Economic Planning in India

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“ECONOMIC ENVIRONMENT OF BUSINESS PROJECT ON ECONOMIC PLANNING IN INDIA - Prospects & Retrospect” ANKIT KATARYA Subject: Project study on “Economic Planning in India – Retrospect & Prospects” This is regarding the project done by our group for Economic Environment of Business. In this project study we have tried to go through and take reference from various books, articles and websites. The project study has been done to critically analyze the various facets of Economic planning in India and also for the purpose of evaluation of our group for internal assessment, by the authorization of our faculty members Prof. Megha Chandok. We are indebted to her for helping us with our report…show more content…
According to this model, it is assumed that the economy is closed and has two segments. 1. Segment of consumption goods 2. Segment of capital goods. 2. Capital goods cannot be moved or are “non shiftable”. 3. Production is at its peak. 4. Depending on the availability of capital goods, investments are decided upon. 5. Capital is the scarce factor. 6. Capital goods production is not influenced by consumer goods production. By following the Mahalanobis model, the then government wanted that there should be optimum assignment of the fund among the various productive segments. This was aimed with a view to achieve maximum returns on a long term basis. As many as five steel plants including the ones in Durgapur, Jamshedpur as well as Bhilai were set up as per the 2nd five year plan. Hydroelectric power plants were formed during the tenure of the 2nd five year plan. There was considerable increase in production of coal. The North eastern part of the country, witnessed increase in the number of railway tracks. During the term of the 2nd five year plan, Atomic Energy Commission came into being. The Commission was established in the year 1957. During the same period, Tata Institute of Fundamental Research was born. The institute conducted several programs to search for talented individuals. These individuals would eventually be absorbed into programs related to nuclear power. 3rd
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