5.38        ndian    onom
     ideological change in the strategy of planning.       of supporting the Plans in the right way. Besides
     Now the industries can sustain themselves, but        tax reforms, the financial reforms, as well as fiscal
     the laggard agriculture sector needs some special     consolidation have been given proper care in
     care and promotion from the government,               recent years.
     so that the masses who earn their livelihood
     from agriculture can benefit out of the WTO-          9. PoliticisAtion of the PlAnning Process
     promoted globalisation. The agriculture sector        In a democratic political system, almost every
     is in urgent need of attention, otherwise, the        issue of socio-political importance is influenced
     process of globalisation is going to be ineffective   by politics. It is more correct in the case of
     in benefitting the masses.                            lesser matured democracies. The same stands
                                                           true for the process of planning in our country.
     7. fAulty inDustriAl locAtion Policy                  Greater and greater politicisation of the planning
     There are time-tested theories of ‘industrial         process culminated in such a design that at times
     location’ considering the nearness of raw materials,  economic planning served the opposite purpose.
     market, cheaper labour, better transportation         For example, we know that planning is a tool
     and communication, etc. But the Plans always          for promoting regionally balanced growth, but
     prioritised setting up of new industrial units (i.e., in India in the process of serving vested political
     the PSUs) in the backward regions of the country,     interests of the Centre, it resulted into promoting
     which falsify the theories of industrial location.    an imbalanced growth.
     The government needs to develop all industrial             In recent years, the government has tried to
     infrastructures besides setting up certain PSUs. As   address the major criticism of planning in India.
     the PSUs require skilled labour force, the regions    More such constructive steps with better results
     failed to gain any employment from the PSUs           are expected in future. More aware and better
     too. The government still continues with the same     informed citizens will lead to better and better
     policy of setting up industries, but now the new      planning in future.
     PSUs are hardly set up in traditional areas.               There has been a general anger among the
                                                           sections of society regarding coalition politics,
     8. Wrong finAnciAl strAtegy                           scams, etc., in recent years. The Economic Survey
     Mobilising resources to support the highly            2014–15 rightly blames coalition politics and the
     capital-intensive Plans (courtsey the PSUs) has       federal structure for tardy decision making in
     always been a challenge for the government. To        several areas—from oil subsidy to tax reforms,
     support the Plans, no stones were left unturned       FDI in retail and free movement of foodgrains.
     namely, going for a highly complex and liberal tax    Almost everyone outside the government blamed
     structure, nationalising the banks, etc. Ultimately,  it for policy paralysis. The Survey notes it as an area
     tax evasion, the menace of parallel economy and       of concern. The Survey notes that politicians and
     lesser and lesser capital for the private sector were policymakers can set the ball rolling by acting as
     the bane of India. Expansion of subsidies, salaries   role models, but it also cited the poor record on
     and the interest burden every year gave an upward     enforcement of contract to argue that people’s
     push to the non-plan expenditure leading to           attitude needs to change. “In these everyday
     scarcity of funds to support the plan expenditure     situations (such as hiring a cab or a painter) it is
     (i.e., the developmental expenses).                   cumbersome to bring in the state and the law courts.
           In the era of reforms, the government has       Here the main guarantor has to be people’s personal
     started giving attention to the financial strategy    integrity and trustworthiness” , it says. The statement