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PLANNING IN AN ERA OF LIBERALISED ECONOMY

By Kalyani Shankar

Prime Minister Narendra Modi has junked the Planning Commission. His announcement on the Independence Day scrapping it was not a bombshell as speculations to that effect were doing rounds in the corridors of power. What was not expected was his invitation to the public to come up with suggestions for an alternate body. One would have expected the government to give a thought about the alternate body before announcing its liquidation. Now until the new reformed commission is formed, there will be a vacuum.

 

The imposing Planning Commission building in Parliament Street is a landmark in the capital for decades. Greatly impressed by the Soviet model, Jawaharlal Nehru set up the Commission for a planned economy. It enjoyed tremendous clout earlier with the full backing of the prime ministers. Its basic responsibility was to assess and allocate the resources as also to determine the priorities. The Commission provides guidanc