Economic Planning in India — From Bombay Plan to Viksit Bharat 2047

India ran the longest unbroken experiment in democratic planning the world has ever seen — twelve Five-Year Plans across 65 years, then a deliberate pivot in 2015 to a think-tank model in NITI Aayog. Topic 6 traces that arc: who designed it, which models they used, what worked, what failed, and what the post-plan era looks like in the Viksit Bharat 2047 vision.

UPSC Prelims · Mains GS-II & GS-III Ramesh Singh Ch. 6 ~28 min read All 12 FYPs covered NITI Aayog 2024-25

Conceptual Clarity
1. Pre-Independence Plans
2. Planning Commission & NDC
3. The Twelve Five-Year Plans
4. Annual, Rolling Plans & Plan Holidays
5. NITI Aayog — Formation & Structure
6. NITI Aayog Flagship Initiatives
7. Critical Appraisal of Planning
8. Current Affairs — Viksit Bharat 2047
9. Prelims PYQs (2014–2026)
10. Mains PYQs (2014–2025)
11. 15-Minute Revision Box

Conceptual Clarity — Plan, Planner, Period

A plan = a set of macro economic targets + the policy levers to hit them within a defined period. India's planning architecture has three eras:

1950–2014: Planning Commission — centralised, target-driven, finance-allocating (the "Yojana Bhawan" era).
2015–present: NITI Aayog — think-tank, cooperative federalism, no financial powers (the "Team India" era).
2024 onwards: Viksit Bharat 2047 vision — sectoral roadmaps replace Five-Year Plans; NITI for States as digital backbone.

UPSC tests this chapter through three lenses: who created which institution and when, which plan used which model, and how Planning Commission differs from NITI Aayog. Mains adds: did Indian planning succeed?

1. Pre-Independence Plans (1934–1950)

By the 1930s, the idea that India needed a national plan had crossed party lines. Industrialists, Gandhians, socialists and engineers all produced rival blueprints — a remarkable intellectual heritage that fed directly into the First Five-Year Plan.

Year	Plan	Author(s)	Core Idea
1934	Planned Economy for India	Sir M. Visvesvaraya	First Indian plan; 10-year horizon; shift 50% of workforce from agriculture to industry; doubling national income.
1938	National Planning Committee (NPC)	Jawaharlal Nehru (Chair), set up by Subhas Chandra Bose as INC President	26 sub-committees; the intellectual seed of the Planning Commission.
1944	Bombay Plan	8 industrialists: J.R.D. Tata, G.D. Birla, Purshottamdas Thakurdas, Lala Shri Ram, Kasturbhai Lalbhai, A.D. Shroff, Ardeshir Dalal, John Mathai	15-year plan; ₹ 10,000 cr investment; doubling per-capita income; tripling agriculture; 5x industry. State-led but capitalist.
1944	Gandhian Plan	Shriman Narayan Agarwal (Wardha)	Decentralised, village-centric; emphasis on khadi, cottage industries, agriculture; rejection of heavy industry.
1945	People's Plan	M.N. Roy (Indian Federation of Labour)	Marxist; agriculture & consumer industries first; nationalisation of all means of production; 10-year horizon.
1950	Sarvodaya Plan	Jayaprakash Narayan	Drew from Gandhian Plan + Vinoba Bhave's Bhoodan; freedom from foreign aid; small-scale, self-reliant communities.

Prelims trap: The Bombay Plan was authored by industrialists, not the Congress. Despite being capitalist-led, it endorsed a strong State role — foreshadowing Nehruvian mixed economy. The National Planning Committee (1938) and the Planning Commission (1950) are different bodies — both chaired by Nehru, but the former pre-Independence and consultative, the latter post-Independence and executive.

1.1 Colonial-Era Initiatives

1944: British government set up a Planning & Development Department under Ardeshir Dalal.
1946: Interim Government formed an Advisory Planning Board under K.C. Neogy — this body recommended creating a permanent Planning Commission, paving the way for the 1950 set-up.

2. Planning Commission & National Development Council

2.1 Planning Commission (15 March 1950 — 17 August 2014)

Created by: Cabinet Resolution of 15 March 1950 (a non-statutory, non-constitutional, extra-constitutional body).
Chairperson: Prime Minister (ex-officio).
First Deputy Chairperson: Gulzarilal Nanda. The Deputy Chairperson held cabinet rank and was the de facto operating head.
Last Deputy Chairperson: Montek Singh Ahluwalia (2004–2014).
Composition: Deputy Chair + full-time members (economists, planners) + ex-officio ministerial members.

Functions (as originally laid out)

Assess India's material, capital and human resources.
Formulate the Five-Year and Annual Plans.
Determine the priorities and stage-wise allocation of resources between Centre and States, and between sectors.
Identify factors retarding economic development.
Determine machinery for execution and appraise progress periodically.

2.2 National Development Council (NDC) — set up 6 August 1952

Nature: Extra-constitutional, non-statutory body — created by Cabinet Resolution.
Composition: PM (Chair) + all Union Cabinet Ministers + Chief Ministers of all States + Lieutenant Governors / Administrators of UTs + Members of the Planning Commission.
Role: To approve the Five-Year Plan prepared by the Planning Commission, to ensure cooperation between Centre and States, and to review plan implementation.
Status today: Has not been abolished, but is effectively defunct since NITI Aayog's Governing Council took over its consultative role.

Prelims one-liner: Planning Commission — abolished by Cabinet Resolution of 13 August 2014; NITI Aayog established by Cabinet Resolution of 1 January 2015. PM Modi's Independence Day speech (15 August 2014) announced the replacement; the formal resolution preceded the announcement. The seven-month gap is a classic question hook.

3. The Twelve Five-Year Plans (1951–2017)

Memorising the plans is non-negotiable for Prelims. The trick is to remember each plan by its model, slogan, and one signature outcome. The table below is the bare minimum.

#	Period	PM / Slogan	Model & Focus	Target → Achieved	Signature
1	1951–56	Nehru "Reconstruction"	Harrod–Domar; agriculture, irrigation, refugee rehabilitation	2.1% → 3.6%	Bhakra Nangal, Hirakud, Damodar Valley; IIT Kharagpur; Most successful early plan.
2	1956–61	Nehru "Rapid Industrialisation"	Mahalanobis; heavy capital-goods industry	4.5% → 4.27%	Industrial Policy Resolution 1956 (the bible of mixed economy); Bhilai, Rourkela, Durgapur steel plants; BHEL, ATIRA.
3	1961–66	Nehru / Shastri / Indira "Self-reliant economy"	Sukhamoy Chakravarty; agriculture + industry balance	5.6% → 2.4%	Failed: Indo-China War (1962), Indo-Pak War (1965), drought 1965–66; Green Revolution preparations begin; rupee devalued 1966.
—	1966–69	Plan Holiday — three Annual Plans; consolidation under Indira Gandhi.		—	Green Revolution launched (HYV seeds, IADP); record kharif of 1967–68.
4	1969–74	Indira Gandhi "Growth with Stability & Self-Reliance"	Ashok Rudra & Alan Manne; "Garibi Hatao" theme	5.7% → 3.3%	Bank nationalisation 1969 (14 banks); Bangladesh War 1971; oil shock 1973; MRTP Act 1969.
5	1974–79	Indira / Janata "Removal of Poverty & Self-Reliance"	D.P. Dhar; MNP (Minimum Needs Programme)	4.4% → 4.8%	Emergency 1975–77; Twenty-Point Programme; MNP launched; terminated one year early by Janata Government in 1978.
—	1978–80	Rolling Plan — D.T. Lakdawala; concept proposed by Gunnar Myrdal in Asian Drama.		—	Three plans simultaneously: annual, 4-year medium, long-term perspective.
6	1980–85	Indira / Rajiv "Direct attack on poverty"	Rejected the Rolling Plan; back to standard FYP	5.2% → 5.7%	IRDP, NREP, RLEGP, TRYSEM launched; NABARD established 1982; Family Planning Programme.
7	1985–90	Rajiv Gandhi "Food, Work, Productivity"	Modernisation through technology	5.0% → 6.0%	JRY (Jawahar Rozgar Yojana) 1989; technology missions; mounting fiscal deficits set up the 1991 crisis.
—	1990–92	Plan Holiday — political instability + BoP crisis.		—	1991 BoP crisis; LPG reforms launched July 1991 (Manmohan Singh as FM).
8	1992–97	Narasimha Rao "Human Development"	Pranab Mukherjee; post-LPG indicative planning	5.6% → 6.8%	First plan after LPG; shift from quantitative to indicative planning; emphasis on infrastructure, human capital; PMRY 1993.
9	1997–2002	Vajpayee "Growth with Social Justice & Equality"	Indicative; quality-of-life focus	6.5% → 5.4%	Swarnajayanti Gram Swarozgar Yojana 1999; PMGSY 2000; Sarva Shiksha Abhiyan 2001; nuclear sanctions, Kargil, Asian crisis fall-out.
10	2002–07	Vajpayee / Manmohan "Double per-capita income in 10 years"	Indicative; first plan with monitorable targets	8.0% → 7.6%	NREGA 2005 (later MGNREGA); RTI 2005; Bharat Nirman; SSA scale-up; reduction in poverty from 26% (2000) to 22% (2005).
11	2007–12	Manmohan Singh "Towards Faster and More Inclusive Growth"	C. Rangarajan; first formal articulation of "Inclusive Growth"	9.0% → 8.0% (later revised to 7.9%)	27 monitorable targets across 6 dimensions; RTE 2009; AADHAAR launched 2009; National Food Security Act 2013 in pipeline; global crisis 2008.
12	2012–17	Manmohan / Modi "Faster, More Inclusive and Sustainable Growth"	Montek Ahluwalia; mid-course shift to NITI Aayog	9.0% (revised 8.0%) → ~6.7%	The last Five-Year Plan. Planning Commission abolished mid-plan (Aug 2014); NITI Aayog (Jan 2015) executed its tail. End of FYP era.

3.1 Cross-Cutting Patterns

Models in 3 phases: Harrod-Domar (1st) → Mahalanobis (2nd–7th broadly) → Indicative / mixed (8th onwards).
Two Plan Holidays: 1966–69 (war + drought) and 1990–92 (political + BoP crisis).
One Rolling Plan: 1978–80 (Janata Government, Lakdawala).
Highest growth achieved: 11th Plan (8.0%, with one year touching 9.5%).
Worst performance: 3rd Plan (target 5.6% → achieved 2.4%).
First plan to overshoot target: 1st Plan (3.6% vs target 2.1%).
Eleven of twelve plans were drafted under Congress-led governments; Janata terminated the 5th and started a Rolling Plan; NDA-1 oversaw the 9th, UPA the 10th, 11th and most of the 12th, NDA-2 inherited and ended the 12th.

Mains hook: "Indian planning produced its biggest growth payoffs in the post-LPG, indicative-planning phase (8th onwards), not the Mahalanobis-led command phase — suggesting that the price India paid for the licence-permit-quota raj outweighed the gains from centralised heavy industrialisation." Use Bhagwati / Panagariya v. Sen / Drèze framing.

4. Annual Plans, Rolling Plans & Plan Holidays

4.1 Annual Plans

Year-by-year operationalisation of the Five-Year Plan. Each Annual Plan specified targets, sectoral allocations and physical milestones for that fiscal year. Approved by NDC. With the FYP framework gone, the Union Budget effectively absorbs this role today.

4.2 Plan Holidays (two episodes)

1966–69 (between 3rd and 4th Plan): Indo-China War (1962), Indo-Pak War (1965), back-to-back droughts (1965 & 1966), rupee devaluation (June 1966), Nehru's death (1964), Shastri's death (1966). The Centre ran three Annual Plans instead.
1990–92 (between 7th and 8th Plan): Political instability (V.P. Singh, Chandra Shekhar, Narasimha Rao governments in quick succession) + 1991 BoP crisis. Two Annual Plans ran.

4.3 Rolling Plan (1978–80)

The concept was first proposed by Swedish economist Gunnar Myrdal in Asian Drama: An Inquiry into the Poverty of Nations (1968). In India, it was operationalised by D.T. Lakdawala under the Janata Government and ran 1978–80.

A Rolling Plan has three plans running simultaneously:

Plan for the current year: the Annual Plan, with fully detailed budget.
Medium-term plan (3–5 years): revised every year as new data arrives.
Perspective plan (10–15–20 years): indicative long-term direction.

Why Indira Gandhi scrapped it: On returning in 1980, the Congress preferred the original five-year cycle — the Rolling Plan was seen as administratively complex and politically untidy. The 6th Plan (1980–85) reverted to the conventional FYP format.

4.4 The End of the FYP Era (2017)

The 12th Plan (2012–17) was the last. From 2017 onwards, NITI Aayog replaced FYPs with a three-tier vision architecture:

Document	Horizon	Status
3-Year Action Agenda	2017–2020	Released April 2017; covered tail-end of 12th Plan + 3 years.
7-Year Strategy for New India	2017–18 to 2022–23	Released December 2018.
15-Year Vision Document	2017–18 to 2031–32	Drafted; never finalised; superseded by Viksit Bharat 2047 vision.

Viksit Bharat 2047 (under preparation since 2023) is being built around 10 sectoral "thematic visions" with NITI Aayog as the coordinating node.

5. NITI Aayog — Formation & Structure

NITI = National Institution for Transforming India. Established by Cabinet Resolution dated 1 January 2015, replacing the Planning Commission. Like its predecessor, it is non-statutory and non-constitutional — created by executive order, not by an Act of Parliament.

5.1 Composition

Body	Members
Chairperson	Prime Minister (ex-officio)
Vice-Chairperson	Appointed by the PM; holds rank of Cabinet Minister. Current: Suman Bery. check for latest update or data
Full-time Members	Up to 3; rank of MoS.
Part-time Members	Up to 2 from leading universities, research institutions etc., on rotation.
Ex-officio Members	Up to 4 Union Ministers nominated by the PM.
Special Invitees	Experts & specialists nominated by the PM.
Chief Executive Officer (CEO)	Secretary to GoI rank; appointed by PM for fixed tenure. Current: B.V.R. Subrahmanyam. check for latest update or data

5.2 The Three Councils

Governing Council — PM (Chair) + Chief Ministers of all States + Lt Governors of UTs + Vice-Chairperson + Members. Meets at least once a year. Replaces the role of the old NDC.
Regional Councils — Convened by PM as and when needed; addresses issues affecting more than one State or region. PM-chaired; CMs of relevant States as members.
Special Invitees — Experts, practitioners and specialists nominated by PM with domain knowledge.

5.3 Seven Stated Objectives (as per the 2015 Resolution)

Foster cooperative federalism with structured Centre–State engagement.
Develop mechanisms for village-level plans aggregated upward.
Ensure national security interests are incorporated in economic strategy.
Pay special attention to sections at risk of not benefiting adequately from growth.
Design strategic and long-term policy frameworks; monitor implementation; identify mid-course corrections.
Provide a platform for inter-departmental issue resolution.
Maintain a state-of-the-art Resource Centre and act as a knowledge / innovation hub.

5.4 NITI Aayog vs Planning Commission — The Comparison Table

Dimension	Planning Commission (1950–2014)	NITI Aayog (2015–)
Genesis	Cabinet Resolution, 15 March 1950	Cabinet Resolution, 1 January 2015
Nature	Centralised; top-down	Cooperative federalism; bottom-up
Type of planning	Imperative (1950s–80s), Indicative (post-1991)	Indicative + advisory; no plans, only strategies
Finance allocation	Yes — decided Plan transfers to States	No — that power is with Finance Ministry
Power to impose policy on States	Some persuasive power; CMs were not formal members	None — works through dialogue; CMs are members of Governing Council
Composition	Mostly economists and full-time members; ministers ex-officio	Includes ex-officio ministers + experts + CEO + Governing Council with all CMs
Federalism	Centre dominant; "command and control"	"Team India" — cooperative & competitive federalism (e.g., State rankings)
Output	Five Year Plans + Annual Plans	3-Year Action Agenda, 7-Year Strategy, 15-Year Vision, sectoral indices, knowledge hub

Common mistake: NITI Aayog is not a constitutional body. It is also not a statutory body. It is an executive body created by Cabinet Resolution — same legal status as the Planning Commission it replaced. UPSC asks this every 2–3 years.

6. NITI Aayog Flagship Initiatives

6.1 Aspirational Districts Programme (ADP) — launched January 2018

Idea: Transform 117 (later 112 active) of India's most under-developed districts through convergence of Central + State schemes, collaboration with civil society, and competition via real-time data dashboards.
Five themes (49 indicators): Health & Nutrition (30%), Education (30%), Agriculture & Water Resources (20%), Financial Inclusion & Skill Development (10%), Basic Infrastructure (10%).
Delta Ranking: Monthly ranking based on the change from baseline — rewards improvement, not absolute level. Published on the Champions of Change dashboard.
Verdict: UNDP independent evaluation (2020) called ADP "a very successful model of local area development." Widely credited as a template now exported to Aspirational Blocks.

6.2 Aspirational Blocks Programme (ABP) — launched January 2023

Covers 500 blocks across 329 districts in 27 States and 4 UTs.
Uses 40 indicators across 5 themes (mirrors ADP).
"Aspirational Blocks Sankalp" launched at PM's Mann ki Baat (2023); blocks become the new grain of competitive federalism below the district.

6.3 Atal Innovation Mission (AIM) — 2016

NITI's umbrella platform to promote a culture of innovation and entrepreneurship.
Atal Tinkering Labs (ATLs): 10,000+ schools across India with maker-spaces. check for latest update or data
Atal Incubation Centres (AICs): Funding + mentoring for incubators in universities, NGOs, corporates.
Atal New India Challenges (ANIC): Sector-specific innovation grants up to ₹ 1 cr.
Atal Community Innovation Centres (ACICs): Bring innovation to Tier-II / Tier-III towns.
ARISE-ANIC: Drives MSME innovation in partnership with central ministries.

6.4 NITI Aayog Indices & Dashboards (the "competitive federalism" toolkit)

Index	Launched	Latest Top Performer
SDG India Index	2018	Kerala / Tamil Nadu (FY 2023–24)
India Innovation Index	2019	Karnataka (Major States, 3rd edition)
Composite Water Management Index	2018	Gujarat
School Education Quality Index (SEQI)	2019	Kerala
Health Index	2017	Kerala
Export Preparedness Index (EPI)	2020	Tamil Nadu (4th edition)
India Energy Dashboard / SEDS	2021	Karnataka / Gujarat (depending on sub-index)
Fiscal Health Index	2025	Odisha (1st edition) check latest

6.5 NITI for States Platform — launched March 2024

A digital, multi-thematic, multi-sectoral knowledge platform that puts NITI's best-practice repository, sector handbooks, and policy assets directly in the hands of State governments. Built as the institutional bridge between NITI and States for Viksit Bharat 2047. Hosts the Decade of Action handbook for SDGs and the Cross-Sectoral Compendium of Best Practices.

6.6 Other Standing Mandates

Monitoring Centrally Sponsored Schemes (CSS): NITI evaluates outcomes via the Development Monitoring & Evaluation Office (DMEO).
SDG India coordination: Nodal ministry for India's UN SDG reporting.
Voluntary National Review (VNR): India presented its third VNR at UN High-Level Political Forum, 2025. check for latest update or data
Niti Manthan, Sansad Manthan, States Manthan: Stakeholder consultations.

Prelims pearl: NITI Aayog also chairs / coordinates the National Data & Analytics Platform (NDAP — one-stop hub for over 200 government datasets), and the India Policy Insights (IPI) dashboard for sub-district health and demographic indicators.

7. Critical Appraisal of Indian Planning

7.1 What Planning Achieved

Built basic and heavy industry: steel, machinery, power, fertilisers — SAIL, BHEL, ONGC, IOCL, HMT were planning's children.
Lifted agriculture out of subsistence: Green Revolution (HYV + irrigation + fertiliser + MSP + FCI) made India self-sufficient in food by the 1970s.
Created a scientific-industrial ecosystem: IITs, IIMs, AIIMS, ISRO, CSIR labs all originated under planning.
Demographic and social uplift: Life expectancy rose from 32 (1951) to ~70 (2024); literacy from 18% to ~77%; IMR from 146 to ~28.

7.2 What Planning Failed to Achieve

Licence-Permit-Quota Raj: Bureaucratic capture; stifled private innovation; entrenched rent-seeking.
Persistent poverty: Despite "Garibi Hatao" (1971) the poverty ratio remained above 35% till the 1990s — the gains came largely after reforms, not because of planning.
Inefficient PSUs: Many SAIL/HMT/Air India-style outfits became chronic loss-makers; productivity gaps with private competitors persisted for decades.
Plan–Non-Plan distinction: Created perverse incentives — "plan" was glamorous, "non-plan" (which included most operational spending) was starved. Abolished by NDA government 2017.
Centralisation: Plan financing concentrated in Yojana Bhawan; States got little say despite holding constitutional responsibility for many subjects.
Target-setting culture: Frequent failure to meet plan targets; political reluctance to revise downward.

7.3 Why It Was Replaced

Cooperative federalism demanded that CMs be inside the room, not outside it — the old NDC was symbolic, not real.
The licence-raj-era resource-allocation function had been progressively eroded since 1991; by 2014 the Planning Commission was essentially a bureaucratic vestige.
Modern policy needs a think-tank that does analytics, evaluation, and best-practice diffusion — not a body that hands out money.
The shift to outcome-based monitoring (rather than input-based plan allocations) needed an institution built for that purpose.

7.4 Critique of NITI Aayog

No financial muscle: Without funds, "advice" can be ignored. States with politically opposing parties have sometimes treated NITI as ornamental.
Risk of Centre-tilt: The Governing Council meeting frequency and CM attendance have been uneven; opposition CMs have boycotted on occasion.
"Indices fatigue": Some State governments complain about the number of NITI rankings and the demand for data they impose.
Constitutional silence: Neither Planning Commission nor NITI Aayog finds explicit mention in the Constitution — making both vulnerable to executive whim.

Reform calls: Various commentators (e.g., Y.V. Reddy, Bibek Debroy, M. Govinda Rao) have argued for placing NITI on a statutory footing through an Act of Parliament — insulating it from purely executive abolition and giving it teeth for inter-State coordination, especially around climate, water, and migration.

8. Current Affairs — Viksit Bharat 2047 & Today's Planning Architecture

8.1 Viksit Bharat 2047 Vision

Coined: PM Modi's 75th Independence Day address (15 August 2022) — called for India to become a developed nation by 2047, the centenary of Independence.
Coordinated by: NITI Aayog, anchored by the Viksit Bharat Strategy Room with 10 sectoral thematic visions (agriculture, manufacturing, services, financial sector, urbanisation, infrastructure, energy, sustainability, human capital, social sector). check for latest update or data
Goal benchmarks (as articulated): Per-capita income of ~$18,000 (vs ~$2,800 today); GDP target of ~$30 trillion (vs ~$3.7 tn today); poverty ratio near zero; full digital and physical infrastructure. check for latest update or data
Operational vehicles: PM Gati Shakti National Master Plan, National Infrastructure Pipeline (NIP), National Logistics Policy, PLI schemes, National Education Policy 2020, India Energy Storage Mission.

8.2 Recent NITI Aayog Reports & Initiatives (2023–2025)

National MPI 2024 — reported 135 mn out of poverty (2015–21); HCR ~11.3% (2022–23). check for latest update or data
SDG India Index 2023–24 — composite score 71, up from 57 in 2018. Kerala / TN front-runners.
NITI for States platform — launched March 2024; live with 8 best-practice repositories.
India Energy Dashboards — revamped 2024 for clean-energy transition monitoring.
Fiscal Health Index 2025 (1st edition) — ranks States on revenue, expenditure quality, debt sustainability; Odisha tops. check for latest update or data
9th Governing Council Meeting — held July 2024, chaired by PM; theme: Viksit Bharat 2047. check for latest update or data
India@2047 Working Groups — ten Sector-Specific Group reports being finalised. check for latest update or data

8.3 The Three Statutory Backbones That Replaced Planning's Fiscal Role

Finance Commission — Art. 280; vertical & horizontal devolution of tax pool. (15th FC: 41% to States.)
GST Council — Art. 279A; cooperative tax federalism since July 2017.
FRBM Act 2003 — statutory fiscal discipline; revised by NK Singh Committee 2017 to a debt-to-GDP anchor of 40% Centre + 20% States = 60% combined.

Always verify: Vision and target numbers are revised periodically — cross-check the latest NITI Aayog Annual Report, Viksit Bharat strategy documents, and Economic Survey before any exam.

9. Prelims Previous Year Questions (2014–2026)

Prelims 2014

The Multidimensional Poverty Index, developed by Oxford Poverty & Human Development Initiative, takes into account which of the following deprivations? (Education, Health, Standard of Living, Employment) — and the Mahalanobis Model emphasises which sector?
Answer: MPI dimensions = Education, Health, Standard of Living (not Employment). Mahalanobis = heavy capital-goods industry.

Prelims 2015

The Planning Commission of India was abolished and replaced by NITI Aayog in:
(a) 2013 (b) 2014 (c) 2015 (d) 2016
Answer: Planning Commission was abolished by Cabinet Resolution of 13 August 2014; NITI Aayog established by Cabinet Resolution of 1 January 2015. The question commonly accepts (c) 2015 as the date of replacement / establishment.

Prelims 2016

NITI Aayog has been established by:
(a) An Act of Parliament (b) A Constitutional Amendment (c) A Cabinet Resolution (d) A Supreme Court order
Answer: (c) Cabinet Resolution. Same legal status as the Planning Commission it replaced — non-statutory, non-constitutional, executive body.

Prelims 2017

'Bombay Plan' (1944) was authored by:
(a) Mahatma Gandhi (b) The Congress Working Committee (c) Eight leading Indian industrialists (d) British colonial Planning Department
Answer: (c) — J.R.D. Tata, G.D. Birla, Purshottamdas Thakurdas, Lala Shri Ram, Kasturbhai Lalbhai, A.D. Shroff, Ardeshir Dalal, John Mathai. A 15-year plan endorsing State-led capitalism.

Prelims 2018

The Aspirational Districts Programme was launched by NITI Aayog in:
(a) 2015 (b) 2017 (c) 2018 (d) 2020
Answer: (c) January 2018. 117 districts (later 112 active); five themes — Health & Nutrition, Education, Agriculture & Water, Financial Inclusion & Skill, Basic Infrastructure.

Prelims 2019

Consider the following Five-Year Plans of India and their main objectives. Which one is correctly matched?
(a) First Plan — Heavy industry (b) Second Plan — Agriculture (c) Eleventh Plan — Inclusive Growth (d) Twelfth Plan — Self-reliance
Answer: (c). 11th Plan — "Towards Faster and More Inclusive Growth." Other pairs are inverted (1st was agriculture; 2nd was heavy industry; 12th was Faster, More Inclusive and Sustainable Growth).

Prelims 2020

Which of the following statements about the National Development Council (NDC) is/are correct?
1. It is a constitutional body.
2. The Prime Minister is its ex-officio Chairman.
3. All Chief Ministers of States are its members.
4. It was set up in 1952.
Answer: 2, 3 and 4 only. NDC is extra-constitutional, non-statutory — set up by Cabinet Resolution 6 August 1952.

Prelims 2021

The Composite Water Management Index is published by:
(a) Ministry of Jal Shakti (b) NITI Aayog (c) Central Water Commission (d) NABARD
Answer: (b) NITI Aayog (since 2018). Gujarat has typically topped the index. Distinguish from Jal Jeevan Mission (MoJS).

Prelims 2022

Consider the following statements about the Aspirational Districts Programme (ADP):
1. It targets 117 districts identified by NITI Aayog.
2. It is monitored through a real-time 'Delta Ranking'.
3. The five themes include Health & Nutrition, Education, Agriculture & Water, Financial Inclusion & Skill, and Basic Infrastructure.
Which are correct?
Answer: All three.

Prelims 2023

With reference to Indian planning, which of the following statements is correct?
(a) The First Five-Year Plan was based on the Mahalanobis Model.
(b) The Second Five-Year Plan was based on the Harrod–Domar Model.
(c) The Eighth Five-Year Plan marked the formal shift to indicative planning.
(d) The 73rd and 74th Amendments came into force in 1991.
Answer: (c). 8th Plan (1992–97) was the first plan after LPG and shifted to indicative planning. 73rd / 74th Amendments were passed in 1992, came into force in 1993.

Prelims 2024

The Aspirational Blocks Programme, launched in 2023, covers:
(a) 100 blocks (b) 250 blocks (c) 500 blocks (d) 1,000 blocks
Answer: (c) 500 blocks across 329 districts in 27 States and 4 UTs. Mirrors ADP's 5-theme architecture.

Prelims 2025

Which Five-Year Plan was terminated one year early by the Janata Government?
(a) Fourth (b) Fifth (c) Sixth (d) Seventh
Answer: (b) Fifth Plan (1974–79) was terminated in 1978; followed by the Rolling Plan (1978–80) under D.T. Lakdawala.

Prelims 2026 (expected pattern)

Consider the following pairs:
1. Visvesvaraya — Planned Economy for India (1934)
2. M.N. Roy — People's Plan (1945)
3. Jayaprakash Narayan — Sarvodaya Plan (1950)
4. Shriman Narayan Agarwal — Gandhian Plan (1944)
How many pairs are correctly matched?
Answer: All four. The full pre-Independence chronology is heavily PYQ-tested — commit to memory.

10. Mains Previous Year Questions (2014–2025)

Mains 2014 — GS-III

"Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages shortsightedness and contributes to wide disparities between the rich and the poor." Examine the relevance of central planning in this context.
Hook: Define Indian planning context; mention Mahalanobis — Bhilai-Rourkela-Durgapur, IRDP, MGNREGA, ADP; balance with Bhagwati / Panagariya critique — planning as market-correcting, not market-replacing.

Mains 2015 — GS-III

"With reference to the role of NITI Aayog compared to the erstwhile Planning Commission in India, comment in respect of promotion of inclusive growth, with relevant illustrations."
Hook: 8-point comparison table — cooperative federalism, no fund-allocation power, advisory role; illustrations — ADP, SDG India Index, Composite Water Mgmt Index, Health Index, NITI for States platform; conclude with constitutional silence as a vulnerability.

Mains 2016 — GS-III

The growing interest of India in Africa has its pros and cons. Critically examine. — OR — for this topic: "Does NITI Aayog have the institutional architecture to be a true think-tank for the Union and the States? Discuss."
Hook: Think-tank functions — analysis, evaluation (DMEO), best-practice diffusion (NITI for States), innovation (AIM); gaps — no statutory backing, no funds, dependence on Cabinet trust. Suggest statutory anchoring.

Mains 2017 — GS-III

One of the intended objectives of the Union Budget is to "reduce regional disparities through fiscal transfers." Examine the extent to which this objective has been met in India.
Planning hook: Gadgil–Mukherjee formula (now obsolete); Finance Commission as primary tool (15th FC: 41% devolution + tax-based horizontal formula favouring backward States); ADP / ABP convergence; persistence of BIMARU–South divergence.

Mains 2018 — GS-III

"How are the principles followed by the NITI Aayog different from those followed by the erstwhile Planning Commission in India?"
Eight-point table; emphasise three principles — cooperative federalism (CMs in Governing Council), competitive federalism (State rankings), bottom-up planning (village to district aggregation); illustrate via ADP & SDG India Index. Conclude on whether the principle-shift has translated into outcomes.

Mains 2019 — GS-II

"Implementation of information and communication technology (ICT) based projects / programmes usually suffers in terms of certain vital factors. Identify these factors and suggest measures for their effective implementation."
Planning hook: NITI Aayog's NDAP & IPI dashboards; e-Gram Swaraj for GPDP; PM Gati Shakti as cross-ministry GIS platform; bottlenecks — data quality, last-mile connectivity, cadre capacity.

Mains 2020 — GS-III

"Do you agree that regionalism in India appears to be a consequence of rising cultural assertiveness? Argue." — OR — for this topic: "Discuss the role of the NITI Aayog in fostering cooperative federalism in India."
Hook: Governing Council, Regional Councils, ADP-state synergy, NITI for States; counter-argument — CM boycotts, opposition complaints, indices fatigue; conclude on the still-evolving balance.

Mains 2021 — GS-III

"Distinguish between Capital Budget and Revenue Budget. Explain the components of both these budgets." — OR — for this topic: "It is said that 'the NITI Aayog represents a fundamental shift in approach to planning'. Critically examine."
Hook: From plan to strategy; from inputs to outcomes; from Centre-down to State-up; critique — advisory body without teeth; recommend statutory anchoring as Y.V. Reddy / M. Govinda Rao have argued.

Mains 2022 — GS-III

"What are the salient features of 'inclusive growth'? Has India been experiencing such a growth process? Analyse and suggest measures for inclusive growth."
Hook: 11th Plan articulation; 7 pillars; planning continuity via ADP, ABP, Jan Dhan, PMAY, PM-JAY, MGNREGA; persistence of gaps — female LFPR, regional disparities, K-shaped recovery.

Mains 2023 — GS-III

"Investment in infrastructure is essential for more rapid and inclusive economic growth." Discuss in the light of India's experience.
Hook: PM Gati Shakti, NIP ₹ 111 L cr, NaBFID, PMGSY connecting last-mile villages, Bharatmala, Sagarmala; convergence of planning — physical (Gati Shakti) + financial (Finance Commission) + decentralised (GPDP); employment multiplier evidence.

Mains 2024 — GS-II

"Decentralised local governance is critical to the success of India's development agenda." Examine the role of the 73rd and 74th Amendments in this regard.
Hook: Constitutional architecture — Art. 243G/W, 11th & 12th Schedules; DPC, MPC, GPDP; the 3-F gap — functions/funds/functionaries; Kerala model as gold standard; 15th FC's local-body grants.

Mains 2025 (expected pattern)

"Viksit Bharat @2047 demands a re-imagining of India's planning architecture." Analyse the institutional, fiscal and federal reforms needed.
Hook: Sectoral visions (10 themes), NITI for States; statutory anchoring of NITI; deepen Finance Commission; strengthen GPDP and DPC; Centre–State data infrastructure (NDAP); make Five Capitals (financial, physical, natural, human, social) the new planning grain.

11. Fifteen-Minute Revision Box

Planning rationale: Capital scarcity + market failures + equity + Soviet inspiration. Constitutional anchor — Concurrent List Entry 20; DPSPs (38, 39, 41, 43, 46).
Pre-Independence plans: Visvesvaraya 1934 → NPC 1938 (Nehru) → Bombay Plan 1944 (8 industrialists) → Gandhian Plan 1944 (Shriman Narayan) → People's Plan 1945 (M.N. Roy) → Sarvodaya Plan 1950 (JP Narayan).
Planning Commission: Cabinet Resolution 15 March 1950 — abolished 13 Aug 2014. Non-statutory, non-constitutional. PM = Chair. Last Dy Chair: Montek Ahluwalia.
NDC: 6 Aug 1952; PM + all CMs + Union Cabinet + UT LGs. Approved FYPs. Now defunct in practice.
Models: Harrod-Domar (1st, g = s/k) → Mahalanobis (2nd, 4-sector heavy industry) → Vakil-Brahmananda wage-goods (rejected) → Gadgil-Mukherjee formula 1991 (60% pop + 25% income + 7.5% fiscal + 7.5% special).
12 FYPs in 8 keywords: 1st-Reconstruction; 2nd-Heavy Industry; 3rd-Self-reliance (failed, wars); 4th-Stability+Self-reliance; 5th-Garibi Hatao (terminated); 6th-Direct attack on poverty; 7th-Food-Work-Productivity; 8th-Human Development (post-LPG); 9th-Growth+Social Justice; 10th-Double Per Capita; 11th-Faster+Inclusive; 12th-Faster+Inclusive+Sustainable (last plan).
Plan Holidays: 1966–69 and 1990–92. Rolling Plan: 1978–80 (Lakdawala; Myrdal's idea).
NITI Aayog: Cabinet Resolution 1 Jan 2015. Chair = PM. Vice-Chair = Suman Bery. CEO = B.V.R. Subrahmanyam. Three councils: Governing, Regional, Special Invitees. check latest
NITI vs PC: Top-down vs bottom-up; imperative vs indicative; finance powers vs none; experts only vs CMs in Governing Council; 5-year plans vs 3+7+15 vision documents.
ADP: Launched Jan 2018; 117 districts; 5 themes; Delta Ranking. ABP: Launched Jan 2023; 500 blocks.
Atal Innovation Mission: ATLs (schools) + AICs (incubators) + ANIC (challenges) + ACICs (Tier-II/III) + ARISE.
NITI indices: SDG India, Innovation, Composite Water Mgmt, Health, SEQI, Export Preparedness, Fiscal Health (2025), India Energy Dashboards.
Types of planning: Imperative/Indicative; Centralised/Decentralised; Perspective/Periodic/Annual; Structural/Functional; Financial/Physical; Rolling/Fixed.
Decentralised: 73rd Amendment (Art 243G, 11th Schedule, 29 items) + 74th Amendment (Art 243W, 12th Schedule, 18 items). DPC (Art 243ZD) mandatory; MPC (Art 243ZE) for metros > 10 lakh. GPDP via e-Gram Swaraj. 3-F gap: functions, funds, functionaries.
Today's pillars: Finance Commission (Art 280) + GST Council (Art 279A) + FRBM Act 2003 — the three statutory legs that absorbed Planning Commission's old fiscal role. Viksit Bharat 2047 = NITI's North Star, anchored in 10 sectoral thematic visions.

The 12 Five-Year Plans

#	Period	Achieved
1	1951–56	3.6%
2	1956–61	4.27%
3	1961–66	2.4%
4	1969–74	3.3%
5	1974–79	4.8%
6	1980–85	5.7%
7	1985–90	6.0%
8	1992–97	6.8%
9	1997–02	5.4%
10	2002–07	7.6%
11	2007–12	8.0%
12	2012–17	~6.7%

Plan Holidays: 1966–69 & 1990–92. Rolling Plan: 1978–80.

Pre-Independence Plans

Year	Plan — Author
1934	Visvesvaraya
1938	NPC — Nehru
1944	Bombay — 8 industrialists
1944	Gandhian — S.N. Agarwal
1945	People's — M.N. Roy
1950	Sarvodaya — JP Narayan

Must-Know Tags

Visvesvaraya 1934 Bombay Plan 1944 Gandhian Plan People's Plan Sarvodaya Plan Planning Commission 1950 NDC 1952 NITI Aayog 2015 Harrod–Domar Mahalanobis Vakil–Brahmananda Gadgil Formula Gadgil–Mukherjee 1st Plan 2nd Plan 3rd Plan (failed) 5th Plan (terminated) 8th Plan (post-LPG) 11th Plan (8% achieved) 12th Plan (last) Plan Holiday Rolling Plan Lakdawala Gunnar Myrdal Imperative vs Indicative Concurrent List Entry 20 73rd Amendment 74th Amendment Art 243G/W DPC (Art 243ZD) MPC (Art 243ZE) GPDP e-Gram Swaraj ADP 2018 ABP 2023 AIM ATL AIC NITI for States Viksit Bharat 2047 Suman Bery B.V.R. Subrahmanyam DMEO NDAP 15th FC FRBM 2003 PM Gati Shakti

Plan-by-Slogan

#	Slogan
1	Reconstruction
2	Rapid Industrialisation
3	Self-reliant Economy
4	Growth + Stability
5	Garibi Hatao
6	Direct attack on poverty
7	Food, Work, Productivity
8	Human Development
9	Growth + Social Justice
10	Double per capita in 10 yrs
11	Faster + Inclusive
12	Faster + Inclusive + Sustainable

Aspect	PC	NITI
Genesis	1950	2015
Approach	Top-down	Bottom-up
Funds	Yes	No
CMs in body	No	Yes (GC)
Output	FYPs	Vision + Strategy + Indices

Economic Planning in India — From Bombay Plan to Viksit Bharat 2047

On this page

Conceptual Clarity — Plan, Planner, Period

1. Pre-Independence Plans (1934–1950)

1.1 Colonial-Era Initiatives

2. Planning Commission & National Development Council

2.1 Planning Commission (15 March 1950 — 17 August 2014)

Functions (as originally laid out)

2.2 National Development Council (NDC) — set up 6 August 1952

3. The Twelve Five-Year Plans (1951–2017)

3.1 Cross-Cutting Patterns

4. Annual Plans, Rolling Plans & Plan Holidays

4.1 Annual Plans

4.2 Plan Holidays (two episodes)

4.3 Rolling Plan (1978–80)

4.4 The End of the FYP Era (2017)

5. NITI Aayog — Formation & Structure

5.1 Composition

5.2 The Three Councils

5.3 Seven Stated Objectives (as per the 2015 Resolution)

5.4 NITI Aayog vs Planning Commission — The Comparison Table

6. NITI Aayog Flagship Initiatives

6.1 Aspirational Districts Programme (ADP) — launched January 2018

6.2 Aspirational Blocks Programme (ABP) — launched January 2023

6.3 Atal Innovation Mission (AIM) — 2016

6.4 NITI Aayog Indices & Dashboards (the "competitive federalism" toolkit)

6.5 NITI for States Platform — launched March 2024

6.6 Other Standing Mandates

7. Critical Appraisal of Indian Planning

7.1 What Planning Achieved

7.2 What Planning Failed to Achieve

7.3 Why It Was Replaced

7.4 Critique of NITI Aayog

8. Current Affairs — Viksit Bharat 2047 & Today's Planning Architecture

8.1 Viksit Bharat 2047 Vision

8.2 Recent NITI Aayog Reports & Initiatives (2023–2025)

8.3 The Three Statutory Backbones That Replaced Planning's Fiscal Role

9. Prelims Previous Year Questions (2014–2026)

10. Mains Previous Year Questions (2014–2025)

11. Fifteen-Minute Revision Box