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Question

The Planning Commission used a technique called 'perspective planning' for formulating five year plans in India. Which of the following best describes 'perspective planning'?

The correct answer is
Long-term strategic planning

Understanding Perspective Planning in India's Five Year Plans

The Planning Commission of India utilized a method known as 'perspective planning' to guide the formulation of its Five Year Plans. This approach focuses on setting long-range goals and outlining the strategies needed to achieve them over an extended period.

What is Perspective Planning?

Perspective planning involves looking ahead over a significant timeframe, often 15-20 years or more. Its primary goal is to establish a clear vision and direction for national development, ensuring that short-term and medium-term plans (like the Five Year Plans) align with these overarching long-term objectives. It involves:

  • Setting broad national goals.
  • Identifying key challenges and opportunities over the long run.
  • Formulating strategies to address these issues and leverage opportunities.
  • Ensuring consistency and coherence across different policy initiatives.

Analysis of Options

Let's examine the provided options to see which best describes perspective planning:

  • Option 1: Long-term strategic planning
    This option accurately captures the essence of perspective planning. It is inherently strategic because it involves setting overarching goals and direction, and it is long-term because it looks far into the future, beyond the immediate scope of a single year or even a single Five Year Plan. This aligns with how the Planning Commission used it to provide a stable framework for economic and social development.
  • Option 2: Tactical planning for one year
    This is incorrect. Tactical planning is typically short-term and focuses on specific actions to achieve immediate goals. Perspective planning is the opposite – it's long-term and strategic, not short-term and tactical.
  • Option 3: Planning without time limits
    While perspective planning deals with the long term, it does have defined time horizons (e.g., 15, 20, or 25 years). Planning 'without time limits' is too vague and impractical.
  • Option 4: Crisis management planning
    This is incorrect. Crisis management is reactive, dealing with immediate emergencies or disruptions. Perspective planning is proactive and strategic, focusing on desired future outcomes rather than managing current crises.

Conclusion

Based on the analysis, 'long-term strategic planning' is the most fitting description of perspective planning as employed by India's Planning Commission for its Five Year Plans. It provided the foundational vision upon which the successive Five Year Plans were built.

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Important Questions from Miscellaneous - Economics

  1. Privatisation was a key pillar of the New Economic Policy of 1991. Which of the following is NOT a form of privatisation?
  2. Privatisation involves transferring the ownership of enterprises from the public to the private sector. What is the primary goal of privatisation?
  3. The concept of a mixed economy was central to India's early planning strategies. In the context of India's Five-Year Plans, what does the term 'mixed economy' refer to?

  4. Labour reforms have remained a key agenda in the post-1991 economic policy landscape. How many labour codes were consolidated by the Indian government under the labour reforms enacted in 2019-2020?
  5. Disinvestment was adopted as a tool for privatisation in India. Which of the following options best defines disinvestment?
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