Indian economy is the 5th largest by nominal GDP and 3rd largest by purchasing power parity.
Main characteristics of Indian economy –
Agrarian economy.
Agricultural activity dominates in both gross national product and employment.
Mixed economy.
Both public and private sector co-exists.
This term was coined by J M Keynes.
India opted for mixed economy in the industrial policy of 1948.
Developing economy.
Features which shows are –
Low per capita income.
Occupational pattern is biased towards primary sector.
Heavy population pressure.
Prevalence of chronic unemployment and under employment.
Steadily improving rate of capital formation.
Low capital per head.
Unequal distribution of wealth / assets.
The planning commission of India –
Was setup in 15th March 1950.
Chairman was Jawaharlal Nehru.
Was formed by a resolution of union cabinet.
It was an extra constitutional and non-statutory body.
NITI (National institution for transforming India) aayog –
Came into existence on 1st January 2015.
Policy making think-tank of government.
Aims to involve states in economic policy making.
Will be providing strategic and technical advice to the central and the state governments.
Structure of NITI aayog –
Headed by prime minister.
Governing council comprising chief ministers of states and heads of all the union territories.
In addition there is regional council comprising of CM’s and Lieutenant governors of UT’s.
Are mandated to develop plans that are region specific.
It basically comprises of –
Chairperson.
Vice chairperson.
Ex-officio members.
Special invitees.
Full time members.
Governing council.
And the CEO.
National development council –
Was an extra constitutional and legal body.
Was constituted to build cooperation between the states and the planning commission for economic planning.
Was setup in 6th August 1952 by government’s proposal.
PM was the ex-officio chairman.
Members were union cabinet ministers, chief ministers, and finance ministers of all the states, lieutenant governors of UT’s and governors of centrally ruled states.
Plans by the planning commission have to be passed by the NDC first.
Now the government council has replaced the national development council (NDC).