lannin in ndia          5.37
     and is trying to adequately support the State Plans       on ‘wage-employment’ has shifted towards ‘self-
     to the extent possible. In return, the Centre wants       employment’ to do away with the lop-sided
     greater and transparent fiscal compliance from            employment strategy of the past.
     the states. This approach continued during the
     Eleventh Plan and so has been committed for the           5. excessive emPhAsis on Psus
     Twelfth Plan, too. After some time we may hope            Indian planning emphasised on public sector
     that this criticism of Indian planning will lose it’s     undertakings (PSUs) for the right reasons, but
     ground.                                                   in the wrong way and for a considerably longer
          It is high time now that the planning process        period of time. The state’s monopolies in certain
     of the nation tries including the mass participation.     areas continued over such a long period that too
     The Economic Survey 2011–12 rightly devotes a             in losses that there came a demand-supply gap
     section to dwell into contracts and how the civil         in the major goods and services produced by the
     society and citizens play a key role in fostering         PSUs. Though very conducive policy changes
     economic growth. “Honesty, punctuality, the               were effected after the country started the reform
     propensity to keep promises, the attitude towards         processes, the hangover of the past is still looming
     corruption are matters shaped in great part by norms      large. Several reforms in the PSUs as well as a
     and social beliefs and the behaviour patterns can         more liberal approach towards the private sector
     become habitual. Moreover, in a democracy like            with market reforms are needed to phase out the
     India, what can be done by government depends in          discrepancies created by the over emphasis on
     great measure on how ordinary people think and what       PSUs.
     people believe in,” it says. The Survey further adds
     that the civil society has been campaigning to put        6. Agriculture overshADoWeD by the inDustry
     in place new institutions, such as the Lokpal Act,        Promoting the cause of faster industrialisation
     to ensure the quality of service and bring about          over time became so dear to the planning
     transparency through steps such as auction of             process that the agriculture sector got badly over-
     natural resources while the government has either         shadowed. Though the Plans were highlighting or
     been slow or resisted several changes.99                  prioritising agriculture, the industrial sector and
                                                               the PSUs were glorified in such a way that time
     4. loP-siDeD emPloyment strAtegy                          and resources both were scarce for the agriculture
     Planning in India has been tilted heavily in              sector. Such a policy always created a situation
     favour of ‘capital intensive’ industries, especially      of food insecurity (even today) for the country
     from the Second Plan onwards. Such industries             and the masses who depended upon agriculture
     in the public sector could not generate enough            for their livelihood and income (still it is 58.2
     employment. In place of it India should have gone         per cent)100 could never increase their purchasing
     in for ‘labour-intensive’ industries. In the era of       power to a level that the economy could reverse
     economic reforms, the attitude changed and the            the situation of ‘market failure’. In India, even
     planning process is promoting the agriculture             today, industrial growth is badly dependent on
     sector with an emphasis on agri-industries and            agricultural growth.
     agro-exports to create more gainful and quality                The Tenth Plan recognises agriculture as the
     employment opportunities. The earlier emphasis            ‘core element’ of development. This is a welcome
       99.   Ministry of Finance, Economic Survey 2011–12 (New  100.  Ministry of Finance, Economic Survey 2012–13 (New
             Delhi: Government of India, 2012), p. 30.                Delhi: Government of India, 2013), p. 173.