FAQs on Ramesh Singh Summary: Economic Planning - Indian Economy for UPSC CSE
|1. What is economic planning?
Ans. Economic planning refers to the process of setting specific goals and objectives for an economy and developing strategies and policies to achieve them. It involves the allocation of resources, implementation of measures to promote economic growth, and addressing issues such as poverty, unemployment, and inequality.
|2. Why is economic planning important?
Ans. Economic planning is important because it helps in fostering economic development and achieving desired outcomes. It allows governments to prioritize sectors, allocate resources efficiently, and address socio-economic challenges. It also provides a framework for long-term investment, infrastructure development, and sustainable growth.
|3. What are the different types of economic planning?
Ans. There are various types of economic planning, including centralized planning, decentralized planning, indicative planning, and mixed planning. Centralized planning involves government control and decision-making, while decentralized planning involves greater involvement of local authorities and communities. Indicative planning sets goals and provides guidelines without strict government control, and mixed planning combines elements of both market forces and government intervention.
|4. How does economic planning impact the economy?
Ans. Economic planning has a significant impact on the economy as it influences resource allocation, investment decisions, and overall economic performance. It can shape the growth trajectory, promote sectoral development, address market failures, and create an enabling environment for business and investment. Effective economic planning can lead to increased productivity, employment opportunities, and improved living standards.
|5. What are the challenges of economic planning?
Ans. Economic planning faces several challenges, including the complexity of the global economy, changing market dynamics, political constraints, and the need for accurate data and analysis. It requires effective coordination among different sectors, balancing competing interests, and adapting to dynamic economic conditions. Additionally, striking a balance between market forces and government intervention, ensuring accountability, and managing potential risks and uncertainties are also key challenges in economic planning.