Why is Economic Planning a Difficult Task in India

Planning—A Difficult Task

Planning in a developing country like India is not an easy task rather it is a formidable one. It is formidable mainly because of two reasons. First, when we plan for an economic change, it hurts a so far privileged group in the society. These people, therefore, tend to resist such change and create hurdles in its way. Both the planning and its implementation, thus, become difficult social and political questions and not merely difficult technical questions. In the process of planning for economic growth with social justice government has to manipulate the free play of the forces of demand and supply with a view of social interest. It will definitely hurt the life-style of the rich people. For example, rich people can have greater claim on scarce goods in a free market. But when we make plans for equal distribution or provision of essential goods and amenities such as sugar, clothes, water supply, electricity, sanitation etc. for the common people, it will cut the shares of rich section. For this government has to take hard political decisions which is really a very difficult task in a democratic setup like that of India.

The second reason which makes the planning a formidable task arises from the necessity of rapid economic growth. We know rapid economic growth requires large capital base or expansion of the economy’s productive capacity. Capital formation demands curb on consumption. For this we have to save and invest. It means we have to sacrifice our today’s comforts for tomorrow’s goods. It is a basic question of today versus tomorrow before the country. If we want to have more goods tomorrow we have to consume less today. But in a poor country like India it is very difficult to prepare people for such sacrifices.