Economic Planning in India.
Transition from Mixed Economy to
Transition in GDP.
• Introduction of Economic Planning
• Essential Objectives of Planning
• Definitions of Mixed and Market Economies
• Transition from Mixed to Market Economy
• Transition in GDP
• Sectors affecting GDP
• Factors affecting GDP
Introduction of Economic Planning
• Planning is an economic mechanism for
resource allocation and decision-making.
• Economic planning refers to any directing or
planning of economic activity outside the
mechanisms of the market.
• The Economic Planning has been going on
great since independence.
• This has played a major role in the
development of the country and led India
become self sufficient.
Essential Objectives of Planning
• High Rate of Growth
• Economic Self-Reliance
• Social Justice
• Modernization of the Economy
• Economic stability
Definitions Of Mixed And
• Mixed economy is an economic systems in
which both the state and private sector direct
the economy, reflecting characteristics of both
market economies and planned economies.
• A market economy is an economy in which
decisions regarding investment, production
and distribution are based on supply and
demand and the prices of goods and services
are determined in a free price system.
Transition From Mixed to
• A mixed economy permits private
participation in manufacturing and
• It also contributes to public ownership in
fabrication and manufacturing which can take
full advantage of social welfare.
• In a mixed market economy this system is
governed by licensing and regulation policies.
Transition From Mixed Economy
to Market Economy(contd…)
• A market economy is known as a "free market
• It is controlled by the law of supply and
demand which in return will determine the
price of services and goods.
• In a market economy the exchange of goods,
services, and information take place freely
according to the supplier and the buyer.
Transition From Mixed to Market
• Mixed economy’s regulations may paralyze
features of production.
• Lack of price control management can cause
shortages in goods and can result in recession.
• The market economy is merely driven by the
sellers and the buyers with very few
• This in turn leads to effective marketing.
Factors Affecting GDP
• Banking and Finance
• Foreign Direct Investments
Transition in GDP
• The goal of GDP is to measure the total
production of goods and services produced in
the economy each year.
• GDP is important because it gives an
indication of how successfully society is
addressing the scarcity problem.
• Planning involves economizing of scarce
resources inorder to reduce the inequalities of
income and wealth.
• Transition from Mixed to Market economy
leads to proper exchange of goods and
services at an eqilibrium price.
• Transition in GDP defines the overcoming of
scarcity problems in the market.