ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Planning and Growth in India

Planning and Growth in India Pradhan Harishankar Prasad Three things, it is argued here, have gone wrong with Indian planning. First, the role of deficit financing for resources mobilisation has been over-emphasised. This has led to inflationary trends and, consequently, to a rise in the ratio of inventory to investment which has been a drag on development.

Growth in the Macro-Economic Perspective

The necessary condition for development in underdeveloped economies is a rate of growth of capital higher than the rate of growth of population. There is always some possibility, in these economies, of raising the rate of growth of capital in the non-disguised unemployment sector. There may be some possibility too of raising the rate of saving in the disguised unemployment sector. But if the increase is not sufficient for the rate of growth of capital to exceed the rate of growth of population, the factors strategic for development then become the rate of inflow; of capital, population planning and socialism. The policy implications of this analysis are discussed here.

Rate of Interest and Economic Development

Pradhan Harishankar Prasad The rate of growth of income is an increasing function of investment. When the actual rate of investment is less than the desired level of investment, the need for planning becomes apparent.

Sectoral Growth Rates in the Indian Economy

October 29, 1966 and in the small, by altering the controlled distribution pattern. It amounts to presenting the Government with a fait accompli, which has to be accepted by it. One recalls in this context, the analogous case when during the first two Plans at least private savings exceeded what was allowed for in the Plans, forcing THIS IS AN ATTEMPT to study the implications of the changes in income in different sectors of the Indian economy during the decade and a half of planning. It has been argued that in general there is a certain statistical relationship between inter-sectoral shift in income and working force and economic advancement.! One significant aspect of the Clark-Fisher2 thesis is that the proportion of tertiary industry (tertiary industries refer to services) grows steadily with economic advancement. The validity of the thesis has often been questioned.3 Leibenstein4 maintains that "the tertiary industries part of the Clark- Fisher thesis may be its weakest link." There are two aspects of the tertiary industries part of the Clark- Fisher thesis, viz, the occupational aspect and the "value added'' aspect. 5 As one examines the criticism of the Clark-Fisher thesis, it appears that the occupational aspect is the weak link of the thesis. It cannot be denied that there is sufficient statistical evidence to show that in the past as economies advanced, the ratio of the contribution (value added) of tertiary sector to the national income had increased.
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