The concept "Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment" is a comprehensive study area, not a single act or institution, that defines the core challenges and strategies of India's economic journey since independence. Its origin lies in the post-independence decision to adopt a model of planned economic development, heavily influenced by socialist principles, to address poverty and underdevelopment. The Planning Commission, established in March 1950 by a Government of India resolution, was the primary institution for this planning, formulating Five-Year Plans starting in 1951.
The mechanism of planning involved the Commission assessing and allocating resources to achieve goals like increasing national income, reducing poverty, and promoting balanced regional growth. Mobilization of resources refers to the process of identifying, acquiring, and utilizing natural, human, and financial resources, with key sources including taxation, domestic savings, and foreign investment. The government uses tools like the Goods and Services Tax (GST) to generate revenue and initiatives like the National Monetisation Pipeline (NMP) to unlock financial resources for public investment.
The original top-down planning model was replaced when the NITI Aayog (National Institution for Transforming India) was established on January 1, 2015, by a Cabinet resolution. The NITI Aayog functions as a policy think tank, fostering cooperative federalism by involving states in policy-making, and promoting a bottom-up approach instead of the centralized planning of its predecessor. The core issues of growth, development, and employment remain central, with the focus shifting from state-led industrialization to balancing economic reforms with social concerns like unemployment and income inequality.