Gears of Consumption and Investment in Different Plan Periods

Code : MAC0034

Year :

Industry : -

Region : India

Teaching Note:Available

Structured Assignment :Not Available

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Introduction:After achieving independence in 1947, India adopted the centralized planning model of the Soviet Union and launched its first five-year plan in April 1951. The plan was designed to achieve growth and social justice. The idea behind the plan was that it should not only raise the standard of living of the people but also provide them with new opportunities that would enable them to lead a diverse life.

At that time it was believed that the state could play a significant role in raising the domestic rate of savings and in putting it to more productive use.

It was the state's prerogative to come out with policies that would stimulate the consumption and investment demand that would help set the country on a path of continued and sustained self-development. In this case, we will examine the effect of the different plans on consumption and investment, and the significant differences between the pre-reform and post-reform plan periods.

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