Explanation: The Planning Commission was established in India in 1950 by Prime Minister Jawaharlal Nehru, with the primary objective of formulating and implementing policies aimed at economic development. This institution played a crucial role in the post-independence era, when India was in the process of rebuilding and modernizing its economy.
The Planning Commission was tasked with the responsibility of formulating Five Year Plans, which were comprehensive economic strategies designed to achieve specific development goals over a five-year period. These plans covered various sectors such as agriculture, industry, infrastructure, and social services. The Commission's work was instrumental in laying the foundation for India's economic growth and development.
The focus on economic development was a strategic choice made by the Indian government in the early years of independence. The country faced significant challenges, including poverty, unemployment, and underdeveloped infrastructure. The Planning Commission was seen as a key institution that could help address these issues through systematic and planned economic policies.
The Commission's role was not limited to policy formulation; it also played a significant part in the execution and monitoring of these policies. It worked closely with various government departments and state governments to ensure that the plans were implemented effectively and that the desired outcomes were achieved.
While social and political development were also important areas of focus for the Indian government, the Planning Commission's mandate was specifically centered on economic development. Social development initiatives were often integrated into the broader economic planning process, but the primary emphasis was on economic growth and development.
The Planning Commission continued to function until 2014 when it was replaced by the NITI Aayog (National Institution for Transforming India), which was established to provide a more flexible and dynamic approach to economic planning and development.
In summary, the Planning Commission was set up in 1950 to design and execute policies for economic development, reflecting the government's strategic focus on rebuilding and modernizing the Indian economy in the post-independence era.