Unit 2- Learn with a smile 😊

Economic planning in India

 Economic planning in India refers to the process of creating a long-term vision and strategy
for the country’s economic development.
 Economic planning in India started in 1951 with the adoption of the First Five-Year Plan,
which was designed to promote economic growth, reduce poverty and unemployment, and
improve the standard of living of the people.
 The main objective of economic planning in India is to achieve balanced and sustainable
economic growth that benefits all sections of society. The process involves the allocation of
resources, the formulation of policies, and the implementation of programs to achieve the
desired economic outcomes.
 Economic planning in India has both good and bad outcomes. Even though the country has
grown economically and poverty has reduced in the past few years, there are still some
issues like not everyone earning the same amount of money, lack of jobs and unequal
development in different areas. The government is working hard to make the planning
better so that these problems can be solved and economic growth can be steady.

What is Economic Planning?

 Economic planning involves developing strategies and policies to achieve economic goals.
This is done by setting objectives, prioritizing them, allocating resources, and implementing
measures.
 Planning can be done at different levels, such as national, regional, or local.
 Once goals and priorities are identified, policies and strategies are developed, such as
focusing on infrastructure, promoting exports, or improving access to education and
healthcare, these policies are then implemented through programs and schemes.
 The success of economic planning depends on various factors, such as the availability of
resources, the effectiveness of policies and strategies, and the capacity of institutions to
implement them.
 In many countries, economic planning is often guided by a series of Five-Year Plans, which
are updated periodically to reflect changes in economic priorities and conditions.
 Economic planning is when a government or organization decides what things are important
and how to use the money to achieve certain goals. They make plans based on predictions
and decide what rules to put in place to control the economy.
 The main goal of economic planning is to help the economy grow and improve in a way that
can be maintained for a long time.

Objectives of Economic Planning in India

Economic planning in India has been an integral part of the country’s development strategy since its
independence in 1947. The main objective of economic planning in India is to achieve rapid
economic growth while promoting social justice and reducing poverty. This has been achieved
through various Five-Year Plans, which outline the country’s economic and social goals, and the
policies and strategies required to achieve them. Some of the key objectives of economic planning in
India include the following:
  Economic growth: One of the primary objectives of economic planning in India is to promote
economic growth, measured in terms of gross domestic product (GDP). This involves
increasing the production and consumption of goods and services in the country, creating
jobs, and reducing poverty.
 Reducing Poverty: Economic planning aims to reduce poverty by creating employment
opportunities, increasing the productivity of the workforce, and providing basic necessities
to the poor.
 Self-Sufficiency: One of the primary objectives of economic planning in India has been to
achieve self-sufficiency in key areas such as food, energy, and defence. This is done by
promoting domestic production, reducing dependence on imports, and promoting
indigenous research and development.
 Social justice and equity: Economic planning in India also aims to promote social justice and
equity by ensuring that the benefits of economic growth are distributed fairly across all
sections of society.
 Regional Development: Economic planning in India also aims to promote regional
development by reducing regional imbalances and promoting the development of backward
regions. This is done by providing infrastructure, incentives, and subsidies to promote
industrialization and economic growth in these regions.
 Employment generation: India has a large and growing population, with a significant portion
of the workforce employed in the informal sector. Economic planning aims to create new
employment opportunities, especially in the manufacturing and services sectors, and
promote entrepreneurship and self-employment.
 Reducing regional disparities: India is a vast country with significant regional disparities in
terms of income, infrastructure, and access to basic services such as healthcare and
education. Economic planning aims to reduce these disparities by allocating resources to
underdeveloped regions and promoting balanced regional development.
 Balanced Regional Development: Economic planning also aims to promote balanced regional
development by ensuring that the benefits of development reach all parts of the country.
This is achieved by investing in infrastructure, setting up industries in backward areas, and
promoting entrepreneurship.
 Increased Standard of Living: Economic planning in India aims to increase the standard of
living of the people by promoting economic growth and providing access to basic amenities
such as healthcare, education, and housing.

Need for Economic Planning in India

After India became an independent country, the known leaders had to face a lot of questions as
because of the British, the Indian economy became handicapped. It was challenging for the leaders
to make the economy of the country strong. Since it was just the beginning, a formal model of
Economic Planning in India was adopted. Also, the government came up with the idea of forming a
commission and this Planning commission was established on 15th March 1950, with Former Prime
Minister Jawaharlal Nehru as the Chairman. The Planning Commission used to directly report to the
Prime Minister of India. However, this Planning Commission got replaced by the NITI Aayog (National
Institute for Transforming India Aayog), established by Prime Minister Narendra Modi on 1st January
2015.
The major aim behind economic planning in India was to formulate plans for the most effective and
balanced utilization of resources and determine priorities. Since then, the Planning Commission
framed the centralized and integrated national economic plans at an interval of every five years,
thereby known as the Five Year Plans.

Architect of Indian Economic Planning

The Architect of Indian Economic Planning is Mokshagundam Vishweswaraiah, also known as Sir M.
Vishweswaraiah. He was a prominent Indian engineer, statesman, and scholar who played a key role
in shaping the economic planning and development of India. Sir M. Vishweswaraiah was
instrumental in the development and economic planning of India, particularly in the fields of
Irrigation, Agriculture, and Education. He served as a member of the Planning Commission of India
and played a key role in creating the First Five Year Plan, which was implemented in 1951.

Sir M. Vishweswaraiah contributions to the development and economic planning of India were
widely recognized and he was awarded many honors, including the Bharat Ratna, the Highest Civilian
Award in India in 1955.

Role of Five Year Plans and NITI Aayog in Economic Planning of India

Five Year Plans

What is the History of Five Year Plans?

 The Idea of Planning as a process of rebuilding the economy gained prominence in the
1940s-50s.

 Various Industrialists came together in 1944 and drafted a joint proposal for setting up a
planned economy in India. It is famously known as the Bombay Plan.

 Planning for development was seen as a crucial choice for the country, following
Independence.

 Joseph Stalin was the first person to implement the Five-Year Plan in the Soviet Union, in the
year 1928.

 India launched a series of Five-Year Plans after independence to build its economy and attain
development.

What is the Concept of FYPs?

 The idea of five-year plans is simple- The Government of India prepares a document with all
its income and expenditure for five years.

 The budget of the central government and all the state governments is divided into two
parts: non-plan budget and plan budget.

 The non-plan budget is spent on routine items yearly. The planned budget is spent on a five-
year basis as per the priorities fixed by the plan.

 The model of the Indian Economy was premised on the concept of planning based on five-
year plans from 1951-2017.

 The Five Year Plans were formulated, implemented and regulated by a body known as
the Planning Commission.
  The Planning Commission was replaced by a think tank called NITI AAYOG in 2015.

o The Niti Aayog has come out with three documents — 3-year action agenda, 7-year
medium-term strategy paper and 15-year vision document.

List of Five Year Plans in India

We shall discuss the objectives and achievements of the economic planning in India:

Five Year Period Growth Rate Salient Features

Plan

First Five 1951- Actual Growth: 3.6% against o Based on the Harrod-Domar model
Year Plan 1956 Targeted Growth: 2.1%
o Focused on increasing agricultural production,
full employment, and removal of economic
inequalities

o Achieved objectives like food self-sufficiency

and establishment of Indian Institutes of
Technology (IITs)

Second Five 1956- Actual Growth: 4.3% against o Developed based on the Harrod-Domar model
Year Plan 1961 Targeted Growth: 4.5%
o Authored by P C Mahalanobis

o Emphasized rapid industrialization, but was not

fully implemented due to foreign exchange
shortages

o Introduced the Industrial Policy 1956 for a

socialist society

Third Five 1961- Actual Growth: 2.8% against o Initially aimed at self-reliance, shifted focus to
Year Plan 1966 Targeted Growth: 5.6% defense

o Promoted medium and small-scale industries

o Borrowed from IMF for the first time

o Affected by events like the 1962 Chinese

aggression and Indo-Pak war

Plan 1966- - o Declared due to the failure of the Third Plan

Holidays 1969
o Three yearly plans from 1966 to 1969
(Annual
Plans)

Fourth Five 1969- Actual Growth: 3.3% against o Aimed for growth with stability and self-
Year Plan 1974 Targeted Growth: 5.6% reliance, especially in defense

o Introduced family planning programs

o Faced challenges due to the influx of

 Bangladeshi refugees

o Nationalized 14 major Indian banks and Green

Revolution

Fifth Five- 1974- Actual Growth: 4.8% against o Focused on poverty removal and self-reliance
Year Plan 1979 Targeted Growth: 4.4%
o Introduced the Electricity Supply Act

o The first plan with poverty removal as a prime

objective

Rolling Plan - - o Proposed by the Janata government, removed

(1979-1980) by the Congress government in 1980

Sixth Five 1980- Actual Growth: 5.7% against o Aimed at poverty removal, higher growth, and
Year Plan 1985 Targeted Growth: 5.2% modernization

o Successfully achieved most targets

o Emphasized family planning

Seventh Five 1985- Actual Growth: 6% against o Focused on food grain production and
Year Plan 1990 Targeted Growth: 5% employment

o Recorded high agricultural and overall growth

o Followed by planned holidays from 1990 to

1992

Plan - - o Declared due to the failure of the Seventh Plan

Holidays
o Annual plans in 1990-91 and 1991-92
(1990-1992)

Eighth Five 1992- Actual Growth: 6.8% against o Introduced reforms to combat economic issues
Year Plan 1997 Targeted Growth: 5.6%
o Emphasis on universal education and
eradication of illiteracy

o Increased private sector investment and

improved current account deficit

Ninth Five 1997- Actual Growth: 5.4% against o Focused on growth with social justice and
Year Plan 2002 Targeted Growth: 6.5% equality

o Prioritized agriculture and rural development

o Aimed to provide safe drinking water,

education, and shelter

o Ensured food and nutritional security

Tenth Five 2002- Actual Growth: 7.6% against o Targeted GDP growth, access to basic services,
Year Plan 2007 Targeted Growth: 8% poverty reduction, gender gap reduction, and
 more

o Focused on various key indicators of

development

Eleventh 2007- Actual Growth: 8% against o Introduced the concept of inclusive growth
Five Year 2012 Targeted Growth: 9%
o Addressed agriculture, infrastructure, and
Plan
education

o Set detailed national targets

Twelfth Five- 2012- Actual Growth: 5.1% (2012- o Focused on inclusive growth
Year Plan 2017 13), 6.9% (2013-14), 7.2%
o Set 25 core monitorable targets, including GDP
(2014-15), 7.6% (2015-16),
growth, manufacturing growth, education,
7.1% (2016-17)
poverty reduction, renewable energy,
infrastructure, and more.

NITI Aayog

The Planning Commission which has a legacy of 65 years has been replaced by the NITI Aayog. The
utility and significance of the Planning Commission had been questioned for a longer period. The
replacement seems to be more relevant and responsive to the present economic needs and scenario
in the country.

 NITI Aayog Chairman – Narendra Modi

 NITI Aayog Vice-Chairman – Shri Suman Bery (May 1, 2022 – present) is the current Vice
Chairman of the NITI Aayog.

 NITI Aayog CEO - B.V.R. Subrahmanyam

NITI Aayog Evolution

The NITI Aayog was formed on January 1, 2015. In Sanskrit, the word “NITI” means morality,
behaviour, guidance, etc. But, in the present context, it means policy and the NITI stands for
“National Institution for Transforming India”. It is the country’s premier policy-making institution
that is expected to bolster the economic growth of the country. It aims to construct a strong state
that will help to create a dynamic and strong nation. This helps India to emerge as a major economy
in the world. The NITI Aayog’s creation has two hubs called “Team India Hub” and “Knowledge and
Innovation Hub”.

 Team India: It leads to the participation of Indian states with the central government.
 The Knowledge and Innovation Hub: it builds the institution’s think tank capabilities.

NITI Aayog is additionally creating itself as a State of the Art Resource Center, with the essential
resources, knowledge, and skills that will empower it to act with speed, advance research and
innovation, bestow crucial policy vision to the government and manage unforeseen issues. The
reason for setting up the NITI Aayog is that people had expectations for growth and development in
the administration through their participation. This required institutional changes in administration
and active strategy shifts that could seed and foster substantial scale change.
Objectives

 To evolve a shared vision of national development priorities, sectors and strategies with the
active involvement of States.

 To foster cooperative federalism through structured support initiatives and mechanisms

with the States on a continuous basis, recognizing that strong States make a strong nation

 To develop mechanisms to formulate credible plans at the village level and aggregate these
progressively at higher levels of government

 To ensure, on areas that are specifically referred to it, that the interests of national security
are incorporated in economic strategy and policy.

 To pay special attention to the sections of our society that may be at risk of not benefiting
adequately from economic progress.

 To design strategic and long-term policy and programme frameworks and initiatives, and
monitor their progress and their efficacy. The lessons learned through monitoring and
feedback will be used for making innovative improvements, including necessary mid-course
corrections.

 To provide advice and encourage partnerships between key stakeholders and national and
international like-minded think tanks, as well as educational and policy research institutions.

 To create a knowledge, innovation and entrepreneurial support system through a

collaborative community of national and international experts, practitioners and other
partners.

 To offer a platform for the resolution of inter-sectoral and inter departmental issues in order
to accelerate the implementation of the development agenda.

 To maintain a state-of-the-art resource centre, be a repository of research on good

governance and best practices in sustainable and equitable development as well as help
their dissemination to stake-holders.

 To actively monitor and evaluate the implementation of programmes and initiatives,

including the identification of the needed resources so as to strengthen the probability of
success and scope of delivery.

 To focus on technology upgradation and capacity building for implementation of

programmes and initiatives

 To undertake other activities as may be necessary in order to further the execution of the
national development agenda, and the objectives mentioned above.

Features

 NITI Aayog is developing itself as a state-of-the-art resource centre with the necessary
knowledge and skills that will enable it to act with speed, promote research and innovation,
provide strategic policy vision for the government, and deal with contingent issues.
 It is supported by an attached office, Development Monitoring and Evaluation Organisation
(DMEO), a flagship initiative, Atal Innovation Mission (AIM) and an autonomous body,
National Institute of Labour Economics Research and Development (NILERD).
 NITI Aayog’s entire gamut of activities can be divided into four main heads:
 1. Policy and Programme Framework
2. Cooperative Federalism
3. Monitoring and Evaluation
4. Think Tank, and Knowledge and Innovation Hub

Verticals of Niti Aayog

The supportive bodies or verticals of Niti Aayog help in smooth functioning of the requisite tasks by
the organization.

Niti Aayog has the following verticals under it:

 Administration and Support Units

 Agriculture and Allied Sectors

 Aspirational Districts Programme Cell

 Communication and Social Media Cell

 Data Management and Analysis, and Frontier Technologies

 Economics and Finance Cell

 Education

 Governance and Research

 Governing Council Secretariat and Coordination

 Industry-I

 Industry-II

 Infrastructure-Connectivity

 Infrastructure-Energy

 Micro, Small and Medium Enterprises

 Natural Resources and Environment, and Island Development

 Project Appraisal and Management Division

 Public–Private Partnership

 Rural Development

 Science and Technology

 Social Justice and Empowerment, and Voluntary Action Cell

 Social Sector-I (Skill Development, Labour and Employment, and Urban Development)

 Social Sector-II (Health and Nutrition, and Women and Child Development)
  State Finances and Coordination

 Sustainable Development Goals

 Water and Land Resources

7 pillars of effective governance envisaged by NITI Aayog

The NITI Aayog is based on the 7 pillars of effective Governance. They are:

1. Pro-people: it fulfils the aspirations of society as well as individuals

2. Pro-activity: in anticipation of and response to citizen needs

3. Participation: involvement of the citizenry

4. Empowering: Empowering, especially women in all aspects

5. Inclusion of all: inclusion of all people irrespective of caste, creed, and gender

6. Equality: Providing equal opportunity to all especially for youth

7. Transparency: Making the government visible and responsive

NITI Aayog Composition

The NITI Aayog will comprise the following:

1. Prime Minister of India is the Chairperson

2. Governing Council consists of the Chief Ministers of all the States and Lt. Governors of Union
Territories in India.

3. Regional Councils will be created to address particular issues and possibilities affecting more
than one state. These will be formed for a fixed term. It will be summoned by the Prime
Minister. It will consist of the Chief Ministers of States and Lt. Governors of Union
Territories. These will be chaired by the Chairperson of the NITI Aayog or his nominee.

4. Special invitees: Eminent experts, specialists with relevant domain knowledge, which will be
nominated by the Prime Minister.

5. The full-time organizational framework will include, in addition to the Prime Minister as the
Chairperson:

1. Vice-Chairperson (appointed by the Prime Minister)

2. Members:

 Full-time

 Part-time members: Maximum of 2 members from foremost universities,

leading research organizations, and other innovative organizations in an ex-
officio capacity. Part-time members will be on a rotational basis.
 3. Ex Officio members: Maximum of 4 members of the Council of Ministers which is to
be nominated by the Prime Minister.

4. Chief Executive Officer: CEO will be appointed by the Prime Minister for a fixed
tenure. He will be in the rank of Secretary to the Government of India.

Cooperative Federalism

 NITI Aayog has been constituted to actualise the important goal of cooperative federalism
and to enable good governance in India.
 On the premise that strong states make a strong nation, NITI Aayog acts as the
quintessential platform for the Government of India by bringing States together as ‘Team
India’ to work towards the national development agenda.
 In view of this, a number of steps have been taken by NITI Aayog to foster cooperative
federalism through structured support initiatives and engagement with the States/UTs on a
continuous basis. These include meetings between the Prime Minister/Cabinet Ministers and
all Chief Ministers; subgroups of Chief Ministers on subjects of national importance; sharing
of best practices; policy support and capacity development of State/UT functionaries;
launching of the Aspirational Districts Programme for development of backward districts;
theme-based extensive engagements in various sectors; framing model laws for land leasing
and agriculture marketing reforms; and area-specific interventions for the North-Eastern and
Himalayan States and island development.
 NITI Aayog has been providing relevant technical advice to the Centre, States and UTs. NITI
has also established models and programmes for the development of infrastructure and to
reignite and establish private-public partnership, such as the Centre-state partnership model
Development Support Services to States and Union Territories (DSSS); and the Sustainable
Action for Transforming Human Capital (SATH) programme.

3 Major Plans/ Documents Launched by NITI Aayog

NITI Aayog has launched 3 documents highlighting the three major roadmaps:

1. Vision: A long-term visionary plan that comprises and highlights the overall goals and
objectives of the country for the next 15 years.
2. Strategies: A 7-year plan divides the vision into two parts and lays down the roadmap of
development for the next 7 years.
3. Action Agenda: Further divides the strategies into two parts and states the tasks and targets
to be achieved in the next 3 years

Success of NITI Aayog

After the NITI Aayog replaced the Planning Commission in 2015, it launched initiatives and
programmes that have shown immense success. Within a few years, the success of NITI Aayog can
be easily understood as

Innovation and Entrepreneurship: NITI Aayog focuses on innovation and increasing entrepreneurial
collaboration with national and international experts.

Cooperative Federalism: Working with the states and national governments, the NITI Aayog keeps
the national agenda at the centre of all the strategies and initiatives formation.
Agricultural Development: Food being the first necessity of every person, agricultural development
becomes the major area to focus on and requires most of the development. The very first meeting of
the governing council held on 8 February 2015, discussed the major initiatives for agricultural
development.

Digitization: NITI Aayog recognized that to walk along with the changing landscape of technology,
digitization in India was the first need. NITI Aayog has taken the necessary steps to improvise and
expand the digital network across all the states and districts in India.

Global Recognition: NITI Aayog is developing initiatives and opportunities for Indian and
international entrepreneurs. Also, India invests in foreign goods to increase its share in foreign
currency, ultimately strengthening the Indian currency.

Major Initiatives Taken by NITI Aayog

Mentioned are the initiatives and programmes launched by the NITI Aayog.

 Aspirational District Programme

 SDG India Index
 SATH Project
 Composite Water Management Index
 Health Index
 Atal Innovation Mission
 School Education Quality Index
 Agriculture Marketing And Farmer Friendly Reform Index
 District Hospital Index
 Good Governance Index
 Strategy for New India at 75
 India Innovation Index
 Women Transforming India Awards
 Women Entrepreneurship Platform (WEP)
 e-AMRIT Portal
 'Methanol Economy' programme

NITI Aayog's bottom-up approach

The National Institution for Transforming India (NITI Aayog) uses a bottom-up approach to policy
making:

 Village-level plans: NITI Aayog starts with plans made at the village level and aggregates
them at the macro level.
 Sustainable development: NITI Aayog's policies aim to achieve sustainable development
goals and ensure that all people benefit from them.
 Cooperative federalism: NITI Aayog's vision is "Minimum Government and Maximum
Governance" and it promotes cooperative federalism.
 Technical advice: NITI Aayog provides technical advice to the states and center.
 Monitoring and evaluation: NITI Aayog monitors and evaluates the implementation of
programs.

Major Initiatives of NITI Aayog

Major initiatives by NITI Aayog include the Atal Innovation Mission, Ayushman Bharat, Aspirational
Districts Programme, Digital India, Make in India, and Sustainable Development Goals (SDGs)
localization.

 Atal Innovation Mission (AIM)-The Atal Innovation Mission (AIM) is a flagship initiative set up
by NITI Aayog. It promotes a culture of innovation and entrepreneurship across India. AIM
aims to create an ecosystem that fosters innovation across different sectors, particularly
focusing on technology-driven solutions. Through programs like Atal Tinkering Labs (ATL)
and Atal Incubation Centers (AIC), AIM supports startups and innovative projects. It
facilitates their journey from ideation to execution and scaling.
 National Nutrition Mission (NNM)-The National Nutrition Mission (NNM), also known as
Poshan Abhiyaan, is a comprehensive strategy launched to tackle malnutrition in India. It
focuses on reducing levels of stunting, wasting, and anemia among young children,
adolescent girls, and women. NNM employs a multi-pronged approach to ensure better
service delivery. This includes converging various nutrition-related schemes and promoting
behavioral change through community-based events and digital platforms like the Poshan
App.
 Aspirational Districts Programme- Launched by NITI Aayog, the Aspirational Districts
Programme targets 112 of India’s most developmentally challenged districts. The program
aims to improve socio-economic indicators in these districts by focusing on key areas such as
health, education, agriculture, and infrastructure. Using a data-driven and outcome-oriented
approach, it encourages healthy competition among districts through a ranking mechanism,
with best practices and innovative ideas being shared to drive overall improvement.
 Digital India-Digital India is a transformative program aimed at bridging the digital divide. It
ensures that government services are available to citizens electronically. Spearheaded by the
Ministry of Electronics and Information Technology, the initiative aims to enhance digital
literacy, improve online infrastructure, and increase internet connectivity, particularly in
rural areas. Key components include Digital Locker, e-Hospital, and the BharatNet project,
which enhance accessibility and efficiency of services.
 Transformative Energy Access-Transformative Energy Access initiatives by NITI Aayog focus
on providing modern, sustainable, and affordable energy solutions to all segments of
society, especially underserved communities. Programs under this umbrella aim to reduce
dependency on traditional fuels. They increase the use of renewables and promote energy
efficiency. Key projects include expanding solar power infrastructure, enhancing the grid's
reliability, and incentivizing innovation in clean energy technologies.
 Health Systems for a New India-NITI Aayog's "Health Systems for a New India" report
outlines a vision for transforming India's healthcare system to be more inclusive, accessible,
and efficient. It emphasizes a holistic approach to health, integrating public and private
healthcare delivery systems. The initiative seeks to strengthen primary healthcare and
improve health infrastructure. It promotes digital health technology like telemedicine to
bridge gaps in service delivery.
 Sustainable Development Goals (SDGs)-NITI Aayog leads India’s efforts towards achieving
the United Nations' Sustainable Development Goals (SDGs). Through the SDG India Index, it
monitors and evaluates the progress across various states and union territories. The index
helps in identifying gaps and facilitating targeted interventions. NITI Aayog also coordinates
with ministries, states, and other stakeholders to align their policies and programs with the
SDG framework. It ensures a cohesive approach towards sustainable development.
 Ease of Doing Business (EoDB)-The ease of doing business initiative aims to simplify the
regulatory environment and enhance the business climate in India. NITI Aayog, in
collaboration with various departments, works on reducing bureaucracy, streamlining
approval processes, and improving transparency. Efforts include digitizing procedures and
 reducing the number of permits required. It also enhances infrastructure to attract both
domestic and foreign investments, thereby boosting economic growth.
 Skill Development and Employment Generation-NITI Aayog supports initiatives like the Skill
India Mission to enhance skill development and create employment opportunities. It
addresses the needs of a young and rapidly growing workforce. Programs are designed to
align with industry requirements and include vocational training, apprenticeship models, and
digital literacy initiatives. Collaborations with the private sector and educational institutions
aim to enhance employability and support entrepreneurship, driving economic
diversification and growth.
 Agriculture Reforms-Agriculture reforms spearheaded by NITI Aayog focus on improving
productivity, ensuring fair pricing, and enhancing market access for farmers. Initiatives
include the promotion of contract farming, digital platforms for market linkage, and
modernization of infrastructure such as cold storages and warehousing. These reforms aim
to build a more resilient and efficient agricultural sector. They ensure better income security
for farmers and contribute to food security in India. This is achieved through measures like
the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and the National Agriculture Market
(eNAM).
 Urban Development and Smart Cities-NITI Aayog's urban development agenda includes the
Smart Cities Mission. It aims to promote sustainable and inclusive city growth. The initiative
focuses on using technology and data to improve urban infrastructure, enhance service
delivery, and ensure efficient management of resources. Key components include digital
governance, intelligent transport systems, and green buildings. These aim to create urban
spaces that are livable, sustainable, and economically viable.
 Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission)-Atmanirbhar Bharat Abhiyan, or the
Self-Reliant India Mission, is aimed at boosting India’s economy by promoting self-sufficiency
and reducing dependency on imports. It was launched in response to the COVID-19
pandemic. It focuses on enhancing local manufacturing, strengthening supply chains, and
encouraging innovations. The initiative covers various sectors, including MSMEs, agriculture,
defense, and pharmaceuticals, providing financial support and policy reforms to drive
growth and resilience.
 Water Management and Conservation-NITI Aayog emphasizes efficient water management
and conservation through initiatives that address the critical issues of water scarcity and
quality. Programs like the Composite Water Management Index evaluate state performance
on water resources management, encouraging best practices. Efforts include promoting
rainwater harvesting, efficient irrigation techniques, and rejuvenation of water bodies. These
initiatives aim to ensure sustainable water use and availability for future generations.

Population Policy in India

About National Population Policy of 2000

The National Population Policy of 2000 is a policy framework implemented by the Government of
India. It aims to address the challenges and issues related to population growth and family planning
in the country. It aims to achieve sustainable development by promoting responsible and planned
parenthood. The policy emphasizes the importance of providing accessible and affordable
reproductive healthcare services. It also highlights the importance of empowering women and
ensuring the well-being of communities.

The National Population Policy (NPP), 2000 is the central government’s second population policy.
The NPP states its immediate objective as addressing the unmet needs for contraception, healthcare
infrastructure, and health personnel, and providing integrated service delivery for basic reproductive
and child healthcare.

 The medium-term objective of the NPP 2000 was to reduce the Total Fertility Rate (TFR) to
replacement levels by 2010.

 The TFR was to be 2.1 children per woman.

(Total fertility rate is the average number of births per woman and is often abbreviated as
TFR. Replacement level is the number of births necessary to maintain a population after
taking into account how many leave it due to death, moving, or other reasons.)

 The long-term objective is “ to achieve a stable population by 2045, at a level consistent with
the requirements of sustainable economic growth, social development, and environmental
protection.”
Important features of National Population Policy

 The NPP reinforces the vision of the government to encourage voluntary and informed
choices and citizens’ agreeability in order to achieve maximum benefits from reproductive
health services.
 Making school education free and compulsory up to the age of 14 years and also reducing
the dropout rates of both boys and girls.
 Decreasing the Infant Mortality Rate (IMR) to under 30 per 1000 live births in the country (to
be achieved by 2010 as prescribed when the NPP was brought out).
 Infant mortality rate (IMR) is the number of deaths of children under one year of age per
1,000 live births.
 Reducing the Maternal Mortality Rate (MMR) to under 100 per 1 lakh live births (to be
achieved by 2010 as prescribed when the NPP was brought out).
 The maternal mortality rate (MMR) is the number of maternal deaths per 100,000 live births
in a given time period.
 Achieving universal immunization for all children against vaccine preventable diseases.
 Encouraging delayed marriage for girls (preferrably before 18 years and above 20 years).
 Achieving 80 percent institutional deliveries and 100 percent deliveries by trained persons.
 Attaining 100% registration of pregnancies, births, deaths and marriages.
 Making available universal access to information/counseling, and services for fertility
regulation and contraception with a huge range of choices.
 Containing the spread of AIDS, boosting better coordination between the management of
reproductive tract infections (RTI) and sexually transmitted infections (STI) and the National
AIDS Control Organisation (NACO).
 Preventing and controlling communicable diseases.
 Integrating Indian medicine systems (AYUSH) in reproductive and child health services.
 Vigourously furthering the small family norm.
 Bringing about a convergence of all related social programmes so that family planning and
welfare becomes a people-centric programme.
The NPP 2000 is different from the previous population regulation programmes in that here, for the
first time, the population problem was seen in combination with child survival, maternal health,
women empowerment and contraception issues.

Evolution of India’s Population Policies

Even before independence, attempts were made to come up with recommendations and solutions
to India’s burgeoning population problem. The efforts both pre- and post-independence are
mentioned below.

 Radha Kamal Mukherjee Committee (1940): In 1940, the Indian National Congress appointed
a Committee headed by a social scientist Radha Kamal Mukherjee to suggest solutions to
arrest the population which has started increasing rapidly after 1921. The committee
recommended self-control, generating awareness of cheap and safe birth control measures,
discouraging polygamy, among others, as measures to bring down the rate of population
growth.
 Bhore Committee: The Health Survey and Development committee under Sir Joseph Bhore
recommended ‘deliberate limitation of family’ as a measure to control the population
growth. This committee was set up in 1943 and submitted its report in 1946.
 India became one of the first developing countries to come up with a state-sponsored family
planning programme in the 1950s.
 A population policy committee was established in 1952. However, the policies framed in the
early fifties were largely arbitrary and so no successful.
 In 1956, a Central Family Planning Board was set up and its focus was on sterilisation.
 In 1976, GOI announced the first National Population Policy. Some of the measures to check
the population growth as part of this policy include:

 Increased the minimum legal marriageable age for boys and girls to 21 and 18
respectively.
 Providing monetary incentives for employing birth control.
 Improving women’s literacy levels through formal and informal channels.
 Population was made a criteria in deciding the quantum of central assistance to
states.
 Using the different forms of media to popularise family welfare programmes.
 Introducing population education into the formal education system.
 During the Emergency period (1975-77), coercive measures were used to reduce the
population growth. There were mass forced sterlilisations. This, however, backfired as it
discredited the entire family planning programme of the government.
 In 1977, after the Emergency ended, the new government discarded the use of force in
family planning and the family planning programme was renamed as the family welfare
programme.
 The National Health Policy was adopted in 1983 which emphasised ‘securing the small family
norm through voluntary efforts and moving towards the goal of population stabilization’.
 A Committee on Population was appointed in 1991 which submitted its report in 1993 in
which it recommended the formulation of a National Population Policy to take a ‘a long-term
 holistic view of development, population growth, and environmental protection’ and to
‘suggest policies and guidelines [for] formulation of programmes’ and ‘a monitoring
mechanism with short- medium- and long-term perspectives and goals’.
 Accordingly, an Expert Group headed by Dr. MS Swaminathan was set up to create the draft
national population policy.
 The National Population Policy finally came into force in 2000.
Way Forward

Population problem is not just an issue of lack of awareness or education. It is intrinsically linked to
poverty, societal norms and cultural preferences like preference for the male child, larger families,
etc. A mere focus on contraception and sterilization will not render the population control measures
successful, and so will not the coercive and top-bottom approach help either. The focus must be on a
basket of issues such as poverty alleviation, women empowerment, education & awareness, access
to reproductive healthcare facilities, changing mindset and societal norms, etc. Also, adequate
measures must be taken to take advantage of the demographic dividend of the country so that
population is not a burden but a resource in the rapid economic development of the country.

What is Population Control Bill?

Population Control Bill in India aims at disincentivizing couples from giving birth to more than two
children.

While the United Nations report that India has more than 1.4 billion people which makes the country
the world’s second-most populous country, the world population review predicts that India will
overtake China as the world’s most populous country by the year 2030.

The Population Control Bill in India of 2019, which was withdrawn in 2022, proposed a two-child
policy per couple and aimed to incentivize its adoption through educational benefits, better
employment opportunities, free healthcare, tax cuts, and home loans.

Objective

The proposed Population Control Bill in India aims at disincentivizing couples from giving birth to
more than two children. The bill states that couples with more than two children policy be made
ineligible for government jobs and subsidies on various facilities and goods provided by the
government.

However, the two-child policy in India has been tabled in Parliament nearly three dozen times but
has failed to get a green signal from either of the Houses.

Population Control Bill in India: What does the Constitution Say?

Article 22 of the 1969 Declaration on Social Progress and Development, adopted by the United
Nations General Assembly in a resolution, ensures that the couples have a right to choose freely and
responsibly the number of children they will have.
The policies, such as the Population Control Bill, to control and regulate the number of children
violate such constitutional rights as Article 16 (equal opportunity in matters of public employment)
and Article 21 (protection of life and liberty).

Population Control Bill in India: What is the constitutional challenge if the law is introduced?

Population Control Bill or Two Child Policy has been introduced in the
Parliament of India 35 times since Independence. If enacted, the
Population Control Bill must take into account the rights of divorced
couples as well as the Islamic religion.

The Bills that were introduced earlier to introduce Two Child Policy lacked
these features and were heavily criticized by the general public and
parties in opposition.

Unemployment in India- What is Unemployment?

 About:

o Unemployment refers to the condition where individuals capable of working are

actively seeking employment but are unable to secure suitable jobs.

o An unemployed person is someone who is part of the labour force, and possesses
the requisite skills but currently lacks gainful employment.

o Basically, an unemployed person is someone of working age, jobless, able and

available to work, and actively looking for a job.

 Measurement of Unemployment:

o The unemployment in the country is commonly calculated using the formula:

 Unemployment rate = [Number of Unemployed Workers / Total Labour

Force] x 100.

 Here, the ‘total labour force’ includes the employed and the
unemployed. Those who are neither employed nor unemployed —
students, for example— are not considered a part of the labour
force.

Types of Unemployment
 o Structural Unemployment: Rooted in mismatches between the skills possessed by
the workforce and the requirements of available positions, this form of
unemployment highlights systemic issues within the labour market.

o Cyclical Unemployment: Tied to economic cycles, this type escalates during

economic downturns and diminishes during periods of expansion, showcasing the
sensitivity of job availability to macroeconomic conditions.

o Frictional Unemployment/Transitional Unemployment: Also called transitional

unemployment, arising from the natural transition between jobs, this type reflects
the temporary period individuals spend searching for new employment
opportunities.

o Underemployment: While not strictly unemployment, this concept pertains to

individuals employed in positions that underutilize their skills or provide insufficient
working hours, contributing to a sense of economic inefficiency.

o Hidden Unemployment: Refers to individuals who are not actively seeking

employment due to discouragement or other factors but could potentially enter the
job market if conditions improve.

o Disguised Unemployment: It arises because more labourers work in the

factory/land than are required. Hence productivity i.e., production per unit of
labour will be less.

Causes of Unemployment

The major causes of unemployment in India are as mentioned below:

 Large population.
 Lack of vocational skills or low educational levels of the working population.
 Labour-intensive sectors suffering from the slowdown in private investment particularly
after demonetisation
 The low productivity in the agriculture sector plus the lack of alternative opportunities for
agricultural workers that makes transition among the three sectors difficult.
 Legal complexities, Inadequate state support, low infrastructural, financial and market
linkages to small businesses making such enterprises unviable with cost and compliance
overruns.
 Inadequate growth of infrastructure and low investments in the manufacturing sector,
hence restricting the employment potential of the secondary sector.
 The huge workforce of the country is associated with the informal sector because of a lack of
required education or skills, and this data is not captured in employment statistics.
  The main cause of structural unemployment is the education provided in schools and
colleges are not as per the current requirements of the industries.
 Regressive social norms that deter women from taking/continuing employment.

Impact Of Unemployment

The unemployment in any nation have the following effects on the economy:

 The problem of unemployment gives rise to the problem of poverty.

 The government suffers extra borrowing burden because unemployment causes a decrease
in the production and less consumption of goods and services by the people.
 Unemployed persons can easily be enticed by antisocial elements. This makes them lose
faith in the democratic values of the country.
 People unemployed for a long time may indulge in illegal and wrong activities for earning
money which increases crime in the country.
 Unemployment affects the economy of the country as the workforce that could have been
gainfully employed to generate resources actually gets dependent on the remaining working
population, thus escalating socio-economic costs for the state. For instance, a 1 % increase in
unemployment reduces the GDP by 2 %.
 It is often seen that unemployed people end up getting addicted to drugs and alcohol or
attempts suicide, leading to losses to the human resources of the country.

Government Initiative To Control Unemployment

Several policies have been initiated by the government to reduce the unemployment problem in the
economy. The policies to reduce unemployment are highlighted below:

 In 1979 the government launched TRYSEM – Training of Rural Youth for Self-Employment
The objective of this scheme was to help unemployed youth of rural areas aged between 18
and 35 years to acquire skills for self-employment. The priority under this scheme was given
to women and youth belonging to SC/ST category.
 The Government launched the IRDP – Integrated Rural Development Programme (IRDP) in
the year 1980 to create full employment opportunities in rural areas.
 A new initiative was tried namely RSETI/RUDSETI in 1982 jointly by Sri Dharmasthala
Manjunatheshwara Educational Trust, Canara Bank and Syndicate Bank. The aim of RUDSETI,
the acronym of Rural Development And Self Employment Training Institute was to mitigate
the unemployment problem among the youth. Rural Self Employment Training Institutes/
RSETIs are now managed by Banks with active cooperation from the state and central
Government.
 The Jawahar Rozgar Yojana (JRY) was started in April 1989 by merging the two existing wage
employment programme i.e. RLEGP – Rural Landless Employment Guarantee Programme
and NREP – National Rural Employment Programme on an 80:20 cost-sharing basis between
the state and centre.
 MNREGA – Mahatma Gandhi National Rural Employment Guarantee Act launched in 2005
providing the right to work to people. An employment scheme of MGNREGA aimed to
provide social security by guaranteeing a minimum of 100 days paid work per year to all the
 families whose adult members opt for unskilled labour-intensive work. For details
on MNREGA check the link provided.
 PMKVY – Pradhan Mantri Kaushal Vikas Yojana was launched in 2015. The objective of
PMKVY was to enable the youth of the country to take up industry-relevant skill training in
order to acquire a secured better livelihood. For further details on Pradhan Mantri Kushal
Vikas Yojana check the given link.
 The government launched the Start-Up India Scheme in 2016. The aim of Startup India
programmes was to develop an ecosystem that nurtures and promotes entrepreneurship
across the nation. Check detailed information on Startup India Scheme in the given link.
 Stand Up India Scheme also launched in 2016 aimed to facilitate bank loans to women and
SC/ST borrowers between Rs 10 lakh and Rs. 1 crore for setting up a greenfield enterprise.
Details on Stand-Up India is given in the linked page.
 National Skill Development Mission was set up in November 2014 to drive the ‘Skill India’
agenda in a ‘Mission Mode’ in order to converge the existing skill training initiatives and
combine scale and quality of skilling efforts, with speed. Check the National Skill
Development Mission in detail.