Rationale behind the planning commission:

The Constitution of India has guaranteed certain Fundamental Rights to the citizens of India and enunciated certain Directive Principles of State Policy, in particular, that the State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the national life, and shall direct its policy towards securing, among other things:

1. That The Citizens, Men and Women Equally, Have the Right To An Adequate Means Of Livelihood;
2. that the ownership and control of the material resources of the community are so distributed as best to sub serve the common good; and
3. That the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment.

Having regarded to these rights and in furtherance of these principles as well as of the declared objective of the Government to:

Promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production, and offering opportunities to all for employment in the service of the community.

Objectives of planning:

• High rate of growth – with a view to increase the standard of living
• Modernization – of the economy in terms of adoption of new technology and social outlook
• Economic self – reliance – avoiding imports and producing in India
• Equity – equitable distribution of wealth with social justice
• Economic stability – controlling inflation and unemployment.

Role – The Planning Commission was charged with the responsibility of:

• making assessment of all resources of the country
• augmenting deficient resources
• formulating plans for the most effective balanced utilization of resources
• Determining priorities and defining the stages in which the Plan should be carried out and propose the allocation of resources for the due completion of each stage
• indicate the factors which are tending to retard economic development
• determine the nature of the machinery which will be necessary for securing the successful implementation of each stage of the Plan in all its aspects;