Indian Economy Planning and NITI Aayog GS Paper III

Planning and NITI Aayog — Quick Revision

One-page UPSC revision of Indian planning: pre-independence plans, Planning Commission and NDC, twelve Five-Year Plans, and NITI Aayog's structure.

SyllabusGS III · Indian economy and issues relating to planning, mobilisation of resources, growth, development and employment

By 2 min read Updated Oct 2026 #quick revision#economy#planning

A last-week sheet for planning. Prelims loves plan-to-theme matching and the status of bodies; Mains wants the planning-versus-policy debate.

Pre-independence Plans

YearPlanAuthor / sponsor
1934Planned Economy for IndiaM. Visvesvaraya
1938National Planning CommitteeCongress, chaired by Jawaharlal Nehru
1944Bombay PlanIndustrialists
1944Gandhian PlanS.N. Agarwal
1945People’s PlanM.N. Roy
1950Sarvodaya PlanJayaprakash Narayan

Five-Year Plans

PlanPeriodRemember it by
1st1951-56Agriculture, irrigation; Harrod–Domar
2nd1956-61Heavy industry; Mahalanobis
3rd1961-66Self-sustaining economy; wars and drought
Plan holiday1966-69Three Annual Plans
4th1969-74Growth with stability; self-reliance
5th1974-79Garibi Hatao; ended in 1978
Rolling plan1978-80Janata government
6th1980-85Poverty eradication
7th1985-90Food, Work and Productivity
Annual Plans1990-92Crisis years
8th1992-97Post-reform; human resource development
9th1997-2002Growth with social justice and equality
10th2002-07Monitorable targets
11th2007-12Faster and more inclusive growth
12th2012-17Faster, more inclusive and sustainable growth

Planning Commission vs NITI Aayog

Planning CommissionNITI Aayog
Set up15 March 19501 January 2015
BasisCabinet resolutionCabinet resolution
ChairPrime MinisterPrime Minister
Day-to-day headDeputy ChairmanVice-Chairperson
States’ forumNational Development Council (1952)Governing Council
FundsAllocated plan assistanceNone
OutputFive-Year PlansStrategy documents, indices, evaluation
High-yield facts
  • “Economic and social planning” is Entry 20 of the Concurrent List.
  • Neither the Planning Commission, the NDC nor NITI Aayog is constitutional or statutory.
  • Governing Council: CMs of all States and UTs with legislatures + Lt Governors of other UTs, chaired by the PM.
  • NITI’s CEO is appointed by the PM, in the rank of Secretary to the Government of India.
  • Atal Innovation Mission (2016) and the Aspirational Districts Programme (2018) are anchored in NITI Aayog.
  • The Plan/non-Plan expenditure distinction ended with the 2017-18 Budget.

NITI Aayog Indices

IndexMeasures
SDG India IndexStates’ progress on the Sustainable Development Goals
Composite Water Management IndexWater management by States
School Education Quality IndexSchool education outcomes
India Innovation IndexInnovation capacity of States
Export Preparedness IndexStates’ export readiness
National Multidimensional Poverty IndexDeprivations in health, education and living standards

Traps

  • Mahalanobis = Second Plan, not First.
  • NITI Aayog does not allocate funds; the Finance Commission (Article 280) handles devolution.
  • The Twelfth Plan was the last; there is no Thirteenth Plan.
  • The rolling plan (1978-80) and the plan holiday (1966-69) are different gaps.
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