five year plans in India:

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Economic planning - It is a process in which central government set targets (to accelerate the pace of growth and development) to be achieved within particular period of time.
It focuses on economical use of the country's resources.
Planning commission is the central authority of India, they formulates five years plans in India. It was established in 1950 under the chairmanship of  P.C Mahalanobis.
Prime minister is the chairperson of this. But now it has been abolished. In February 2015,  this has been changed into NITI Aayog ( National Institution For Transforming India). NITI aayog makes policies for the govt. To accelerate the pace of growth and development in the country.

Planning are two types-
1. Directive planning 
2. Comprehensive planning

- Directive planning  refers to a system in which free play of market forces, demand and supply only directed by the state. In which there is no direct participation of the government in the process of growth. This is pursued in capitalist economy.

- Comprehensive planning  refers to a system in which government participates himself in the process of growth and development.  This pursued under socialist and as well as mixed economy.

Let us understand Capitalism, Socialism and Mixed economy
1. Capitalist -  In which major economic decision about goods and services are left to free play of market forces ( supply and demand). It is owned by the private ownership.
2. Socialist - In which major economic decision about goods and services are taken by the government with a view to promoting collective interest and focuses on social equality.
3. Mixed Economy - In which key economic decision about goods and services are left to free play of market forces but with certain government controls and regulations. Market forces focuses on maximisation of profit, while the government ensure maximisation of social welfare. India opted the mixed economy. This is the basic framework of planning in India.


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