Economic development depends on economic, political, social and religious factors

(i) Human resource
(ii) Technical Know - how
(iii) Political freedom

(i) National Institution for Transforming India was formed on January 1, 2015 through a Union Cabinet resolution replacing the Planning Commission.
(ii) Prime Minister is the Chairperson and Union Ministers Ex-officio members.
(iii) Vice-Chairman of NITI Aayog is the functional head.

Basic and collective needs of the people - health, education, sanitation, water, food, housing facilities.

1. Gross national product
2. GNP per capita
3. Welfare
4. Social indicators.

1. Predetermined and well-defined objectives or goals.
2. For economic planning deliberate control and direction of the economy by a central authority, e.g., the state.
3. Optimum utilization of natural resources and capital which may be scarce and labor that may be abundant.
4. The objectives are to be achieved within a given interval of time – 5 years, 7 years, etc.
5. The performance of the economic functions of increasing production, maximizing employment and controlling population growth so that production outstrips population growth.

(i) Development means, people must have higher incomes, better education, better health care and nutrition, less poverty and more equality of opportunity.
(ii) According to Michael P. Todaro and Stephen C. Smith, "development must beconceived of as multidimensional process involving major changes in social structure, popular attitudes and national institutions, as well as the acceleration of economic growth, the reductions of inequality and the eradications of poverty".

(i) The National planning commission was set up in India in 1950.
(ii) A major function of the planning commission was to formulate a plan for the most effective and balanced utilization of the country's resources".
(iii) The planning commission formulated the First Five Year Plan for the period 1951 - 56.

1. Co-operative and competitive federalism to enable the States to have active participation.
2. Shared national agenda for development priorities and strategies.
3. Decentralized planning to restructure the planning process into a bottom up model.
4. Vision and scenario planning to design medium and long-term plans.
5. Network of expertise
6. Harmonization of actions across different layers of government.
7. Conflict resolution for mutual consensus to intersectoral, inter departmental, inter state and centre state issues.
8. Coordinating interface with the world to harness global expertise and resources.
9. Internal consultancy to central and State governments on policy and programmes.
10. Capacity building and technology up-gradation and providing managerial and technical know how.
11. Monitoring and evaluation of policies and progammes.

1. Sir M. Vishveshwarya (1934) made the first attempt in laying foundation for economic planning in India through his book, "Planned Economy of India". It was a 10 year plan.
2. Jawaharlal Nehru (1938) set-up "National Planning Commission" by a committee but due to the World War II it did not materialize.
3. In 1940,8 leading industrialists of Bombay presented a 15 Year Bombay Plan.
4. In 1944 S. N Agarwal gave the Gandhian Plan focusing on the agriculture and rural economy.
5. M.N. Roy in 1945 drafted People's Plan aiming at mechanisation of agricultural production.
6. In 1950 J.P. Narayan advocated Sarvodaya Plan which was inspired by Gandhian Plan and with the idea of Vinoba Bhave.
7. It gave importance to agriculture, small and cottage industries.
8. After considering all the plans in the same year Planning Commission was set up to formulate Five Year Plan in India by Jawaharlal Nehru.
9. Nehru was the first Chairman of Planning Commission, Government of India.

1. Human Resources:
Human resource is named as human capital because of its power to increase productivity and thereby national income. There is a circular relationship between human development and economic growth.
2. Technical Know-how:
As the scientific and technological knowledge advances, more and more sophisticated techniques steadily raise the productivity levels in all sectors. Schumpeter attributed the cause for economic development to innovation.
3. Political Freedom:
The process of development is linked to political freedom. DadabhaiNaoroji explained in his classic work ‘Poverty and Un- British Rule in India’ that the drain of wealth from India under the British rule was the major cause of the increase in poverty in India.
4. Social Organization:
People show interest in the development activity only when they feel that the fruits of development will be fairly distributed.
5. Corruption free administration:
Corruption is a negative factor in the growth process. Unless the countries root-out corruption in their administrative system, the crony capitalists and traders will continue to exploit national resources.
6. A desire for development:
The pace of economic growth in any country depends to a great extent on people’s desire for development
7. Moral, ethical and social values:
These determine the efficiency of the market, according to Douglas C. North. If people are not honest, the market cannot function.
8. Casino Capitalism:
If People spend a larger proportion of their income and time on entertainment liquor and other illegal activities, productive activities may suffer, according to Thomas Piketty.
9. Patrimonial Capitalism:
If the assets are simply passed on to children from their parents, the children would not work hard, because the children do not know the value of the assets.