ppt

1. ECONOMY & GOVERNEMNT
VANITA MODAGI

2. Relation Between Economy & Government
 Government organizes economic system for the welfare of all
its citizens & human being at large
 Government provides many facilities like food, clothing, shelter,
education, health, hygiene, transport, communication, etc.
 Developing countries need government to provide basic
amenities
 Economy of a country is dependent on national income,
production, employment, investment, price, etc.
 Government manages trade between different countries to
secure income that can be used to develop the country
 Economic planning is vital so that the government can spend
money on welfare, industry, security and infrastructure
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3. Planning in India
 Bharat Ratna Sir M. Visveswariah is known as the “Father of
Economic Planning in India”
 Government has formed National Planning Commission in 1950
chaired by Prime Minister of India
 Objective of the commission is to precisely estimate the
natural, human resources, & capital in the country
 Planning period in India is Five years called five-year plan
 Natinal Development Council established in 1952- Chief
Ministers of all the states are members of this board
 All members approve the fiver-year plans as prepared by the
Planning Commission
 Special attention is done on balancing regional development
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4. Five Year Plans
 Fiver Year plans are implemented from 1951 until today
 Every 5year period the amount of investment has grown
tremendously showing the growth of India
 Specific objectives are identified to be met in the plan
 Poverty is seen as one of the major issues that need resolution
 To eradicate poverty many supplementary objectives need to
be met:
 Increasing production to maximum
 Increase employment opportunities
 Reducing economic disparities
 Ensuring economic stability
 Modernizing the economy
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5. Achievements of Five Year Plans
 National income in the first 20 years has grown at an average of 3.5% per
annum & the next 20 year at 5% per annum
 Further growth has occurred from 1991-2000 at 5.6% per annum & 2001-
2010 at 7.3% per annum
 Contribution of all 3 sectors; agriculture, industry & services
 Agriculture contributed 50% initially but now dropped to 12%
 Service sector is now the major contributor at 59%
 Self sufficiency has been achieved in production of food grains – now
exporting
 Employment opportunities increased with expansion of industry
 Immense progress in field of science and technology
 Applying modern technology in agricultural products, industrial & service
sectors
 Services of our engineers are being exported to foreign countries
 Exports of manufacturing products have increased
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6. Failure of Five Year Plans
Increase in inequality of income
Many sections of society did not realize the growth
process
Inclusive growth has become the priority of the new
five-year plans
Failed to create adequate jobs with the growing
population
Poverty has reduced but still relatively at large
Equality & social justice is yet to be attained
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7. Green Revolution
 Green revolution is one of the greatest achievements of the five-year plans
 Drastic increase in food grain production is called green revolution
 Increased from 74 million tonnes to 108 million tonnes
 High yielding seeds developed by Dr. Norman Borlauge
 Used the high-yielding seeds of wheat in states of Punjab, Haryana, Delhi,
Rajasthan & Eastern parts of Uttar Pradesh
 Irrigation facilities improved, use of fertilizers, technology
 Dr. Swaminathan is called the Father of Green Revolution in India
 However, the high-yielding seeds were only used by rich and large
cultivators & poor farmers could not use these seeds
 Government subsidized seeds, chemical fertilizers, equipment, etc. to help
poor farmers – provided low interest loans
 Developed agri-markets so that farmers can get good price for their crops
 Surplus produce results in construction of granaries, cold-storage
warehouses
 Pre-harvest & post-harvest technology enabled green revolution
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8. NITI Ayog
 National Institute for Transforming India (NITI) started on January 01, 2015
 Used bottom UP approach
 Used 15 year road map, 7 years vision, strategy & action plan
 Headed by Prime Minister but day to day administration is carried out by the
vice-chairman
 Objectives:
 Strategies with active involvement of states
 Recognizing that strong states make strong nation
 Features of NITI Ayog:
 Develop as resource centre for knowledge & skills
 Promote research & innovation & speed development
 Develop policy vision & strategies
 Activities of NITI Ayog:
 Policy & Program frame work
 Co-operative federalism
 Monitoring & Evaluation
 Thinktank & Knowledge hub
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