed by the prime minister as chairman ex officio, with a deputy chairman nominated by a cabinet minister. In May 2014, Montek Singh Ahluwalia resigned as deputy chairman of the commission. March 2017 marked the end of the Twelfth Plan’s tenure.
In 1969, the Gadgil formula was adopted in place of the schematic pattern that prior to the Fourth Plan determined how state resources were allocated. State plans have been allocated central assistance based on revised versions of the formula since then.
NITI Aayog is the acronym for National Institution for Transforming India. It has been announced by the ruling government of Narendra Modi in 2014 that the Planning Commission will be dissolved, and replaced by a think tank.
The current government has, however, discontinued the Five-Year Plan, replacing it with a new system. Let’s have a look back at all the Five Year Plans the country has experienced to date.