5.36 ndian onom
political reasons, enough discrepancies cropped of imbalanced growth. To tackle this
up in the method of allocating funds to the states. problem, the Centre is promoting the
At the theoretical level, the governments knew states with lower, infrastructure so that
the remedies, but at the practical levels politics they can overcome the disadvantage.
dominated the planning process. Democratic The process is slower, but at least the
immaturity and politicisation of the planning government is addressing the issue,
process is to be blamed for this. which is not less satisfying and there is
Now things have changed for the better. The no criticism to this strategy. Still balanced
government is following a two-pronged strategy growth and development is going to be a
to achieve the objective of a balanced growth and great challenge for planning in India.
development in the country:
(i) Backward regions today are prioritised
3. highly centrAliseD nAture of PlAnning
in directing the Central Government Decentralising the process of planning has been
investment (very much the same since a major goal of the governments since the 1950s.
the 1950s), but a new beginning in But after Nehru, with every Plan we see greater
the ‘differential development strategy’ tendency of centralisation in the planning process.
has been made by the Centre with Setting up of the NDC and promoting multi-level
the Tenth Plan. Under this strategy, planning (MLP) did not serve much purpose in
the developmental constraints of this direction. It has been among the criticised
different states are to be tackled with areas of planning in India as the National Planning
a differentiation in the strategy. The Committee as well as the First Plan itself had
more needy states get more funds and called for ‘democratic planning’ in the country.
assistance from the Centre for their By the mid-1980s, the mindset of the Centre
planned development, cutting across the went for a change and the need for decentralised
political party lines (it is seen today as a planning got proper attention. Finally, by early
symbol of political maturity on the issue 1990s two constitutional amendments (i.e.,
of economic development, at least). the 73rd and the 74th) promoted the cause of
(ii) There is also a complementary strategy decentralised planning by delegating constitutional
of the planning to address the matter of powers to the local bodies. With this, a new
regional imbalance in the country. After era of planning began, but still the planning of
the country started the process of economic local bodies is in a nascent stage due to lack of
reforms, the nature of planning was to proper financial provisions for them. Once the
incline more and more towards indicative financial provisions for local bodies are evolved
planning. The economy was to be more to the adequate level or the local bodies are given
and more dependent on private sector financial autonomy, the process of decentralised
investment for its future development. planning will surely get a new direction and
And the private sector will be, naturally, meaning, as the experts believe.
more interested in investing in the In the meantime, the Tenth Plan emphasised
regions, which have better infrastructure greater role for the states in the planning process.
support. Since the developed regions The Plan started a concerted effort to include
have better infrastructure they will attract the states’ participation in the national planning
the highest level of private investment, process. The Centre is today more concerned
which will again accelerate the process about the developmental constraints of the states