6.5.1. Definition and Evolution

The word ‘planning’ is not new to you as it is a part of everyday usage. You must have used it with reference to preparation for your examination or visit to a hill station. It involves the process of thinking, formulation of a scheme or programme and implementation of a set of actions to achieve some goal.

Planning is a familiar term for most people as it applies to daily life activities, such as preparing for exams or trips. The essence of planning involves thinking ahead, creating a detailed scheme, and carrying out specific actions to reach a desired outcome.

Imagine a student preparing for a crucial exam. They identify what topics to study, create a timetable, and then follow that plan step-by-step to ensure they cover all necessary material before the exam.

Though it is a very broad term, in this chapter, it has been used with reference to the process of economic development. It is, thus, different from the traditional hit-and-miss methods by which reforms and reconstruction are often undertaken.

In this chapter, planning is specifically geared towards economic development. This is contrastive to the previous, less systematic and unpredictable methods of planning, which lacked a structured approach and could lead to inconsistent results.

Think of it like a gardener – rather than randomly planting seeds and hoping for the best, a gardener carefully plans which plants to grow, where to plant them, and how to maintain them for a fruitful garden.

On 1 January 2015, the NITI Aayog was formed. India adopted centralised planning after Independence, but subsequently, it graduated into decentralised multi-level planning. The responsibility of plan formulation was with the Planning Commission at the Centre, State and district levels. But on 1 January 2015, the Planning Commission was replaced by the NITI Aayog.

The establishment of NITI Aayog marked a significant shift in India's approach to economic planning from a centralised model to a more decentralised one. This change allows for greater participation from state and local governments in the planning process, fostering tailored solutions for diverse regional needs.

Picture a school where the principal makes all critical decisions without input. If a school board of teachers and parents is introduced, they can provide insights into what works best for students in different classes and programs, leading to more effective educational strategies.

NITI Aayog has been set up with the objective of involving the states in economic policy making for India for providing strategic and technical advice to the Central and State governments.

NITI Aayog aims to decentralize economic planning by actively involving states in policy formulation. This committee provides crucial advice to various levels of government to enhance the overall effectiveness of development strategies across the country.

Think of NITI Aayog as a group of chefs in a large restaurant. Each chef (representing a state) contributes unique recipes and ideas to the menu planning, allowing them to create dishes that cater to the tastes of different customers, rather than relying solely on the head chef's menu.

Generally, there are two approaches to planning, i.e., sectoral planning and regional planning. Sectoral planning means formulation and implementation of the sets of schemes or programmes aimed at development of various sectors of the economy, such as agriculture, irrigation, manufacturing, etc.

In planning, sectoral and regional approaches are essential. Sectoral planning focuses on different fields like agriculture and manufacturing, creating specific programs to address their unique needs. Meanwhile, regional planning addresses geographical disparities to ensure balanced development across areas.

Imagine a community center planning its services. They might create programs for arts (sectoral planning) while also considering which neighborhoods have the least access to such activities (regional planning).

This uneven pattern of development over space necessitates that the planners have a spatial perspective and draw the plans to reduce regional imbalance in development. This type of planning is termed as regional planning.

When certain areas are more developed than others, it's crucial for planners to consider geography in their policies. Regional planning emphasizes creating strategies to promote equity across different regions, ensuring every area has access to necessary resources and opportunities.

Consider a school district where some schools have cutting-edge technology while others don't. Regional planning would involve evaluating needs and providing funds or resources to ensure all schools can access the tools required for quality education.

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