Types of Planning | Economy for UPSC 2025 (Pre & Mains) PDF Download

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Types of Planning: 
1. Imperative Planning: 
Followed by command economies.  Such planning models set very specific goals for 
each sector of economy.  
Also known as directive/Target Planning.  
All economic decisions in hands of state.   
Features 
a) Quantitative targets of growth and development   
b) State control of resources.  
c) Negligent role of market, no independent price mechanism.   
d) No / negligent private participation in Economy.   
Ex -> centrally Planned Economy -> USSR, China etc.   
 
2. Indicative Planning: 
Used by democratic, liberal states. 
Main idea behind this model is planning is required only to provide a framework to 
economy.   
Also called Basic structure planning.  
 
3. Normative Planning: 
It gives less emphasis on social and institutional dimensions of the society. 
Here, Planner merely searches for best possible result in relation to established 
goals, giving less importance to issues like caste, creed, region, language etc.   
  
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Types of Planning: 
1. Imperative Planning: 
Followed by command economies.  Such planning models set very specific goals for 
each sector of economy.  
Also known as directive/Target Planning.  
All economic decisions in hands of state.   
Features 
a) Quantitative targets of growth and development   
b) State control of resources.  
c) Negligent role of market, no independent price mechanism.   
d) No / negligent private participation in Economy.   
Ex -> centrally Planned Economy -> USSR, China etc.   
 
2. Indicative Planning: 
Used by democratic, liberal states. 
Main idea behind this model is planning is required only to provide a framework to 
economy.   
Also called Basic structure planning.  
 
3. Normative Planning: 
It gives less emphasis on social and institutional dimensions of the society. 
Here, Planner merely searches for best possible result in relation to established 
goals, giving less importance to issues like caste, creed, region, language etc.   
  
 
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4. Systems Planning: 
Gives due importance to socio –institutional factors. 
It is Planning from socio – technical point of view, but only suitable for country which 
has lesser degree of social diversity.   
Economic survey 2012 –13 advocate a need for this as there is need to connect 
policies with customs and traditions of people, to enhance their acceptability.